Managing Channel Conflict When Going Direct-to-Consumer

As more manufacturers go direct-to-consumer, they will have to balance their efforts in selling directly to consumers while maintaining good ties with their traditional retail partners. Going DTC opens up access to rich customer insights and brand control, but it can also create friction among the intermediary players who feel the competitive pressure. Here's how to navigate this effectively:

1. Be Transparent: Communicate the vision behind the DTC approach and how it "compliments, rather than replaces" traditional channels. Open dialogue can reassure partners that they continue to have value.

2. Differentiate the Offering: Give each channel a unique value proposition-distinct channels, distinct experiences. Exclusive DTC products or customization options may be offered to make the offer more attractive, without cannibalizing retail sales.

3. Establish Prices Equitably: Regular pricing across channels creates a level playing field. A MAP (Minimum Advertised Price) policy can ensure that both the DTC and retail channels "compete on quality, not cost."

4. Share Customer Insights: Use DTC data to keep partners in the know about trends so collaboration will result in a win-win.Clear about the strategy, the manufacturer then can create a multichannel presence that's greater than the sum of its parts, building a market resilience greater for DTC and traditional partners.

Read my last blog post here!

https://www.camilamoore.com/blog/6-types-of-customers-every-marketer-should-consider