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Why Even Large, Long-Standing Brands Should Consider the D2C Model

June 03, 2020

Digitally native D2C firms have found clever ways to build strong relationships with their consumers and increase profit margins by cutting out the middlemen. By concentrating on subscription models, powerful commerce platforms and customer data, they've been able to deliver exceptional customer experiences that have generated a loyal customer base.

But it’s not just the newbies who are capitalising on the D2C opportunities. Global brands like Gillette are experimenting with bypassing the traditional retail models to deliver D2C offerings of their own too.

So, what does this change in business model mean for the manufacturers and distributers whose businesses depend on the old way of doing things? How can they adapt and compete to stay relevant?

Why Should B2B Manufacturers Go D2C?

For established B2B firms or manufacturers, it might seem like a mountain to climb to compete with the surge in D2C disrupters, but there are huge opportunities to be had from transitioning to a D2C model.

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By removing the middlemen, B2B firms and manufacturers can start to capitalise on the profits that had previously been falling to the suppliers and distributors. More importantly, by owning the end-to-end relationship, companies can take better control over the brand, the customer experience, customer data and, crucially, the customer relationship, enabling manufacturers to provide better/more targeted product offerings.

How Can Distributors Compete in the Growing D2C Movement?

To remain competitive, distributers need to offer an amazing customer experience. By delivering a seamless CX, they can then begin to capitalise on the increased opportunities to capture customer data and pivot on those insights. They also need to increase order efficiency through automation and integration; this not only streamlines internal processes, but it also frees up employees to support other areas of the business or focus on items that yield the most profitability.

How B2B Distributor Westcon Transformed

To accomplish a full digital transformation, B2B distributer Westcon had two primary goals in mind: a) to grow in ecommerce sales by creating a transactional site, and more importantly, b) to optimize internal tools to streamline internal processes such as “creating quotes, creating orders and delivering the best customer experience,” according to Dwight Pitter, VP of Customer Technology.

Read more about how we reduced processing time by 60 percent and delivered a seamless digital business platform for Westcon partners and their customers.

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