Has DTC Marketing Peaked

Kelley Thornton, the founder and CEO of Tiege Hanley, discusses the evolution and current landscape of direct-to-consumer (D2C) marketing. He shares insights from his journey as a serial entrepreneur, emphasizing the dynamic nature of content creation and channel optimization. Discussing the historical rise and strategic pivots of well-known D2C brands, Thornton highlights the significance of integrating social influencers and leveraging data to drive customer engagement and sustainable growth.

Show Notes

  • 00:00
    Rise of DTC
    Discussion on the historical growth of direct-to-consumer marketing.
  • 02:15
    Marketing Tactics
    Overview of common strategies that led to the DTC revolution.
  • 04:45
    DTC Evolution
    Insights into the current stage of evolution for DTC brands.
  • 07:20
    DTC Success Factors
    Examination of what strategies are currently effective for DTC brands.

Quotes

  • "The big global companies were really interested in understanding how to engage men in this space because it is and remains an area of growth in the personal care cosmetic world." - Kelly Thornton

  • "DTC is a phenomenal space to be in. I think it is a very, very good space for companies that want to be disruptive with either technology or concept or personal care. I think it's a great opportunity." - Kelly Thornton

  • "You have to be able to break into a market, in our case, brand skincare, and be an authority and be able to talk about your brand in a way that is part of a conversation about a dude taking care of himself. And that's super hard." - Kelly Thornton

  • “What's really changed is what it takes to have content on those channels that do truly engage a customer or truly engage somebody who could be potentially interested in your brand. And that's where we're at today.” - Kelly Thornton

Episode Chapters

  • 01:55: Elevator Pitch -- Entrepreneurial journey summary

    The founder describes his journey from ru ing a painting company, working in sales for International Paper, starting Purchase Point Design, and eventually founding Tiege Hanley.In his career, he gained valuable experience in various fields, from sales and in-store display design to understanding retail strategies and consumer habits, leading to his current venture in skincare designed for men.

  • 04:04: Co ection Request -- Male skincare opportunity

    Discussing the rising interest in men's skincare, especially outside the US, and the opportunity seen due to men’s engagement in personal care seen globally.Highlighting that while the US market still holds onto traditional male stereotypes, there are burgeoning opportunities as men globally show increased engagement in personal care.

  • 06:46: Crystal Ball -- History of D2C marketing

    Exploring the evolution of D2C marketing from early disruptors like Harry's and Dollar Shave Club to current trends and strategies for maintaining successful direct-to-consumer businesses.The history shows that while D2C began as a novel experiment, its principles of direct customer relationships and early brand establishment remain crucial.

  • 10:16: Tagline Talk -- Forming retail strategies

    Evaluating how modern D2C brands eventually must navigate retail cha els, supported by established D2C presence, to sustain growth and reach wider consumer bases.Despite their start in the D2C space, brands ultimately aim to leverage their built-in customer base to expand into retail, showing the necessity of adapting across cha els.

  • 12:12: Marketing Mythbusters -- Changing social content

    Shifting from simple content to complex, engaging marketing strategies on social platforms, reflecting increased consumer expectations and competition.The conversation underscores the necessity for i ovative and engaging content to attract and retain consumer attention within a highly competitive digital space.

  • 15:25: Talk Nerdy To Me -- Influencer collaborations

    Using influencer marketing to expand brand reach by linking with authorities who have established credibility and large followings in relevant spaces.Emphasizing strategic collaborations with influencers to leverage their tribes and integrate products into broader lifestyle conversations consumers are already engaged in.

  • 17:32: Double Down or Diversify -- Content creation importance

    The crucial role of high-quality, engaging content in driving D2C success, with a focus on continual adaptation and relevance in marketing strategies.Content creation is highlighted as essential, and brands must continually i ovate to stay relevant, effectively communicating value without seeming overly commercial.

Episode Summary

  • # From Startup to Superstar: The Ever-Changing World of D2C Marketing In this episode of the MarTech Podcast, we chatted with Kelly Thornton, the founder and CEO of Tiege Hanley, about how direct-to-consumer (D2C) marketing has evolved over the years. Whether you're a business newbie or have been in the game for a while, there’s something here for everyone looking to understand the twists and turns of D2C marketing. ## The Wild West of D2C: From Small Begi ings to Big Brands Remember when brands like Harry's, Dollar Shave Club, Allbirds, and Warby Parker were just getting started? Back then, D2C marketing was like the wild, wild west. These trailblazers leveraged the D2C model to enjoy better margins and direct data insights, allowing them to scale quickly while keeping a direct line to their customers. In the early days, these brands didn't always know how big they could get. Some, like Allbirds and Warby Parker, opened physical stores to expand their reach. Others, like Dollar Shave Club, stuck to their D2C guns and scaled globally. ## Taking It to the Next Level: The Retail Move A big takeaway from our chat with Kelly Thornton was that D2C brands often need to branch out into retail to keep growing. Why? It helps them make the most of their brand equity and reach those customers who prefer shopping in person. For instance, after operating mainly online for eight years, Kelly's brand just started selling in Nordstrom Rack, taking the first steps towards a bigger retail presence. ### The Authority Hurdle One big challenge for new D2C brands is building credibility. Major retailers like Target or Walmart are initially skeptical. So, having a solid D2C presence and a loyal customer base can really help. Showing off data about where your customers are located can also convince retailers to stock your products. ## How D2C Marketing Has Changed Our discussion with Kelly highlighted how the game's changed, especially with the rise of social media and influencers. ### Engaging Content is King In the past, a simple ad could get a lot of attention. But today, creating engaging content is way more complicated. People want high-quality, real content. Influencer partnerships have become key strategies for D2C brands to tap into existing communities that match their target customers. Key Factors in Modern D2C Marketingn- AuthenticitynAds need to feel real, not fake or overly commercial.n- RelatabilitynUse influencers who can really co ect with your audience.n- High-Quality ContentnMove beyond boring old images to create dynamic, engaging videos and posts.n- Data Utilizatio Use customer data to fine-tune your marketing strategy. ## Looking Ahead for D2C Brands As we move forward, the focus will stay on blending great content with smart data analysis. The rise of AI is also shaking things up, changing how people search for stuff online. Understanding these shifts will be crucial for staying ahead of the game. ### Wrapping It Up D2C brands have transformed from scrappy startups to mainstream powerhouses, often combining their online presence with smart retail partnerships. While the tools and strategies may change, the basics remain the same: understanding and engaging your customers. In today’s crowded market, the brands that succeed will be the ones that create top-notch, authentic content and use data-driven insights to grow. The future of D2C marketing will depend on these fundamentals as companies continue to adapt and i ovate.
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