eCommerce News Asia logo
The latest digital commerce news for Asian businesses
Story image

Loyalty, pricing and service are D2Cs biggest shortfalls

Almost three quarters (73%) of brand manufacturers are failing to use effective loyalty and sales models, yet the same companies are looking to direct to consumer (D2C) to gain more insights on behaviours of shoppers, according to a new survey by Mobiquity. 

Customer service and support was the second largest shortfall identified (38%), with D2C companies failing to meet basic service and support criteria.

The report has revealed that pricing and loyalty strategies executed by brand manufacturers pose the biggest challenge in their D2C uptake.

The report, How to win big in a competitive D2C market, reveals only 27% of brand manufacturers are using effective loyalty and sales models, such as scarcity conversion optimisation techniques and personalised pricing, in order to reap the true benefits of having a D2C channel meaning the remaining 73% are falling short.

Customer service and support was the second largest shortfall identified in the report, with 38% of D2C companies failing to meet basic service and support criteria, such as always-on live chat functionalities.

Key drivers for D2C activation revealed that the second biggest incentive behind opening a D2C channel is to gain more insights on the needs and behaviours of their shoppers the first being to generate a new revenue stream.

Gustavo Quiroga,  APAC General Manager for Mobiquity, says that the survey highlights a key gap between brand manufacturer drivers for D2C deployment and their executional shortfalls.

"Our report highlights the desire for brand manufacturers to know their customer better through a direct sales approach, but what we found is that almost three quarters of companies (73%) are blindly missing an opportunity to do exactly that with brand loyalty programs," he says.

"To truly stand out from the competition, brand manufacturers must adopt a user-centric approach to D2C and leverage basic tactics such as personalisation," he says. 

"This begins with the development and execution of an effective loyalty program, which allows users to set their criteria and disclose information based on their likes and dislikes, essentially feeding the platform that delivers a personalised and memorable experience its a win-win for manufacturers and customers alike."

Opportunities to optimise delivery and returns (39%), MyProfile (40%) and payments (50%) rounded out the top five D2C shortfalls identified in the report. User experience and interface (78%), sales funnel (74%) and product information (61%) criteria performed strongest among the global D2C respondents.

Yogesh Johar, Assistant Vice President at Mobiquity, says the report confirms that the opportunity is ripe for brands to enlist loyalty programs and leverage their gravity with customers.

"Loyalty is an important tool to build brand equity. It is a fact that large businesses focus on explicit loyalty programs, but it is equally important for small- and mid-level organisations to take advantage of," he says. 

"Depending on spending power, this can be enabled via a bespoke loyalty program or loyalty platform, that nowadays is readily available for adoption and integration. It is definitely a great way to reemphasise brand messaging, gather feedback, and re-gaining customer loyalty."

Based on the findings, the report provides five key criteria for brand manufacturers to activate a successful D2C strategy: commitment and funding, talent and drive, agile work environment, good and fair product, and a composable technology stack.

Related stories
Top stories
Story image
Sustainable IT
Adobe surveys sustainability at work in Hong Kong employees
The top three sustainability practices are reducing paper usage (46%), digital document storage and management (43%), and curbing electricity consumption (37%).
Story image
Customer Relationship Management
NetSuite helps Australian bridal boutique to scale operations globally
Grace Loves Lace is now using Oracle NetSuite to create enhanced experiences for brides from Queensland, Australia, to locations worldwide. 
Story image
Artificial Intelligence
Exclusive: Uniphore shares how Conversational AI can be the key to business success
Conversational AI and Automation are vital tools to help further promote organisational cohesion and communication, and Uniphore is leading the charge.
Story image
Customer Relationship Management
NetSuite introduces CPQ to help organisations simplify sales process
NetSuite CPQ is the only native configure, price and quote solution built on the NetSuite platform. It works with NetSuite ERP, CRM, and eCommerce solutions
Story image
Mobile Device Management
How to easily scale your mobile workforce and devices for the peak shopping season
Retailers are under constant pressure to streamline processes and become more efficient while looking for ways to improve customer satisfaction levels.
Story image
Payment gateways
PXP Financial partners DisputeHelp management platform
The partnership will provide an end-to-end dispute management platform across all payment schemes for their merchant portfolio.
Story image
Customer Relationship Management
Salesforce launches the first carbon credit marketplace
Salesforce has introduced the Net Zero Marketplace to make carbon credit purchases simple and transparent, aiming to scale the climate-positive impact.
Story image
Data analytics
Cross-team partnerships: The foundation for seamless digital experiences for customers
The region’s digital consumer population will continue to grow exponentially, reaching 370 million by the end of 2022.
Story image
Data management
Talend Data Health Barometer reveals ability to manage data is worsening
Most respondents believe data is important, 97% face challenges in using it effectively, and nearly half say it’s not easy to use data to drive business impact
Story image
Customer Relationship Management
Diagnostic: Does your tech stack up for growth?
It’s common for tech companies to encounter limitations in their tech stack as they experience growth. After all, at first, you only need to invest in systems to support the needs of an early-stage or single-entity business.
Story image
Artificial Intelligence
Ordr improves security and management of connected devices
It has implemented more than 80 integrations within the Ordr Data Lake while adding security enhancements to accelerate zero trust segmentation.
Story image
Fintech
Zai announces partnership with TerraPay to accelerate global payments
This partnership supports both Zai and CurrencyFair's product suite, with better coverage across the global payments ecosystem
Story image
Artificial Intelligence
CUE Group expands operations at its Singapore hub
The Singapore-headquartered digital technology group has doubled down on its expansion into the Southeast Asian region.
Story image
Verizon
Cybersecurity threats finance sector facing more cunning
The financial sector continues to be victimised by motivated organised crime, with servers being involved in 90% of financial breaches.
Story image
Artificial Intelligence
Salesforce introduces new Customer 360 innovations
Salesforce has introduced new Customer 360 innovations, which are set to provide companies with better automation and intelligence technologies.
Story image
Software-as-a-Service
Marketplacer available on Salesforce AppExchange now
Marketplacer is now available on Salesforce AppExchange, an enterprise cloud marketplace, as the Marketplacer Salesforce Commerce Cloud Cartridge.
Story image
BigCommerce
The metaverse, cryptocurrency and NFTs set to revolutionise retail
BigCommerce has released its consumer survey designed to give retailers insight into current and emerging trends shaping the way consumers buy from brands.
Story image
Customer experience
Loyalty, pricing and service are D2Cs biggest shortfalls
There is a key gap between brand manufacturer drivers for D2C deployment and their executional shortfalls, a new report reveals.
Story image
Satellite technologies
Kacific wins big at the World Business Outlook Awards
The Kacific Group has been recognised in the World Business Outlook Awards for providing high-quality broadband services and infrastructure throughout APAC.
Story image
Customer Relationship Management
Digitally evolve the smart way – federated content
Digital transformation became the ‘buzz word’ for many companies. Time to re-evaluate those old legacy systems, move to new and better ways of doing things
Story image
Encryption
Entrust advances Sigma Instant Issuance Platform for cards
Unique light curing module for Entrust Sigma instant issuance systems brings new financial card durability and personalization to card issuers.
Story image
Business Intelligence
IDC finds the majority of executives expecting a recession
59% of respondents believe 2023 will be a recession year. Of these, nearly 30% believe we are amidst a recession. Another 26% expect a recession in later 2022.
Story image
Cybersecurity
Employees unsure who to go to to report security incident
A new study shows more than 20% of the untrained global workforce do not know who to contact during a security breach.
Story image
Cloud platforms
Salesforce partners with Snowflake and introduces ‘Hire Me’ button
According to a recent Salesforce report, 73% of customers expect companies to understand their unique needs and expectations
Story image
Payroll systems
Video: 10 Minute IT Jams - An update from UKG
Charlie DeWitt and Greg McManus join us today to discuss the importance of payroll in todays operating environments, and why automated processes can often be a key driver of success.
Story image
Springboard
Springboard, Cataleya to offer switching infrastructure solutions
The partnership bundles Springboard's business intelligence platform with Cataleya's switching solutions to rapidly transform voice and messaging.
Story image
Cloud
Banking-as-a-Service to hit mainstream within two years
Some 30% of banks with greater than $1bn in assets will launch BaaS for new revenue by the end of 2024, but half will not meet revenue expectations.
Story image
Digital Transformation
L’Occitane Japon reduces fraud with Forter’s platform
L’Occitane Japon increases revenue, reduces chargebacks and fraud, and creates a seamless customer experience with Forter’s fully automated platform.
Story image
Software-as-a-Service
Jabra launches AI-powered SaaS solution for contact centres
Engineered to transform contact centre call experiences, the solution employs AI technology that provides real-time insights to improve customer calls.
Story image
Cashflow
Exclusive: Corpay plans to provide more hedging features
Corpay addresses border payments and currency risk management. Offering hedging, payment technology, cash flow solutions and exotic currency capabilities
Story image
Artificial Intelligence
WyreStorm unveils new video bars and an HD video system
WyreStorm has released new products, including two video bars and a high-definition (HD) video system, to improve customers' audio and video experience.
Story image
Marketing Automation
Marketplacer recognised in Gartner Hype Cycle for eCommerce
Marketplacer has been recognised in the Gartner Hype Cycle for Digital Commerce 2022 as a sample vendor in the enterprise marketplaces category.
Story image
Spryker
Ready, set, flop: four reasons why your online marketplace could struggle to gain traction
There’s a saying that ‘you have to spend money to make money’. That’s not always the case but the old maxim certainly holds true when it comes to online marketplaces.
Story image
Online shopping
FedEx expands international day-definite delivery services across AMEA
The company says the continuous expansion of the FedEx International Connect Plus (FICP) is also set to fuel cross-border eCommerce growth within the APAC region.
Story image
Future Tech
Top seven CIO disruptions highlighted by Gartner
CIOs need to consider “what if” scenarios to avoid being blindsided by social, behavioural and technological disruptions, according to Gartner.
Story image
Pattern
Demand for Australian brands grows in China despite tension
67% of China’s cross-border online shoppers expecting to increase their online spending for western and Australian goods in the coming year
Story image
Artificial Intelligence
The App Edit: why conversational commerce is overtaking the app
Consumers appear to be suffering choice fatigue and are reducing the time spent across different apps. People favour a small selection of quality items in their wardrobe, and they’re taking the same approach with their apps.
Story image
Digital Marketing
Optimizely and Orchard partner to scale marketing experimentation
Optimizely has announced a partnership with Orchard to help marketers and organisations scale experimentation through a mix of strategy and platform.
Story image
Digital commerce
VTEX and Adyen partner to extend unified commerce experience
"Through our partnership we are creating an all-in-one place that allows sellers to meet customers where they are in the buying process and unlock opportunities."
Story image
Customer Relationship Management
New kid on the block: How your business can build up its online marketplace expertise
Without the support of a skilled team, it’s impossible to realise the benefits of an online marketplace in full, observes Marketplacer executive Anna Trifonopoulos, VP of Customer Delivery, Marketplacer.