The food and drink industry has had to adapt fast over the past few years. COVID was a massive industry disruptor, shifting people’s buying habits to suit their new lockdown lifestyle. In response, the DTC subscription model grew rapidly. While this shift initially happened out of necessity, the long-term impact has changed consumer behaviour permanently.
Since then, other challenges have emerged. Inflation, rising input costs, and supply chain issues have added pressure to both brands and consumers. The cost-of-living crisis has led to more cautious spending, making it harder for brands to retain customers and maintain profitability. Meanwhile, DTC brands are facing a more difficult funding landscape, with investors prioritising profitability over rapid growth. In this environment, the brands that succeed are those that build strong retention strategies and offer real value to customers.
Switching to a DTC model
For many food and drink companies, adopting a DTC model has been crucial for survival. But it’s not always easy. Brands that primarily sell through supermarkets, hotels, or restaurants may not be set up for the technical and logistical demands of ecommerce.
Transitioning to a DTC model requires managing a new distribution network, investing in branding and marketing, and ensuring the website and operations are optimised for direct sales. Partnering with a third-party fulfilment vendor can sometimes be a faster and more cost-effective route to market.
Making subscription DTC work long-term
Whether you’re transitioning during market shifts or always planned for a subscription model, success comes down to retention. Here are key considerations:
- Customer expectations are high. Even though food and drink is relatively new to ecommerce, customers expect a seamless experience. Prioritise UX from the first touchpoint and deliver a compelling reason to stay.
- 75% of people who buy food online stick with the first shop they went to. Ensure your CX, supply chain, and retention strategy are airtight. If a customer has a bad first experience, they’re unlikely to return.
- Incentivise loyalty. Building a points-based loyalty programme is a simple but effective way to encourage repeat purchases. Loyalty for Shopify brands can be a strong retention tool.
- Personalisation is key. 80% of customers are more likely to make a purchase if a brand offers a personalised experience. This requires capturing customer data from the start, creative engagement strategies, and serving relevant content and offers.
- Create a community. Social channels help customers connect, share experiences, and reinforce brand loyalty.
- Optimise your website for subscriptions. If you offer flexible subscription models—custom bundles, prepaid discounts, or surprise-and-delight perks—you’ll see stronger retention. Platforms like subscriptions for Shopify brands make this easier.
- Expect custom development needs. Out-of-the-box software rarely addresses 100% of a brand’s needs. Investing in early-stage development ensures a better long-term experience.
We hope this helps you refine your DTC food or drink strategy. While external challenges continue to evolve, the fundamentals remain the same—brands that offer value, consistency, and great experiences will continue to thrive.
If you're looking for expert support in structuring your brand’s subscription model or retention strategy, get in touch with our team.