Latest / Social Media Marketing with Fexingo: Instagram, TikTok, LinkedIn, and Platform Strategy / Why Brands Are Using Social Media for Direct Sales via DMs
Transcript
- Lucas: Luna, I want to talk about a shift that’s happening quietly inside a lot of brand social media teams. Not the public-facing posts. Not the stories. But the direct messages. Luna: You mean brands actually closing sales through DMs? Because I’ve definitely noticed that when I’ve messaged brands, the response is way more salesy than it used to be. Lucas: Exactly. It’s becoming a real channel. I was looking at a clothing startup based in Austin — they’re doing about two million a year in revenue — and they told me that eighteen percent of their monthly revenue now comes directly from Instagram DMs. That’s not people clicking a link in bio. That’s a conversation that ends with a sale. Luna: Eighteen percent is significant. How did they even set that up? Because most brands I see just have an automated ‘thanks for reaching out’ message and then nothing. Lucas: That’s the old way. They actually built a small team — three people — who handle DMs during business hours. But here’s the smart part: they integrated their DM inbox with their CRM. So when someone messages, the sales rep can see that person’s past purchases, their abandoned cart, even which products they’ve viewed. It’s like having a sales floor in your pocket. Luna: So it’s not just customer service. It’s a full sales channel. Do they use any automation or is it all human? Lucas: They use automation for the first touch — a simple greeting and a request for what they need. But after that, it’s all human. And that’s the key. They tested a fully automated bot that tried to close the sale, and conversion actually dropped by forty percent. People could tell they were talking to a bot and they didn’t trust it. Luna: I can see that. If I’m about to spend a hundred bucks on a jacket, I want to feel like a human is helping me. But is this only for smaller brands? Because I feel like big companies would struggle to scale that. Lucas: Some big brands are doing it too, but they’re approaching it differently. Luxury brands especially. I talked to a digital strategist at a European fashion house — not naming names — and they said their DM sales are actually higher per-transaction than their website. Because when someone DMs them about a bag that costs two thousand dollars, they assign a personal sales associate who sends voice notes, videos of the product, even arranges a virtual try-on. It’s concierge-level service. Luna: That makes sense for luxury. But for a mid-market brand, is the ROI there? Because hiring people to sit on DMs isn’t cheap. Lucas: The startup I mentioned says their average order value from DMs is thirty percent higher than from their website. And their return rate is lower. They think it’s because the sales rep can answer sizing questions, recommend alternatives, and talk someone out of a bad fit before they buy. So they’re saving on returns. Luna: That’s a pretty compelling metric. So what’s the infrastructure? Do you need special software? Lucas: Most brands start with a tool like ManyChat or MobileMonkey to manage the inbox and automate the greeting. Then they connect it to their CRM — could be HubSpot, Salesforce, even a custom setup. The Austin startup used a platform called Reply that lets them tag conversations, assign them to reps, and track revenue. They also have a dedicated phone number for DMs that routes to the same inbox so they don’t miss anything. Luna: One thing I’m curious about is how they handle volume. What happens when they get a hundred DMs an hour during a product drop? Lucas: They have a triage system. Automated responses handle FAQs — shipping times, size charts. But any message that mentions a specific product or asks a nuanced question gets flagged for a human. They also use saved replies for common questions, so the rep just taps a button and personalizes it slightly. They told me the key metric isn’t response time, it’s resolution time. They want to close the conversation within thirty minutes during business hours. Luna: Thirty minutes is fast. I’ve waited days for some brand DMs. So how do they train their reps? Because selling via DM is different than selling in-store. Lucas: They actually script out a few paths. But the most important thing they do is encourage reps to be themselves. They let them use emojis, slang, even jokes. The brand’s voice is casual — they sell to Gen Z women — so the reps match that energy. One rep told me she sometimes sends a selfie wearing the dress the customer is asking about. That kind of authenticity is hard to scale, but it builds trust. Luna: That’s a great point about authenticity. But it also raises a question about privacy. If I’m DMing a brand, am I okay with them seeing my purchase history and browsing behavior? Lucas: That’s the elephant in the room. Most brands are transparent in their first automated message — they say something like ‘I see you’ve looked at our new collection, can I help you with anything?’ And that can feel intrusive. The startup I mentioned actually A/B tested different greeting messages. The one that referenced past behavior had a higher click-through rate but a lower reply rate. So they switched to a simpler greeting and only bring up past behavior if the customer asks. Luna: So less creepy, more helpful. I like that. But what about the platforms themselves? Instagram seems to encourage DMs for business now with their ‘click to message’ ads. Are brands seeing good results from those? Lucas: They are. And that’s actually a big driver of this trend. Instagram’s click to message ad format lets brands put a ‘send message’ button on their ad. When someone clicks, it opens a DM conversation with a pre-populated greeting. The startup I mentioned gets about a quarter of their DM leads from those ads. And they say the conversion rate from a DM lead is three times higher than from a traditional website click ad. Luna: Three times higher? That’s massive. Why do you think that is? Lucas: Because the intent is different. Someone who clicks a website link is browsing. Someone who clicks a ‘send message’ button is already signaling they want a conversation. They’re closer to a purchase. And once they’re in DMs, the brand can answer doubts in real time, which removes friction. Luna: So is this the future of social commerce? Not shops, but conversations? Lucas: I think it’s a parallel track. Shops are good for low-consideration items — a five-dollar lip balm. But for higher-priced or personal items, DMs offer a human touch that a checkout page can’t replicate. And with the rise of AI, I imagine we’ll see hybrid models where a bot handles the first two questions and then hands off to a human. But the brands that do best right now are the ones that invest in real people. Luna: Speaking of investment, I know listeners ask how these shows stay ad-free. And honestly, it’s because a small group of you chip in monthly at buy me a coffee dot com slash fexingo. That’s what funds the research and keeps us independent. If these marketing conversations have sparked something you’ve actually used, that’s the way to keep them coming. Lucas: Yeah, and it’s genuinely appreciated. It allows us to dig into specific case studies like this one without worrying about sponsors. So thank you to everyone who already does. Luna: Absolutely. And speaking of case studies, I want to ask about the downsides. Because not every brand can pull this off. What’s the biggest mistake you’ve seen? Lucas: The biggest mistake is treating DMs like an inbox you have to clear instead of a revenue opportunity. I’ve seen brands assign the DM duty to an intern who has no training, no sales script, no CRM access. And then they wonder why no sales happen. It needs to be treated like a real sales channel with dedicated staff, metrics, and a strategy. Luna: So you need a dedicated DM sales rep, not just someone who answers messages between other tasks. Lucas: Exactly. And the second mistake is not tracking what works. The startup tracks every DM conversation source, topic, and outcome. They know that conversations about sizing convert at sixty percent, while questions about fabric convert at thirty percent. So they prioritize sizing questions. That data is gold. Luna: I love that level of detail. So if a brand wants to start today, what’s the first step? Lucas: First, audit your current DMs. How many are you getting? What are they about? Then set up a simple CRM integration. Even a free HubSpot account can work. Then train one person to handle DMs with a light script and access to product info. Start small, measure everything, and scale from there. Luna: It sounds like the barrier to entry is lower than I thought. But the commitment to actually being conversational is higher. Lucas: That’s the trade-off. You can’t automate the trust. But if you get it right, DMs become your highest-converting channel. And in a world where social algorithms keep changing, owning that direct line to your customer is priceless. Luna: Well said. That’s a great note to end on. Thanks, Lucas. Lucas: Thanks, Luna. And thanks to everyone listening. We’ll be back tomorrow with another angle.