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:
- Retail chains
- ING Direct
- Allianz Direct
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