According to a new study, branded manufacturers should move quickly to build a direct-to-consumer (DTC) online channel to drive revenue, better customer relationships, and channel performance.
Digital River, Inc., a leading global provider of Commerce-as-a-Service solutions, released the study titled, “Be Direct: Why a Direct-to-Consumer Online Channel is Right for Your Business.”
The study builds a compelling business case for why branded manufacturers need to move quickly to build a direct-to-consumer (DTC) online channel–and explores how it can drive revenue, customer relationships, and channel performance. The commissioned study was based on results of an in-depth survey of U.S. branded manufacturers, which was conducted by Forrester Consulting on behalf of Digital River.
“One of the most striking findings in the study was that an overwhelming majority of companies (76%) that have implemented DTC ecommerce channels reported that their programs either met or exceeded revenue targets,” Scott Heimes, Digital River senior vice president and CMO, said in a release. “The research also addressed a key barrier to DTC channel adoption–the fear that it would conflict with other channels. Instead, the study found that if handled appropriately, DTC channels can actually enhance the performance of other channels. We believe these findings have immediate, real-world applications for branded manufacturers everywhere.”
Here are some of the other key takeaways from the industry survey:
· Predictions by branded manufacturers that their DTC online channel will be the highest generator of sales revenue within two years
· The surprising effect a DTC ecommerce channel can have on retail and channel relationships
· The impact of ecommerce on customer engagement and experience with a brand.
“Given the increasingly prominent role DTC channels are playing in driving sales revenue and customer expectations, branded manufacturers can’t afford to procrastinate,” Heimes added. “This study provides an overview of the landscape and gives branded manufacturers insights into how other companies have met this challenge. It provides a conceptual framework that branded manufacturers can use to compete–and win– in a changing marketplace.”
Companies of all sizes rely on Digital River’s multi-tenant, SaaS commerce, payments, and marketing services to manage and grow their online businesses. In 2013, Digital River processed more than $30 billion in online transactions, connecting B2B and B2C digital products and cloud service companies, as well as branded manufacturers with buyers across multiple devices and channels, and in nearly every country in the world.