Should growing retail brands double down on their in-store retail outlets or diversify to DTC?
- B2C
- Go-to-Market
- Marketing Consultant
- Marketing Strategy, Growth Marketing, Customer Experience (CX)
- Part 1Has DTC Marketing Peaked
- Part 2 Should growing retail brands double down on their in-store retail outlets or diversify to DTC?
- Part 3What’s the one word marketers should focus on when transitioning from DTC to Retail?
- Part 4Are subscription models the best pricing strategy for DTC brands?
- Part 5What plays would you call to scale a DTC business from startup to $10 million ARR?
Show Notes
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00:30Discussing the strategy of focusing on in store retail outlets versus diversifying to DTC.Exploring the decision-making process for retail brands on where to allocate resources for growth.
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05:15The importance of understanding key marketing terms when transitioning from DTC to Retail.Highlighting the need for marketers to grasp essential terminology for a successful transition.
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10:45Evaluating the effectiveness of subscription models as a pricing strategy for DTC brands.Examining the viability and impact of subscription-based pricing in the DTC market.
Quotes
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"Any brand that is out there that really wants to serve their customers well should try to meet the customer where the customer wants to buy.” - Kelly Thornton
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"The demand that consumers will continue to have over the next 10 or 15 years is how do I purchase something in the comfort of my own home and have it delivered tomorrow?" - Kelly Thornton
Episode Chapters
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01:30: Lightning Round -- D2C marketing focus_The discussion covers whether growing retail brands should double down on their in-store retail outlets or diversify into D2C marketing, emphasizing the importance of meeting customers where they prefer to buy.
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02:37: Double Down or Diversify -- Digital company shift_The conversation addresses the challenges traditional retail brands face when deciding whether to maintain their existing retail model or venture into the unknown of digital commerce, questioning the survival necessity of adapting to D2C.
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04:42: Lightning Round -- Online retail trends_The dialogue highlights the growing consumer demand for convenient online shopping experiences, using Amazon as an example of the high expectations customers have for rapid delivery and how traditional retailers must adapt to compete.
Episode Summary
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# The Importance of Diversifying into D2C Marketing In today's episode of the Martech Podcast, hosted by Benjamin Shapiro, the conversation revolved around the significance of direct-to-consumer (D2C) marketing for growing retail brands. Joining Benjamin was Kelly Thornton, the successful entrepreneur and CEO of a skincare company designed specifically for men. With a mission to provide uncomplicated skincare solutions, Thornton shared valuable insights into why D2C marketing is essential for modern retail businesses. The discussion covered everything from the advantages of D2C cha els to the evolving expectations of consumers in a digital age. ## Double Down or Diversify?nBenjamin kicked off the lightning round with a pertinent question: should growing retail brands double down on their in-store retail outlets or diversify into D2C? Kelly Thornton firmly advocated for diversification, emphasizing that brands should meet customers where they want to buy. He noted that diversifying into D2C allows brands to better serve their customers by offering them multiple purchasing cha els. ## The Case for D2C Diversificatio In an engaging exchange, Benjamin played the devil's advocate by questioning the need to shift towards D2C when an existing retail presence is already thriving. He highlighted the expertise retail brands have in getting customers into stores and assisting them with their purchases. However, Thornton's response was straightforward: if retail brands want to stay competitive and relevant, they must embrace D2C marketing. Backing his argument, Thornton pointed to the ubiquity and convenience of platforms like Amazon, TikTok, and Temu. He shared personal anecdotes about how his family frequently turns to Amazon for their needs, citing the platform's efficiency and quick delivery times as significant advantages. His analogy underscored the growing consumer demand for seamless online purchasing experiences that traditional retail stores are hard-pressed to match. ## Meeting Consumer ExpectationsnThe podcast highlighted how consumer expectations are evolving. Thornton recounted how his purchase of everyday items is almost exclusively done online, specifically through Amazon. He described the convenience of choosing delivery times and the unprecedented swiftness of next-day delivery options, which he termed "bananas." To stay competitive, he argued, retail brands need to offer similar conveniences through their own D2C platforms. ## The Amazon ParadigmnThe discussion also touched on Amazon's hybrid model, combining elements of traditional retail with modern D2C benefits. This model sets a high bar for traditional retailers, forcing them to reconsider their strategies. Thornton suggested that retail brands should leverage their supply chains to develop services that meet or exceed customer expectations for speed and convenience. By doing so, they can create a compelling D2C presence that complements their existing retail outlets. ## Conclusio In closing, the emphasis was clear: for brick-and-mortar retailers, diversification towards D2C is not just an option; it is a necessity. As consumer behavior continues to shift towards online shopping, brands must adapt by offering a robust D2C cha el to stay competitive. The conversation with Kelly Thornton provided valuable insights into the critical need for retail brands to evolve. By embracing D2C marketing, brands can ensure they remain relevant in an increasingly digital marketplace. To get in touch with Kelly Thornton or learn more about his company, links to his LinkedIn profile and company website are available in the podcast show notes. For more episodes and summaries, visit martechpod.com.
- Part 1Has DTC Marketing Peaked
- Part 2 Should growing retail brands double down on their in-store retail outlets or diversify to DTC?
- Part 3What’s the one word marketers should focus on when transitioning from DTC to Retail?
- Part 4Are subscription models the best pricing strategy for DTC brands?
- Part 5What plays would you call to scale a DTC business from startup to $10 million ARR?
Up Next:
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Part 1Has 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.
Play Podcast -
Part 2Should growing retail brands double down on their in-store retail outlets or diversify to DTC?
Kelley Thornton, founder and CEO of Tiege Hanley, explores the critical decision of whether retail brands should double down on in-store retail outlets or diversify into D2C marketing. Kelley shares his insights on the evolving consumer behavior, emphasizing the importance of meeting customers where they want to buy. He highlights how traditional retailers can compete with the convenience and speed of online giants like Amazon, ensuring their survival and relevance in the digital age.
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Part 3What’s the one word marketers should focus on when transitioning from DTC to Retail?
Kelley Thornton, founder and CEO of Tiege Hanley, explores the essentials of transitioning from D2C to retail. He emphasizes the importance of being ‘ready’ for organizational scale, brand strength, and mastering distribution. Kelley shares valuable insights on preparing packaging, developing pricing strategies, and ensuring a strong brand presence to succeed in retail environments.
Play Podcast -
Part 4Are subscription models the best pricing strategy for DTC brands?
Kelley Thornton, founder and CEO of Tiege Hanley, explores the benefits and challenges of subscription models for D2C brands. He emphasizes the importance of flexibility in modern subscriptions, detailing how his company manages customer needs to prevent accumulation of excess products. Kelley shares insights on how to make subscription management painless for customers, enhancing their overall experience and satisfaction.
Play Podcast -
Part 5What plays would you call to scale a DTC business from startup to $10 million ARR?
Kelley Thornton, Founder and CEO of Tiege Hanley, shares his insights on scaling a D2C business from zero to $10 million in ARR. Focus on execution and iterative product improvement, Thornton emphasizes the significance of early market testing and finding the right marketing channels. He also encourages aspiring entrepreneurs to seize the opportunities within the DTC channel, emphasizing its level playing field and potential for success.
Play Podcast