Customer experience and higher profit margins fueling evolution of Direct-to-Consumer (DTC) models across North America

New research shows that the top two drivers for organizations using the DTC model are enhanced customer experience (39%) and achieving higher profit margins (38%)

A newly released report on the rise of Direct-to-Consumer models found that decision-makers across ecommerce, manufacturing, retail, transport and logistics supply chain, and wholesale businesses in North America find DTC channels key to unlocking better customer experiences and achieving higher profit margins.

The research, commissioned by Deposco, a leading provider of omnichannel supply chain fulfillment solutions, highlights these findings about the rise of Direct-to-Consumer models:

• When asked about key drivers for using DTC models over a third (36%) of respondents highlighted access to more customer data to drive business strategy and a further 31% referenced reduced costs
• Almost 9 out of 10 respondents (89%) have seen increased sales through DTC channels over the past 12 months

This report indicates a massive trend that DTC – which will contribute more than one-half of overall sales by 2026 – enhances the customers experience in tandem with ensuring profitability of organization as the biggest benefits of DTC.

Further to this the report also reveals that sustainable practices are an emerging focus for DTC brands. Almost half (48%) of the sample say they have the capability to “easily combine separate orders for delivery at the same time”, an approach that reduces environmental emissions by bringing down the number of deliveries needed.

The focus on sustainability is also gathering ground across the wider supply chain, with 30% saying they are looking toward growing the proportion of stock sourced from nearshore suppliers

Long-term scalability and future success with DTC will require proactive moves toward enhanced efficiencies and operational savings. For example, investing in technologies that allow different retailers to collaborate on delivery runs, or incentivize consumers to go for a more sustainable option through a better price on consolidated orders, would benefit everyone.

Deposco’s complimentary report, The Rise of Direct-to-Consumer in North America: How businesses can break through the barriers and make a success of DTC channels, is now available.