Why do companies go direct? There are so many benefits. Learn the top reasons why companies are now choosing to sell directly to consumers and why you may want to as well.
- So why are so many companies now selling direct to consumers online? There are several reasons. Let me share with you my top three in no particular order. Number one, because that's where the customers are. Number two, because that's where the customers are. And three, well, I think you can see where this is going. For many years, selling direct to the customer seemed a little bit sketchy. It was based in direct mail, late-night infomercials, and ads in the back of newspapers. It didn't seem as legitimate as going through the giant distribution channels of the chains and reaching consumers through mass television advertising.
Today, the reason so many companies are reaching out online to their customers and potential customers is because they can, and that's where your consumers are as well. By taking your business online, you're instantly allowing the world to walk into your business any time, regardless of their location, without incurring a large financial investment. Not only can you see increased profitability and productivity, you can also greatly increase the quality of your customer service as well. The why behind why we buy hasn't changed much since selling began, but where we buy is changing by the second.
According to a study by Pew Research, 79% of US consumers now shop on the web or on their phones. That's up from just 22% in 2000. According to Statistica, 2.1 billion people globally will be shopping online by the year 2021. Think about that. That's nearly eight out of every 10 Americans who are now shopping online, with over half having bought something from their mobile phone, and 15% having purchased after clicking through a link on social media.
And soon to be a quarter of all people globally. And those numbers are only heading in one direction. Just as significant as knowing that most consumers are now shopping online is knowing why. First and most importantly, the number one reason consumers listed for shopping online is cost, not convenience. In fact, convenience was at the bottom of the list. Now, anyone who knows anything about sales, especially the neuroscience of sales, knows that cost is a logical rationalization for purchasing that's actually made in the neocortex, or the thinking brain.
And cost as a starting point for you is a losing proposition. Particularly when consumers can now instantly compare prices from around the country and around the world. Real buying decisions are made in the limbic system and root brain, what I call the buying brain. Of course, there are proven strategies to overcome cost, and we'll be discussing them later in this course. For the purposes of this lesson it's important to know that, at least in the consumer's mind, cost is the number one reason given for going online.
And since the majority of consumers are going online, you're going to have to be prepared to deal with that. In the movie Field of Dreams, Kevin Costner's character hears a voice that tells them, "If you build it, they will come." The it in Field of Dreams is a baseball field. Today's consumers are searching online every day for millions and millions of different baseball fields, and if you build yours correctly, they'll absolutely be coming to yours as well.
- Categories of offline and online B2C companies
- Developing personas
- Measuring persona success
- Creating effective website copy
- Measuring the success of your content
- Engaging with social media marketing
- Measuring the success of pay-per-click campaigns