Companies are quickly racing to build their Direct-to-Consumer operations, and one company that implemented it almost to perfection is M&M’s.
The candy company has come up with a unique website, offering engaging content, a loyalty program, and product personalization. As a result, they attracted a lot of interest to their site, increasing their online presence with social media through trendy content. The significance of the D2C strategy is essential for consumer packaged goods companies as the pandemic has fast-tracked the growth of D2C marketing by shifting consumers to purchase online.
Moving away from third-party distributors, CPG companies used to make important decisions based on second and third-party data. However, they are now relying on themselves to create a cohesive and complete end-to-end experience for consumers, along with enabling direct access to their audiences and first-party data as they are building their strong first-data sources which are then leveraged to push better brand experiences.
This is not just happening among CPG’s but with retailers too. More and more retailers are going through the same process of setting up their e-commerce channels. And it’s pretty clear why companies are jumping on the D2C train. Last year amidst the pandemic, online grocery purchase increased by 16% and digital sales of nonperishable foods increased by 38% All because brands take control of their sales channels, customer experience, and content.
As a result, the brands also experienced a surge in sales due to increased brand loyalty and brand authentication. Companies like M&Ms and Coca-Cola were able to curate their content and form relationships with large influencers to increase their brand awareness and improve their images.