D2C brands are starting to shift their focus to digital commerce and mobile channels to get consumers going by research by Yotpo based on 500 D2C brands and e-commerce leaders.
The research found such brands to place a premium on sales (60%), conversion rates (53%), and customer acquisition (54%).
However, the priorities were found to change based on the brand and company size. Those with less than $5 million annual revenues were more focused on growth while larger companies were looking to optimize marketing efforts.
To boost the acquisition of customers, 52% of respondents said they were planning to invest more on Facebook ads compared to the 18% who would spend more on Amazon ads.
Smaller brands were found to rely more on social media, preferring Instagram ads.
At the same time, mid-sized businesses used social media to attract customers alongside SEO to drive traffic. They revealed plans to spend more on Shopping ads and Google ads.
Larger brands do more SEO and utilized direct traffic channels to get customers. However, Facebook was their most significant investment channel, with a 63% ad spend.
‘In the approach of D2C brands, the website works as both the store and the brand. It houses the service, transaction, story, style, and mission. There are no limitations like those in a physical store, and businesses have a wider global base of potential customers. Additionally, businesses can use low overhead to persist even in changing market conditions,’ explained the CEO of Yotpo, Tomer Tagrin.
Close to 73% of brands admitted to having a customer reviews feature on their website.
Small brands had customer photos and videos, while larger brands did not need to invest as much on reviews.