Direct to consumer business model

With the direct-to-consumer model, the company manages the whole relationship directly with the customer. No intermediaries mean high margins but also more complex processes.

Well-known examples are:

  • Utilities
  • Retail chains
  • ING Direct
  • Allianz Direct
Direct to consumer Business Model

Before you start

  • Investigate the needs of the target group
  • Make sure the target group is big enough
  • Make sure the target group is willing to buy the product directly from you (e.g. Online).

How to start?

  • Start selling or providing the product or service through a MVP

What are the key success factors?

  • Ability to generate brand awareness and drive traffic to the selling point

How to cope with threats?

  • Two-sided business models
    • Provide specific guidance and/or online assistance when a customer chooses the product
    • Show your product knowledge with to blogs, YouTube videos, etc.
    • Provide extra services
  • Price comparison websites
    • Show lowest priced products in order to generate traffic

Contact me

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