insights! #55: D2C enables next-level customer experience. Where's the catch-up need for manufacturers?
Joubin RahimiManaging Partner · synaigy4 min read
Together with ECC, we published a position paper on D2C strategies in the home and garden sector. It examined seven theses on D2C strategies in depth. This episode is dedicated to the third thesis, which states that D2C enables a next-level customer experience, though manufacturers have yet to fully exploit this potential.
D2C enables next-level customer experience. Currently, however, manufacturers still have significant catching up to do to make optimal use of this potential.
Customers want it all: price, quality and convenience
The results of our study clearly show: consumers are more demanding than ever. They expect not only low prices, but also the highest quality and maximum convenience when shopping. This triad of price, quality and convenience – which we jokingly call "the devil's triangle" – poses major challenges for many manufacturers. But this is exactly where the opportunity lies to stand out from the competition. While retail scores mainly through its broad product range and easy accessibility, manufacturers can win over customers in the D2C business with targeted, specialised offerings and outstanding service.
The benefits of retail: choice and accessibility
Traditional retail has one decisive advantage: the convenience it offers through a wide range of products. Imagine going into a DIY store to buy a chainsaw. There you'll find not only the device you want, but also the matching accessories – from the right chain to protective gear and further tools. This comprehensive product range is one reason why many customers still choose to go to the shop. Being able to get everything you need for a project in one place is unbeatably convenient.
The manufacturers' strength: depth over breadth
But what retail offers in breadth, manufacturers can make up for in depth. As a manufacturer you have the unique opportunity to accompany your customers through the entire customer journey – and that goes far beyond the purchase. Take the chainsaw example: you know not just the product itself, but also all the associated needs and challenges of your customers. You can give them targeted advice on what accessories they need, when they should reorder, and even how to best maintain their chainsaw. Here you can score points as a manufacturer by not just selling products, but also offering valuable solutions and information that make your customers' everyday lives easier.
D2C: The path to the optimal customer experience
Direct sales offer manufacturers a golden opportunity to deepen their customer relationships and create an outstanding customer experience. But the reality shows that many manufacturers haven't yet fully exploited this potential. Too often, it remains mere product sales, without using the possibilities of personalised communication and comprehensive customer care. This is the key: use the data you gather through direct contact with your customers to better understand their needs and offer them exactly what they need — at the right time and through the right channel.
Recommendations and the way forward
What does that mean specifically for you as a manufacturer? First: recognise the importance of a holistic customer experience. It's not just about selling a product, but about accompanying your customers through the entire process – from the first piece of information, through the purchase, right up to after-sales service. Second: use the advantages of the D2C model to optimise this experience. You have control over the entire customer journey and can shape it so that it perfectly matches your customers' needs.
If you want to find out where your company stands in terms of customer experience and how you can improve, we offer valuable resources as part of our study. These include a maturity model for your customer experience, concrete recommendations for action and a starter package that helps you quickly and efficiently take your D2C strategy to the next level. You'll find all relevant links below.
You can download the full study with all seven theses here: https://kampagnen.synaigy.com/de/d2cstudie. We've also developed a maturity model to help you find out where your company stands on customer experience. By answering seven questions, you'll get recommendations tailored exactly to your situation. Here's the link to the free CX Readiness Check: https://kampagnen.synaigy.com/cx-readiness
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Great to have you along for a new episode of Insights. My name is Joubin Rahimi and today it's about the third thesis of our D2C study.
The third thesis is: "D2C enables the next level of customer experience. However, manufacturers currently still have significant catching up to do in order to make optimal use of this potential." What do we mean by that? On the one hand, the study showed that consumers want a great price, great quality and mega convenience when shopping. De facto, they want to have it all. That's actually a Gordian knot and the devil's triangle, as we call it. But ultimately we always find our way there and it is possible. Retail itself convinces with convenience. It's simple. I have a great selection of the whole range I need, perhaps also fringe products, not just the one case, so if I think of the DIY store, I want to paint a bit and also have a craft-related matter. I can sort all of that out at the DIY store. Super convenience. Product selection is also part of convenience. Of course, a manufacturer with a certain range can't cover everything a DIY store covers. It doesn't need to, either. But the things you directly need should be quickly accessible. Or at least the pointers to them. Take buying a chainsaw from Stihl, for example. What's the right chain to go with it? There's a huge selection and things like that simply need to be easy to find, easy to order. Beyond that, there are further things a chainsaw can be used for. Think of partnerships or even expanding the product range. Manufacturers have the advantage that they can, de facto, get started much earlier for a very specific case and work on it far more sustainably. If I take the chainsaw example again, it's not simple. I buy it and use it. No, what about further tips? Once I have the chainsaw, I need trousers, I need a helmet, safety goggles. What's the general picture for reordering further products? If it's an electric chainsaw, what about the batteries, if I have a small battery, can I offer a bigger one? I know this whole journey and that has to do with convenience too. Manufacturers can dock in brilliantly there to generate added value for their customers. A DIY store and the like can of course do that too. However, due to the sheer product variety there, they have a very, very broad range. But the depth, that's what you as a manufacturer can do.
Hope this gave you another insight into the study. We look forward to discussion. We have three further pieces of information.
Point 1 naturally the study. After providing your name, e-mail address and phone number. And yes, we'll call you too and look forward to a brief chat. Even if you've no interest or aren't our ideal client, you'll get all the data from this study that will help you. Here's the link to the study: https://kampagnen.synaigy.com/de/d2cstudie
Point 2: the core of this study is customer experience. That means we've developed a maturity model showing where you stand with your customer experience. You get that by answering seven questions, plus recommendations for action tailored to your situation. Here's the link to the free CX Readiness Check: https://kampagnen.synaigy.com/cx-readiness
Point 3 as a starter package with the ECC Next, the corresponding consulting arm of the Institute for Retail Research, and our specialists from strategic consulting, a starter offer to move into the topic quickly and efficiently without any fuss. You'll find all three links below.
Have questions or feedback?
Then feel free to contact us directly.
- Joubin Rahimi
Managing Partnersynaigy
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