STOP _____ in 2025 🛑✋.

📈 Correcting errors behind D2C Ecommerce brands

D2C Caffeine - A Pragma Original Newsletter

A regular dose of D2C-centric resources & tools for Growing Brands, Startups & Entrepreneurs.

STOP _____ in 2025 🛑✋.

Imagine you’re trying to make biryani, but instead of following the tried-and-tested recipe, you throw in chocolate syrup because, well, innovation. Or you decide to feed the entire neighbourhood instead of just your dinner guests, blowing your budget and patience in the process. Sounds absurd, right? Yet, this is exactly what some D2C brands are doing in 2025—overcomplicating, overextending, and overthinking their way into chaos.

Here are 5 mistakes to STOP making right now, so you can stop burning your marketing ₹…

1. STOP Sending to "All" – Focus Your Marketing

Why Mass Marketing is Dead

Mass marketing worked when choices were limited, and competition was sparse. But today, with 20,000+ active D2C brands in India, consumers have options.

  • 52% of consumers expect offers to be personalised.

  • Companies lose ₹5,000 crores annually due to irrelevant marketing.

The Hidden Cost of “All” Marketing

  1. Unsubscribe Rates
    Sending irrelevant messages frustrates customers. In India, unsubscribe rates for generic campaigns can soar to 50%, compared to just 5% for segmented campaigns.

  2. Ad Fatigue
    Platforms like Facebook and Instagram penalise generic ads with lower engagement and higher costs. Ad fatigue sets in, driving up your Cost Per Acquisition (CPA). A study showed that irrelevant ads increase CPA by 38%.

1. Behaviour-Based Targeting

Leverage user actions to create micro-segments:

  • Browsed but didn’t buy? Send a reminder with a small incentive.

  • Viewed multiple products? Showcase similar or complementary items.

  • Repeatedly bought a product? Offer a subscription plan.

2. Geo-Segmentation

India’s diverse geography means preferences vary drastically. Use customer location to tailor campaigns.

  • Promote winter wear in North India during January while highlighting breathable cottons in the South.

  • Use regional festivals like Pongal in Tamil Nadu or Bihu in Assam for hyperlocal offers.

3. Platform-Specific Messaging

Different platforms demand different messaging tones and formats.

  • WhatsApp: Quick, action-oriented updates for time-sensitive offers.

  • Instagram: Visual-first storytelling with aspirational tones.

  • Email: In-depth content for loyal or high-value customers.

Example: A beauty brand segmented their audience for an upcoming sale:

  • WhatsApp: “Hurry! 50% off only for the next 24 hours!”

  • Instagram: A visually striking carousel showing “Before and After” photos.

  • Email: Detailed product descriptions and testimonials.

    Result? 3x higher conversions compared to running a single, generic campaign.

4. Time-Sensitive Offers by Behaviour

Customers at different stages of the buying journey react differently to timing.

  • First-time visitors: Use welcome discounts within the first 24 hours.

  • Frequent buyers: Introduce loyalty-based discounts on their shopping anniversaries.

  • Lapsed customers: Offer a re-engagement coupon valid for 48 hours.

5. RFM Analysis (Recency, Frequency, Monetary)

Prioritise high-value customers using RFM scoring:

  • Recency: How recently they purchased.

  • Frequency: How often they purchase.

  • Monetary: How much they spend.

Customer Segment

Last Purchase (Days Ago)

Orders in Last 6 Months

Avg Order Value (₹)

Campaign Type

High-Value Loyalists

5

10

15,000

Exclusive VIP Discounts

At-Risk Customers

90

2

1,500

“We Miss You” Offers

New Customers

10

1

1,000

“Welcome Gift” Campaign

2. STOP Forgetting Retention – Ignoring This is Costly

Where Retention Often Fails?

1. No Post-Purchase Engagement

Most brands consider the sale as the finish line, but for retention, it’s just the starting point.

  • Only 42% of Indian D2C brands follow up with customers after a purchase.

  • Post-purchase emails can generate an open rate of 50%, compared to the average 20%.

2. Lack of Loyalty Programs
  • 82% of Indian consumers are more likely to stick with brands that offer loyalty rewards.

  • Yet, only 30% of D2C brands in India have structured loyalty programs.

3. No Focus on NPS (Net Promoter Score)

Brands ignore feedback loops, which are critical for retention. If you’re not asking customers what they want or how they feel, someone else is—and acting on it.

3. STOP Blaming Delivery Partners – Fix Your Backend

Ah, delivery delays—the classic scapegoat. D2C brands often point fingers at delivery partners for late shipments, lost parcels, or incorrect deliveries. 

The Anatomy of a Delivery Failure:

1. Delayed Order Processing

Orders sit idle in your warehouse because:

  • Inventory is mismatched (what’s listed isn’t available).

  • Order batching is inefficient.

  • Picking and packing are manual and slow.

Data Insight: 68% of D2C brands in India report delays in order processing contribute to delivery time extensions by 2-3 days.

2. Inaccurate Addressing

Delivery partners rely on the data you provide. If your system doesn’t validate addresses during checkout:

  • Packages get misrouted or returned.

  • Delivery times increase by an average of 1.5 days per incorrect address.

D2C brands can reduce return-to-origin (RTO) rates from 30% to 12% after implementing ML-based address verification.

3. Inefficient Carrier Allocation

When backend systems don’t optimise carrier selection:

  • High-priority orders are assigned to slower carriers.

  • Over-reliance on a single partner causes bottlenecks.

Solutions:

1. Centralised Order Management System (OMS)

Your backend is only as strong as your OMS. A robust OMS integrates inventory, order processing, and delivery management in real-time.

  • Key Features:

    • Real-time inventory tracking.

    • Automated order prioritisation based on delivery timelines.

    • Smart carrier assignment based on cost, speed, and location.

OMS Benefit

Impact on Delivery

Automated Order Allocation

20% faster processing times

Inventory Synchronisation

Reduces out-of-stock cancellations by 30%

Carrier Optimisation

Cuts delivery costs by 12%

2. Use an Address Validation API

Stop relying on customers to input their address perfectly. Use APIs like Loqate or Google Maps API to validate and standardise addresses in real-time.

  • How It Works:

    • Detects typos, incorrect pin codes, and missing landmarks during checkout.

    • Geocodes the address to ensure accuracy.

  • Impact: Address-related RTOs drop by 50%.

3. Implement Multi-Carrier Logistics

Diversify your logistics strategy by integrating with multiple delivery partners.

  • Use predictive algorithms to assign the best carrier based on:

    • Delivery region.

    • Package weight.

    • Service level agreements (SLAs).

Carrier Comparison Table

Service SLA

Coverage (Pin Codes)

Cost Per Kg (₹)

Carrier A

92% on-time

15,000

35

Carrier B

85% on-time

25,000

30

Carrier C

88% on-time

18,000

32

4. Predictive Delivery Management Systems

Predictive systems leverage AI to analyse:

  • Traffic patterns.

  • Weather conditions.

  • Regional holidays.

Scenario

AI Response

Impact

Regional Festival

Assign faster carriers to the region

Meets SLA during demand surges

Weather Disruption

Adjust ETAs to manage expectations

Avoids negative reviews

Traffic Congestion

Dynamic route optimisation

Reduces delays by 10%

5. Warehouse Automation

Automating warehouse operations ensures faster, error-free order fulfilment.

  • Technologies to Implement:

    • Barcode Scanning: Tracks SKUs in real-time.

    • Robotics: Automates picking and packing.

    • AI-Powered Batching: Groups similar orders for faster dispatch.

Automated warehouses process orders 3x faster than manual ones, with a 99.9% accuracy rate.

6. Delivery Time Optimisation Through Clustering

Leverage geospatial clustering to group orders within the same locality.

  • Impact: Reduces delivery times by 25% and costs by 15%.

  • Example: A D2C cosmetics brand used clustering to ensure 85% same-day deliveries in metro cities.

Key Metrics to Monitor

Metric

Why It Matters

Ideal Benchmark

Order Processing Time

Indicates efficiency of backend

<4 hours

Address Validation Errors

Tracks input accuracy at checkout

<1% of total orders

On-Time Delivery Rate (OTD)

Shows carrier reliability

>90%

RTO Rate

Measures failed deliveries

<10%

4. STOP Complicating It for Your Customer

In a world where attention spans are shorter than a reel on Instagram, simplicity is not just a virtue—it’s a survival strategy. 

1. Clear Communication = Happy Customers

Ambiguity is the enemy. Tell your customers exactly what they’re getting, when they’ll get it, and what they’re paying for.

Before

After

“Delivery in 7–10 business days”

“Delivery by Thursday, 18th Jan”

₹999 + taxes + shipping

₹1,199 (All-inclusive)

2. Streamlined Product Discovery

Think about it: Why make customers dig through endless categories when they can be guided to what they need?

Tips:

  • Use smart filters: Skin type, occasion, price range, etc.

  • Implement personalised recommendations: To boost cross-sells by 30%.

3. Speak the Customer’s Language (Literally and Figuratively)

Don’t bombard your customers with jargon or complex instructions. Speak their language—simple, conversational, and even regional if needed.

  • Fact: Websites and ads in local Indian languages like Hindi and Tamil see 30% higher engagement rates.

  • Example: An electronics brand offered Hindi translations on its website and saw a 19% boost in rural sales.

4. Make Support Instantly Accessible

If customers struggle to find answers, they’ll bounce.

  • Pro Tip: Add a WhatsApp Chat Widget for real-time help.

  • Fact: WhatsApp-based customer support has a 50% faster resolution time compared to traditional email support.

5. STOP Investing in Vanity Metrics – It’s Useless

1. The Pitfalls of Vanity Metrics

Vanity vs. Actionable Metrics:

  • Vanity Metric: 100,000 Instagram followers.

    • Reality: Only 2% of followers interact with your posts.

  • Actionable Metric: 2% engagement rate or 3% conversion rate from Instagram ads.

2. Why Vanity Metrics Mislead

  1. False Indicators of Success:

    • Impressions: Seeing an ad doesn’t equal interest or purchase intent.

    • Page Likes: Half might be bots or dormant accounts.

  2. Focus on Conversions, Not Eyeballs:

    • A food brand shifted from chasing followers to optimising website click-throughs. Result? 45% revenue growth in 6 months.

3. Actionable Metrics to Track Instead

Focus on metrics that directly impact your revenue and growth.

Category

Metric to Track

Why It Matters

Customer Acquisition

Cost Per Acquisition (CPA)

Measures efficiency of your marketing spend.

Engagement

Click-Through Rate (CTR)

Indicates content relevance and ad effectiveness.

Retention

Repeat Purchase Rate

Reflects customer loyalty and lifetime value.

Revenue

Average Order Value (AOV)

Helps identify upselling or cross-selling opportunities.

Profitability

Customer Lifetime Value (CLV) vs. CPA

Ensures you’re acquiring customers profitably.

4. Conversion-Focused Marketing Channels

Some platforms are better suited for conversion-focused marketing.

Channel

Strengths

Ideal Metrics to Track

WhatsApp

Direct customer interaction

CTR, response time, conversion rate

Instagram

Visual storytelling, product discovery

Engagement rate, website visits

Email

Retention, personalisation

Open rate, click-through rate

Google Ads

High intent, search-based targeting

Conversion rate, CPA

That’s the end of our talk on “STOP _____ in 2025 🛑✋.”...

☕ See you on the next coffee date!

Pragma D2C Operating System

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