Discover how integrating retail and DTC data enhances consumer brand growth and strategy.
Only a few years ago, digitally native DTC brands had little interest in selling wholesale. Now, many consumer brands have realized that retail partnerships are key to driving growth. This shift brings a crucial question: How can you get a full picture of your business performance when you’re selling on different channels? Let’s explore how and why you should combine your retail and DTC data.
Welcome to the New Age of Shopping
Consumers no longer view brick-and-mortar stores and online platforms as separate entities but rather as interconnected components of a singular shopping experience.
This paradigm shift has prompted nearly many fast-growing consumer brands to pursue an omnichannel strategy. Glossier famously broke away from its DTC-only playbook by entering Sephora, and other online DTC startups like Frida and Hims & Hers have followed suit, seeking to expand their reach through wholesale partnerships.
Retail partnerships bring many advantages, like a larger total customer base, higher awareness and credibility, and (obviously) more sales. However, brands often end up with siloed data that holds them back from pursuing an effective omnichannel strategy.
Why Combine DTC and Retail Data?
Just like the partnerships themselves, merging data from retail and DTC channels offers multiple benefits, such as:
- A more comprehensive view of business performance
- Improved ability to understand and respond to market trends
- A deeper understanding of customer behaviors, preferences, and buying patterns across channels
That said, combining DTC and retail data isn’t straightforward. Brands striving to understand their cross-channel sales performance face significant challenges, often at the cost of significant time and resources.
The Challenges of Combining DTC and Retail Data
Unlike the more streamlined and digital-first nature of DTC data, retail data can be deeply complex.
Just getting your hands on retail data is often a challenge. Most retailers don't have a one-click solution like APIs for data extraction. This means brands are left to wrestle with old-school methods like translating EDI files, downloading tons of spreadsheets, or relying on performance emails.
And here's the real kicker: every retailer seems to have their own way of doing spreadsheets. You've got different formats, metrics, and columns to deal with every time. The lack of standardization and consistency means brands find themselves spending excessive amounts of time struggling with spreadsheets.
However, there is a better way.
How to Combine DTC and Retail
The simplest method to integrate retail and DTC data is with a data platform that can collect and unify data from different sources. This is where Daasity comes in.
Daasity is the only data and analytics platform purpose-built for consumer brands selling via eCommerce, Amazon, retail, and wholesale.
Daasity can extract data from all platforms an omnichannel brand is likely to need, including:
- All major eCommerce platforms (like Shopify)
- Digital marketplaces (like Amazon)
- Retail/POS platforms (like Lightspeed and KWI)
- Wholesale platforms (such as Amazon Vendor Central)
- Marketing tools like ESPs, 3PLs, ERPs, marketing platforms, loyalty platforms, and more
Daasity brings all your data together, giving you a single source of truth so you can run holistic reports and analyses.
Once your DTC and retail data are unified, it’s much easier to get the insights you need to improve business performance.
Using DTC Data to Improve Retail Performance
DTC data can be a goldmine for improving retail strategies.
For example, you can analyze geographic performance data from your DTC channels to determine which regional retailers you should focus on.
DTC channels can also serve as a valuable platform for strategic product testing, allowing you to gauge consumer response before launching products in physical retail stores. This data-driven approach demonstrates your commitment to shelf productivity, which can help you expand your retail presence down the line.
Using Retail Data to Improve DTC
Data from retail channels can be instrumental in enhancing your DTC strategy.
Retail data provides insights into customer demographics, buying behaviors, and preferences in a physical store setting. You can leverage these insights to tailor your online marketing campaigns, personalize customer experiences, and optimize eCommerce platforms.
For example, if in-store data shows a trend towards eco-friendly products, you might choose to highlight these products on your DTC site to attract a similar customer base.
Additionally, understanding peak buying times and popular product combinations in stores can guide the timing and content of your online promotions, making them more effective and relevant to your customers' preferences.
Want More Insights From Your Retail Data?
Combining data from different sales channels gives brands a holistic understanding of which products customers love, which marketing strategies are most effective, and which future trends to look out for.
If you’re looking to unify your retail and DTC data, get in touch with us today. Our experienced team of data engineers and strategists will be happy to advise you.