Have you noticed how many new DTC companies have popped up in recent years? From meal kit services to skincare products, it seems like there's a DTC business for just about everything.
And as this industry continues to grow, the new age brands are turning to experimentation as a way to stay ahead of the game 🏇
🎯 The Cutting-Edge Tools DTC Brands are Going to Need
DTC companies are always looking for ways to stay ahead of the competition. With the rise of machine learning and AI, they're finding new and exciting ways to optimize their experimentation efforts.
The brands have already started investing in machine learning and AI to optimize their experimentation efforts. This means they'll be able to run more complex and efficient experiments, which could lead to even more personalized experiences for customers..
Did you know that some companies are even investing in Customer Data Platforms that can consolidate data from multiple sources to provide a 360-degree view of the customer?
🧑🏻💻 How DTC Companies are Building Data-Driven Teams
As DTC companies become more sophisticated in their experimentation efforts, they're realizing the importance of having the right people on board. Data scientists, data analysts, and machine learning engineers are in high demand as companies seek to make sense of the data generated by these new tools. That’s precisely why some companies (including ours😎) are investing in "growth teams" that bring together people from different departments to focus on experimentation.
🧐 How DTC Experimentation is Evolving
A/B testing has long been the gold standard for experimentation, but DTC companies are starting to realize its limitations. That's the need of the hour is to shift toward multivariate testing, which allows a brand to test multiple variables at once and get a more accurate picture of how changes impact the customer experience. For example, using Bayesian statistics to analyze results in order to make informed decisions is one way to go.
👋 New Opportunities for DTC Companies
As DTC companies continue to experiment, they're uncovering new opportunities for growth. One of the most promising areas is personalization, where companies use data to create tailored experiences for individual customers.
It’s fascinating to know to see how companies are using machine learning and actually getting to predict what customers will want before they even know it themselves.
Experimentation is not a new concept in the world of DTC.
In fact, Dollar Shave Club, 🪒 one of the most successful DTC companies ever, started with a hilarious experimental video that went viral. Founder Michael Dubin created a video that poked fun at the high cost of razors and the boring experience of buying them at the store. The video went viral, and the rest is history.
Here's another one! Everyone know Harry's, right? 🧔♂️ This men's grooming company started as an experiment in a co-founder's apartment. Jeff Raider and Andy Katz-Mayfield were curious about why razors were so expensive, so they bought some blades and started tinkering. And look at them now! They're one of the most successful DTC companies around.
So, what do you think the future holds for experimentation in the world of DTC? Are there any other trends or tools that you're excited to see?
Let us know in the comments!
