Building brand equity is critical for any direct-to-consumer (D2C) brand looking to grow and succeed in today’s competitive marketplace. Having a strong brand is essential to stand out from the crowd, not only can it help differentiate your products and services, but it can also increase customer loyalty and retention. In fact, research suggests that D2C brands with strong brand equity outperform their peers in revenue growth by 3.5 times.
But it’s not just about customer loyalty. Building brand equity can also have a significant impact on your financial performance. According to a study by McKinsey, companies with strong brands outperform those with weaker brands by 73% in terms of stock market returns.
So, in this blog post, we’ll delve into some key strategies that D2C brands can use to build brand equity and set themselves up for long-term success in today’s competitive market.
D2C strategies to build brand equity
1) Develop a unique and consistent brand identity
To develop a unique and consistent brand identity, it’s important to have a well-designed logo, a memorable tagline, and a consistent visual style that reflects your brand’s personality and values. This identity should be reflected across all touchpoints, from your website to your packaging and social media presence. By having a consistent image, you’ll help customers quickly identify your brand and build trust in your products and services.
Strategies for providing a unique and consistent brand identity:
- Develop a clear brand identity: Determine the values, mission, and vision of your brand and establish a unique voice and tone that resonates with your target audience.
- Create a memorable logo: A well-designed logo can help your brand stand out and be easily recognizable among competitors.
- Craft a unique tagline: A catchy tagline that encapsulates your brand’s essence can help customers remember your brand and establish a strong brand identity
- Establish a consistent visual style: Use consistent colors, fonts, and imagery across all touchpoints, including website, social media, packaging, and advertising to build a cohesive and recognizable brand image
- Ensure consistency in messaging: All messaging, including copy, images, and videos, should align with the brand’s identity and voice to maintain a consistent image across all channels
- Monitor and adapt: Continuously monitor brand perception and customer feedback to ensure that your brand identity is resonating with your target audience. Make adjustments as necessary to maintain relevance and engagement with your audience
For instance, Glossier, a popular D2C beauty brand, has a minimalist and feminine aesthetic that is reflected across its website, social media channels, and product packaging. Their iconic pink pouches and bubble wrap envelopes have become a recognizable symbol of the brand, helping to build customer loyalty and trust.
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2) Provide excellent customer service
Providing excellent customer service is a crucial strategy for any D2C brand looking to build brand equity. Positive customer experiences can help build trust and foster customer loyalty. On the other hand, poor customer service can have a significant negative impact on a brand’s reputation and customer retention. By offering personalized experiences, being responsive to customer inquiries and concerns, and going the extra mile to ensure customer satisfaction, D2C brands can differentiate themselves in today’s competitive market and ultimately drive sales and revenue.
Strategies for providing exceptional customer service:
- Train your customer service team to be knowledgeable, friendly, and empathetic
- Provide a variety of customer service channels, including phone, email, live chat, and social media
- Respond to customer inquiries and concerns promptly and with personalized solutions
- Monitor customer feedback and use it to improve your products or services and customer support
- Go above and beyond to make things right for customers, even if it means going out of your way or offering a discount or refund
- Continuously assess and improve your customer service processes and procedures
For example, Warby Parker, a D2C eyewear brand, is known for its exceptional customer service. They offer a home try-on program, where customers can try on up to five pairs of glasses at home for free before making a purchase. Additionally, they have a dedicated customer service team that is available 24/7 to assist customers with any questions or concerns. By providing a seamless and personalized customer experience, Warby Parker has built a loyal customer base that continues to grow.
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3) Focus on product quality
As a D2C brand, providing high-quality products and experiences is a key way to establish a strong reputation and build trust with your customers. Customers today expect consistency, reliability, and superior quality, and meeting these expectations can help differentiate your brand in a crowded marketplace.
Strategies for focusing on the right product quality:
- Develop strict quality control measures and standards
- Source high-quality materials and ingredients for products
- Conduct rigorous testing and inspection of products before releasing them to the market
- Continuously monitor and analyze customer feedback to identify areas for improvement
- Invest in research and development to improve existing products and create new ones
- Train employees to prioritize product quality in all aspects of their work
- Partner with reputable suppliers and manufacturers to ensure product quality is maintained throughout the supply chain
An example of a D2C brand that focuses on product quality is Allbirds, a sustainable footwear brand. Allbirds uses eco-friendly materials and sustainable manufacturing practices to create shoes that are not only high-quality but also environmentally friendly. Their commitment to quality and sustainability has helped to establish them as a leading brand in the crowded footwear market.
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4) Create meaningful content
Creating meaningful content is a powerful way for D2C brands to build brand equity and connect with their target audience. By fostering a connection with customers through social media, email, or in-person interactions, brands can establish themselves as trusted partners in their customers’ lives. Brands can establish themselves as a go-to resource for their customers by providing helpful tips, industry insights, and relevant news. Moreover, creating valuable content such as blog posts, videos, and social media posts can help build brand loyalty and establish the brand as a thought leader in the industry.
Strategies for engaging with customers and creating meaningful content:
- Use social media platforms to engage with customers and respond promptly to their queries and comments
- Offer personalized experiences and recommendations to customers based on their preferences and purchase history
- Develop a content marketing strategy that aligns with the brand’s values and interests of the target audience
- Create compelling and valuable content such as blog posts, videos, and social media posts that resonate with customers and add value to their lives
- Encourage user-generated content by running social media contests and giveaways, and feature customer stories and experiences on the brand’s website and social media channels
- Utilize email marketing to provide exclusive content and promotions to subscribers
- Host events and webinars to connect with customers and offer educational resources on industry-related topics
One example of a D2C brand that excels at engaging with customers and creating meaningful content is Glossier, a beauty brand. Glossier’s success is largely attributed to its strong social media presence and its focus on creating a community around its brand.
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They regularly engage with their customers through Instagram, Twitter, and their blog, where they share tutorials, behind-the-scenes looks, and user-generated content. Glossier has also created a unique content strategy that includes a print magazine called “Glossier Play,” which features interviews with beauty industry insiders and explores topics related to self-care and self-expression. By creating meaningful content and engaging with their customers, Glossier has built a loyal following of beauty enthusiasts who trust and advocate for their brand.
5) Continuously innovate and improve
Continuous innovation and improvement are essential strategies for building brand equity in the D2C space. Brands that prioritize these strategies are able to stay ahead of their competitors and establish themselves as thought leaders in their industries. Whether it’s through product improvements or offering new and exciting services, staying ahead of the curve can help keep your brand fresh and exciting and establish you as a leader in your industry.
Strategies for continuously innovating and improving content:
- Conduct regular market research to identify trends, gaps in the market, and customer needs
- Encourage and gather feedback from customers through surveys, social media, and other channels
- Establish a culture of innovation within the company by rewarding creative ideas and experimentation
- Invest in research and development to improve existing products and develop new ones
- Monitor competitors and industry trends to stay ahead of the curve.
- Continuously evaluate and improve internal processes to increase efficiency and reduce costs
- Develop partnerships with other companies, universities, or research institutions to leverage external expertise and resources
An example of a D2C brand that has consistently introduced new and innovative products is Dollar Shave Club. The brand started as a subscription-based service that delivered razors and other grooming products to customers on a monthly basis. Since then, they have expanded their product line to include a wide range of personal care items, including hair and skin care products, toothbrushes, and more.
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They have also introduced several new product categories, such as fragrance and oral care. Dollar Shave Club’s focus on product innovation and expansion has helped them stay competitive in the marketplace and continue to build brand equity among their customers.
6) Engage with customers
Engaging with customers is an important aspect of building brand equity for D2C brands. By building strong relationships with customers, brands can establish trust and loyalty, which can help to differentiate them in a crowded marketplace. Engaging with customers on social media, through email, or in person can help build brand equity by fostering a strong connection with customers.
Strategies for engaging with customers:
- Utilize social media platforms to connect with customers
- Respond promptly and professionally to customer inquiries and feedback
- Offer personalized experiences through loyalty programs or targeted marketing campaigns
- Host events or workshops to engage with customers in person
- Encourage and respond to customer reviews to show that their feedback is valued
- Provide excellent customer service to create a positive impression and build long-term relationships
- Gather and analyze customer data to better understand their needs and preferences, and tailor your approach accordingly
An example of a D2C brand that effectively engages with customers is BarkBox, a subscription-based service that delivers monthly boxes of toys and treats for dogs. BarkBox engages with customers through its social media channels, where it shares cute and funny content featuring dogs, encourages customer feedback and reviews, and hosts giveaways and contests.
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The company also offers a personalized experience by asking customers to provide details about their dogs’ preferences and interests, which helps customize each box for the individual dog. This personalized approach to customer engagement has helped BarkBox establish a loyal customer base and grow its business.
Continue reading: How To Engage Customers at Each Stage of Customer Lifecycle?
7) Collaborate with influencers
Collaborating with influencers is a popular strategy for many direct-to-consumer (D2C) brands to build brand equity and increase their reach. Influencers can help promote your brand to their followers and create buzz around your products or services. When selecting influencers to collaborate with, it’s important to consider their values and the type of audience they have, to ensure that they align with your brand’s image.
Strategies for collaborating with influencers:
- Identify relevant influencers in your industry or niche
- Build relationships with influencers by engaging with them on social media and sharing their content
- Develop a clear collaboration strategy and set clear expectations for both parties involved
- Create unique and compelling content that aligns with the influencer’s personal brand and resonates with their audience
- Use influencer-generated content across your social media channels and website to amplify the reach of the collaboration
- Monitor the success of the collaboration and measure the ROI to inform future collaborations
One D2C brand that has successfully implemented this strategy is MVMT, a watch and accessories company. MVMT has collaborated with a number of influencers across social media platforms such as Instagram and YouTube. These influencers have helped to promote MVMT’s products to their followers and have even created their own unique collections with the brand.
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This has helped MVMT to build brand awareness and reach new audiences, while also maintaining a consistent brand image through carefully selecting influencers that align with their values and aesthetics.
8) Offer a superior user experience
Providing a superior user experience is crucial for building brand equity in the competitive world of direct-to-consumer brands. A seamless and enjoyable user experience can help differentiate your brand from the competition, increase customer loyalty, and boost financial performance. It’s important to prioritize user-centric design, intuitive navigation, and fast load times for your website and mobile app.
Strategies for offering a superior user experience:
- Conducting user research to understand customers’ needs and preferences
- Designing a user-friendly website and mobile app interface
- Offering personalized product recommendations and tailored messaging
- Providing transparent and easy-to-understand product information and pricing
- Offering multiple channels for customer support and communication
- Implementing a seamless checkout and payment process
- Continuously gathering feedback from customers to identify areas for improvement and make necessary adjustments
One D2C brand that has excelled in offering a superior user experience is Casper, a mattress and bedding company. Casper’s website and mobile app feature a clean and easy-to-navigate interface, with detailed product information and customer reviews readily available.
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Additionally, Casper’s 100-night sleep trial and hassle-free return policy demonstrate their commitment to providing a superior customer experience. These efforts have contributed to Casper’s success in building brand equity and establishing itself as a leader in the industry.
Final Word
Building brand equity is not just about following a set of strategies; it’s also about being authentic and true to your brand’s values and mission. It’s about understanding your customers and their needs and delivering products and experiences that exceed their expectations.
Remember, building brand equity takes time and effort, but it is a worthwhile investment in the long run. By focusing on creating a strong and unique brand identity, providing excellent customer service, and offering high-quality products, a D2C brand can establish itself as a leader in its industry and build a loyal customer base that will help drive its growth and success.
