"SAP Emarsys: 2024 Overseas Brand DTC Marketing Trends White Paper" mainly explores the trends in DTC marketing for overseas brands, including the development history of the DTC model, its advantages, marketing strategies, and related case studies, providing a comprehensive marketing guide for overseas brands.
1. Overview of the DTC Marketing Model
- Origin and Development: The DTC model originated in the United States, represented by Warby Parker, and rose with the development of the Internet. Its development has gone through several stages, from early vertical e-commerce and subscription forms to a phase focusing on innovation and omnichannel marketing.
- Model Advantages: The DTC model brings overseas brands advantages such as increased consumer brand loyalty, enhanced insights, and improved risk resistance. It enables direct interaction with consumers, boosts brand loyalty, focuses on user data insights, enhances localization effects, and increases risk resistance.
2. Reasons for Overseas Brands Choosing DTC Marketing
- Changes in Market Environment: The pandemic has led to growth in online activities and derivative effects, changes in privacy policies, and diminishing marginal effects for users have increased traffic costs. In the post-traffic dividend era, the strategic focus of overseas brands needs to shift to operating existing users.
- Importance of Independent Sites: Independent sites serve functions such as brand image display, private domain traffic accumulation, direct sales to customers, repeat purchases, and cross-selling. They are the core channel for brands to achieve overseas localization, gain market share, and win consumer repurchase.
3. Key Elements of DTC Marketing
- Real-time Customer 360: By integrating data from various sources, a comprehensive and complete view of each customer is provided, enabling stock user operations and personalized user lifecycle management.
- Customer Interaction Channels: Including email, social media, websites, and other channels, interacting with consumers through omnichannel marketing.
- Customer Interaction Strategies: Develop personalized marketing strategies based on consumer behavior and preferences to enhance user experience and conversion.
4. Full Lifecycle User Management
- User-Centric: The best practice of DTC marketing is to center on the user, carry out omnichannel marketing around user needs, and achieve efficient management of the customer lifecycle through comprehensive user insights.
- Real-time User 360: Through data collection and analysis, users are automatically segmented using data models such as RFM. When marketing goals are clear, personalization is achieved in terms of timing, channels, roles, and content.
5. Omnichannel Interaction and Collaboration
- Omnichannel Marketing Strategy: Through data integration and automated segmentation, brand loyalty and collaboration between brands and consumers are enhanced, channel integration and consistency are strengthened, and a seamless brand experience is built.
- Channel Advantages: In mainstream markets in Europe and the US, communities, websites, and email are usually the easiest channels to reach consumers, with email being more intuitive and KPIs easier to measure.
6. Marketing Strategies and Automation Platforms
- Strategy Starting with the End in Mind: Mature DTC marketing strategies are goal-driven, combined with full lifecycle user management and automation platforms to enhance user experience and conversion.
- Role of Automation Platforms: Automation platforms use 4W (crowd, content, timing, channel) for intelligent and personalized outreach, further promoting conversion rates.
7. Case Studies
- DJI: Through personalized marketing strategies, user engagement was enhanced. With the help of automation platforms and strategy functions, active user revenue and average order value increased significantly.
- EcoFlow: By leveraging marketing automation to tap into higher-value niche markets and pursue brand value, AI models were used to reach users more precisely, reducing marketing costs and increasing repurchase rates and user activity.
- Love, Bonito: Through SAP Emarsys' integration of technical systems and provision of personalized marketing content, repurchase and user spending increased effectively, and consumer brand awareness improved significantly.
8. Future Development Trends
- Mastery of Private Domain Data: The DTC marketing model requires stronger control of overall private domain data. Through omnichannel integration, personalized outreach, and AI empowerment, effective user reach in marketing activities is accelerated.
- Full Cycle User Management: Through real-time customer 360 and automation platforms, personalized management of the user lifecycle is achieved, extending user lifecycle and increasing average consumption value.
- Omnichannel Marketing Collaboration: Omnichannel marketing automation has become mainstream, and personalized services and user experience improvements are achieved through unified data platforms.
- Popularization and Application of AI: AI generation and strategy provision are the two most important empowerment directions for AI in marketing, which can improve marketing efficiency, reduce costs, and enhance localization adaptability.
