Shark Tank's Kevin O'Leary, was quoted to say that the "next big thing" for small businesses is to focus on the DTC (Direct-to-Consumer) channel. (https://www.cnbc.com/2021/08/11/what-kevin-oleary-is-telling-every-ceo-to-start-investing-in-.html) They should look specifically at the amount of data being generated by online direct sales. Companies need to invest in inexpensive cloud and AI technology. This will allow small businesses to use all the same technology marketing tricks of the larger Fortune 500 Companies to market their products and services to customers in a more personalized way. The Covid boom in direct-to-consumer sales is the key business shift and it is equally important to small companies and business giants. DTC sales have shifted from 10% to 50-60% for organizations during Covid. O'Leary emphasizes that the key to the future is the data that comes with reaching the customer online directly.
An affordable way for companies to capture data is by utilizing cloud-based AI tools. This will lead to an increase in sales, as well as other business benefits such as larger margins and better forecasting of demand. The adoption of these tools will allow managers to deploy capital much more efficiently and not have large inventory sitting in their warehouse.
We can only learn from those organizations that have thrived during Covid, such as Nike. Looking at customer data and knowing what to do with it is very important. The Covid Pandemic has forced us to go into an unbelievable digital pivot. Now with the delta variant that will force us to stay the course. Using cloud-based technology to perform AI will help with forming a DTC business strategy. It is so affordable that even small businesses can adopt it.
There are many types of AI tools out there. My advice is to look at what is out there and talk to your peers about what is being used specifically for your industry. For more information on our Business Development AI Tool, please contact us, for a demo.
Margherita C. Amplo
MCA Consulting Services, LLC.