Understanding Revenue Loss in D2C Businesses: An Insight into HeranZO's Launch

In an era where direct-to-consumer (D2C) brands are thriving, a hidden threat looms over their profitability. A recent study conducted by Trino Links, a D2C CRM service provider based in Shibuya, Tokyo, reveals alarming trends regarding revenue and profit loss occurring even before customers become dormant. Their new service, "HeranZO (減らん増)," is set to launch on July 14, 2026, to address this pressing issue.

The Realities of D2C Revenue Decline

Historically, D2C businesses have attributed declining sales and profits primarily to customer dormancy. However, this research illustrates that significant revenue and profit reductions start even in the active customer phase. This issue is more widespread than previously thought, affecting a large number of D2C companies rather than just a select few.

Key Findings on Revenue Loss:

1. Substantial Revenue Leakage: Almost all analyzed D2C companies show a worrying trend of revenue loss, often amounting to several hundred million yen.
2. Two-Phase Decline: The reduction occurs in two stages, with losses expected in the next six months and a subsequent decline in usage rates.
3. Inefficiency in Recovery Efforts: With variability among customers in terms of the amount lost, identifying those with the most significant drop is crucial for effective recovery efforts.

What Went Overlooked?

Previously, essential aspects of D2C operations like new customer acquisition and converting first-time buyers to repeat customers have taken center stage, often overshadowing the decline in active customers. As these active customers—defined as those who have made a purchase within the last year—do not fall into the VIP or dormant categories, typical CRM strategies may fail to detect underlying issues. Consequently, the unnoticed loss of revenue and profits remains unaddressed, leaving businesses vulnerable.

Another misconception is that frequent communications such as catalogs and emails to active customers suffice as adequate engagement. However, these traditional CRM frameworks overlook the fact that sales and profits can significantly dwindle at the active customer stage, leading to unexpected declines.

Case Examples of Revenue Loss

The data provided by Trino Links indicates serious revenue shortages within many companies they work with. The following statistics are a stark reminder of the potential revenue leakage:

- Loss Exceeding Hundreds of Millions: Nearly every D2C firm monitored has shown substantial revenue loss.
- Staggering Impact on Profitability: Notably, the amounts lost vary significantly between customers, which makes targeting remedial actions essential.

The HeranZO Solution

HeranZO is designed to visualize lost revenue and predict potential future losses, offering insights into which customers to prioritize for intervention. It doesn’t stop at mere analytics; the platform effectively guides companies on actionable investments and strategic steps forward, allowing businesses to identify not only how much they might recover but which customers to engage and the expected investment required.

Four Key Reasons HeranZO is Effective:

1. In-Depth Analysis: Detailed assessments over a five-year span provide insights into customer behavior changes.
2. Future Projections: Using comprehensive analysis, forecasts on customer trends guide future strategies.
3. Identifying High-Impact Customers: Unearthing discrepancies in customer lifetime value (LTV) helps prioritize customer engagement efforts.
4. Guiding Investment Decisions: Projects a return on investment and establishes a maximum budget based on future LTV calculations.

Future Plans for D2C Brands

Trino Links aims to broaden the adoption of HeranZO among D2C and e-commerce retailers. Their focus is not only on addressing post-dormancy problems but also on improving CRM operations to prevent revenue losses before customer churn occurs. By making visible the often-obscured profit drain, they hope to link that insight to actionable customer engagement efforts, ultimately benefiting sustained growth and profitability for D2C businesses.

Company Background

- Name: Trino Links Co., Ltd.
- Location: 6-19-1, Jinguumae, Shibuya-ku, Tokyo 150-0001, Japan
- Founded: October 2003
- CEO: Eiichiro Mita
- Core Business: D2C consulting services, CRM services, and personnel development.

Contact Information for Inquiries

- Website: Trino Links
- Service URL: HeranZO
- Contact Name: Setsuko Akamatsu, Director of Service Planning
- Phone: (General) 03-5466-7870 / (Direct) 080-5418-0077
- Email: [email protected]

In conclusion, as D2C businesses continue to grow, so does the importance of recognizing and addressing the revenue loss in active customer segments. HeranZO by Trino Links seeks to tackle challenges that have remained in the shadows and help businesses operate sustainably and profitably.