DTC Dispatch #011

LATEST NEWS

How transaction data gives you a competitive edge

The key to seeing where retail is headed — and how your business should adjust — lies in customer transaction data. Industry giants, such as Amazon or Walmart, invest heavily in data and analytics to learn more about their customers.

One example is Gen Z customers, where 85% of those consumers say social media influences their buying decisions. Customer data shows that social media doesn’t merely “influence” their purchasing choices, rather they are actually buying directly through social media at skyrocketing rates.

Our take: At the end of the day, brands should be relying on their customer data and analytics as their main source of truth for driving their marketing strategies. In the above example, customer data shows that social media doesn’t just influence Gen Z’s purchasing decisions, but rather it supports that they are actually buying directly through social media. Therefore, if Gen Z is your target audience, you need to increase your social media marketing tactics to reach your audience where they are.

Skiwear brands are strategizing to expand amid crowding in the market

There is a growing trend of fashion brands launching skiwear collections, including luxury players such as Moncler, Pucci and Jimmy Choo. These brands have been flocking to ski towns including Aspen, St. Moritz and Gstaad. Considering the crowding in these markets, traditional skiwear brands like Bogner and Fusalp are now looking elsewhere to acquire customers. New stores in urban markets and an expanded product assortment are allowing skiwear-native brands to reach a broader customer base.

Our take: “Our advantage, compared to the other brands, lies in our omnichannel approach,” said Bogner. In such a niche market like luxury skiwear, brands need to find ways to stand out amid congestion in the market. Bogner plans to enhance its brand’s marketing approach to offer a more comprehensive and connected experience, moving beyond social media and in-store features.

Solo brands names new CEO after Snoop marketing miss

Solo Brands has announced it is changing CEOs in the wake of major marketing investments the company made, including a viral Snoop Dogg marketing campaign for Solo Stove, that the company said haven’t resulted in a substantial revenue increase. At the time of the ad drop, the Snoop marketing campaign was seen as a huge success for Solo. Ad Age ranked the collaboration #18 on its list of the 40 best ads of 2023, and they gained some 60,000 new followers on social media days after the ad dropped. However, the marketing campaigns have not resulted in an increase in revenue for the company.

Our take: When large-scale marketing campaigns flop, often times there is someone who needs to take the blame. Clickbait headline or not, if Solo’s goal for this celebrity endorsement was to see measurable ROI in the 11th hour of 2023, this may be indicative of poor leadership in other areas too.

Why Calvin Klein ads still get people talking

Calvin Klein released ads of Jeremy Allen White on Jan. 4 and the internet went wild. The ad was classic Calvin Klein, which has been synonymous with sexy, conversation-starting campaigns since the 1970s. In just 48 hours, the White ads generated $12.7 million in media impact value, data insights company Launchmetrics’ proprietary measure of engagement.

Our take: Calvin Klein has a long history of leaning on provocation to sell its mass market staples. As society has evolved, the fashion industry has gotten more cautious with advertising. While for over 50 years, Calvin Klein has relied on ‘no publicity is bad publicity,’ will changes in society continue to push back?

FEATURED CONTENT

How to grow your e-commerce brand by 10x in the next 12 months

Kyle Hunt, the advisor at WKND Digital, scaled his own brand from $0 to $27 million in 12 months, and here are the 5 strategies that helped him do it:

1. Humanize your brand

2. Build a community

3. Focus on your top 4%

4. Get a solid leadership team in place

5. Get to know your #’s intimately (finances, cash flow, etc.)

Our take: Hunt’s success of growing his e-commerce brand by 10x is a great case study on business best practices. The most interesting strategy to us is #3: focus on your top 4%. Based off the Pareto Principal, if you look at the top 20% of your 20%, you get your top 4%. These people want to generate 64% of your income. These consumers are loyal and should receive a large portion of marketing resources.

OUR SPONSOR

The DTC Dispatch is sponsored by email & SMS marketing agency, NOBLE. We build, maintain, and leverage your #1 business asset: first-party data.

As the marketing landscape changes constantly, it’s a particularly good time to invest in owned-audiences you can leverage across channels to reach the right audiences at the right time with the right message.

Interested in driving predictable revenue through owned-audiences? Just reply to this email.