In the pulsating heart of Direct-to-Consumer (D2C) commerce, success resonates not just in what you sell but in the strategic decisions you make. Standing at the juncture of online and offline retail, the subtleties of customer engagement are becoming more pronounced. Reflecting on my journey at Blissclub, I believe it’s a story of growth and change. As we grew, we realized the importance of adopting a comprehensive approach to data management and customer engagement.

Today, I am excited to share these retail insights that formed the fabric of our brand story. So, join me as I explore some invaluable lessons that helped us sculpt our brand and define our present stature.

‘Data’- The Marketer’s Oyster
In this digital age, collecting and utilizing first-party data is crucial for personalized experiences and effective marketing strategies. At Blissclub, our first-party data strategy thrives on a diverse range of sources. The website, app, and retail spaces constitute the core, capturing valuable insights for personalized experiences. Beyond our channels, we integrate data from third-party marketplaces, creating a comprehensive view of our customers. Our marketing stack involves utilizing multiple tools like Mixpanel, Datachannel, and Google Analytics directly integrated with Shopify connectors, ensuring stability, efficiency, and guarding against potential data leakage. Through a collaborative approach between in-house and external sources, we craft our strategy to tailor offerings for our diverse customer base precisely.

Synergy of Digital Meets Physical
Our omnichannel strategy is more than a calculated approach—it’s an art form. For us, the synergy between online and offline channels begins before our physical stores launch. We use online data, such as customer locations and searches, to create a heat map guiding store locations. Armed with insights into customers’ past purchases, category affinity, and shopping preferences, it equips our staff to make personalized recommendations from the very first visit. This seamless integration extends to loyalty points and offers, creating a unified distribution channel for users, whether they shop online or offline. Moreover, the fluidity of return and exchange processes will allow seamless transitions between channels. Offline retail becomes a catalyst for driving trial, breaking down barriers for our feature-first brand. It converts aware non-trialists from online and reinforces our city-wide category share.

Recognizing the dominance of our online stronghold, we also acknowledge the pivotal role of offline stores in shaping our customer acquisition. It’s not about competing channels but a strategic balance, addressing the ebb and flow of market dynamics. As online saturation occurs in specific catchments, offline stores emerge as gateways, providing a tangible touchpoint for potential customers. Beyond numerical considerations, it’s about nurturing a seamless synergy where offline becomes an organic extension of our online strategy, embodying a holistic customer acquisition approach.

Trials and Tribulations of Audience Targeting
Our recent triumphs in tier one cities’ offline retail over the last six to seven months signals a strong Product-Market Fit (PMF). Metrics like sales per square feet per day highlight positive acceptance and conversion rates, reinforcing our confidence in the retail strategy.

As we expand into tier 2 cities, and beyond, the landscape changes. We encounter shifts in user behavior and preferences, prompting a nuanced approach. Even the online data reveals disparities in price point preferences and user retention metrics across city tiers. Therefore, transitioning to tier 2 cities demands a meticulous evaluation of incrementality, considering the time and cost involved. Our expansion is not just geographical; it’s a strategic recalibration. We are adapting our approach, emphasizing agility and adaptability to meet the diverse needs of an evolving customer base. For example, we have now started a new range of clothing called light collection which offers a sophisticated and luxe feel clothing to users who seek a mix of affordability and quality.

Rewards to Retain the Loyal Tribe
When it comes to loyalty programs, two key facets dominate the user’s mindset: differential commercial gratification and a sense of exclusivity. We leverage insights from customer behavior to continually refine and enhance the program, creating a holistic experience for users across channels. The kinship between online and offline is not just about sales but extends to community building and experiential events. From dance workshops to Zumba sessions, we’ve organized events that not only drive sales but also foster a sense of community and belonging with the brand.

The handover of customer information from offline events to online platforms allows us to enrich user profiles and improve personalization to boost retention. At Blissclub, we do not just offer deals but strive to create a platform for information, partner discovery, and event engagement. This multifaceted approach ensures that users, beyond seeking monetary gains, find value in the brand’s vision and community, forging a deeper and lasting connection.

Metrics That Beacon Success
The metrics we track revolve around customer lifetime value (CLTV) by customer acquisition cost (CAC). This North Star metric guides our decisions, helping us understand the effectiveness of our strategies in driving repeat purchases. We categorize repeat users into pre-habit formation, habit formation, and churned users, tailoring our interventions based on the specific needs of each group.

For instance, Each category dictates a tailored approach, utilizing channels such as digital marketing, push notifications, SMS, and email strategically. The pre-habit formation users receive targeted offers, emphasizing specific product categories through channels like WhatsApp and SMS. For habit-formed users, our focus is on maintaining top-of-mind presence through storytelling mediums like YouTube campaigns and retargeting efforts. Churned users are reactivated through a combination of discounts and personalized remarketing via VM and CLM channels. Rigorous testing using control and test groups helps us validate the efficacy of our campaigns, with the ultimate goal of achieving a higher LTV by CAC. To sum it up, the stronger your retention flywheel, the more appetite you have to acquire users.

AI and ML to Rule the Roost
We are actively exploring and integrating AI and ML into various aspects of our marketing strategies. The value proposition of AI lies in its ability to delve into granular segmentation and real-time customer journey mapping. This means understanding customer preferences and behaviors at a level of detail that goes beyond what traditional methods can achieve. We’ve identified key areas where AI brings significant value, such as content generation, enabling dynamic product listing based on user attributes and interaction history, and optimizing communication strategies.

For instance, AI helps us automate the process of tailoring content and product suggestions to individual users, improving efficiency and cost-effectiveness. Moreover, AI aids in identifying the most effective channels, timing, and content for personalized messaging, contributing to a more refined and efficient user experience. As we continue to leverage AI, our goal is to enhance customer engagement, streamline processes, and achieve a higher level of personalization in our marketing efforts.

Conclusion
As we stride into 2024, our strategic compass directs us towards a paradigm shift – a shift from prioritizing quantity to embracing quality and depth. So, to my fellow entrepreneurs, all I would like to say is to craft a narrative that goes beyond product features. Connect emotionally with your audience through strategic storytelling, building brand loyalty and resonance. Leverage the power of content to engage authentically with your audience, utilizing data for informed decision-making. Remember, the journey is iterative, and adapting to market dynamics is key. Success in the D2C arena awaits those who dare to pioneer with purpose.

Author
Soumen Samanta, Chief Revenue Officer, Blissclub