What is holding you back from pursuing a direct to consumer sales strategy? If fear of channel conflict is your answer, read this first!
You likely know that selling direct to consumer could be a huge opportunity, but fear of channel conflict may be holding you back from fully embracing the channel. 57% of brand manufacturers have overcome this fear and started selling direct to consumer. What are you waiting for?
Embracing a direct to consumer selling strategy comes with many benefits including:
- Stronger online and offline brand presence
- Collection of valuable customer data
- Total control of your brand’s story and the consumer experience
- Increased sales
The cost of avoiding DTC
52% of consumers are already visiting manufacturers’ websites with the intent to buy. Therefore, making the choice to forgo selling direct to consumer due to concern over channel conflict can be a costly mistake. Some brands choose to list products on their website, but then refer traffic to retail partner sites. Sounds good in theory, but in reality, over 50% of traffic sent to a retailer site to purchase end up buying a competitor or unrelated product. Ouch.
The truth behind channel conflict
A recent survey of brand manufacturers from Forrester broke through the myth of channel conflict. When asked how direct to consumer affected other channel relationships, 55% reported positive, 36% reported neutral and, most tellingly, just 9% reported negative.
In fact, in that same study mentioned above, nearly half of respondents reported that their direct to consumer channel resulted in greater brand awareness, creating incremental sales for their channel partners.
We’ve seen this scenario first hand at Ally, and our clients consistently experience increased sales across channels when they begin selling direct. As the saying goes – a rising tide lifts all boats.
The answer to your channel conflict fears
Is your fear of channel conflict worth the sacrifice of lost revenue and profit you could gain from going direct to consumer? We can help you answer that. If you want to learn about the opportunity of going direct to consumer in today’s $400 billion eCommerce market, schedule a quick call with one of our experts today.