Data-Centric Digital Media & Email Marketing

D2M (Direct to Moms) – Why CPG Brands Need to Master the Direct-to-Consumer Model

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Direct-to-consumer (D2C) is the latest way brands are trying to redefine their business models and influence the buyer’s journey. The definition of D2C may vary to some, but we define D2C as branded manufacturers selling directly to consumers. This means they are selling through their own website or owned brick and mortar retail. We could discuss brands selling through Amazon (as some folks may consider this D2C), but that’s an entirely separate conversation.

 

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Many CPG brands are making the switch to D2C and it’s clearly affecting one market in particular: moms. Moms are the main purchasers and decision makers in U.S. households, meaning they’re the market for CPG D2C success. However, for brands to target the primary mom market, they need to understand that millennial and Gen Z moms are changing their purchasing behaviors compared to their generational predecessors. Millennials are currently the largest population of moms; however, by 2022, 45% of parents will be Gen Zers (Michaelson). Brands need to implement an omnichannel strategy consisting of real-world experiences (e.g., brick and mortar stores) and online interaction (e.g., D2C) to be successful in this market. Now for the real question: how do brands get started?

 

4 Catalysts to Deliver D2C Success

Want to increase sales and revenue? We have four catalysts to success for brands looking to enter the D2C world or desiring to improve their current D2C marketing strategy.

1. Digital

Through a combination of organic, paid, and owned digital marketing, brands can get in front of their audience. Brands will have to start at the awareness stage by educating their current and new audience on the new way(s) they can purchase the brands’ products. Most brands are implementing this digital strategy in conjunction with their traditional business model, but marketing for D2C is a different ball game. Offering a combination of experiences like ads, Facebook or Instagram live events, how-to tutorials (particularly for a new product), VR compatible/ 360-degree videos, and more will give your audience a one-of-a-kind experience and bolster your D2C business.

 

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So how can brands utilize digital to reach millennial and Gen Z moms? We all know millennials and Gen Z grew up with technology at their fingertips. That’s nothing new. However, most brands still have difficulties finding millennial and Gen Z moms online. Understanding their communication preferences and favored platforms will help brands create an optimized user experience. Forbes cites that Gen Z moms prefer brands reach and interact with them via Facebook, with 30% turning to Facebook as a source to find brands to buy. In a study conducted by Riddle and Bloom/eMarketer, 66.7% of teen (Gen Z) and millennial shoppers surveyed used Amazon while shopping online compared to 32.2% going through brand websites. Both options are a part of the top three ways teens and millennials like to shop, illustrating D2C as a viable and reasonable business model. What’s more surprising is 56.8% of those surveyed preferred shopping digitally compared to 43.2% desiring an offline, in-store experience. This is a key indicator that using an online/offline combined strategy is the best course of action.

2. PR

For this article, we are breaking PR into two categories: featured content and influencer marketing. Many brands looking to go D2C can drive traffic through organic or paid content by partnering with a variety of mom-centric online and offline publications, like BabyCenter.com. Asking publishers how they drive readers is an important part of the selection process. What is the main source of traffic driving readers to the publisher(s)? Are they generating leads through a landing page, co-registration form, or other sources? More importantly, are they hitting the mom demographic you wish to reach?

When choosing a publisher, another significant factor is the content millennial and Gen Z moms want to see. Millennials like consuming content on topics surrounding ways to improve as a mother, whether it’s through how-to articles or reading inspirational stories about the struggles of being a mom (with plandid photos, of course). On the other hand, Gen Z moms want to look like they have the perfect life on social. Social media is a defining factor in making 56% of Gen Z moms feel anxious; it gives them the perception that they need to convey to the world a thrilling and immaculate life (Carter). So how does this affect the media they consume? Or the influencers they decide to follow?

Speaking of influencers, creating a relationship takes time; brands need to make sure they are developing meaningful relationships with influencers. Influencers can help drive traffic to a brand’s D2C platform and boost sales by articulating the benefits through multiple platforms: social media, emails, forums, blogs, reviews sites, and in-person events. Particularly, niche influencers can help brands hone in on a specific market, like health-conscious Gen Z moms; help a brand better understand their target market; and discover new markets for their D2C efforts.

Beyond that, brands need to consider the following: many Gen Zers feel like their opinions are not taken seriously by older adults, so they develop flop accounts on platforms like Instagram to discuss pressing topics among their peers. Millennials are more likely to be responsive to ads when one of their favorite influencers is involved, with 58% stating that they would watch ads if it helped influencers they liked (Defy). Adweek cites that 57% of millennials will watch sponsored content as long as it has real people (influencers) and sparks a sense of fun or entertainment. So how can brands reach millennial and Gen Z moms? By:

  • Entertaining their audience
  • Showing they care about their audiences’ thoughts and causes
  • Showing they want to help create a sense of community
  • Displaying audience and brand value alignment

3. Event Marketing

Event marketing is a great way for brands to create more touchpoints with their audience. Why? Event marketing allows moms to interact with brands IRL, whether it’s through a table at a concert with games and activities centered on new products, a booth at a local festival, or an event at brick and mortar stores. Pop-ups are another fun, exciting way to interact with consumers. Gen Z and millennial moms are partial to enjoying (and paying) for experiences over material objects, which means they are more likely to interact with your brand through event marketing.

 

 

When it comes to the psychological reasons why mom would buy, cognitive fluency (i.e., the ease or difficulty of completing a task) and emotional purchase patterns can cause repeat purchasing behaviors. For example, if mom makes her first purchase at an event (before competitors beat said brand to the punch), then she is more likely to become a repeat customer. She can experience reduced feelings of cognitive dissonance during the buyer’s journey compared to others who didn’t have the same experience. This instance is explained by cognitive fluency and familiarity, which are often one and the same (and mean that the brand’s marketers are doing a good job). Through event marketing and other offline events, brands can better understand the connection between online and offline buyer’s journeys.

4. Email

Email is the most productive way to reach moms, with 74% of moms stating email is their preferred method of communication (SendGrid).

Why? Email allows brands to own their consumer data (first party). Through the right email marketing strategy, brands can use different touchpoints like landing pages, pop-ups, co-registration, digital media, and more to collect user data and drive traffic to brands’ various channels to bolster their omnichannel approach. Email marketing platforms make it easy for brands to easily track and analyze user interaction and engagement. All these email marketing strategy components create the perfect opportunity for brands to personalize communications with their audience and target them at the right place, at the right time.

 

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The Takeaway

The D2C world is a fairly new (and mysterious) place for most CPG manufacturers, but brands can succeed in the space by using proven marketing methods like digital, PR, event marketing, and email. These marketing efforts often work together to support promoting other marketing efforts. Ever seen brands link their social media platforms at the end of a newsletter? These connections can seem inconspicuous to some consumers but are prevalent throughout many brands’ marketing channels. Remember, the moms of the present and future need to inform their purchasing decisions through multiple touchpoints so they can make smart, everyday purchases through D2C.