Taking control of your customer experience and why you should follow Nike
by Jason Fagan
November 26, 2020
What is the direct-to-consumer (D2C) model and how does it differ from business-to-consumer (B2C)?
Long story short, D2C stands for direct-to-consumer and translates to brand sources, or manufacturers cutting out the middlemen such as Amazon or a retail store and selling directly to their customers, usually by means of an e-commerce website.
B2C or business-to-consumer usually involves the use of a middleman such as a retail store or Amazon.
The direct-to-consumer approach is a fast-growing strategy as its low barrier and means the manufacturer maintains full control of the selling process from start to finish while selling to the customer at a lower cost and reaping the full profit. That’s a win-win right there. I intend to dive into detail for the D2C approach below: why you should consider it and why brands like Nike, a household name worldwide want to have greater control of their brand and user experience and so have made the decision to dump platforms such as Amazon and concentrate on their own e-commerce store.
According to nchannel.com “81% of consumers plan to shop direct-to-consumer brands within the next five years. It’s clear that direct-to-consumer (DTC) and boutique brands are disrupting retail by taking innovative and digital-first approaches to create loyal customers.”
But as a brand you might be asking yourself why you should choose D2C over B2C or vice versa and what exactly are the benefits? Well in 2017, Nike made the decision to start selling its athletic apparel directly on Amazon – a nod to the reach of the retail giant.
However, fast-forward to 2019 and Nike has now dropped the service. Nike ultimately wants more direct, personal relationships with its customer base and this is what has led to their decision to drop Amazon for a more personable D2C approach. “As part of Nike’s focus on elevating consumer experiences through more direct personal relationships, we have made the decision to complete our current pilot with Amazon Retail,” a Nike spokesperson told Retail Dive in an email.
In recent years, Nike has invested heavily in its customer experience, making improvements to its e-commerce website and online membership program, Nike plus, which offers a variety of member-only products. These small things are what create the user experience and help to drive return custom. These personable approaches simply are not available via third-party vendors such as Amazon.
Posted by: Jason Fagan