“DTC offers companies several business-value drivers that extend well beyond the direct incremental revenue it generates while complimenting the traditional retail and marketplace channels. In order to truly maximize DTC opportunities, CPGs must focus on evaluating, assessing and measuring DTC initiatives based on direct value (new revenue streams), as well as the more holistic, indirect value (both monetary and non-monetary).”
Our holistic approach unlocking the value of DTC consists of four building blocks:
- D2C Value Pool Identification & Quantification: Identifying the highest value D2C opportunities across direct revenue and indirect value drivers (e.g. data benefits) and across different D2C business models (e.g. subscription vs. Brand.com) This provides clarity and alignment on the D2C value-at stake, where to invest in D2C and why.
- D2C Strategy & Case for Investment: Developing the holistic strategy and financial business case linked to highest value D2C opportunities. This provides executive buy-in to the strategy and commitment for investment in D2C linked to value pools.
- Platform Evaluation & Build: Identifying the most optimal D2C technology architecture, platform and partner for delivering the strategy and implement. This reduces technology costs and ensures higher value capture from D2C initiatives given scaled capability.
- Build the Capability: Standing-up a new D2C business /capability from start to finish including optimizing supply-chain for omnichannel. This delivers a new end-to-end direct & indirect value generating D2C business offering.