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However, a study conducted by the company also shows that the DTC hype signals three growing paradoxes in consumer decision making that may well reset expectations across industries.
Examples of direct-to-consumer products include meal kits that remove the burden of shopping for ingredients and, simply by using the ingredients supplied in the box and following the preparation instructions, gourmet meals can be served up at home. Another good example is direct insurance. This allows customers to insure individual assets for specific amounts of time immediately and online.
Where are you sitting in the cafeteria? pic.twitter.com/h6ApjTmWvm
— Glossier (@glossier) August 9, 2019
How DTC disruptors were enabled by customers looking for better experiences
The report points out that a decade ago Forrester declared the ‘age of the customer’. Thereafter the drivers of customer empowerment became more quantified. Today, Forrester believes the age of the customer has resulted in a tidal wave of DTC disruptors – digital-native, direct-selling startups that threaten to topple traditional retail models.
According to the report, this shake-up is being powered by four forces:
Forrester points out that while DTC disruptors have predominantly focused on the US retail space, they are now making themselves felt across industries and across geographies.
According to the report, DTC startups are hastening a shift in the consumer decision-making process.
This is giving rise to the three key paradoxes that Forrester says CMOs must navigate by honing their use of best-in-class core marketing techniques: walking in the customer’s shoes; creating tangible and intangible customer value; and closing the gap between business and customer needs.
While the hype surrounding DTC disruptors may fade, the paradoxical consumer expectations will not.
CMOs must hone their use of classic marketing best practices to keep up. They must tackle these paradoxes by walking in the customer’s shoes, creating new tangible and intangible value and closing the gap between the company and consumer.