How New Age Brands Are Leveraging Data Analytics To Power D2C ECommerce.

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Published on
December 4, 2022


The last three years of the pandemic, coupled with a decade of technology development, have fundamentally altered how customers and businesses interact. Thankfully, the direct-to-consumer market is now flourishing. However, developing vendors have fewer resources than established companies that have been around for a longer time to maintain their visibility. Because of this, they must be more strategic in their client acquisition and retention efforts.

This is where an appropriate data analytics model can help!

By revealing trends and changes in consumer purchasing behaviour, analytics enable D2C firms to improve their marketing strategies continuously. The goal is to take advantage of the herd mentality by giving clients a memorable purchase and after-sale experience!

Let us walk you through the benefits and uses of data analytics in the D2C environment.

Data Analytics And Why It's Powering D2C ECommerce?

A few years back brands had minimal access to consumer data outside of surveys and data from third parties. Thanks to their ongoing personal relationship with their customers through their interactions or surveys, D2C helps brands to better understand customers and their expectations than ever before. Brands have realised that using customer data in conjunction with analytics and software can be a great tool for creating individualised consumer experiences.

Illustration by Fornax

Creating buyer personas

It is important to understand who your target audience is and what they are looking for specifically. Fortunately, using buyer personas wisely can make your life a lot simpler. You may construct the ideal buyer persona for your website by using data analytics, which gives you a detailed understanding of your present website visitors. Analytics can even be used to reach out to previously untapped audience segments and grow your company as a result.

For example:

  • Use a customer's search or purchase history to locate offerings at a discount that are suitable for them;
  • Utilize past purchasing patterns to find new customers who fit the same demographic or interest.

Better customer segmentation

It becomes challenging to give your consumers a tailored experience when there is a vast number of them. However, it greatly aids you in marketing when you divide your audience into various groups according to their location, tastes, purchase patterns, and other aspects.

By segmenting your customers, you can break them into more manageable groups for targeted advertising. By employing data science to construct these categories, you can boost revenue.

Powering product recommendation engines

A product recommendation engine is a tool that enables marketers to provide pertinent real-time product recommendations to their clients. Recommendation systems employ algorithms and data analysis techniques as effective data filtering tools to suggest the most pertinent product or things to a specific consumer.

The recommendation engine can dynamically choose which filters and algorithms to use for a particular consumer in any situation. Thus, enabling people to raise conversion rates as well as average order values.

Forecasting inventory

Data analytics can help you narrow down the number and type of fulfillment, distribution, and warehousing options to make sure you're not spending too much on just one aspect of logistics. This depends on how young the brand is, how recently it entered the market, and the type of segment it operates in. Utilizing analytics, you can manage your inventory effectively in the areas you service and maintain enough stock to meet demand.

Better customer satisfaction

Customers determine whether a D2C brand succeeds or fails. And ensuring their satisfaction before, through, and after the purchasing process is what accounts for great customer service. D2C brands can collaborate with review sites and distribute incentive mailers for each rating and review received based on data analytics. Your customer service personnel may understand what problems clients are having and offer a more individualised solution for recurring problems, which may even convince a disappointed customer to alter their mind.

To summarize

With more customers preferring to shop independently as a result of falling technical barriers, it is understood that D2C is here to stay! Data analytics is one of the primary things D2C firms seek in an AI-driven eCommerce solution because they recognise the importance of data in the digital world. With data-driven decision-making, any brand has limitless potential to expand with the correct fusion of business and technology.

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