Importance Of Data Transition To Drive Measurable Marketing Results
D2C strategy is fast becoming a popular route for B2B and B2C companies to tap the Indian customers who are moving rapidly towards Digital adoption. Just a few years back the D2C business was growing rapidly but was negligible from value and volume perspective, but looking at the way the retail business has evolved in the last 18 months, it is fast becoming a network strategy that cannot be ignored anymore. Today there are hardly any B2C brands who have not embarked on this journey. However the outcomes and their experience are mixed.
The attempt here is to outline the key KPI’s of success for B2C brands who are looking to leverage the D2C channel. And sorry to disappoint, there is no one size fits all approach. As, the customer acquisition or even retention strategies need to be tailored to suit each specific brand.
Needless to say, all brands are unique. Be it the stage of their product lifecycle journey, the category they operate in, their choices of target, their core geography, or even their quality, perception and pricing. To add to this the ambition of the brand and their propensity to invest makes this journey all the more dynamic.
A word of caution, the KPI’s outlined below are on the basis of auditing 54 companies with similar ambitions. We have used our proprietary AI tool – Decision Tree, to arrive at these conclusions. The results below are at 89% confidence level on correctness score.
Following are top 5 areas that form the core of a successful D2C strategy for a B2C company. The Decision Tree tool also has identified the key questions to be asked to reach the KPI’s:
1. Data Management is the practice of collecting, keeping, and using data securely, efficiently, and cost-effectively. The goal of data management is to help organizations maximize the opportunity towards its business KPI’s.
Upto 82% data efficiency is achieved by identifying the right direction for the top 3 questions
What data should I have for my business growth? How do I kick start my Analytics journey? Where do I start to make the most of the data that I have?
2. Customer Relationship Management is a technology for managing organisations relationships and interactions with their current and potential customers with the objective of improving brand experience and sales. A CRM system helpsstay connected to customers, streamline processes, and improve profitability.
44% CRM platform robustness is built by securing the right answers to these big 3 questions
Our CRM execution is very basic. What next? Is there a way to do personalized targeting through CRM? What CRM platform would work best for our business?
3. Customer Loyalty is a measure of a customer’s likeliness to do repeat business with a your brand. It is the result of the positive customer experiences, and the overall value of the goods or services a customer received.
81% improvement in loyalty is achieved by answering only these 3 questions
How do we set up a loyalty program ahead of the curve? Can we drive loyalty without a loyalty program? What rewards would excite the customer?
4. Marketplace Management enables the organisations an additional distribution network to sell your products or services. It allows brands quick access to their customers and help them significantly increase their turnover.
68% increase in marketplace presence is achieved by identifying the answers to these top 3 questions
Who is my core marketplace partner? What should be my pricing strategy? How do I get the top listing on my core marketplaces organically?
5. Artificial Intelligence is the simulation of human intelligence that is processed by specialised computer systems and software. It help put the organisations learnings in a fashion that can be used to attain growth at scale.
63% improvement in the customer journey is achieved by tackling the top 4 questions
From where do we start our AI journey? How do we do personalized recommendations? Can I predict if the customer will purchase from us or not? We are losing a lot of customers. What should we focus on to win them back?
Asking these questions is the first step, once you align your key business leaders on these then you can develop KPIs which will be both right for you and will guide you towards your organisational goals.
The Author is Ajay Verma, Co-founder, 0101. Today.
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