08: Marketing
The Ultimate DTC Marketing Funnel
We’ve discussed quite a few marketing channels to reach your audience. And there’s still more.
This all can be convoluted, especially if you’re just starting to build your brand.
One of the best ways to put all these marketing practices into motion is through a step-by-step DTC (direct to consumer) marketing funnel.
The goal of a marketing funnel is to acquire new customers and turn them into long-term brand advocates. But there are many steps that go into this process, and it’s important to keep track of each one.
I like to use a 5 step marketing funnel with the ultimate goal of collecting as many loyal customers and advocates as possible.
The #1 Marketing Mistake Brands Make
Most new founders will get up a basic website and start running facebook ads to it right away. This is a BIG problem. People who have never heard of your brand are the least likely to purchase from you, unless you create a truly compelling story and offer.
Acquiring a new customer is anywhere from five to 25 times as expensive as retaining an existing one (Harvard Business Review).
Instead, start by investing your time and energy at the BOTTOM of the funnel. Develop processes to turn your existing customers into huge brand advocates first, then loyal repeat purchasers. Afterwards, focus on your offers to increase conversion rate and test messaging to aid consideration.
ONLY THEN should you start investing in awareness driving activities like paid ads. Sure, you can spend money on some to test out the bottom of funnel activities as you optimize them.
Here’s an overview of a typical DTC marketing funnel:
Step 1: Awareness
As the name suggest, this is the phase when people first hear about your brand.
At this stage, the goal is to reach as many people as possible else they might reach your competitor before even knowing who you are.
Here are some ways to reach your audience and make them aware of your brand:
- Creating a story around your product/brand and pitching it to press (Foodbevy PR editor database)
- Organic social media marketing
- Word-of-mouth
- If you have the budget, you can also run Facebook, Instagram, and Google ads and collaborate with influencers and bloggers to reach a wider audience.
Step 2: Consideration
This is when people start researching your product or service and begin to evaluate whether it’s right for them.
Here’s how you can make your target audience consider your product:
- Provide detailed nutritional information and any certifications or labels that appeal to health-conscious consumers.
- Create comparison guides that showcase the advantages of choosing your products over competitors.
- Offer product bundles or exclusive deals that provide value and encourage customers to try multiple products.
- Utilize customer testimonials and reviews to build trust and credibility.
- Implement retargeting strategies to stay top-of-mind with potential customers.
Step 3: Decision
The Decision Phase is where you’ll find your most informed customers, who are ready to buy.
This is the part of your funnel where you get them to say yes.
Now you’ll have to overcome little obstacles that might be holding them back from making the final purchase.
Here are some tips that can help:
- Free Shipping Minimum: Avoid surprising customers with extra fees by setting clear free shipping thresholds. You could display a progress bar on your site using tools like Rebuy to track their progress.
- Product Recommendations: Help customers make purchasing decisions by offering product recommendations. Offer them variety packs, sampler boxes, or showcase your best-selling or recommended products.
- Free Product Trial: Convert interested visitors into customers by offering a free sample product. You can offer a small pack for “free, just pay shipping” or provide a 100% rebate when they purchase the product in-store. Follow up with a clear email sequence to convert trialers into full-price customers.
- Store Locator: Use platforms like Pear Commerce to assist customers who prefer in-store shopping. These tools can help you set up a store locator feature on your website, allowing them to find their nearest retail location.
- Upselling and Cross-Selling: Maximize revenue by offering upsells to higher-priced, similar items or cross-selling complimentary products at the checkout stage. Tools like One Click Upsell can help you with upselling strategies.
- 2-Day Shipping: Promote free 2-day shipping if you can offer it, as consumers have come to expect this level of service. Consider partnering with a Third-Party Logistics (3PL) company like Delivrr to ensure nationwide coverage.
Step 4: Loyalty
In this phase, we are using digital tools and tactics to create an emotional connection with our customers. We want them to feel like they are part of our brand community, not just consumers.
Here are some ways to inspire loyalty in your target customers:
- Email Marketing Automation: Set up automated email flows for welcome messages, shipping confirmations, abandoned carts, and reorder reminders using platforms like Klaviyo.
- SMS Marketing: Build a personalized relationship with customers through text messaging, using platforms like Klaviyo SMS.
- Unboxing Experience: Create a memorable unboxing experience with sustainable packaging from NoIssue and branded labels from Sticker Mule.
- Subscription Platform: Offer subscription options for consumable products using platforms like ReCharge.
Step 5: Advocacy
The Advocacy phase is the last stage of the customer journey. The goal is to turn them into an advocate and get them talking about your product.
This phase is where you want people to share their love for your brand. That said, not everyone will be willing to share their thoughts on social media. You need to find ways to incentivize your customers to share their experiences with you and get them excited about doing it.
Here are some ways to turn your loyal customers into ardent advocates for your brand:
- Referral Program: Use incentives like exclusive discounts, free products, or loyalty points to nudge your satisfied customers to refer your product to their friends and family.
- User-Generated Content (UGC): Encourage your customers to share their experiences with your products on social media. You could do it by running contests, featuring customer testimonials, or creating branded hashtags.
- Pro Tip: Use tools like Taggbox or TINT to aggregate and display user-generated content on your website or social media platforms.
- Customer Reviews and Ratings: Give your customers a nudge to leave reviews and ratings on platforms like Google, Yelp, or specific review sites in your industry. Don’t forget to monitor and respond promptly to show that you value their feedback.
- Loyalty Programs: Implement a loyalty program that rewards customers for their continued support and engagement. Offer exclusive perks, discounts, or early access to new products.
For a comprehensive understanding of the DTC funnel in the food and beverage industry, I recommend following our in-depth guide.
Digital Sampling
Digital sampling is a game-changer in the food and beverage industry – a great way to connect with consumers and generate buzz around your products.
For digital sampling, you place virtual items in specific locations on websites or within apps, such as grocery stores or mobile games. When consumers find these items, they can click on them to receive free samples of your products via email or text message.
One platform that excels in facilitating digital sampling campaigns is Social Nature. The platform connects food and beverage companies with eager consumers who are looking to try new products and share their experiences.
The main advantage of digital sampling is that it allows you to target specific audiences without spending a lot of money on traditional advertising methods like TV commercials or print ads.
Another benefit is that it gives consumers an opportunity to try new products without spending money or making a purchase commitment first