- D2C Caffeine
- Posts
- STOP _____ in 2025 đâ.
STOP _____ in 2025 đâ.
đ Correcting errors behind D2C Ecommerce brands
A regular dose of D2C-centric resources & tools for Growing Brands, Startups & Entrepreneurs.
STOP _____ in 2025 đâ.
Imagine youâre 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 2025âovercomplicating, overextending, and overthinking their way into chaos.
Here are 5 mistakes to STOP making right now, so you can stop burning your marketing âšâŚ
1. STOP Sending to "All" â 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 âš5,000 crores annually due to irrelevant marketing.
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.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 didnât 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
Indiaâs 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: âHurry! 50% off only for the next 24 hours!â
Instagram: A visually striking carousel showing âBefore and Afterâ 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 (âš) | Campaign Type |
High-Value Loyalists | 5 | 10 | 15,000 | Exclusive VIP Discounts |
At-Risk Customers | 90 | 2 | 1,500 | âWe Miss Youâ Offers |
New Customers | 10 | 1 | 1,000 | âWelcome Giftâ Campaign |
2. STOP Forgetting Retention â 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, itâs 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 youâre not asking customers what they want or how they feel, someone else isâand acting on it.
3. STOP Blaming Delivery Partners â Fix Your Backend
Ah, delivery delaysâthe 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 (whatâs listed isnât 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 doesnât 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 donât 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 (âš) |
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 virtueâitâs a survival strategy.
1. Clear Communication = Happy Customers
Ambiguity is the enemy. Tell your customers exactly what theyâre getting, when theyâll get it, and what theyâre paying for.
Before | After |
âDelivery in 7â10 business daysâ | âDelivery by Thursday, 18th Janâ |
âš999 + taxes + shipping | âš1,199 (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 Customerâs Language (Literally and Figuratively)
Donât bombard your customers with jargon or complex instructions. Speak their languageâsimple, 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, theyâll 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 â Itâs 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
False Indicators of Success:
Impressions: Seeing an ad doesnât equal interest or purchase intent.
Page Likes: Half might be bots or dormant accounts.
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 youâre acquiring customers profitably. |
4. Conversion-Focused Marketing Channels
Some platforms are better suited for conversion-focused marketing.
Channel | Strengths | Ideal Metrics to Track |
Direct customer interaction | CTR, response time, conversion rate | |
Visual storytelling, product discovery | Engagement rate, website visits | |
Retention, personalisation | Open rate, click-through rate | |
Google Ads | High intent, search-based targeting | Conversion rate, CPA |
Thatâs the end of our talk on âSTOP _____ in 2025 đâ.â...
â See you on the next coffee date!
How did you like our Newsletter? What topic would you like us to cover next?
Reply and let us know! đ