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DTC stands for direct to consumer. This is a term used to describe companies who sell directly to consumers through either their own website or retail locations. DTC brands operate by selling their goods and services without the use of traditional channels like 3rd party distributors or 3rd party retailers. If you are buying products through a brand’s site or their retail location, you are purchasing through a DTC channel. On the other hand, if you are purchasing products from a big box retailer like Target, Walmart, or online retailer like Amazon, you are getting your products from a 3rd party (not a DTC brand).
What is DTC Strategy?
DTC strategy has to do with DTC marketing techniques that brands use to more effectively sell to their customers. This could be anything from bundling and cross selling, that help brands expose their customers to more relevant products based on their current and previous purchase, to Market Basket Analysis, which is a measurement technique that identifies a companies most commonly sold product combinations. Everything in DTC strategy is about elevating the customer experience by understanding their behavior through data and taking informed action across marketing, product, and sales initiatives.
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