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An omnichannel marketing strategy is a gold standard for effective brand messaging. By leveraging consumer data gleaned from third-party cookies, advertisers can get the right message to the right customer at the right time, regardless of channel or device. It's no wonder brands with robust omnichannel strategies increase average order value by 13% and purchase frequency by 250%. 

The coming cookieless future could threaten that success. Without third-party cookies, advertisers will struggle to track customers across channels and devices, analyze their journeys, and deliver personalized content and offers. 

It's easy to assume that cookie deprecation means the death of omnichannel marketing, but that's definitely not the case. If you have the right data, omnichannel marketing still holds the key to success.

Key takeaways:

• Consistency in branding and messaging across every channel is among the key elements an omnichannel marketing strategy prioritizes. 
• We can expect the deprecation of third party cookies from Google Chrome in 2024.
• First-party data in omnichannel marketing takes personalization to the next level, increasing a customer's lifetime value.

What is Omnichannel Marketing?

Omnichannel marketing seamlessly blends messaging and branding as customers move through online and offline touchpoints along the path to purchase. It puts consumers in the driver's seat, allowing them to choose how, when, and where to engage with your brand. 

An omnichannel marketing strategy prioritizes the customer experience through the effective use of a few key elements:

• Consistency in branding and messaging across every channel
• Personalized messaging and offers relevant to consumers interests and behaviors
• Content shaped by past interactions and the stage of the customer journey

A well-planned omnichannel strategy lets you target customers at the right time with on-brand offers that increase your chance of a conversion.

Omnichannel versus multichannel: What's the difference?

Omnichannel and multichannel share similarities, but the differences are significant. Multichannel marketing gives consumers multiple options to engage with your brand, but the channels aren't seamlessly connected. The experience is optimized for each separate channel. 

On the other hand, omnichannel marketing recognizes that the customer journey spans multiple channels and seeks to create a consistent, personalized experience as the customer moves between them.

The Coming “Cookie-geddon”

Although Google's cookie deprecation timeline has changed a bit since they first announced the phaseout in 2020, the final demise of the third-party cookie is slated for 2024. The news didn't come as a surprise to anyone paying attention to the growing concerns of privacy advocates. 

Third-party cookies collect an enormous amount of personal data, usually without the individual's explicit consent. Data breaches and privacy violations caught the attention of legislators around the globe, resulting in the EU's GDPR and "cookie law." In the US, individual states passed their own versions of the cookie law in an attempt to promote transparency in data collection practices. 

A few tech CEOs also took a stand for privacy. Apple and Mozilla were among the first to give users the ability to block third-party tracking as early as 2012, with both companies disabling third-party cookies entirely by 2020. Google, the browser behemoth representing over 60% of Internet traffic, was the only holdout. But by 2020, it too announced it would end third-party cookies, albeit on its own, slightly elongated timeline. 

Now “Cookie-geddon” is almost upon us, and marketers are scrambling for solutions to replace the data cookies provided.

What Does This Mean for Brands?

Marketers have become addicted to the easy flow of third-party cookie data driving programmatic and digital advertising. It enabled personalization, targeting, and attribution to justify spend. But third-party cookies have their share of drawbacks:

• There's no transparency. The slightly underhanded way data is collected destroys the sense of trust between consumers and brands. Omnichannel marketing is a two-way street; consumers are willing to trust brands with their data in exchange for a more personalized experience as long as they feel confident their data is secure and only shared with consent.
• They're not people-based. Cookies are connected to devices, not people, so there's a lot of waste and duplicate impressions.
• They're not persistent. Cookies don't last forever, and the user can always delete them.

Third-party data made it easy for brands to acquire new customers, lose them to churn, and reacquire them with aggressive retargeting. What it didn't do is help them build the trust and loyalty that drives long-term profits. Customer retention has always been key to profitability; invesp, a conversion rate optimization consultancy, showed that increasing retention by just 5% led to a 25% increase in profits.

On the other hand, first-party data from past brand interactions and logged-in states give marketers the information they need to genuinely understand their customers and create highly relevant experiences throughout the customer lifecycle. 

Leveraging first-party data in omnichannel marketing levels up the personalization and relevancy of the content you serve your customers. Where retention spreads customer lifetime value over a longer timeframe, personalization increases the absolute lifetime value of the customer. Boston Consulting Group found that marketers who could deliver relevant experiences at multiple touchpoints decreased costs by 30% and increased revenue by 20%.

The Cardlytics Advantage

Cardlytics is uniquely positioned to help brands deliver relevant and personalized experiences via cash back offers served through the consumers trusted digital banking channels. Using first-party data obtained from one in two card swipes in the US, we can provide a whole-wallet view with insights into the cross-channel purchase behavior and preferences of your customers. 

Get in touch today to find out how Cardlytics can help you reach your customers with personalized offers in a brand-safe channel to help drive customer loyalty, retention, and revenue.

Convenience stores have been stealing food share away from QSRs. Our data shows a slow and steady increase in convenience food share, aligned to a similarly slow decrease in share against the QSR category (convenience share is up +3pts from 2019). This could be the case due to quicker meal prep time and variety of food options at convenience locations.

Gas stations with made-to-order menus are shown to have higher walk-in rates than those with ‘standard’ snack options

The convenience store experience has evolved, and brands that have upgraded their food options benefit from higher walk-in rates compared to those with a more traditional offering. With elevated food options, however, comes share of stomach competition with QSRs.

Customer penetration of mobile ordering has been growing since well before COVID

Customers want quick – whether that comes to meal preparation, or placing an order in the first place. To that end, customers who used mobile ordering at convenience, QSR, or FSR retailers has risen over the last three years – up to 1.1% from 0.5% in Q1 2019.  Brands who haven’t taken advantage of this purchase channel fail to capture the full spend potential of their customers.

What does this mean for you?

A couple of things...Convenience stores are positioned well to continue stealing share, as long as online ordering and a variety of menu options are available to consumers. That said, these increases in share of trip and share of stomach need to be defended – especially considering that inflation has sent consumer choice in many different directions. Convenience stores need to solidify loyalty before QSRs lure lost consumers back.

Leveraging Cardlytics digital offers can help turn new and existing customers into long-term loyalists at a time when price efficiency is on everyone’s mind.

Cardlytics is here to help future-proof your customer loyalty and drive convenience purchases. Sign up to get our insights delivered to your inbox, early, and get ahead of what's happening in the fuel and convenience industry

Customer loyalty programs are a massive catalyst for building brand loyalty and increasing customer spend.  The question becomes how to construct an effective loyalty program. Should you compare cash back rewards vs brand rewards (like points or miles), or even cash back vs financing options?

Answering these questions  will have a great impact on customer retention and spending rates and impact the robustness and accuracy of your customer data. 

With top search engine providers like Google making the conscious choice to phase out cookies for third-party data collection by 2024, customer loyalty programs are an essential tactic to capture first party consumer data now and into the near future. So what's the strategy moving forward? How does your business optimize its loyalty program to keep customers satisfied without sacrificing access to information?

Key takeaways:

• Consumers prefer the instant gratification of cash back rewards over delayed rewards like miles or points.
• It's easier for brands to personalize messaging using loyalty programs to gather first party consumer data.
• Brands can enhance their targeting without third-party cookies.
• Starting in mid-2024, Google is phasing out support for third-party cookies, with plans to finish the phase-out by late 2024.

Instant gratification: why cash back is king

When evaluating cash back rewards vs delayed rewards, marketing and trends studies ultimately lean toward using cash back strategies for many reasons — the main one being the psychological "instant" gratification obtained from the transaction. Consumers immediately see that money going right back in their pocket when they make a purchase associated with a cash-back rewards program.

That's the opposite effect to other traditional programs such as points or miles, which require a significant amount of time before the benefits can be reaped — delaying the consumer gratification. 

Cash back is also generally easier to manage, understand, and earn from the consumer’s point of view compared to other programs — you spend money, you make money. In fact, 54% of loyalty program memberships are inactive. The number one reason being that it takes too long to earn points or miles for rewards.

The rising importance of loyalty data

Implementing the right elements of a customer loyalty program isn't just critical for revenue purposes but also for the advanced insights acquired through the data collected. Using an enticing loyalty system means you can ensure meaningful performance and behavioral insights are brought in and analyzed, to uncover the most engaged and valuable customers.

This powerful source of first party customer data lets you improve your personalized messaging toward your customers and makes it easy to design individualized promotional offers based on a buyer's behavior and previous purchases. 

There's even the added benefit of improved campaign measurements over time to see which content, deals, and messaging works best for its respective audience compared to others. Collecting this necessary loyalty data provides a better customer experience and a strengthened relationship between consumers and the brands they shop with.

Expand the power of loyalty data with Cardlytics

Brands can strongly enhance their market targeting through Cardlytics’ Purchase Intelligence™ and digital ad platform. Cardlytics, for instance, partners  with financial institutions, such as banks,  and leverages their online, mobile, and email channels to deliver ads based on first party consumer spending insights. 

In conjunction with data collected from loyalty programs, Cardlytics becomes a powerful tool to evaluate where your customers are shopping, when they are shopping, how much they’re spending, if they are brand-loyal, and if there are potential competitive market disruptors in your space. This information can then be used to develop purchase insights and make more informed business decisions.

Give cash back, get loyalty data

Loyalty programs increase customer spending, brand loyalty, and ultimately the total customer relationship value. Additionally, they offer premium data collection capabilities. That said, it's important to create a loyalty program that your customers will love and actually participate in.   

Therefore, you’ll need to diligently compare program structures such as cash back rewards vs points or miles and roll out the right rewards system. While traditional loyalty programs such as points or miles may have worked in the past, consumer behavior now shows that instant gratification in the form of cash back is more popular than ever before, as well as one of the easiest ways for the customer to manage and earn their rewards.  

By utilizing an effective rewards program with a first party data solution like Cardlytics, you can take data utilization to the next level. The platform's collection and analysis process brings data from critical customer channels to improve marketing strategies for your target audiences. Want to learn more about improving your targeting with advanced consumer insights? Contact us today to speak with an expert and learn how to take your data to the next level.

Navigating today's fast-changing marketing landscape requires brands to be more agile than ever. Success favors those who can quickly make sense of the moment-to-moment conditions and execute the right decisions to adapt to the changes.

Brands must iterate faster on campaigns, glean insights rapidly, and pivot with swift responses—all in a highly uncertain marketplace that seems to be moving under our feet. Traditional marketing channels can only go so far; they weren't cut out for this kind of agility. But Cardlytics is designed for it.

With exclusive access to customer purchase data, Cardlytics can help you to see the market from a whole new angle. Our native ad platform works within banks' digital channels and offers unrivaled insight into consumer behavior across categories and industries. And our innovative services are especially effective at enhancing marketing agility. Backed up by Cardlytics, you'll have the knowledge you need to make smart decisions and take the bold actions that will drive your brand to new heights.

Make smarter budgeting decisions

Making business decisions during a recession or economic downturn is never easy. Often a company's first instinct is to slash marketing budgets. But that's exactly what you shouldn't do. Instead, it pays to pivot and adapt. During difficult times, it is critical to view marketing activities as a "must have" versus a "nice to have." 

Rather than reduce or eliminate marketing funds, a better long-term strategy is to reallocate resources. That's where marketing agility comes in. But in order to know where to invest your budget, you need access to customer purchase data. Cardlytics' Purchase Intelligence™ allows you to eliminate the guesswork by identifying opportunities and driving results. With powerful AI and dozens of analysts taking a fresh look at where and when customers buy, we answer critical questions that inform business decisions such as:

• Where are you gaining and losing share?
• Where else do your customers spend?
• What is your real headroom for growth?

Then we link those insights to actionable marketing strategies. Just set a goal, and we will deliver compelling offers to your best prospects and customers. It's that simple.

Turn market research into actionable data

When thinking about how to turn market research into actionable data, begin by asking yourself where you can leverage analytics to make the biggest impact. For marketing, it all starts with driving incremental sales by changing the way people buy. Cardlytics helps you identify these opportunities by using Purchase Intelligence™ to help you target the right customers in the right places. 

A key benefit is our ability to use transaction data to reach individuals with highly targeted ads within their banks' digital channels. With our precise targeting, you can reach consumers as they manage where they'll spend and save. In addition, we allow you to easily access the data you need, including where, when, and how consumers shop, so you can react quickly and win the next sale. And the best part—our powerful purchase insights will help inform your future business decisions so you can succeed in dynamic market conditions.

React faster to real-world events

As we all know, the world can change in an instant. Brand responses need to be just as swift to capture the zeitgeist and meet their audience at the moment. Decision-making moves fast. Cardlytics' customer purchase data empowers you to make those choices with confidence, clarity, and efficiency. The insights we provide can inform numerous facets of your marketing efforts, including:

• Determine your marketing spend by channel and audience.
• Adjust to seasonal changes and fluctuations in demand.
• Allocate more resources where opportunities are greater (quickly "turn on and off the spigot" of marketing spend as needed).
• Retain and grow your audience by targeting only the customers that drive your specific business goals forward.

With agile digital marketing tactics backed by relevant data, brands can generate provable, predictable sales revenue—no matter what changes are happening in the world.

Identify industry trends earlier

Spotting tomorrow's trends today can have a massive impact on businesses that want to get a jump on the action. Cardlytics' unique reporting and measurement offer a much broader view of the marketing landscape, which enables brands to see future trends on the horizon before everybody else.

No matter what your industry is, Cardlytics' fresh perspective that is especially beneficial for trendspotting:

1. See customer purchase data for your entire industry, including your competitors. With these insights, we can tell if consumers' preferences and purchases are changing across your category as a whole or only in one area or for one brand.
2. See consumers' spending behavior across all categories, which is called a "whole wallet" view. How much are shoppers spending? When? Where? How often? This comprehensive approach offers a deeper, more holistic understanding of your audience so you can more accurately identify trends.
3. See your performance assumptions validated—or not. For example, you may think you're doing a fantastic job with your most loyal segment of customers. But what if you discovered they were still shopping at your biggest competitor? Only Cardlytics data gives you the full story.

Spend more efficiently

Keeping your marketing expenditure as smart and streamlined as possible will give you a wider range of options and greater opportunities for success. Miscues in ad placement or targeting can cause brands to waste time and money. But with our innovative insights, you'll be equipped with powerful tools to enhance your campaigns' efficiency:

• Ultra-precise audience targeting based on actual transaction data.
• Pricing based on actual performance, not just impressions.
• Ad placements designed to drive specific business goals such as growth, customer retention, or loyalty.

Be ready for whatever's next

Changes are always on the horizon of the marketplace, from tiny pop-up trends to tidal-wave challenges like the pandemic. Our data-driven approach keeps you better informed, so you'll be prepared to face these changes and quickly adjust your marketing strategy.

When you partner with Cardlytics, you'll stay ahead of the curve:

• Benefit from exclusive access to consumer transaction data on1 out of every 2  card swipes in the U.S., giving you a unique perspective on spending behavior in your industry and the overall market.
• Gain valuable insight from expert reports on consumer spending and the state of industries.
• Track your marketing performance with customized campaign reports that make it easy to understand what the data means on a human level.
• Tap into insights from other industries to reach new customers and stay in front of changing consumer behaviors.
• See changes over time with in-depth market share analysis so you can understand where your business ranks and where you should focus your marketing efforts.

Make data-backed decisions with confidence

Marketing is an ever-changing arena where agility is essential for brands that want to respond to fluctuations and foresee future trends. It's both a science and an art, and success requires an equally deft approach that combines eye-opening data with expert understanding—and that's exactly what Cardlytics provides.

Technological advances are accelerating, and the needs of consumers continue to evolve. The brands that stay one step ahead of the curve are the ones that will be able to connect with their audiences and change their lives for the better. And that's what it's all about: making sure that everybody wins in a world that's moving faster and faster, whether you're saving shoppers money or showing them a new product to enhance their daily routine.Would you like to learn more? Contact us today to discover just how nimble your marketing team can be when you partner with Cardlytics.

When thinking about dining options, convenience stores don’t automatically come to mind, but industry data shows this might be changing. According to Bluedot, 59% of customers consider purchasing a meal from a convenience store when stopping for fast food. So, we dug into our data to see if our data agreed... and surprise, it did! Here is what we found: 

Convenience is stealing trip share from quick service

Since 2019 convenience share has increased 2 points. We know this increase is due to meal-like food share instead of normal convenience snacking because (1) we excluded all pay at pump transactions and (2) gas stations with more extensive menus (pizza, burgers) have higher walk-in rates than gas stations with “standard” offerings (soda, chips).  

Customers are using convenience mobile ordering channels

Convenience mobile ordering customer penetration has increased, growing from 0.5% in Q1 2019 to 1.1% in Q2 2022. 

Quick service is losing trips to convenience and full service restaurants

Consumer convenience trip share increased 0.05% from July 2021 to July 2022.  During that same period QSR trip share went down 1.2%. FSR was the largest share stealer, shifting 1.2% from QSR.

QSR is losing loyal customers

QSR’s lost trip share comes from loyal and frequent customers. Loyal customers’ QSR trip share went down 2.3% while frequent customers’ share went down 0.4%.  Interestingly, one-timers, light & Infrequent customers altogether grew their QSR trip share by 2.1%. 

What does this mean for you?

Our data tells us that QSR needs to pay close attention to both conventional and non-conventional competitors. Specifically, special attention needs paid to maintaining loyal customers via reducing churn and boosting retention. Luckily Cardlytics can help you do just that!  Sign up to get our insights delivered to your inbox, early, and get ahead of what's happening in the restaurant industry

Today is my first day at Cardlytics, and I am raring to get started!  

The outpouring of support and warm welcomes I have received to date from clients, partners, employees, and investors has been nothing short of amazing, and I look forward to connecting with everyone personally in the coming days.  

In terms of how I plan to spend my time in these initial few days and weeks, I plan to concentrate on two things. First and foremost, I plan to listen. Listen to our customers. Listen to our employees. And listen to the many other stakeholders that have worked tirelessly to make Cardlytics into the purchase intelligence leader it is today.  

Second, I plan to immerse myself into the finer details of the business. I’m excited to dive into not only the many legacy offerings of business, but also the exciting opportunities presented by some of our newest divisions like Bridg, Dosh, and Entertainment.  

At the end of the day, my leadership philosophy is pretty simple: 

• Employees are the most valuable assets of an organization. Build a culture of inclusion and embrace cognitive diversity, which allows for different perspectives and experiences that can’t be replicated.  

• Make decisions that are rooted in data.  It saves time, holds us accountable, and challenges us to continuously innovate.   

• Take calculated risks and invest in change. Stay ahead of the curve on the things that we know will change, not those that will stay the same. 

I remain as excited as ever with the opportunity in front of us. And I know many of our partners share this same sentiment.  There’s so much potential to unlock continued growth for our business and our customers, and I am eager to hit the ground running for the next chapter of Cardlytics. 

ATLANTA, GA – May 10, 2022 – Cardlytics (NASDAQ: CDLX) (the “Company”), a digital advertising platform, today announced that its Board of Directors has approved the repurchase of up to an aggregate of $40.0 million of its Common Stock.

“We believe that the repurchase program is a good investment of available funds and underscores our commitment to enhancing shareholder value,” said Cardlytics CFO, Andy Christiansen.

The repurchases will be made from time to time on the open market at prevailing market prices or in negotiated transactions off the market. The repurchase program is expected to continue through the end of the current fiscal year unless extended or shortened by the Board of Directors.

The repurchase program does not obligate the Company to acquire any particular amount of ordinary shares, and the repurchase program may be suspended or discontinued at any time at the Company’s discretion.

About Cardlytics

Cardlytics (NASDAQ: CDLX) is a digital advertising platform. We partner with financial institutions to run their rewards programs that promote customer loyalty and deepen relationships. In turn, we have a secure view into where and when consumers are spending their money. We use these insights to help marketers identify, reach, and influence likely buyers at scale, as well as measure the true sales impact of marketing campaigns. Headquartered in Atlanta, Cardlytics has offices in London, New York, Los Angeles, San Francisco, Austin, Detroit and Visakhapatnam. Learn more at www.cardlytics.com.

Direct-to-consumer (DTC) brands are often referred to as disruptors because they use digital and mobile channels to sell directly to consumers. By bypassing distributors and third parties, DTC brands can deliver a more convenient shopping experience while building a more direct relationship with customers. 

The movement toward DTC gained even more momentum during the pandemic. In fact, direct-to-consumer trends show that US DTC ecommerce sales have more than tripled in the past six years. Experts estimate that by the end of 2024, the market will grow to over $212 billion.

But how will DTC continue innovating and expanding to compete against traditional retailers? Let's review the key factors influencing the next evolution of direct-to-consumer disruption.

Key takeaways:

• Direct-to-consumer brands use emotionally charged messaging to build one-on-one customer relationships.
• Most DTC brands find success, meet consumer needs, and accelerate growth using a single channel.
• Successful DTC brands know how to maintain emotional connections by expanding customer loyalty programs.

How Has DTC Disrupted Traditional Retail?

With the rise of digital commerce, the modern consumer prefers personalization and direct engagement with the brands they buy from. The DTC model is built on relationships, and that's one of the main reasons these brands have seen so much success in recent years. DTC brands also offer other advantages over traditional retailers, which gives them a competitive edge.

These include:

• Emotional storytelling: according to direct-to-consumer trends, companies in the DTC space are pivoting to "ethos" as a competitive differentiator. Instead of focusing on manufacturing and distribution, the focus is on building one-to-one relationships through emotionally charged messaging on mobile and social media platforms.
• More attractive pricing: DTC brands enjoy more profits by eliminating the middleman. This approach provides more control over pricing and discounts, leading to better margins and perception of product value.
• Better customer experience: having access to detailed customer data is a huge advantage for DTC companies. That's because customer insights give brands visibility into who their ideal buyer is so they can deliver a personalized customer experience.

However, while direct-to-consumer trends indicate incredible growth, traditional retailers and wholesalers are catching up. So, how do DTC brands evolve to remain competitive? The answer is embracing an omnichannel marketing strategy.

DTC Embraces Omnichannel

Most DTC brands reached success by leveraging a single channel. Think about these hypothetical scenarios where that's the case:

A mattress company launched its website featuring one model at an affordable price delivered directly to a customer's home. That company reached $100 million in sales in less than two years. In another scenario, an eyewear brand launched its website in 2010. The goal is to deliver high-quality frames to a customer at a low price. Five years later, that company's value reached $1.2 billion.

But these companies have had to embrace an omnichannel marketing strategy to accelerate growth and meet new consumer demands. That means relinquishing control over some areas of distribution. For example, the mattress company sells its products through stores and conventional retailers.

That takes us to another hypothetical scenario. A men's razor company launched its website in 2013. But, today, these products are sold primarily in large retailers. As a result, the meaning of D2C has expanded. It no longer describes brands that only sell through their own direct online channel. Today you can find small D2C brands on Amazon that also have their own website. And then you have big brands that have their own online presence.

Expansion of Customer Loyalty Programs

D2C brands rely on the power of marketing much more than typical brands. Specifically, top-of-funnel branding activities are crucial in helping launch a product successfully. Then, as those brands grow, they must find ways to carry the emotional connection they have established to customer retention models. Retention is a powerful growth lever. For one thing, loyal customers spend 67% more than new customers. Then combine that with the fact that it costs five to 25 times less to retain a customer than acquire a new one.

D2C brands must evolve, or they'll perish over time. That means leaning into omnichannel marketing strategies and leveraging customer loyalty programs. Fortunately, those elements align with emotional storytelling and connection components that propelled D2C companies early on. With a view into 1 in 2 U.S card transactions, Cardlytics' Purchase Intelligence offers powerful insights that help brands shape their omnichannel marketing strategy. Contact us today for an analysis and campaign strategy customized for your brand.

The face of retail is changing. Over the last few years, spending with direct-to-consumer (DTC) brands has nearly doubled. While the retail industry suffered pandemic-driven setbacks, DTC ecommerce steadily grew. According to Cardlytics first-party data, DTC spending jumped from 8% in 2020 to 14% in 2021.

The growth in DTC eCommerce spending reveals bountiful opportunities for retail brands to improve sales performance by taking a page out of the DTC playbook.

Key takeaways:

• DTC companies capitalize on the tech-enabled service model, abandoning traditional retail outlets.
• As the demand for online purchase power increased during the pandemic, DTC ecommerce brands met that need effortlessly.
• DTC brands know how to build authentic customer relationships by delivering consistent and honest messaging.

How Has the Direct-to-Consumer Model Transformed ecommerce?

Direct-to-consumer companies cut out the middleman to save consumers money. But this business model is much deeper than a cost-saving ploy. Direct-to-consumer trends feature niche companies that embrace a digital-first operating model, appealing to younger adult audiences with significant buying power. 

Successful DTC ecommerce brands leverage technology to enable a complete product lifecycle feedback loop. These brands maximize their value proposition by providing simple solutions to common consumer complaints. When the cost of disposable razors had reached a fever pitch with shoppers in the retail market, DTC brands, like Dollar Shave Club, offered a solution–quality razors at affordable prices, delivered to your door.

What Can the Retail Industry Learn from DTC Brands?

Consumers flocked to DTC ecommerce, and while the easy success seen with these models began with a good value, there's a little more to it. These disruptors are doing more than filling a need. They're breathing new life into stale business models by abandoning traditional retail outlets for a tech-enabled service model. 

DTC companies are capitalizing on the digital experience by focusing on user-friendly design to create a simple, effortless shopping experience. And, with quality products and genuine interactions – all things the modern consumer craves, DTC brands are going beyond marketing claims to build authenticity.

DTC Marketing Abandons Outdated Systems for Reimagined Service Models

The idea that manufacturers don't need to rely on retailers to distribute their products fuels the entire direct-to-consumer market. The retail market, ranging from mom-and-pop shops to big box stores, might be the clear winner of the one-stop-shop experience; but there's something more convenient out there–home delivery.DTC brands are keen on data-driven strategies with nimble agility. They wholeheartedly embrace the idea of riding life on the leading edge of change. For example, when Warby Parker closed its 160+ physical locations during the pandemic, its tech-friendly, digital-first strategy paid off big. The brand effortlessly slid back into its eCommerce roots with the right technology in place to meet the needs of those looking for prescription glasses from a safe distance.

Capitalizing on a Mobile-First Experience

The customer experience is the top priority in DTC marketing. These disruptive brands understand that consumers want quick, simple, endlessly personalized interactions to their specific needs – something that's hard to achieve without technology. 

According to Salesforce, over three-quarters (76%) of consumers think companies should understand their expectations and needs. And as of 2020, Gartner says that over 40% of all data analytics projects are geared toward improving the customer experience. Retail is making headway, but this is one area where DTC brands are gaining the most ground.

These companies have built their service model based on the tech-friendly culture of millennial and Gen Z consumers, investing most of their resources into building a simple and efficient customer experience. Ordering products and services with user-friendly apps and AI integrations feels almost effortless.

Focusing on User Design & the Customer Experience

We've also noticed many DTC models obsessively prioritize the customer experience. It's not a coincidence that these brands favor clean, simplistic web design with intuitive features. Sure, the business model of providing just one specialized product or service helps keep the clutter down. Still, it's more than that – these brands are hyper-focused on delivering a seamless customer journey filled with big promises, bigger follow-throughs, and effortless upkeep.

While some retailers might shy away from the scaled-down product catalogs serving as the cornerstone of DTC ecommerce, there's something to be said for offering too many options. Decision paralysis, fueled by an overabundance of choices, often leads to abandoned carts. The feature of the traditional retail business model might be what stands in the way of future success as direct-to-consumer commerce gains a foothold, eating up competition across multiple categories.

Living and Breathing Brand Authenticity Through Social Media

Another cornerstone of successful DTC ecommerce is authenticity. Consumers are more driven than ever before to spend their money with values-aligned services and providers. In the last few years, hot-button topics like sustainability, diversity and inclusion, and employee culture have made news headlines. Many retail brands have been quick to take note of how important these issues are to consumers.

DTC brands seem to already be in the know, placing authenticity high on the company values list. Given the small, curated audience and built-in need for strong loyalty, the DTC business model is rooted in building authentic relationships. These brands are very hands-on with their customer communications, weaving between an active social media presence and a strong customer relations approach. Wherever customers are in their journey, the DTC business model is there, delivering a consistent and honest message.

Retail Brands Can Adopt a Similar Approach, Meeting Consumers Where They Are

Direct-to-consumer marketing trends and business models have laid out a clear path for the retail industry to follow suit. Instead of relying on convenience or bargain prices to get foot traffic, retail brands must adapt to modern consumerism with technology and a passion for customer-driven simplicity. This change requires the courage to try new things and a willingness to engage with customers on an authentic level. Change begins with quality insights, from reimagining the customer experience to embracing a digital-first approach. Cardlytics purchase intelligence can provide meaningful insights to help retail brands harness the same level of loyalty and engagement that direct-to-consumer brands have found. Imagine a future where weekly groceries arrive on auto-delivery and smartphones become personal shoppers, finding and previewing curated collections of new retail merchandise. Cardlytics first-party data insights can help transform your retail strategy.