A strategy that eliminates the middleman and allows companies to market and sell their goods or services directly to consumers, D2C is already proving to be a powerful agent of change in terms of how we do business. As economists, business analysts, company owners, and consumers themselves seek to understand this phenomenon, it is important to look at the demographics most responsible for its success. Millennials represent a large percentage of the purchasing power in today’s economy, and studies show they’re very into D2C. Let’s take a closer look at a few of the reasons why.
Customer expectations have changed
It used to be very difficult to promote and sell products directly to consumers. There are many steps involved in the process, and most companies simply weren’t in a position to do everything themselves. Now, enter tools like woocommerce inventory management and accessible e-shop building platforms, and suddenly it’s a lot more feasible than it was even a few years ago. With these changes, consumer expectations have shifted too. Millennials came of age during a time when brand identity was being reshaped and reimagined. They now expect the brands they support to have a strong sense of identity and to be able to offer a tailored purchasing experience. Direct to consumer marketing can do both of these things and more.
Millennials expect shopping to be seamless
Unlike more conventional B2C models, direct to customer companies have the added advantage of being able to oversee and be accountable for every step of the shopping process. Not only do millennials expect the brands they support to be authentic and reasonably priced, but they want to know that there’s going to be someone there to answer any questions they have or respond to any problems they encounter with the product or service. In general, the D2C framework offers enhanced convenience and accountability, these are two things the millennial generation is willing to pay for.
Millennials shop online
Speaking of convenience, the reality that most D2C brands exist primarily as online stores is no mistake. Studies show that millennials make upwards of 50% of their purchases online. Not as keen to venture out into the often mystifying space of a physical retailer, Millenials are naturally going to gravitate towards brands that have a strong online presence and know how to market themselves for an e-commerce audience.
Millennials care about company values
We are so used to hearing about brand values and brand identity these days that it can be hard to remember these things weren’t always a priority for consumers. Millennials represent a huge increase in how important core values are for a company’s success and they demand both a strong customer satisfaction policy and a reputation of social responsibility. In the D2C model, companies can more effectively and engagingly relay their message and brand identity, thus getting customers on board with their vision and more enthusiastic about supporting them. They understand that quality and authenticity go hand in hand, and since millennials also want to make purchases that they feel reflect their personality, these factors matter.