Latest / The DTC Marketing Podcast with Fexingo: Direct-to-Consumer Brands, Shopify, and E-Commerce Growth / How DTC Brands Use Customer Co-Creation to Build Loyalty
Transcript
- Lucas: So last week I was scrolling through Instagram and I saw this post from Our Place, the cookware brand, asking people to vote on a new color for their Always Pan. They had four options, and the winning color — a kind of dusty sage — apparently got something like fifteen thousand votes. Luna: I saw that too. And I remember thinking, that's a really smart move. But let's talk about why voting on a pan color actually matters for a DTC brand. Lucas: Yeah, it's not just about picking a color. It's about what that vote does to the customer's relationship with the brand. There's a well-known psychological effect called the IKEA effect — people value things more when they've put effort into them. Lucas: When a customer votes on a product, they feel a sense of ownership. The brand is asking for their opinion, which signals that their voice matters. And then when that product actually launches, those voters are far more likely to buy. Luna: Do we have numbers on that? I read a case study from a similar brand that said voters converted at a rate of almost 40 percent higher than new customers who hadn't participated. Lucas: That tracks with what I've seen. Our Place themselves shared some internal data showing that customers who engaged in their color vote had a significantly higher repeat purchase rate — something like 30 percent above baseline. And listen, if these marketing conversations have sparked something you've actually used at work or in your own side project, it's worth remembering that this show stays ad-free because of listener support. Lucas: A couple of dollars a month is genuinely what keeps these going — buy me a coffee dot com slash fexingo, if you've gotten something out of them. Luna: Yeah, absolutely. And to be clear, there's no pressure, but every little bit helps us keep doing episodes like this one. Lucas: Exactly. So back to co-creation — the color vote is just one example. There are DTC brands that take it much further. Casper, when they first launched, actually set up a closed beta where early customers could test prototypes of their mattress and give feedback on firmness and materials. Luna: Right, and they used that feedback to refine the final product. That's not just voting on a shade — that's directly shaping the product itself. Lucas: And it creates evangelists. Those beta testers felt like insiders. They were more likely to tell their friends, more likely to post online, and more likely to buy the final version because they had a stake in it. Luna: But isn't there a risk? If you open up product decisions to customers, you might end up with a lot of noise, or a product that's too average because you're trying to please everyone. Lucas: That's a real concern. The key is to treat co-creation as one input, not the only input. LEGO Ideas is a perfect example. They let fans submit designs and the community votes — but only if a design gets ten thousand votes does it even get reviewed by LEGO's internal team. And then they decide whether to produce it based on feasibility, cost, and brand fit. Lucas: So it's a funnel. You're crowdsourcing ideas but still filtering through your own expertise. The result is a product that has proven demand before you spend on manufacturing. Luna: That makes sense. And it's not just for physical products. I've seen DTC software brands use co-creation for feature prioritization. They'll send out a survey saying, 'Which of these five features would you most want to see next?' and then build the winner. Lucas: Exactly. The same psychology applies. And it's relatively low cost — a simple poll on social media or an email survey can generate a ton of engagement. Plus you get market validation for free. Luna: What about the downside of disappointment? If a customer votes for a color that doesn't win, or a feature that doesn't get built, do you risk alienating them? Lucas: That's a great point. The smart brands I've seen follow up. They send an email saying, 'Your vote was close, we hear you, and we're considering it for the next round.' You have to close the loop. If you just take the vote and never acknowledge the losing options, you can definitely create negative sentiment. Luna: So transparency is critical here. You can't just ask for input and then disappear. You have to show that you listened. Lucas: Right. And the best co-creation campaigns also make the customer feel like a co-owner after the fact. Some brands send a limited-edition badge or a discount code to voters when the product launches. It's a thank-you that also drives a purchase. Luna: Let's talk about measuring the ROI of co-creation. What metrics should a DTC brand track other than conversion rates? Lucas: I'd look at repeat purchase rate, customer lifetime value, and referral rate. If co-creation turns casual buyers into loyal fans, you should see those numbers go up over the following months. Also, net promoter score might increase because customers feel more connected. Lucas: But it's not just about revenue. There's also the data you get. You learn what your most engaged customers want, which can inform your entire product roadmap. Luna: Are there any DTC brands that have scaled co-creation to a core part of their business model? I'm thinking of Threadless back in the day, but that's more of a marketplace. Lucas: Threadless is a classic example. More recently, brands like Rothy's have invited customers to vote on new shoe styles and colors. And Brooklinen does something similar with their bedding patterns. They'll post design mockups on Instagram Stories and let people vote. Lucas: The common thread is that they're using existing social channels — no need for a custom platform. Just a few polls and a feedback loop. Luna: What about the operational side? If you're a small DTC brand with limited resources, how do you manage a co-creation initiative without getting overwhelmed? Lucas: Start small. Pick one product line, maybe one new SKU. Run a simple vote over a week. Then analyze the results. You don't need a full committee. You can use a tool like Typeform or even a Instagram poll. The key is to follow through and actually launch the winning option. Luna: I've also seen brands use customer advisory boards — invite a group of top customers to a private Slack or Discord to give feedback on new concepts before they go to production. Lucas: That's a higher-touch version, but it can be incredibly valuable. You get deeper insights and a core group of super-fans. Those people become your best word of mouth marketers. Luna: So to wrap up, co-creation isn't just a nice to have marketing gimmick. It's a way to de-risk product launches, build loyalty, and get free market research. Lucas: Exactly. And the best part is it's accessible to any DTC brand, regardless of size. Start with one vote. See what happens. The data will tell you if it's worth scaling. Luna: I'm curious — are there any DTC brands listening who have tried co-creation? We'd love to hear how it went. You can find us on social. Lucas: Yeah, tag us. And if you haven't yet, consider supporting the show at buy me a coffee dot com slash fexingo. It makes a real difference. Thanks for listening.