DTC Brands Compete to Win

DTC Brands Compete to Win

October 29, 2020 by Team Ada

Direct-to-Consumer (DTC) brands were born in the cloud, they met their customers there, and together they raised a business and lived happily ever after. If only it were that simple. 

While e-commerce represents less than 5% of overall Consumer Packaged Goods (CPG) sales, the DTC movement accounts for 40% of the sales growth in the sector. How is it that these startups can take on global conglomerates and win? 

We are living in a golden age for niche startups. Social media platforms like Facebook, Instagram, Twitter, and TikTok aggregate billions of global consumers together, while emerging SaaS services like Shopify, TradeDesk, and Twilio enable the back-end of e-commerce. Manufacturers are ready, willing and able to work with DTC brands, as they provide additional revenue and new lines of business. 

DTC companies may be easier than ever to launch, but to stay competitive they must maintain a strong bond with customers. There is too much competition for consumer’s attention, and their dollars. Scaling the business is one of the biggest challenges DTC CEOs face. What happens if their product takes off? Can they manufacture them? Handle and process all the orders? What about customer service?

The experience of one DTC e-tailer during COVID provides a cautionary tale. According to the CEO, “In [a matter of] a day, we had to hire an additional 20 people on the customer service team because our volume increased so dramatically. The customer service team had previously consisted of only four people.” 

That is an expensive solution, and one that involves time-intensive agent onboarding and training -- not to mention the ongoing operational costs. A more efficient solution would have been to deploy an automation-first customer service strategy. By putting a conversational AI chatbot in front of live agents, you deliver a better experience for your customers, and your agents.

Customers get a service experience they expect from leading digital brands, one with the kind of sophisticated self-service capabilities you get, like from Ada. These capabilities go far beyond that of a basic FAQ chatbot, to offer predictive suggestions and content recommendations that accelerate the customer's experience. Customers expect a seamless CX experience across devices, and across platforms, from the website to the app. They tend to be more receptive to revenue-generating opportunities like cross-selling, promotions, and upgrades if they are delivered with a level of personalization that makes them feel like a valued customer.

For the brand, the first benefit is an immediate return on their investment. Ada is a no code platform. It can be deployed by the CX team, independent of any involvement from IT. This way, the CX team maintains control over its operations, and can not only be operational immediately, but can deliver game changing results within 30 days, such as deflecting 30% of inquiries. Within 90 days, that number jumps to 80%. That is how you efficiently scale a modern customer service organization.

An automation-first CX strategy is the ideal match for DTC brands. It meets the needs of today’s digital consumers, can help drive additional revenue, and can cement your reputation as a brand that “gets it.”


Contact Ada  today to transform your CX from a cost centre to a revenue generator.