3 Reasons Why Selling Direct To Consumer Is A Great Idea
Rodan + Fields’ activity method is based on R + F Independent Consultants’ use to support and educate the customer. As a result, is direct-to-consumer business strategy becoming increasingly relevant in the business world?
This development, in theory, can be credited to three major factors. First, with the rise of mobile and social media/cloud technology, consumers demand a better experience. In other words, customer expectations are growing. Consumers are expecting a more seamless online experience now more than ever.
- Why Direct to the consumer is a good idea
New retail formats like Salesforce.com (CRM) and Alibaba (a) are changing retail. The technology, sourcing and shopping experience that Salesforce.com has introduced to the retail world allows businesses to become scalable by integrating different business processes and creating a consistent customer experience.
In fact, CRM vendors have innovated such that CRM solutions are becoming central to how business is done today. According to Google Analytics, 62 per cent of all shopping carts contain information about a company’s CRM service. The more consumers know about the services you offer, the more likely they want to do business with you.
- The consumer demands a better experience.
R + F supports three different levels of service for their Independent Consultants to service their clients:
- Level One – Customer Focused
- Level Two – Technology Focused
- Level Three – Strategic Consulting
Just like a really exceptional customer service advisor, the independent consultant is making sure to take the time to understand the clients needs and give them a 360-degree service that only their consultant can provide. These are the same type of consultants that Rodan + Fields uses. This is the power of the brand, and the brand is what makes a brand take off.
Calls for Brands to establish their brands Online is now a large part of the consumer ecosystem. Millennials and Gen Z. Consumers are forming preferences on social commerce ( Buying on or through Social Media).
- The rise of mobile and social media
As we all know, consumers have their noses on their phones. According to Nielsen, nearly half of all Internet users now surf the Internet on their mobile devices, meaning that consumers are much more likely to click on a brand’s link on a Facebook ad, for example.
This type of technology is now embedded in the way that brands conduct business. It’s important to understand that both consumers and marketers are shifting to mobile and social media. Consumers need a seamless experience Brands that understand this shift in consumer behaviour will now provide consumers with a unique blend of online and offline solutions.
- 3 reasons why the direct to consumer business strategy is becoming critical
Connecting with customers in ways that weren’t possible before, as they interact with brands on different platforms, online and offline. For example, not relying on inventory and directly controlling your margins by selling direct to consumers.
But consumers also want a platform to interact with brands in ways that they can relate to. As a result, as in Netflix (NASDAQ: NFLX), consumers want to be able to rent, buy, borrow or stream, from a brand’s product. The public doesn’t want to depend on “Exclusive Offerings” – getting products and services first with free shipping. Consumers today are more demanding, and Brands need to meet them where they are.
The takeaway is that a traditional Bricks and Mortar style “Selling” business model no longer works. Rodan and Fields success with these prestige skincare products has been because it defied the traditional sales approach and understood that a new business model was required.
The R + F Independent Consultants model is highly effective because the service users are truly experts, and clients can call on them in times of need. Our knowledge is second to none, and therefore, the consumer can rely on them to help them out when they need them most.
* For more information about Rodan + Fields and their Independent Consultants, email me at firstname.lastname@example.org