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  • Writer's picturePaul Thienes

Is Your DTC Strategy Future Forward?

In the recent past when we said DTC we thought ecommerce. But, with the advent of COVID-19, the acceleration of e-commerce (as the preferred method of purchasing anything and everything,) and the surge of Digitally Native Vertical Brands (DNVBs,) --who are growing at a +44% clip versus +16% for traditional e-commerce -- thinking e-commerce is not enough.

If you want to experience future forward strategies for DTC, look no further than the DNVBs. They are responsible for changing consumer attitudes, behaviors, and expectations. And while you may think that your winery business is nothing like Warby Parker, Harry’s Razors, Curated, Article, or Blue Apron, you would be wrong. Wine is a vertical business. It appeals too, and relies on, a certain group of the population to deliver most of its revenue, not everyone. In many cases, the winery controls the product all the way from production to warehouse to customers (no middlemen.) The definition of a DNVB.

Why Are DNVBs so Successful?

1. Brand is the single biggest differentiator for DNVBs versus competitors. Branding is everything. Branding leads to customer loyalty. Branding extends throughout the customer experience. Branding improves the value of what’s being sold. DNVBs thrive because their customers love the brand. 

2. The ecommerce channel serves as an enablement layer, not the core asset. And DNVBs often have (like wine brands) multiple channels – including brick and mortar.

3. DNVB marketers have incredible amounts of data at their fingertips. And, they not only know how to use it, they are driven by the data! They have one integrated, powerful system to capture customer data throughout the discovery, buying, and post purchase experience. This is at the core of a DNVB's PHENOMENAL competitive advantage.

But most of all, DNVBs derive their success from, as Camille Kriebitzsch, a Eutopia VC, states, “The inherent promise of the DNVB model is to put the consumer at the heart of the value proposition by offering a buying experience that is as memorable as the product.” In other words, their success comes from the recognition that they are in the customer relationship business.

And, you can access the power of your data in the same manner. eCELLAR’s integrated and connected DTC and Customer Relationship System gives you access to all your data, in one easy to use, powerful, and forward-looking platform. A platform that is always evolving and growing with new functionality based on constant but prioritized requests, and the flexibility to connect with other systems, i.e. ERP.

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