5 Key Findings on How DTC Brands Need to Use Data to Improve Personalization
Research examining 50 leading direct-to-consumer brands and their U.S.-focused customer journeys reveals that most DTC companies underutilize available customer data, creating significant opportunities for competitive differentiation. These discoveries emphasize the importance of implementing improvements that enhance customer retention.
Finding 1: Product Recommendations in Shipping Confirmations
94% of DTC brands do not include dynamic product recommendations in their shipping confirmations.
Only 2% incorporate personalized recommendations; the remaining 4% employ generic suggestions. Given that shipping confirmations achieve a 148% average open rate, this represents substantial untapped potential for cross-selling opportunities.
Finding 2: Order Tracking Page Hosting
78% of brands are still using a 3rd party order tracking page.
Site-hosted order tracking pages increase return traffic by 85% and reduce "Where's my order?" inquiries by at least 25%. Maintaining branded tracking pages allows companies to retain control of customer experience while building trust.
Finding 3: SMS Notification Offerings
A full 26% of brands do not offer SMS tracking notifications.
Among those providing SMS notifications, only 12% allow customers to select their preferred communication channel. SMS represents a highly valued notification method that enables intimate customer engagement.
Finding 4: Delivery Confirmation Notifications
62% of brands fail to send a delivery confirmation notification.
Of companies sending these notifications, 36% include no supplementary content. Forrester research indicates 70% of shoppers actually want more frequent order updates. Effective delivery confirmations include relevant, comprehensible information such as product instructions or educational materials.
Finding 5: Product Review Requests
50% of brands are still not requesting a product review.
Among those requesting reviews, 11% do so before order arrival, while 69% send requests after customers initiate returns. This timing creates poor reviews programs and signals organizational disconnect regarding order delivery.
Strategic Implications
As DTC companies prioritize customer retention for long-term success, these findings demonstrate considerable improvement opportunities throughout existing customer journeys. Leveraging order data enables personalized experiences at scale, fostering loyalty. Companies should analyze their data systems to identify overlooked touchpoints and deliver relevant personalized information proactively.
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