Are You Doing Direct-to-Consumer All Wrong? Here’s How to Fix It

In the past, most multinationals invested in their direct-to-consumer (DTC) business hoping to unlock a scalable, high-margin sales channel but instead found failure and frustration. Now, beverage companies are changing how they approach their online DTC business.

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Despite their struggles in the past, brands have to rethink and reinvest in the DTC channel. “Instead of trying to build a large, margin-accretive DTC business, large food and beverage companies should use the channel to build a robust ecosystem for gathering consumer insights and testing new ideas that can be used to improve efficiency and spur innovation across their organization,” according to Bourcard Nesin, Analyst – Beverages.

“With the potential to revolutionize the brand development pipeline, improve customer segmentation, and drive the efficiency and efficacy of marketing campaigns, a DTC program optimized for insights offers more benefits and far less risk of a billion-dollar mistake than the past approach to the channel as a scalable sales channel.”