The Interactive Advertising Bureau (IAB) recently released a research report that has a lot of traditional marketers feeling anxious. So much so that after speaking with IAB’s president and CEO about the report, Business Insider’s Mike Shields wrote “Traditional marketers are screwed.” A harsh summation attributed to the fact that non-traditional strategies like those used by direct-to-consumer (DTC) upstarts are systematically crippling growth for the world’s biggest businesses.
So, what does that mean for businesses — big and small — that typically rely on traditional marketing tactics to reach consumers on channels like Facebook and Google? Shields says it best when he writes, “It’s the direct consumer relationship, and the use of consumer data, that is completely game-changing for the marketing world.”
Businesses of every size need to foster individual consumer relationships, rather than blast out flashy, broadly distributed ads or pay celebrities to speak on their behalf. And while it certainly doesn’t make sense for every business to blow up its existing model to become a direct-to-consumer (DTC) brand, there are key learnings from the DTC playbook that any business can apply.
Prioritize authenticity.
A 2017 Consumer Content Report revealed that 86 percent of people say authenticity is important when deciding which brands they like and support; more specifically, 90 percent of millennials say brand authenticity is key, reiterating that younger consumers — who possess $200 billion in annual spending power — would rather see “real and organic” content instead of “perfect and packaged.”
This report found the best way to foster authenticity is through user generated content (UGC). Rent the Runway, an online ecommerce website that allows women to rent designer apparel and accessories, uses UGC as a cornerstone of its business model.
Instead of exclusively flooding shoppers with images of picture-perfect models strutting around in their dresses, Rent the Runway prominently features user photos of real customers wearing the dresses alongside their dress reviews, helping users visualize how a dress will look and feel in real life. Users are encouraged to provide feedback on the dresses they order — regardless of whether the reviews are positive or negative — to help others make a decision about…
