The top 5 things we learned from studying D2C leaders

Wed Jan 01 2025

Why direct-to-consumer brands set the pace for continuous improvement.

Part two of a three-part series.

When we analyzed some of today’s most successful direct-to-consumer (D2C) brands, we uncovered five consistent themes that help drive their success.

These insights underscore a bigger truth: D2C leaders don’t rely on guesswork. Instead, they depend on systematic testing and data-driven refinement to keep customers engaged.

“And then, most importantly, run experiments. Have a culture of experimentation... It’s the good old scientific method… let’s use that process in building companies.”

– Vijay Subramanian, Rent the Runway

Get the guide: Optimize your D2C growth

1. They relentlessly reduce friction for first-time conversions

D2C leaders know every second counts once shoppers land on their site. Rather than hoping visitors will figure it out, these brands streamline the sign-up process and remove any roadblocks to checkout.

In practice, that often means testing single-page forms against multi-step wizards, or comparing messages like “2,459 purchased today!” versus “15% off your first purchase.”

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2. They localize experiences to resonate with diverse audiences

From region-specific product collections to language options that reflect local cultures, top D2C brands ensure their sites feel relevant no matter where shoppers live. They also experiment with payment methods that make sense region by region (like Alipay in China).

By testing which localized elements drive the biggest lift, these companies see higher conversion rates and better global reach.

“Experimentation is valuable because it helps us verify our assumptions… Without experimentation, we’re just releasing into the wild.”

– Wyatt Thompson, Dollar Shave Club

3. They prioritize product discovery to boost average order value

Traditional website navigation can bury large swaths of a brand’s catalog. Leading D2C brands tackle this by experimenting with search algorithms—semantic vs. keyword-based—and dynamic suggestions (like “Complete the look”).

They measure which features lead to deeper browsing and higher overall spend. The result is a broader product exposure that encourages customers to buy more than just the obvious items.

4. They keep retention high with tailored recommendations

Cultivating repeat business is often cheaper than attracting brand-new customers. That’s why D2C leaders invest in testing everything from subtle homepage nudges to loyalty points.

One brand tested different recommendation styles, such as “Show me more like this” versus fully automatic suggestions, to see which prompted repeat sales. By focusing on timing and relevance, these brands keep customers coming back within key windows—often 28 days or less.

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5. They have a plan to win back dormant customers

No matter how great the initial experience, shoppers sometimes drift away. Leading D2C brands rely on data-driven experiments to win them back. Simple changes—such as messaging inactive users with “Welcome back! Here’s 20% off” or reminding them “We saved your favorites”—can yield big results when tested against more generic re-engagement efforts.

By constantly refining these tactics, they can reactivate lapsed customers while maintaining brand loyalty.

“We started to invest more in [retention] and think much more seriously about higher-level experimentation versus just simply running an email program.”

– Anu Verma, Care/of

Learning from the best

From seamless checkouts to strategic win-back campaigns, today’s leading D2C brands share a commitment to rigorous testing. They never assume they know their customers perfectly. Instead, they uncover what truly works by running experiments across every stage of the customer lifecycle.

That relentless pursuit of improvement—and the data it produces—is what sets them apart as leaders in the space.

D2C experimentation guide

Get the complete picture. Download the D2C experimentation guide for real insights into the quantifiable wins that the leading D2C companies have earned.
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