Manufacturers have traditionally relied on mail-in warranty card registrations to capture customer data and track product warranties. However, this process is becoming increasingly outdated and inefficient in today’s digital age. According to McKinsey “Direct-to-consumer (D2C) e-commerce currently presents the best opportunity for innovative brands to build direct relationships with their customers. “[1]
To modernize operations and engage directly with customers, manufacturers can consider several more modern approaches. The first of these is to leverage a customer master data management system (CMDM) and engage in direct-to-consumer (D2C) sales. By doing so, manufacturers can enjoy the benefits that D2C retailers have traditionally enjoyed, while also improving the customer experience and increasing customer loyalty. In fact according to Invespcro, 55% of consumers say they would rather buy D2C than through an intermediary brand.
D2C sales allow manufacturers to bypass traditional retail channels and sell their products directly to consumers. This results in increased revenue opportunities improve margins and represent better control over the customer experience. D2C allows manufacturers to capture customer data directly, rather than relying on third-party retailers to collect and share customer data.
To support D2C sales and capture customer data, manufacturers can leverage a CMDM system as the customer data collation point. This approach in the tech stack allows them to consolidate customer data from multiple sources, such as website registrations, social media interactions, and transaction data, into a single database. By having a complete view of the customer, manufacturers can then better understand the customers’ needs and preferences and personalize their marketing and sales efforts accordingly.
By engaging in D2C sales and leveraging a CMDM system, manufacturers can also change the dynamic between themselves and the customer. Manufacturers can then establish a direct relationship with the customer, rather than relying on third-party retailers to act as intermediaries. This supports better customer experience and has the potential to build stronger customer loyalty.
One benefit of D2C sales and CMDM systems is the ability to personalize marketing and sales efforts. With a complete view of the customer, manufacturers can tailor their messaging and promotions to individual customers based on their preferences and behavior. This can lead to higher conversion rates, increased customer loyalty, and higher lifetime customer value.
Another benefit of this approach is the ability to capture customer feedback and use it to improve products and services. With direct access to customer data, manufacturers can gain valuable insights into customer needs and pain points. This can inform product development and lead to better products that meet customer needs more effectively.
Additionally, D2C sales and CMDM systems can result in improved supply chain efficiency. By selling directly to customers, manufacturers can more accurately forecast demand and adjust their production accordingly. This can lead to less inventory waste and a more efficient supply chain overall.
Manufacturers can modernize their operations and improve the customer experience by engaging in D2C sales and leveraging a CMDM system. By doing so, they capture customer data directly, personalize marketing and sales efforts, capture customer feedback, and improve supply chain efficiency. By establishing a direct relationship with the customer, manufacturers can build stronger customer loyalty and drive long-term success.
To learn about how the Pretectum CMDM might fit in your D2C strategy contact us to learn more.