a customer shopping a DTC brand

Hyper growth DTC brands appear to have some things in common. If you’re a DTC brand or the CMO of a DTC brand, the future looks bright. We also wanted to connect a few dots about emerging industries we think are going to be increasingly important.

  1. Average Order Value (AOV) is a Key Indicator of Hyper Growth DTC

    RetentionX has discovered the fastest growing DTC brands have a 55% higher AOV than everyone else. They attribute this high AOV to customer loyalty. Customer loyalty is a holistic and multi-discipline objective.

    But this is where DTC PR really shines.

    Brand loyalty comes from trust. Trust in the product and trust in the brand values. If you’re the CMO or founder of a DTC brand, customer loyalty is your key KPI for revenue growth. One strategy for increased customer loyalty is premium branding, and PR delivers. According to Morgan Stanley’s research, Apple’s premium DTC branding came through a sustained PR campaign that helped deliver  90% brand retention.

  2.  Voice Search: DTC’s Premier Opportunity

    55% of American households own a smart speaker in 2022, according to Juniper research. And according to Navar, slightly more than half of consumers use voice-activated search for things like groceries, and by 2030, the global AI-based and voice recognition market should reach $27.3 billion (insightSLICE).

    Voice activation is likely to take advantage of a multitude of signals, just like SEO. A great start, if you haven’t already gotten there, is making sure your product FAQs include “how,” “why,” and “what” questions. The type of questions your buyers are likely to ask in various stages of product consideration.

    While you’re at it, look at Google’s Review requirements, because these types of reviews are likely to play into voice search, at least on Google. From a trust perspective, combining your owned content with trusted third-party reviews is a home run. Also, remember the added benefit of media coverage is stickiness – what Google can count on when creating its interpretation of your online reputation, which will undoubtedly play into your voice-activated reputation as well.

  3. Partnerships For the Win

    From collabs to join placement and pop-ups and the metaverse, DTC brands can double their exposure by partnering on campaigns. These campaigns can get a huge amount of lift from PR initiatives like media relations and events.

    Forgetting the PR component of these opportunities really misses the chance to secure customer retention and new acquisition. While social media, especially social advertising, is a must-have for DTC brands, DTC brands can look at the PR around partnerships as an opportunity to decouple their dependence on social media.