Alen Capelja.

The DTC funnel · Stage 4 of 7 · 5 min read

Fulfilment: deliver on promises.

The first time they hold the product. Nothing in the funnel lands harder than the first impression, nothing is remembered longer, and the brand controls less of it than it thinks.

Steps: Fulfill order. Flows: Positive, Negative, Cross sell.

STAGE 1AwarenessIntroduce your brandSTAGE 2AcquisitionEarn contact trustSTAGE 3ConversionWin salesSTAGE 4FulfilmentDeliver on promisesSTAGE 5LoyaltyReward and growSTAGE 6SupportResolve and win backSTAGE 7SentimentListen and improveSite bounceWelcome seriesBrowse seriesCart seriesCheckout seriesPost purchasePositiveNegativeUpsellCross sellRepeatWinbackVisit siteSubscribeBrowseAdd to cartStart checkoutPlace orderFulfill orderPromoterDetractorChurn

The question

“What happens in the hour after the box is opened, and does the brand know whether it went well?”

Do this Monday

Order your own product to your own address. Time the delivery message against the delivery, read what arrives in the following week, and write down the first moment the brand asks how it went.

Day 5: ask. Day 7: offer the match.

A new customer's post-purchase series at a large California retailer, days after the order, against the 60-day window

One of my favourite stages. The box arrives, the person opens it, and for the first time the brand is not a page or an email but a thing in their hands. Nothing gets better than the first impact, and nothing is remembered longer. Redelmeier and Kahneman showed in 1996 that people remember an experience by its peak and by its ending, not by its average, and Kahneman later gave the idea its name. The delivery is the ending of the purchase. Everything the brand did to earn the order, the ads, the pages, the four emails, is remembered through it.

Pine and Gilmore argued in 1998 that goods are fungible and experiences are what people pay a premium for. A DTC brand sells a good, but the customer buys the experience of receiving it, and the only part of that experience the brand fully controls is what it says around the delivery and when. If this is done well, you are close to the heart. If it is done badly, the person remembers the wait, the damaged corner or the silence, and the next stage is Support, not Loyalty.

The step: fulfill order

One step, and the brand does not control most of it: the carrier, the weather, the neighbour who signs for it. Tony Hsieh's account of Zappos is the cleanest example of taking the one lever a brand does control: Zappos quietly upgraded most orders to overnight shipping and never advertised it, so the delivery arrived as a surprise rather than a promise. The surprise was the ending, and the ending was the memory.

What the brand controls is what it says around the delivery, and when. At a large California retailer, the delivery message asks the customer to share a photo of what arrived. Five days after delivery, a review request, with 10% off the next order for leaving one. Seven days after delivery, a cross-sell with matching items and 10% off a different category. The whole series for a new customer runs 14 to 21 days, timed from the order, so each message lands while the product is still new.

The three things to do here are the ones in that series: ask for feedback, add the products that go with what they bought, and offer a solution where you can. The photo request is the feedback ask that costs the customer nothing and gives the brand its best creative. The review request is the one that costs them a minute, so it comes with something. The cross-sell is the solution: the second finish that matches the first, the pattern for the yarn they just received.

The product in their hands

At an architectural products retailer, the whole acquisition funnel was built around this stage. Buyers wanted to see the finish in their own light before committing to a full order, so the brand shipped a sample first, and the sample's delivery was the moment the decision got made. Followed forward, sample buyers placed a full order a median of about 25 days later, and 11% of them in the lead category ordered within 60 days. The post-sample emails were written for that moment: how to judge the finish in the room, how it installs, what it pairs with. Not a discount on the full order. The box did the selling; the emails explained what the box could not.

The yarn brand is the same lesson in a different material. People choose yarn by feel, so a free mini in a reorderable colorway was the acquisition event, and its delivery was where the brand either earned the second order or did not. The first interaction with the product is the one the funnel exists for; the stages before it are the price of getting there.

The objection: fulfilment is operations, not marketing

It is both, and the brands that split them lose the stage. The delivery message is written by marketing and triggered by operations, and when the two do not talk the message fires on shipment and asks for a photo of a box that has not arrived. At one brand the failed-payment flow, an operations event, was reaching 37 of 102 subscribers with a declined card because its check ran a moment before the store wrote the status; a timing gap of seconds between two systems cost two-thirds of the people it was built for. The flows in this stage are only as good as the events that fire them, and the events belong to whoever runs the store. Check them yourself, with your own order.

The flows: positive, negative, cross sell

Three flows branch from the delivery, and they are the only branch in the map. The positive branch carries people who were happy toward Loyalty: the review, the referral, the next-order suggestion. The negative branch carries the unhappy ones toward Support, where the save happens. The cross-sell loops back to the order step with the matching product.

Reichheld's recommendation question is the simplest way to decide which branch a person belongs on, and it is worth asking in the window when the product is new rather than months later in a survey nobody opens. One question, asked at day five, sorts the next two stages. A brand that never asks is guessing which flow each customer should be in, and usually sends the positive one to everybody, including the person whose box arrived crushed.

What I check first

  • The timing of the delivery message against the delivery. If it fires on shipment, it lands days before the box and asks for a photo of nothing.
  • The first ask. How many days after delivery does the brand first ask how it went, and does the answer route anyone anywhere?
  • What the cross-sell sells. The matching item at a discount in a different category is a solution. The same item again is a reorder nudge wearing the wrong name.
  • The series end date. At the retailer, 21 days. If yours ends on day 3 with the review request, the rest of the 60-day window belongs to the general calendar.
  • One order to your own address. It is the only test that catches the gap between the event and the message.

If you take one thing from this stage: the delivery is the ending, and the ending is what they remember. A happy customer at the end of it is a candidate for the only flow that sends people back to the start on purpose. That is Loyalty.

From the work

The cases and articles behind this stage.

  1. Hand-dyed yarn brand

    Getting the yarn into their hands.

    38%: smaller baskets on free-gift orders when the gift had no minimum spend.

    Case study

  2. Architectural products retailer

    The 25 days between a sample and an order

    ~25 days: median from a buyer's first sample to their first full order.

    Case study

  3. Assignment #6

    Sell the sample, then the order

    At an architectural products retailer, the ads sold a sample first and the emails carried buyers toward the full order, which came a median of about 25 days later.

    5 min read

  4. Assignment #1

    The first 60 days decide everything

    At the retailer, the first order was 70% of the average customer's two-year value, and the best chance at the rest came in the next 60 days. What the data showed, what I built around it, and three things to check in your own account. .

    5 min read

Sources

Who said it, and where.

  1. Donald A. Redelmeier and Daniel Kahneman

    Patients' memories of painful medical treatments, Pain, vol. 66, 1996; later popularised as the peak-end rule in Kahneman's Thinking, Fast and Slow, 2011

    “People remember an experience by its most intense moment and by how it ended, not by its average.”

  2. B. Joseph Pine II and James H. Gilmore

    Welcome to the Experience Economy, Harvard Business Review, July 1998

    “Goods are fungible, services intangible, experiences memorable: the experience is the product people pay a premium for.”

  3. Tony Hsieh

    Delivering Happiness, Business Plus, 2010

    “Zappos quietly upgraded most customers to overnight shipping without announcing it, so the delivery itself was the surprise.”

  4. Frederick F. Reichheld

    The One Number You Need to Grow, Harvard Business Review, December 2003

    “Customers split into promoters, passives and detractors on one question: how likely are you to recommend us?”

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