AI-Driven Growth Levers for Direct-to-Consumer Marketing Businesses
DOI:
https://doi.org/10.22399/ijcesen.5177Keywords:
Artificial Intelligence, Direct-to-Consumer Marketing, Customer Lifetime Value, Revenue Growth, Predictive Analytics, Retention IntelligenceAbstract
The rapid expansion of direct-to-consumer (DTC) marketing businesses has intensified the need for scalable, data-driven growth strategies. This study examines how artificial intelligence (AI) functions as a multidimensional growth lever within DTC ecosystems by integrating acquisition intelligence, personalization intelligence, operational intelligence, and retention intelligence. Using a quantitative explanatory design, data from 120 DTC firms were analyzed through Random Forest modeling, Structural Equation Modeling (SEM), canonical correlation analysis (CCA), and dynamic growth simulations. The results reveal that retention intelligence exerts the strongest influence on revenue growth, primarily through its significant impact on customer lifetime value (CLV), which mediates the relationship between AI capabilities and financial performance. Acquisition intelligence significantly improves conversion efficiency and reduces customer acquisition cost, while personalization intelligence enhances CLV through targeted engagement. Operational intelligence contributes to margin expansion and supply chain efficiency. Scenario-based simulations demonstrate compounding growth trajectories under high AI adoption intensity, indicating nonlinear and widening performance advantages over time. Canonical correlation analysis confirms systemic alignment between AI maturity and multidimensional growth outcomes. The study concludes that AI-driven growth in DTC marketing businesses depends on integrated capability deployment rather than isolated technological adoption, positioning AI maturity as a structural determinant of scalable and sustainable competitive advantage.
References
[1] Agrawal, N., Najafi-Asadolahi, S., & Smith, S. A. (2019). Optimization of operational decisions in digital advertising: A literature review. Channel Strategies and Marketing Mix in a Connected World, 99-146.
[2] Ascarza, E., Neslin, S. A., Netzer, O., Anderson, Z., Fader, P. S., Gupta, S., ... & Schrift, R. (2018). In pursuit of enhanced customer retention management: Review, key issues, and future directions. Customer Needs and Solutions, 5(1), 65-81.
[3] Detro, J. (2016). Examining the Impact of Supply Chain Technology Implementations on Supply Chain Effectiveness and Firm Value. Global Journal of Business and Integral Security.
[4] Egbuhuzor, N. S., Ajayi, A. J., Akhigbe, E. E., Agbede, O. O., Ewim, C. P. M., & Ajiga, D. I. (2021). Cloud-based CRM systems: Revolutionizing customer engagement in the financial sector with artificial intelligence. International Journal of Science and Research Archive, 3(1), 215-234.
[5] Esan, O. (2021). Dynamic pricing models in SaaS: a comparative analysis of AI-powered monetization strategies. International Journal of Research Publication and Reviews, 2(12), 1757-1772.
[6] Igwe-Nmaju, C., & Anadozie, C. (2022). Commanding digital trust in high-stakes sectors: communication strategies for sustaining stakeholder confidence amid technological risk. World Journal of Advanced Research and Reviews, 15(3), 609-630.
[7] Imediegwu, C. C., & Elebe, O. (2022). Modeling cross-selling strategies in retail banking using CRM data. International Journal of Scientific Research in Computer Science, Engineering and Information Technology, 8(5), 476-497.
[8] Johnson, J. (2022). Delegating strategic decision-making to machines: Dr. Strangelove Redux?. Journal of Strategic Studies, 45(3), 439-477.
[9] Kaul, D., & Khurana, R. (2022). Ai-driven optimization models for e-commerce supply chain operations: Demand prediction, inventory management, and delivery time reduction with cost efficiency considerations. International Journal of Social Analytics, 7(12), 59-77.
[10] Kim, N. L., Shin, D. C., & Kim, G. (2021). Determinants of consumer attitudes and re-purchase intentions toward direct-to-consumer (DTC) brands. Fashion and Textiles, 8(1), 8.
[11] Kitchens, B., Dobolyi, D., Li, J., & Abbasi, A. (2018). Advanced customer analytics: Strategic value through integration of relationship-oriented big data. Journal of Management Information Systems, 35(2), 540-574.
[12] Kuo, T. K., Lim, S. S., & Sonko, L. K. (2018). Catch-up strategy of latecomer firms in Asia: a case study of innovation ambidexterity in PC industry. Technology Analysis & Strategic Management, 30(12), 1483-1497.
[13] Lu, Y. (2019). Artificial intelligence: a survey on evolution, models, applications and future trends. Journal of management analytics, 6(1), 1-29.
[14] Mishra, S., Ewing, M. T., & Cooper, H. B. (2022). Artificial intelligence focus and firm performance. Journal of the Academy of Marketing Science, 50(6), 1176-1197.
[15] Nwabekee, U. S., Aniebonam, E. E., Elumilade, O. O., & Ogunsola, O. Y. (2021). Predictive Model for Enhancing Long-Term Customer Relationships and Profitability in Retail and Service-Based.
[16] Olayinka, O. H. (2021). Data driven customer segmentation and personalization strategies in modern business intelligence frameworks. World Journal of Advanced Research and Reviews, 12(3), 711-726.
[17] Rajagopal. (2021). Crowd-Based Business Modeling. In Crowd-Based Business Models: Using Collective Intelligence for Market Competitiveness (pp. 67-98). Cham: Springer International Publishing.
[18] Rakthin, S., Calantone, R. J., & Wang, J. F. (2016). Managing market intelligence: The comparative role of absorptive capacity and market orientation. Journal of Business Research, 69(12), 5569-5577.
[19] Rathore, B. (2017). Exploring the intersection of fashion marketing in the metaverse: leveraging artificial intelligence for consumer engagement and brand innovation. International Journal of New Media Studies: International Peer Reviewed Scholarly Indexed Journal, 4(2), 51-60.
[20] Reviglio, U. (2019, September). Towards a right not to be deceived? An interdisciplinary analysis of media personalization in the light of the GDPR. In Conference on e-Business, e-Services and e-Society (pp. 47-59). Cham: Springer International Publishing.
[21] Rosario, A. M. F. T., & Cruz, R. N. (2019). Determinants of innovation in digital marketing. Journal of Reviews on Global Economics, 8(1), 1722-1731.
[22] Saurabh, K., Arora, R., Rani, N., Mishra, D., & Ramkumar, M. (2022). AI led ethical digital transformation: Framework, research and managerial implications. Journal of Information, Communication and Ethics in Society, 20(2), 229-256.
[23] Shankar, V., Kalyanam, K., Setia, P., Golmohammadi, A., Tirunillai, S., Douglass, T., ... & Waddoups, R. (2021). How technology is changing retail. Journal of Retailing, 97(1), 13-27.
[24] Sharma, A., Patel, N., & Gupta, R. (2022). Enhancing Customer Acquisition Cost Efficiency through Reinforcement Learning and Genetic Algorithms in AI-driven Strategies. European Advanced AI Journal, 11(9).
[25] Sitaker, M., Kolodinsky, J., Wang, W., Chase, L. C., Kim, J. V. S., Smith, D., ... & Greco, L. (2020). Evaluation of farm fresh food boxes: A hybrid alternative food network market innovation. Sustainability, 12(24), 10406.
Downloads
Published
How to Cite
Issue
Section
License
Copyright (c) 2023 International Journal of Computational and Experimental Science and Engineering

This work is licensed under a Creative Commons Attribution 4.0 International License.