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Entry into D2C channel must be accompanied by new set of measurements.
We discussed in the previous post how leading FMCG companies have struggled to leverage the D2C channel for accelerated sales and profits.
One of the reasons that stands out is using the same set of performance metrics as other channels. Since D2C is fundamentally different from other B2B channels (General Trade, Modern Trade, Wholesale), the performance metrics used to operate and improve D2C have to be designed from scratch. For example, delivery lead time (from order till delivery to consumer home) should be measured in hours instead of days. Quick Commerce companies like Zepto would need it in minutes and seconds!
Similarly, we need metrics for range buying, trials, repeats, promotion impact, return behaviour at consumer level instead of aggregate level.
If supply chain metrics haven’t been designed specifically for the D2C channel, we are leaving a lot on the table…