As direct-to-consumer brands look to drive customer acquisition, high earners are their best customers.
The PYMNTS Intelligence report “The Online Features Driving Consumers to Shop With Brands, Retailers or Marketplaces” drew from a survey of more than 3,500 U.S. consumers in October to understand their behaviors and preferences when they shop via digital channels.
The results revealed that higher-income consumers are disproportionately likely to want to shop directly from brands. Specifically, 31% of those who bring home more than $100,000 annually reported that they “definitely or probably” prefer a brand’s own online store versus a retailer’s digital shop. Conversely, 27% of those who earn between $50,000 and $100,000, and 24% of those who earn less than $50,000 said the same.
Brands are seizing on the opportunity to win over these high earners.
Last year, for instance, beer, wine and spirits giant Constellation Brands, parent company of a wide range of alcoholic beverage brands including Modelo, Corona, Svedka and more, shared that premium brands tend to perform well on D2C channels and that by selling right to these customers, the company can drive higher margins on its most luxury products.
Meanwhile, HelloFresh has been looking to capture big spenders’ pet care budgets, noting how consumers are willing to splurge on their fur babies where they might scrimp on their own products. Last summer, the meal kit company announced its new dog food subscription, The Pets Table, promising “human-grade” meals.
The research conducted by PYMNTS Intelligence highlighted the role that high earners play in driving growth for D2C brands. By catering to the preferences of affluent consumers and offering a seamless shopping experience, brands can tap into this lucrative market segment. As D2C brands continue to evolve, they must understand the preferences and behaviors of high-income consumers to achieve sustained success in the competitive digital landscape.