Ultimate Guide to Direct To Consumer Marketing

yes lead generation even if you're
selling e-commerce you want to be
generating leads on your website as
we've seen today
loads of direct consumer brands are
doing this and you need to be doing it
too
the customer acquisition costs with
e-commerce being such a hot thing at the
moment
are so high that if you're not
generating leads and you don't have
fancy email automations on the back end
you might find it quite difficult to
acquire as many customers as you really
want
so figure out what your offer is figure
out what you can give people to have
them
give you their email address
the direct consumer business model has
been one of the biggest phenomenons
in business this century with well-known
brands like gymshark coming from a
direct
consumer background and being valued at
over a billion
groups like the hut group being made up
of a bunch of different direct consumer
brands turning over more than a billion
you've got high profile exits of direct
consumer brands like movement watches
for example that grew from
zero to a 300 million dollar exit in
just
five years and direct consumer clothing
companies like lounge underwear growing
over 350 percent
it's not hard to see why so many people
are piling into direct
consumer right now in this video we're
going to map out a growth strategy and
lay out the ultimate guide to direct
consumer digital marketing that you can
follow if you're a direct
consumer brand wanting to build your
customer base but first
what's going on why is direct consumer
such a growth story at the moment well
let's look at an example at exposure
ninja over the years we've worked with a
fair few direct consumer brands
and one that we're working with at the
moment is soccer supplement
now soccer supplements sell supplements
for footballers
or in american soccer players or
saccharists well let's imagine that we
were growing soccer supplement
from scratch in say 2010. what would the
process have been
well the first thing that we likely
would have had to do is take the product
out to some local independent stores and
basically beg them to stock it please
can you put this on your shelves to sell
to local customers
we would have had to sell this product
to the store at a huge discount off
rrp so that they could take their cut
and make money from the sale
hopefully they sell some if they sell
some that gives us some revenue that
allows us to go to the next step
now the next step would have been to
take the product to larger stores
now hopefully if we've sold some at the
small local independence the larger
stores would have given us the time of
day and might agree to a trial but they
might also require us to run some big
expensive brand advertising campaign
that will be completely untrackable
in the hopes that we drive people to
their stores to purchase the product
and by the way these larger stores would
have required even more
of a discount on rrp so that they could
make their cup
so this is the route that we have to
take we have to keep going through
retailers hoping that they will sell
their product to their customers and in
return giving them a massive cut of the
rrp
every single time now we as a brand
remember have
no relationship with the customers we
don't actually know who's buying the
product we don't have their contact
details
if we want to launch a new product we
have to go to our retailers and try to
get our retailers
to launch the product for us we can't do
that direct because we don't have that
relationship
now that's okay as long as they're
selling stuff and these big stores can
ship
loads and loads of units so that's all
great
but what happens if a competitor comes
along and
wants to bump you off let's say they
offer the store an
even bigger discount on their rrp or
they just pay the store outright
to take the most prominent shelf space
and nudge you down
well hopefully that doesn't happen
because if it does there's not much that
you can do or let's say that the store
sees that your product is selling well
and wants to sell their own
through their own brand well hopefully
that doesn't happen because there's
really nothing that you can do about
that
well you might be thinking that's a lot
of hopefully tim and yes it is
whilst i've learned in business that
hope is useful hope is definitely
not a strategy but let's contrast this
with a direct
consumer model where you create a
product you build an e-commerce store
you run ads that you can
track selling your products at rrp or
whatever price you want to sell it
basically a much higher margin either
way and you build your customer list you
own that customer relationship when you
create a new product
you can send it out to your list if you
want to run retargeting ads to them you
can
you have complete ownership over that
interaction
there's not much hope required to make
that work
and that's why direct consumer has taken
off in the way it has
bigger margins and more control means
faster growth
here's the downside when it comes to
direct consumer marketing more control
is great because you are
solely responsible for marketing and
selling your product
but that also means that you are solely
responsible for marketing
and selling your product and as anyone
who has tried to grow a direct consumer
brand before will know
it's not as simple as build it and they
will come you need a very comprehensive
and well thought through digital
marketing strategy
well it's your lucky day because that's
exactly what we're gonna do in this
video
i'm gonna break down the ultimate direct
consumer digital marketing plan
that you can use this is based on our
work with dtcs
obviously being their marketing agency
also our analysis
and deep dives that we've done into some
of the fastest growing dtc brands in the
world
like the hot groups brands gymshark and
movement watches
so stay tuned firstly we're going to go
through some principles and then at the
end i'm going to give you my
top actionable tips based on the biggest
blockages that we see dtc companies
struggling to get over with their
digital marketing
let's do this
the framework that we're going to be
using in this video is the exposure
ninja
star marketing system so this is a five
step system which basically
outlines the five key elements behind
any successful digital marketing
campaign based on
our work with clients and also our
analysis of what's working
really well out there so we've got these
five elements and this works
fantastically
well for dtc brands as well the first
step in the system is positioning
now positioning is all about clearly
defining what your business
is about your tone of voice who you're
selling to and the specific
problem that you are solving this is
really important for direct consumer
brands because in
the early days to get traction it really
helps if you focus your audience and
offer a very clear solution to the
problem now we're going to look at some
examples of direct consumer brands that
have done this really well in the next
section but the next element of the
style marketing system is the web
presence this is your website and also
your social media channels now the
website an ecommerce site is core
to any dtc brand because this is where
you make money
this is where your audience your
followers your email list
turn into customers we're going to look
at some examples of direct consumer
brands that have done a really good job
of their website and also looking at the
key principles that you need to copy if
you want to get that sort of growth for
your dtc brand
the third element of the star marketing
system is the process
now process is how you turn someone who
is aware of your business
into a customer and this is really key
indeed to see
in traditional retail someone who walks
into a store would have bought the
product because that's what they're
there to do
whereas in d2c a lot of the time we are
advertising to people on social channels
we are trying to encourage people to buy
a product from somebody that they've
never heard of before so we need a very
clear
route to be able to do that so you'll
notice for example lots of dtc brands
are
selling gateway products these are
products that they know are going to
lead to bigger purchases later on down
the line
you'll notice also lots of brands
offering discount sign up
email forms on their website in an
attempt to generate leads
and there are some really good examples
of dtc brands using
lead generation not just going for the
sale first but actually using their
website to generate email signups
that they can then sell to and we're
going to look at one in particular in
just a bit
the fourth element in the star marketing
system is people now this is all about
once you've got your funnel in place
you've got your positioning you've got
your web presence you've got your
process
pouring more people into this we usually
recommend for d2c brands a
combination of paid and organic traffic
because the great thing about paid is
it's predictable
you can turn it up and turn it down as
you like and you get a lot of data back
about the sort of audience that are
converting best
organic traffic channels on the other
hand offer you the ability to scale very
large
and don't cost you per click so you can
go bigger and you don't have to pay for
every visitor that's coming onto your
site but the downside of organic traffic
channels are that you are susceptible to
somebody's algorithm and anytime your
visibility is susceptible to somebody's
algorithm that puts you in a potential
place of weakness
this is why we like to suggest a
combination of paid
and organic traffic channels and again
we're going to look at some dtc brands
that have used this really effectively
the final piece of the puzzle is
progression
this is all about turning a one-off
customer into a repeat customer and into
an advocate
and in some cases indeed to see an
affiliate or an ambassador for your
business this is really important
because you might be spending a lot of
money on customer acquisition
you don't want that customer acquisition
cost to have to be recouped only on the
first sale
you want to be able to make money from
that customer that you've spent money to
acquire
over and over and over again and then if
possible if they're really excited about
the brand and what you're doing
you want that person to then go and
become an advocate and start bringing
you in more customers
and again we're going to look at some
examples of brands that have done
exactly that now if you're a ddc
business you're likely to have
weaknesses in one or more of these areas
the strongest and the fastest growing
businesses are strong in each of these
areas but most businesses have lack in
at least one of these areas
some will have lack in two areas in
which case they're really struggling to
scale and any business that's lacking in
three or more areas is
likely to be feeling the pressure
they're definitely not going to be
generating the revenue that the owner or
marketing manager thought they would or
could
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it out
okay on with the show okay in this
section we're going to talk about some
ddc brands that have done really well
and we're going to look at how they've
used each of these elements
first up we're going to talk about the
positioning piece remember this is
what your business is who you sell to
and the reason for your business
existing
the d2c brands that get positioning
nailed
build a tribe where people want to be a
part of that brand
now to me the ultimate business in this
space is gymshark
gymshark has so clearly built a culture
around its brand
that for many people of a certain age
who with a certain bunch of interest
gymshark is like their default brand if
you have a look through their instagram
feed as an example
so whilst we've got a range of races and
genders what we don't have
a range of is ages there are no old
people on the gymshark feed
that's because their audience is very
narrowly defined as people that are
really into fitness
not necessarily health but into fitness
and of a certain age
they are selling a lifestyle and you
become part of the club when you buy a
gymshark product
now if you think about what this does
for their marketing obviously it
massively simplifies the targeting
they don't have to sell you loads of
different lifestyles they sell you
one lifestyle and because that's an
aspirational lifestyle for all of their
audience
everyone buys into it now lots of
beginner dtc brands might look at that
and say yeah but i want to sell to
old people as well or i want to sell to
other types of people
we want to broaden our product range
really soon but gymshark has
kept their product focused very narrow
for quite a long time
into the business yes they've ridden the
athleisure wear trend
but by keeping very focused on what
they're good at and not straying outside
that into things like
shoes and formal wear they've made their
marketing job
much much easier now let's move into the
present side of things so presence is
all about having a high performing
website that does a good job of turning
a visitor
into a customer now one real success
story in the uk with dtc
is the smile direct club this is
basically
braces and teeth aligners for people
that you buy online now
when you go on the smile direct club
website
the call to action and the user journey
is extremely clear
everywhere you go you see the same call
to action is
click here to get started or am i a
candidate basically all means the same
thing they have a very straightforward
path
that they take anyone who comes onto the
website through so let's look at how it
works
firstly we click on am i a candidate
this takes us through to the
smile assessment page this is basically
lead capture
let's be 100 clear this is lead capture
the whole purpose of this process
is to get my details so that they can
sell to me now even if i don't convert
even if i don't become a customer
through this the fact that i'm going
through the smile assessment means i
have they have my details so they know
i'm interested there's some really
clever stuff going on here
firstly free they've made it free
they've really lowered the barrier to
entry
one of the most common mistakes with d2c
is that people think someone has to buy
in order for that person to be of any
interest to them well i might not be
ready to buy yet or i might be halfway
through the process and i get
interrupted
if you don't have my contact details
then you're forced to retarget to me but
you don't actually have
any of my information that you can
directly communicate me with
so it's much better to have some form of
lead capture whether it's an assessment
like this
or whether it's a 10 15 20 off first
purchase
like a lot of the heart group brands do
so this is a free
smile assessment they've made it short
again they're trying to lower the
barrier to entry remove some of the
objections that people might have of
doing this
so let's just go through the process and
we can see how it works because this is
something that can apply to every
business whether or not you're selling a
medical product
or whether or not your product needs
diagnosis for example if i'm gymshark
i might be doing the find your ultimate
workout gear
if i'm a soccer supplement i might be
doing find your ultimate workout stack
if i'm
movement watches it might be find out
what type of watch you are you know
whatever it is basically it's a
diagnosis it's a little game that you
people can play
and that you can use to understand what
people's preferences
are so that you can sell to them on the
follow-up now what's really interesting
about this
is the first question why are you
thinking about straightening your teeth
they're trying to understand the
motivations behind the customer
now whether they're sending me into a
segmented email sequence
according to my answer i don't know but
if i was them and it says i'm getting
married
i would be sending optimized content
through the emails to people that sign
up on that basis right the images would
be people getting married with beautiful
teeth
if it's i'm looking to start a new job
i'd be showing pictures of people in
professional situations
clearly being successful with great
teeth right so you'd be playing on
the reason that they have in their head
for purchasing anyway let's just say i
want to get rid of that gap and i'm just
looking for generally straighter teeth
have i worn braces yes i have fixed the
spacing issue
uh let's go for that one
okay so we can see i actually don't get
any results
really tailored for me at all basically
yes it works
you're allowed to buy from us now what's
happened is they've now got my contact
details they've clearly understood
my needs the reason for me wanting to do
this and they understand some things
about my specific situation as well
which means they can tailor their
follow-up communication to me
if they're smart they'll put me straight
into a retargeting list so they can
start running
instagram and facebook and google ads to
me based on
the things that i've put in the
questionnaire and of course they're
going to tailor their email automation
sequence which will be designed to sell
me into one of these two ctas
so i now have two options i can book a
free visit or i can order an in-home
impressions kit and by the way they've
always got offers on these
now again what are they trying to do
they're trying to remove the objections
they're trying to remove the barriers
that people might have to taking that
next step so they're making it easy
whether you want to go to someone or
whether you want to do online so this is
a pretty decent product page for this
trip where i offer we've got information
about how it works what it looks like
we've got the
increased perceived value by use of the
defaultly applied voucher code but
actually the product is supposedly worth
more than it actually costs you
we've got credibility triggers here
through the use of the number of people
that have used the product before we've
got some images as well
we've got more credibility through the
reviews this is pretty good
what i might do is have a little video
that shows people how to use it
and i might have some before and after
videos so that people can
be resold on the benefits of getting
their teeth straightened because i'm
seeing lots of credibility
but i'm not necessarily seeing the
progress but on the whole
it's pretty good another example of a
direct consumer brand that does a really
good job of process
are you turning a visitor into a
customer or a lead in this
case is lounge underwear now when you go
on the lounge underwear site you have
this fitting room
thing that you can use to find the
perfect fitting bra
for you this is very similar to the
smile direct
process where we're actually just taking
people through a series of questions
in order to generate a lead basically
for the business but a lead that is
categorized
so they know for example what size bra i
would need what cup size and what
whatever the other measurement is um and
they will be able to help me
by sending me offers for that product
you can tell i really need the style
guide i'm completely lost at sea here
but
the point is not just making the sale
it's generating the lead
okay let's take a look at a d2c brand
that is doing really well with traffic
are you there driving
loads of people to their stores now the
heart group owns a range of dtc brands
from
look fantastic which owns some of the
cosmetic brands that it sells
and also sites like my protein they are
really good at driving traffic and one
of the things that you'll notice if you
analyze the hut group brands is that
even though they rank very well
organically for the terms that they
would want to so for example here we
have my protein
ranking number one for protein powder in
the uk driving a lot
of organic traffic both branded and
generic but even though they're doing
that they're
still aggressively advertising they're
still paying to advertise
so you might think well look it looks
like they're driving around 1.3 million
visits to the site organically every
month
we'll probably turn the ppc down that's
not what the hut group does
the hut group goes all in with ppc
they're driving google ads google
shopping
hard why because they know that if they
can get a customer
they can monetize that customer forever
they sell consumable products that
people have to buy
and re-buy and re-buy so they are happy
to invest a lot of money
up front to get that customer knowing
that their back end process is so
good that they can resell to them over
time of course one of the benefits of
d2c is that you're not having to give
the retailers a cut
but one of the downsides of d2c is that
you often have to invest that
cut that you would have given to the
retailer into marketing to get that
customer in the first place but the
great thing is
you only have to invest that once once
you've got that customer you can resell
to them over time
and that means that your margins go up
as you bring more customers
into the business so it's not uncommon
for a ddc brand in the early days to
have much lower margin because they are
investing
in that customer acquisition one of the
things that the heart group and my
protein do really well
is improve the ranking for their product
category pages
for example this page here is all about
protein shakes and it's ranking
number one in the uk for protein shake
there's a lot to
e-commerce and we've got videos which
are all about how to increase your
e-commerce conversion rates but one of
the things i want to point out here
is that the amount of non-commercial
content on the my protein site is
significant
here we go into the protein guide where
i've got 32 pages of
information all about protein
why is this here well it's here for two
main reasons firstly
to actually convert people if people
don't understand and they want a bit
more information
great secondly it's here to help with
ranking
whether this is because it's being
indexed or whether it's because it's
increasing time on page
this stuff really works to help boost
the ranking of your site
now whether you have this as a separate
guide or whether you just beef up the
amount of category page copy that you
have or
you have a separate section on your site
which is all about information
product guides blogs articles knowledge
base
type stuff it doesn't really matter the
important thing
is though is to have that information on
your site this is great for being an
organic traffic asset which you can get
ranking for lots of informational
phrases
that are further up the funnel but it's
also a really powerful tool to send this
content
to your audience through your email list
to get them engaged and to show them
that you actually care about helping
and supporting rather than just selling
to them
if we have a look at the paid ads that
they're running we see they are being
extremely aggressive they don't care how
broad the term is they're happy to go
for
informational terms like p protein which
may or may not have any commercial
intent that may or may not be someone
who's willing to buy
they're willing to go for the broadest
terms like whey protein
biprotein hemp protein cheap protein
powder which you think
doesn't have much margin with it anyway
they don't care they are just
all in on customer acquisition through
paid channels now this is fairly common
amongst d2c businesses that they will
reinvest the profit that they're making
into customer acquisition cost this
leads them to run a
loss or break even for many years whilst
they're building up their audience and
their top line revenue
oftentimes dtc brands sell or take
private equity investment and having a
high valuation is typically based on
having high revenue so a business like
the hut group will be happy to sacrifice
profit margin to increase top line
revenue
knowing that that's going to get them to
their goals faster okay let's talk about
the fifth element which is progression
so remember this is all about how you
turn a customer
into a repeat customer and an advocate
now there's obviously
loads of ways of doing this through your
youtube channel and your social media
posts
all the way through to your email
marketing what you're sending people are
you treating them and surprising them by
sending them little free things
or are you sending them repeat offers to
get them to purchase
now it's obviously a good idea to have
your email list segmented according to
the products that they're interested in
or
particular audience types that they
might be whether it's they're into a
particular
type of exercise for gymshark or you
might segment people by gender or
whatever it might be
this allows you to tailor the messages
that you're sending to each part of your
audience but you can also focus on
making your audience ambassadors and
potentially influencers for the brand
going again back to my pro team we see
how they have
a become a my protein ambassador page on
your site
and this is all about encouraging people
who buy the product
to become ambassadors to become
influencers so they tell you what you
get as being a my protein ambassador you
get product allowance you may even get a
monthly salary so they'll just literally
just pay you
to work for them and post on your feed
they'll pay you product commission as
well so they have an affiliate
system set up with your voucher code
generating commission for you when your
followers
purchase through the voucher code so
this is a great way to kind of
mobilize the army if you like if your
audience is prominent on social if your
audience has a following then this is a
great way to tap into that following
because if you think about it as a
follower of that
influencer it's a much more compelling
proposition for them to see
someone that they idolize someone that
they follow promoting a product
than you having to pay to advertise that
person of course
perfect world is you do both right so
you run an ad
with that influencer in to their
audience that's a great way of getting
visibility for your page
to their audience in a relevant way but
this is a great way of tapping into
your customers audiences and kind of
mobilizing the army to get a bit of
viral traction and i use viral very
loosely but you can see what i mean
because
this is how we turn one customer into
many customers now obviously this takes
setup and if you're going to set up an
affiliate program you need to work out
your commissions and how you manage this
and how you promote it but
you can see the principle behind this
and it's very interesting to see that my
protein is doing this considering
one of the very very early growth
strategies they used back in probably
2010 to 2012
was sending out affiliate codes with all
of their products they knew that
turning their customers into advocates
was going to be important
because their customers spent time in
the gym so their customers knew
other potential my protein customers so
by all means rely on word of mouth but
it's even better if you can incentivize
word of mouth
all right in this next section we're
going to go through some actionable tips
the things that you can implement
right now before we do that though if
you want some help growing your business
whether you're a dtc brand or not
request a free website and marketing
review from exposure ninja what will
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exposureninja.com forward slash review
you'll fill in a bit of information
about your business you'll tell us what
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moment and how well it's working one of
our team will then conduct some research
they'll have a look at your site they'll
have a look at your competitive site
where the low-hanging fruit is they'll
analyze what sorts of traffic channels
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that you're making at the moment they'll
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review today
okay so what are my top tips if you're
growing a direct consumer brand in this
video we've
covered loads of different things that
you can be doing within positioning
presence process people and progression
well my top tips based on the things
that we
most often see dtc brands coming unstuck
with
number one figure out who you're selling
to
and exactly what it is that you're
selling now you might be tempted to skip
this particularly if it feels difficult
or it's a little bit unclear and it
feels uncomfortable going there but when
we look at the analytics for a direct
consumer website we can usually
tell the business that doesn't have
clear positioning
the metric that shows up as unclear
positioning conversion rate you might be
getting a lot of people onto your site
but if your site isn't converting
properly
often that can be a positioning thing
because your audience just
doesn't understand why they should buy
from you rather than somebody else
now luckily we've got lots of videos on
this type of thing including one on how
to build a positioning statement
so go and check that out but figure out
your positioning please don't skip this
step
tip number two is figuring out your call
to action for
lead generation yes lead generation even
if you're selling e-commerce you want to
be generating leads on your website as
we've seen today
loads of direct consumer brands are
doing this and you need to be doing it
too
the customer acquisition costs with
e-commerce being such a hot thing at the
moment
are so high that if you're not
generating leads and you don't have
fancy email automations on the back end
you might find it quite difficult to
acquire as many customers as you really
want
so figure out what your offer is figure
out what you can give people to have
them
give you their email address and then go
and watch our video on how to set up
fancy email automations to turn these
people
into customers advocates repeat
customers
tip three conversion on your website
make sure that your e-commerce
conversion rate is decent and by decent
preferably we mean above two percent
obviously this depends on your traffic
source we've got clients
converting at 10 to 15 but it depends on
your traffic source how well qualified
they're on if you're selling a lot to
repeat customers but
what you don't want to be doing is going
into advertising and driving traffic if
you've got a very low conversion rate
because that's going to
reduce the profitability of everything
else that you're doing so for a lot of
e-commerce businesses and direct
consumer is no exception e-commerce
conversion rate is about your category
pages and your product
pages so the pages that help people find
the right product for them and then the
pages that
sell that product to them so we talked
about the small direct club site earlier
how it removes the objections that
people might have
generally for direct consumer brands
good product pages are about lots of
product photography
product reviews if you can get video on
there so much the better if the video
describes the products
and adds a bit of personality to the
brand even better still
what you don't want to do is just have
one or two crappy low resolution images
that don't do a particularly good job of
selling the product at all
one paragraph of copy and they're no
reviews that
stuff doesn't convert so take some time
to make your product pages
really good your conversion rates will
thank you
next bite size takeaway traffic make
sure that you're not becoming over
reliant on any one particular traffic
source like i say in general we like to
recommend an organic and a paid traffic
source
as bare minimum okay some businesses you
can't do paid traffic if that's you
fair enough now the other question is
whether you go social or whether you go
search
first a lot of businesses if they're
direct consumer think they need to pile
everything into social it's not always
the way
think through what your business sells
and the mindset that your customer is in
if your customers are searching for
something if they have a problem that
they know about and they're looking for
solutions that a lot of the time
search makes most sense because you can
advertise and you can get content
ranking
for those things that they are searching
for if you're selling something that's
more
impulse purchase you can show it to
someone and they go ah yeah do you know
what actually that's pretty cool i'm
gonna buy it
then social makes a lot more sense
because then you can run ads and you've
got organic content which can target
people based on their interest and based
on their
likes and dislikes and demographic
rather than having to wait until they're
ready to search for that thing
so choose your flavor and then find an
organic and a paid traffic source that
work
really well then you can scale up from
there of course all the biggest dtc
brands are doing both
doing all all flavors of everything but
as you're growing
pick one and then find two channels
within that are paid and an organic
final thing progression don't just let
your customers
sit there don't just go always chasing
the new customer because you have to pay
to get the new customer
if you've got your existing customer
list just sitting there without getting
any emails without getting any
retargeting ads from you
this is a gold mine opportunity so
get some automation set up segment that
list get some automations
based on their interests the product
types that they've purchased what
they're into
if you're struggling to know what you
should be sending people then check out
our email marketing videos for more tips
on this
but for goodness sake get some
progression in there and if you can
look at setting up an affiliate system
or some kind of
ambassador program where you can
mobilize your customers to go out and
get new customers
for you as well so i hope you've enjoyed
this show all about the ultimate guide
to dtc marketing we've got detailed
breakdown videos tearing down
the digital marketing and the growth
strategies behind most of the businesses
featured in this so just search on
youtube for
exposure ninja gymshark exposure ninja
movement
exposure ninja the hut group and you
will find those detailed teardowns
don't forget to like and subscribe to
this video and let us know in the
comments what's your favorite d2c brand
and secondly if you have a dc brand
then drop a link in the comments we will
be sure to check it out
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