D2C brand manufacturers need more sophisticated, future-proof ecommerce platforms to meet the expectations and scale for the next generation of ecommerce customers

 Nogin, a leading provider of innovative enterprise-class ecommerce technology that embraces and extends the capabilities of Shopify Plus, today announced the results of a survey of D2C (direct-to-consumer) brand manufacturing leaders, revealing how D2C brands rate their existing technology stacks, what challenges they face in executing D2C commerce with their current tools, and what capabilities they’d like to see in the future. Administered by WBR Insights, the survey found that brand manufacturers are seeking to enhance their current platforms, and are actively exploring better solutions to future-proof their businesses and create next-generation ecommerce environments.

The survey polled 100 leaders representing consumer product brand manufacturers that have existing ecommerce channels or are planning to develop them. As consumer brands continue to adopt D2C ecommerce to drive revenue directly from customers, and as many companies struggle to maintain growth and compete with ecommerce giants and other competitors, brand manufacturing leaders are putting increased scrutiny on the technology stacks that power their digital storefronts.

Brand manufacturers face challenges with their current enterprise ecommerce platforms
Overall, enterprise ecommerce platforms are critical for brands looking to increase revenue through D2C sales. However, not every brand has the right platform to effectively streamline their operations and improve their customer experience. In fact, many organizations feel that their tools could be improved. Only 27% of respondents said they were very satisfied with their current technology stacks, naming their top challenges as system integration, personalization and content management.

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Brands are moving toward intelligent commerce—but technology gaps are still holding them back
Intelligent ecommerce capabilities leverage automation and personalization to help D2C businesses achieve an essential objective—understanding and predicting customer behavior. However, while 59% of respondents categorized their ecommerce technology as “intelligent”—including one or more AI-driven capabilities that use algorithms to self-learn and act—many also noted significant capability gaps in their technology stacks. 31% say their current ecommerce technology is ineffective at increasing customer lifetime value, and 35% say their technology is ineffective at increasing customer conversations with predictive analytics.

Most brand manufacturers are ready for a new enterprise ecommerce platform
On average, survey respondents each use about 9 different ecommerce technologies to support their D2C programs. This patchwork often leads to integration and data sharing issues, and still may not address important technology needs like return rate optimization, complex order management and product inventory monitoring. So, it’s no surprise that 76% of respondents say they plan to adopt a new enterprise ecommerce platform in the future. In particular, 71% stated they are interested in a turnkey enterprise ecommerce platform that handles the entire customer lifecycle, has no extra fees, has no required upgrades and provides expert managed services.

“D2C brands today are navigating an increasingly competitive ecommerce environment. Yet, as companies grow and search for ways to increase profitability, many find themselves trapped in a cycle of constant upgrades, integrations and custom R&D, unable to compete with industry giants,” said Geoffrey Van Haeren, Co-Founder and Chief Technologist at Nogin. “To come out on top and build an ecommerce business with true staying power, brand manufacturers need a comprehensive, intelligent ecommerce platform—one that not only restarts growth through enterprise-level features like personalization, microtargeting and marketing automation, but delivers on consumers’ rising expectations and lays the foundation for scalable profitability.”

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