Startup
How D2C brands are personalising the shopping experience
The experience of walking into a store and being greeted by a salesperson who seems to know exactly what you need has long been viewed as the pinnacle of personalised shopping. It’s that sense of recognition, of being understood as a customer, that creates trust and loyalty.
For a long time, this level of personalisation seemed out of reach for ecommerce, as the digital realm lacked the warmth and familiarity of in-person interactions. However, with significant advances in technology, this once-elusive experience has now been successfully integrated into the digital shopping world. Leading the charge in this transformation are direct-to-consumer (D2C) brands, redefining how personalisation is delivered across online platforms.
Gone are the days of generic product catalogues and one-size-fits-all marketing strategies. Today’s D2C brands are leveraging the power of data analytics, AI, and machine learning to craft bespoke, highly personalised shopping experiences. These experiences mimic the feel of a personal conversation between a customer and a trusted friend, rather than interactions with an impersonal corporation.
In fact, if numbers are to be believed, India’s D2C market is poised for rapid expansion and is expected to reach an impressive $60 billion by FY27, according to a joint report by logistics firm Shiprocket with CII and Praxis Global Alliance. The broader Indian ecommerce industry is projected to grow to $325 billion by 2030, as per investment promotion and facilitation agency Invest India. This growth is fuelled, in part, by the increasingly sophisticated personalisation strategies employed by brands.
Let’s delve into some key ways in which D2C brands are transforming the shopping experience.
Data-driven recommendations
At the heart of personalisation lies data. By analysing customer browsing history, purchase patterns, and even social media activity, D2C brands can craft product recommendations tailored to individual tastes and needs. This data-driven approach ensures that customers are presented with products they are more likely to purchase based on their preferences.
For example, a travel accessory retailer might suggest suitcases or handbag items that align with a customer’s travel and style preferences. These curated recommendations make the shopping journey more efficient and satisfying, reducing the customer’s decision-making burden.
Dynamic content
Another key innovation in personalised shopping is dynamic content, where a website’s homepage or landing pages adapt to each user. Instead of displaying the same static content to every visitor, dynamic content is shaped by previous interactions, offering tailored product suggestions or customised messaging.
Imagine visiting a website and seeing a homepage that offers discounts on items similar to your past purchases. This level of personalisation helps establish a deeper connection with the consumer, making the online shopping experience more immersive and relevant.
Personalised marketing campaigns
In the age of digital marketing, one-size-fits-all strategies are no longer effective. D2C brands are replacing mass email blasts with hyper-targeted campaigns, where marketing efforts are informed by customer behaviour and preferences. By segmenting customers based on their purchase history, browsing activity, or demographic information, brands can create personalised messages that resonate with specific audience segments.
For instance, a fitness brand might send tailored workout gear suggestions to customers based on their purchase history. At the same time, a food subscription service may offer discounts on items that match the customer’s dietary preferences. This individualised approach increases the likelihood of conversion and enhances customer engagement.
Interactive quizzes and surveys
Interactive tools like quizzes and surveys have become invaluable for D2C brands looking to personalise product recommendations. By asking customers about their preferences, styles, or needs, these quizzes create a profile that helps brands suggest the most suitable products.
For example, a skincare brand might use a quiz to identify a customer’s skin type, concerns, and goals, and then recommend a personalised skincare routine. These quizzes are engaging and help brands collect valuable data while giving customers a sense of control over their shopping journey, deepening the brand-customer relationship.
Loyalty programmes with a personal touch
Loyalty programmes have long been a staple of customer retention strategies, but D2C brands are taking them to the next level with personalisation. Instead of offering generic rewards, brands are now tailoring their loyalty programs to meet individual preferences. Repeat customers can be rewarded with personalised discounts, exclusive early access to new collections, or custom-tailored offers that match their shopping behaviour.
This approach fosters stronger brand loyalty by making customers feel valued and recognised, encouraging repeat purchases and long-term engagement.
Why personalisation matters
Personalisation is not merely a marketing trend; it has also proven to drive significant business outcomes. Brands that effectively integrate personalisation into their strategies are seeing measurable results, from increased conversion rates to higher customer satisfaction and loyalty.
Higher conversion rates: Personalised experiences increase conversion rates, as customers are more likely to purchase products tailored to their preferences. Personalisation can reduce customer acquisition costs, increase revenues, and improve marketing ROI.
Enhanced customer satisfaction and loyalty: When customers feel understood, they are more satisfied and loyal. Over time, this loyalty can transform customers into brand advocates, driving organic growth through word-of-mouth recommendations.
Transforming shopping experience
The personalisation revolution in D2C is not just about enhancing the customer experience—it’s about transforming the entire shopping journey. By leveraging data and technology, D2C brands are creating deeper connections with their customers, driving higher conversion rates, fostering loyalty, and ultimately, building lasting relationships that benefit both the brand and the consumer.
As the Indian D2C market continues to grow, those brands that prioritise and perfect personalisation will undoubtedly lead the way.
The author is Founder, EUME, a travel lifestyle and accessories brand.
(Disclaimer: The views and opinions expressed in this article are those of the author and do not necessarily reflect the views of YourStory.)
Startup
RenewBuys pares FY24 losses by 40% amid merger reports
D2C Consulting Services, the parent company of digital insurance startup RenewBuy, pared its losses by 42% to Rs 114.44 crore in FY24 from Rs 197.19 crore in the previous year.
The online insurance aggregator clocked 40% rise in operating revenue to Rs 394.40 crore from Rs 280.75 crore in FY23, according to a filing made with the Registrar of Companies.
D2C Consulting Services is reportedly in talks with its larger peer InsuranceDekho for a potential merger in a cash-and-stock deal. The combined entity is expected to be valued over Rs 8,000 crore, with RenewBuy valued at about Rs 3,000 crore.
The RenewBuy platform offers comparison for motor, health and life insurance. Its total expenses rose 8% to Rs 524.24 crore, mainly driven by higher interest payments and other expenses.
RenewBuy is valued at $364 million according to the data available on data intelligence platform Tracxn. It last raised $40 million in a Series D round from Dai-ichi Life Holdings in July 2023.
The startup was founded in 2016 by Balachander Sekhar and Indraneel Chatterjee. RenewBuy plans to expand beyond India, especially in the Asian markets.
Its peer PolicyBazaar, a unit of listed entity PB Fintech, reported a 43.81% year-over-year jump in operational revenue at Rs 1,167 crore in Q2. During the same period, it clocked a profit after tax of Rs 51 crore, marking a turnaround from a loss of Rs 21.11 crore incurred in the corresponding year-ago period.
Startup
Startup news and updates: Daily roundup (November 7, 2024)
Funding news:
Enlog secures Rs 1.75 Cr in equity funding
Enlog, a Delhi-based startup specialising in AI-powered energy management and IoT solutions, has secured Rs 1.75 crore in equity funding from Vinners.
The fresh funds will be used to boost its operations and accelerate its growth in India’s energy management sector.
Enlog, a Delhi-based energy management startup, was founded in 2019 by Bharath Rnkawat and Jharna Saha, focuses on IoT and AI-powered energy solutions to optimise electricity consumption and reduce carbon footprints. So far, it has managed 11,300 MWh of electricity and reduced over 2,000 tons of carbon emissions.
With over 15,000 users, Enlog aims to reduce carbon emissions by one million tons by 2027. It plans to triple its revenue from Rs 12 crore in 2024 to Rs 40-45 crore by 2025, focusing on expanding into key Indian metro cities like Bangalore, Hyderabad, Pune, and Indore.
Pulse bags $1.4M in a seed funding round led by Endiya Partners
, an advanced Agentic AI platform, has secured $1.4 million in seed funding from Endiya Partners, with participation from angel investors, including founders of Zluri and Yellow.ai, and other entrepreneurs and product leaders.
The funding will primarily focus on building a robust core team, enhancing the platform’s development, purpose-built LLMs, and Agentic AI capabilities.
It is launching its MVP in November 2024, following pilots with multiple design partners. The company plans to allocate resources for early go-to-market initiatives to establish a foothold in India and the US, paving the way for long-term growth and leadership in the AI-first product management space.
Hyderabad-based Pulse, founded in 2024, uses Agentic AI to collect customer feedback, analyse structured and unstructured data, and automate key processes like feature extraction, prioritisation, and product hierarchy creation.
Other News
DaveAI secures patent for real-time adaptive digital aisle, transforming customer engagement
, an interactive digital solutions, has been granted a patent by the Government of India for its “System and Method for Real-Time Adaptive Interactive Digital Aisle of Products.”
The patented system leverages DaveAI’s proprietary Affinity Engine, a multi-dimensional AI with an online learning genetic algorithm, powers real-time hyper-personalisation, allowing brands to craft adaptable and engaging digital customer experiences.
DaveAI combines machine learning with genetic algorithms to personalise customer interactions in real time. This allows brands to provide tailored recommendations, adapt to changing customer needs, and build lasting connections.
(The copy will be updated with the latest news throughout the day)
Startup
KL Rahul-backed Boldfit raises Rs 110 Cr from Bessemer Venture
Fitness brand Boldfit on Thursday said it raised Rs 110 crore in its series A round from Bessemer Venture Partners (BVP).
Boldfit, which sells everything from yoga mats and water bottles to protein powers and exercise apparel, plans to use the latest infusion for product innovation and brand expansion.
Boldfit, which was founded by Pallav Bihani in 2019, had earlier announced a strategic investment from cricketer KL Rahul in July. Rahul also joined the company as a brand ambassador.
“We believe sports and fitness is a rapidly growing market in India and Boldfit has emerged as an early leader in the space with its strong focus on product quality, holistic distribution, and strong brand partnerships. We’re excited to partner with Pallav and the team in their next stage of growth,” noted Anant Vidur Puri, Partner at Bessemer Venture Partners.
Boldfit had earlier outlined its plans to use the funds for the development of new product lines and enhance customer engagement through targeted campaigns and community development initiatives. Additionally, the company is also looking to optimise its supply chain and improve logistics to reduce delivery times.
Boldfit said it clocked revenue of Rs 73 crore in FY24 and expects to cross the Rs 500 crore threshold by FY26, which it had shared with Yourstory earlier.
The company currently claims to serve over one crore customers annually.
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