Sonoma State University Winery Direct to Consumer Seminar Fall 2015 10-16-15
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Transcript of Sonoma State University Winery Direct to Consumer Seminar Fall 2015 10-16-15
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DTC Marketing
Presented by: Ron Scharman
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October 16th, 2015Sonoma State University – Wine Business Institute
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Presentation Available in Digital Format
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• Currently Chief Operating Officer of Chatterbox Wine Marketing Services and VinoVisit.com
• Instructor, SSU Wine Business Institute• Previously 7 years as President of eWinery Solutions• Previously 2 years as COO of New Vine Logistics• Previously 4 years as CEO of Morrell Wine Group• 15 years as a specialty retailer• MBA Cornell University Johnson School of Management• Lover of all things food & wine• Passionate about direct to consumer wine marketing
Who am I and Why am I here?
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TIME TO LEARN ABOUT YOU
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Where are We Going Today?• Past, present, future overview of direct to consumer channel• Analyze the DTC channel ecosystem• Learn about Omni-Channel marketing• Explore the D-E-A-L model of customer progression to
Connect/Collect/Convert customers and prospects• Discuss email, mobile and other marketing strategies and execution• Break out customer retention, loyalty and engagement strategies• Dive in to customer relationship management (CRM)• Look into the future of retail marketing
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QUESTION FOR THE DAY:
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QUESTION FOR THE DAY:
How do we sell a 3-dimensional story in a 2-dimensional world?
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THE TRUTH IS, ITS HARD. VERY HARD.
It is hard to capture the essence of your brand online. This is everyone’s challenge.
Visitors are exposed to a number of stimuli that help frame their experience at
your winery. They breathe fresh warm air that blows across the valley floor as
they enjoy expansive views, marvel at architectural details, and soak in the
overall ambiance of your tasting room during their visit. All of these things help
engage and interest them.
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Tell your story + tell it well (the magic 15%)
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It’s Not Only Me…….
“Marketing is no longer about the stuff you make, but the stories you tell.”
Seth Godin Best Selling Author, Entrepreneur and Marketer
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And Even More………
“ The notion of connecting a luxury wine brand with its wider digital and cultural ecosystem is now a matter of survival.”
Ron Scharman Wine Consumer Advocate
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The Past, Present, and Future of Wine DTC
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GROWTH STATS
The consumer direct channel of the wine industry is the fastest growing and most
profitable channel.
Do you have all the tools necessary to be successful and ride the wave?
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GROWTH STATS
• The U.S. has been the largest wine consuming nation in the world since 2010.
• Direct to Consumer (DTC) shipments by US wineries grew at an impressive 15.5% in 2014, hitting a record $1.82 BB. Total volume was 3.95 million cases, up 13.6% over the prior year. This represents 22 consecutive years of volume growth.
• This trend continued in 2015. Direct-to-consumer shipments in August 2015 grew 2% over the same time last year and were up 13% over the past 12 months.
*Data from Wine Institute, Wines&Vines, & ShipCompliant
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EFFECTS OF 2005 SUPREME COURT RULING
Supreme Court decision on May 16, 2005 changed forever the wine landscape for the direct-to-consumer wine market.
The Court’s majority opinion stated, "If a state chooses to allow direct shipments of wine, it must do so on evenhanded terms."
The Court ruling: Regulate, But Do Not Discriminate The States response: Regulate, Don’t Discriminate, But Do Complicate
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OPPORTUNITY OF THE DIRECT TO CONSUMER MARKET
Domestic / Intl Wine Producer
Wholesalers Retailers / On Premise
ConsumersDirect to consumer 10% of sales ($3.4BB)
Wholesaler distribution 90.0% of sales ($36BB)
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WINE INSTITUTE LATEST UPDATE
43 States out of 50 have some provision for winery direct shipping to consumers. Importers and internet retailers are restricted to fewer states, depending on method of shipment and licenses held.
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How Important is the
DTC Channel to the Majority of the
8,100+ Wineries and Wine Brands?
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...VERY!! SMALL WINERIES DOMINATE DTC
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The evolution from early 2000’s to present day, personal computing has changed 10 fold.
What’s changed? Bigger, More Complex Sites
2003
2015
2003 2003
2007
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THE WEB HAS BEEN GROWING FASTER THAN STORES….
2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014-5%
0%
5%
10%
15%
20%
25%
30% 27% 25% 24%20%
3% 2%
16% 15% 16% 17%15%
6% 5% 5%3%
0%
-3%
2%4% 4% 4% 4%
Annual growth rate 2004-2014* eCommerce versus retail spending
Growth in e-commerce Growth in non-e-commerce retail
*Source: U.S. Commerce Dept., Internet Retailer
Note: All other retail sales excludes auto dealers, gasoline stations and fuel dealers, and restaurants and bars.
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MORE PC’S GATHER DUST
*Source: U.S. Commerce Dept., Internet Retailer
44%
11%
45%
Percentage of time on retail web sites
SmartphoneTabletPC
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MOBILE COMMERCE SOARS
Source: *IBM; **Adobe
• Mobile devices accounted for 32% of online retail sales (52% of traffic) over 4-day 2014 Thanksgiving weekend*:
• Tablets 18%,• Smartphones 14%.
• Mobile commerce sales grew 16% on Cyber Monday over the same day last year.*
• 19.0% of online sales came from mobile devices, about the same as in 2013.**
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MY PHONE IS MY LIFENOT MOBILE-ONLY, BUT MOBILE-FIRST
• More than half of consumers’ digital time is spent on mobile devices (60% according to comScore in June of 2014) – that’s over 3.2 hours per day.
• According to Altimeter, consumers check their smartphones upwards of 150 times per day.
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MY PHONE IS MY LIFENOT MOBILE-ONLY, BUT MOBILE-FIRST
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THINGS TO WATCH: MILLENNIALS
The crowd is here
Comfort level with mobile transactions
Ease of purchasing
Millennials
Growing FAST!
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THINGS TO WATCH PERIOD
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Questions?
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It’s All About the Customer: Omni-Channel Marketing
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OMNI-CHANNEL RETAIL
Today’s shoppers expect a single shopping cart that follows them on
their customer journey
THAT MEANS through multiple touchpoints – instore, online or on
the move – so that customers have a seamless experience.
Omni-Channel
Retail
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Omni-Channel Marketing
Transforming the customer
journey across all channels
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DTC Best Practice: 360 Degree Customer View eCommerce
Wine Club
Allocations
Tasting Room
Recipe Engine
Social Media (Social
Commerce)
Mobile
Telesales (inbound & outbound)
SMS (Text)
Email Marketing
Visitor Reservations
Newsletter
Mobile POSSearch Engine Optimization
(SEO)
FaxWinery DTC
Ecosystem
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Let’s Clear Something Up First…….
“Just as you cannot not communicate, you cannot not market
- Every time you answer the phone, it’s marketing. - Every time you send an email, it’s marketing. - Every word on your website is marketing. - If you build software, your error messages are marketing. - If you’re in the restaurant business, the after-dinner mint is marketing.” Rework by 37signals
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Wine eCommerce
vs
Wine Commerce
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The DTC Winery e-cosystem
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WINERY COMMERCE ECOSYSTEM
Mobile Commerce
Wine Apps
SMS Text
Commerce Anywhere
Pop Up
Virtual Commerce
Social Commerce
Facebook/Instagram/Twitter
Crowdsource
POS
Mobile POS
Kiosk
Tasting Room
Wine Club
Allocation/Mailing List
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WHAT IS ONLINE DTC TODAY?
Growing Number of Wine
CommerceBusiness Models
Winery Retailer – 8,000+ wineries in North America
Internet Retailer – www.wine.com, www.elanvineyards.com(17/20)
Discount Internet Retailer – www.wineaccess.com
Crowdsourced Production – www.nakedwines.com
Marketplace – www.amazon.com
Community Member Site – www.winecommune.com
Flash Sale/Daily Deal Site – www.winestillsoldout.com
Affiliate Marketing Site – www.bottlenotes.com
Wine Auction Site – www.winebid.com
Cause Marketing Wine Site - www.onehopewine.com
Mileage Redemption – www-lh-worldshop-gourmet.com
Loyalty Programs - www.foleyfoodandwinesociety.com/About-Us/Membership-Benefits
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eCommerce Basics
The digital footprint is increasingly important for small-to-medium-size wineries that are shut out of the three-tier distribution channel.
It starts with a great website…………
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Why Wineries Fail at eCommerce
Merchants at heart, who won’t play the part
Read my Blog at http://bit.ly/1FyqPS0
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Top 5 Reasons• Magic: Wine is approximately 85% water, and 15% magic.
• Stories worth reading: There may be stories worth telling in the winery DNA, but they are rarely found on winery websites.
• Differentiators : Why do so many winery websites look alike? Most winery websites look like cookie cutters of most other winery websites on a gallery wall.
• What’s in it for me: As a consumer, there is no compelling reason I should care about the brand, the user experience, or why I should stay browsing on the site. It’s all about “them”.
• Mobility: Recent national all industry data shows that only 45% of website traffic now occurs on a desktop computer. Yet most winery sites give a poor mobile user experience.
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This Time It’s Me
“The bottom line is that making great wine has nothing to
do with creating a great visual palate and making me care
about the brand online. It needs to be relevant to my life,
not just the vintner’s.”
Ron Scharman Wine Consumer Advocate
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USING YOUR WEBSITE TO TELL YOUR STORY
Strong branding is key Include rich contentUse the tools built into your
website to improve your SEO Gather data and market smartGo Mobile!
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Before We Go Further, a Brand Is………
“A brand is a set of expectations, memories, stories, and relationships that, taken together, account for a consumer’s decision to choose one product or service over another…….
If the consumer (whether it’s a business, buyer, service, or donor) doesn’t pay a premium, make a selection or spread the word, then no brand value exists for that consumer.”
Define: Brand, by Seth Godin
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The Self-Fulfilling Prophesy of Fear Marketing:
Please Cancel Me From Your Ecosystem
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So how do I build a
great website?
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Understanding Where I Have Been and Where I am Going.
What am I Trying to Achieve With My Online Presence?
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What’s the Difference Between Good and Bad?
GREAT AD TERRIBLE WEBSITE
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Building Blocks for Websites
Factors to Consider• Software platform• Compliance Solution• Design/Project
Management• Features• Why websites fail to
perform
Software/Compliance• CMS/Cart Options• Cost• Training/Ease of use• Integrations -ShipCompliant,
CRM, Marketing options• Designer considerations, data• User experience, SEO
Why Winery Websites Fail• Design by committee, boring• Hard to navigate, hard to buy• Not engaging brand story or user
experience• Bad Q/C, stuff doesn’t work• Browser incompatibility• Content/Data not updated
Features• Ease of shopping – “1 Click”• Ease of navigation• Compliance made easy• Rich, relevant content –SEO• Multiple data capture opportunities• Promotional marketing tools
Design• Designer/template• Site Map/Navigation • Wire frames/sketches• Functionality testing• Brand relevance• User Experience
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Questions?
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D-E-A-L Model of Customer Progression
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MODEL OF CUSTOMER PROGRESSION
DISCOVERY
• Search engine
• Word of mouth
• Advertisement
• Social Media
ENGAGEMENT
• Visits website
• Visits tasting room
• Social Media• Mobile
ACQUISITION
• Purchases wine online
• Buys wine in tasting room
• Joins wine club
LOYALTY/LOVE• Email
communication• Facebook
shares• Special events• Ratings
D E A L
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The Science of Discovery
DISCOVERY• Events/Restaurant/Retail
•Search engine•Word of mouth
•Advertisement• Social Media
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MAYBE………
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Attracting Visitors
• Videos• Blogs• Social media• Newsletters• Articles on other
websites• Events• Reviews
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How do you attract visitors and grow your customer base?
Inbound Marketing is a system that allows interested buyers to actually FIND YOU via a combination of:
Content Marketing
Search Engine Optimization
Social Media
Lead Generation & Nurturing
Discovery: Getting Found
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Discovery: Content Marketing1. Create useful, usable content that adds value
to the customer experience with your brand.
2. Perform outreach, and determine the best outlets to publish (high-profile guest blogging, social networks, your own website).
3. Identify influencers who will share your content and further discussion.
4. Pay attention to the responses, and engage your audience.
5. Analyze the results, measure the impact (new links to your website, new visitors, increased social media activity, more sales).
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Wine, food, travel forums Existing customers Referrals from local
businesses Social media channels Friends and family Special events Wine publications and
blogs?
Search Engine Optimization Search Engine Marketing Ratings and Reviews
Getting Found
Building Advocates
Discovery: Socializing Bricks & Mortar
Source: www.tripadvisor.com, Ram’s Gate Winery
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Wine, food, travel forums Existing customers Referrals from local
businesses Social media channels Friends and family Special events Wine publications and
blogs?
Search Engine Optimization Search Engine Marketing Ratings and Reviews
Getting Found
Building Advocates
Discovery: Socializing Bricks & Mortar
Source: www.tripadvisor.com, Ram’s Gate Winery
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Ratings and Discovery
Why Should I Care?
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People To People
• People are already writing reviews
• Opportunities to connect directly with customers
• Helps search engines find you and increases ranking
• 90% of local searches = purchase or visit
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What’s With the Ratings?
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The Players
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Heavy Traffic
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The Players
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Heavy Traffic
• TripAdvisor has more than 84 million members, and more than 250 million reviews
• More than 375 million travelers visit TripAdvisor each month
• TripAdvisor offers a wide range of marketing opportunities, advertising and content solutions
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Heaviest Traffic – It’s Google
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Advertising Options
• Targeted local advertising
• Premium placement on search and competitor business pages
• Displays on mobile devices too
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Mobile Discovery
• Winery Client Comment:“Something interesting from all of our analytics is that 30-40% of all of our traffic comes from iPhones. Hence the importance of mobile sites.”
~Ed @Regusci Winery
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Consumers are on-the-go and want quick and easy access to basic information.
99% of the time, they want to do one of five things:
Call Winery Find Tasting Room Locate Wine Buy Wine Join Wine Club
Go Mobile!
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Specialized Winery Discovery Tools
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Apps for the consumer
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Winery Passport
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• Social Media• Ratings System• User Created Content• Sharing• Ambassadors created and
rewarded
Other Drivers
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VinoVisit.Com
Discover Me Now
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VinoVisit.Com
Discover Me Now
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And More……….
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Visiting Media
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CANVAS App
CANVAS and VinoVisit join two great winery resources. The Concierge Alliance offers the hospitality industry a clear and easy way to book their customers at wineries in Napa and Sonoma.
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Social Media Marketing - Discovery
IT’S A BIG TOPIC!
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Wine, food, travel forums Existing customers Referrals from local
businesses Social media channels Friends and family Special events Wine publications and
blogs?
Search Engine Optimization Search Engine Marketing Ratings and Reviews
Getting Found
Building Advocates
Discovery: Socializing Bricks & Mortar
Source: www.tripadvisor.com, Ram’s Gate Winery
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Remember That the Journey is Non-Linear
Transforming the customer
journey across all channels
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The Science of Social
Discovery
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BUILD TRUST, THEN THEY WILL BUYsocial is the best discovery engine, but there are 2 steps
1. Trust
2.Need
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SUMMARY: TRUST, TRUST, BUY
FB ad
friend
hotel referral
I discover you
1I trust you
2I buy when
in need
3
FB post
tweet
emailFB post
winery visit
Social helps each step
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Social Media Marketing
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Social Media Marketing
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Questions?
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Wine, food, travel forums Existing customers Referrals from local
businesses Social media channels Friends and family Special events Wine publications and
blogs?
Search Engine Optimization Search Engine Marketing Ratings and Reviews
Getting Found
Building Advocates
Discovery: Socializing Brick & Mortar
Source: www.tripadvisor.com, Ram’s Gate Winery
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SEO BREAK
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Remember That the Journey is Non-Linear
Transforming the customer
journey across all channels
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• The User's Search or Query - This is the thing a searcher types in. In the example above, someone is looking for information or products relating to Apple computers.
• Organic SERP Listings - These are the "natural" listings. To produce these results, Google uses a series of metrics to ensure that your site is relevant. To have your site show here, you have to effectively "score well" on that algorithmic test.
• Paid SERP Listings - These are advertisements, or "sponsored links." You can have your ad displayed here by launching a pay-per-click search campaign, and by ensuring that yourmaximum CPC bids and Quality Score allow you to secure a high enough ad position for the keyword you're targeting.
SERP Basics – 3 Key Components
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Why Do SERPs Matter to Me?Because ranking your site in the proper SERP position will be the difference between success and failure in your search marketing campaigns. Consider the following insights provided by recent Google published stats:
• 68% of searchers select a result on the first page of search results.
• There is a disproportionate number of clicks (approximately 40%) on the number one listing.
• Reaching the first page in paid search is equally important.
• In other words, most people click on the first page, and most of those people click on earlier results. The higher your search engine results page ranking, the more traffic you'll get.
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How to Improve Your SERP Positions
• Research Key words• Organize (group) the keywords• Manage your SEO workflow• Manage your PPC workflow• Act on the analytics• Observe the results• Repeat!
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Got Wine?
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Your Website is a Marketing ToolMore traffic to your website leads to more purchases, visits to your tasting room, and brand recognition. But most wineries struggle to get visitors who search for anything but their brand name. Think about what's relevant to your winery - the varietals you make, the region you're located in, or the story behind your labels. Create a list of keywords that you can associate that go beyond your brand name. Branded search traffic accounts for about 95% of most winery websites traffic, which means they aren't getting much exposure from new, unfamiliar faces. Instead, try to focus on building your site to be a hub of information for not just your wines and your history, but the surrounding area, the vineyards, the AVAs, places to stay, things to see, and anything else that's relevant. Your website should be a flytrap for tourists looking to plan their vacation, or visit that special winery with a picnic area, great view, or wedding venue.3 Traffic Sources you must cultivate:
Organic search engines. Referral sites, especially from
local regional sites. Local maps search results.
Varietals• Cabernet, Rose, Muscat
Regional• Carneros, Willamette, Rutherford
Others• Wine tasting/tours• Weddings• Boutique
Build a relevant list of keywords
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Finding Keyword Variations
Use tools like Google Adwords Keyword Tool and Ubersuggest to find lots of keyword variations, along with their search volume. Why it's important: Wineries can capitalize on regional terms and attract a broader range of new visitors to their site. Within any given region, especially tourist areas, you have ample opportunity to find topics to include on your website and possibly attract a new customer as a result.
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Assessing the Competition
Don't expect to put “Merlot" in your meta tag, and simply hit page one. Many factors come into play in ranking, but a few stand out. Most importantly is the number of links coming into your site. Each link counts as a vote, and quality links can boost your keyword rankings. You also need to focus on creating engaging content on a regular basis.
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Focus on Local SEO T0 Attract More Visitors
When you do a search for "your region" + "winery" does your website appear in the maps area? This is the "Places" results, and these search results differ from regular organic search results in that they appear for people located very close to your business. They want to find you, but are you listed high enough?
In order to rank well in the local search results, you need a two things. A verified Google+ Local page for your business. www.Google.com/places. Multiple NAP (name, address, phone) listings on site like citysearch.com, yp.com, hotfrog.com and others. For a more complete list of sources to get business citations, visit Getlisted.
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Thinking Beyond Your WebsiteContent marketing is a huge buzzword right now, and it requires you to both create original content of your own, and interject yourself into conversations relevant to your business.
Where do people learn about you?
Travel forums:http://www.tripadvisor.com/Tourism-g580460-Napa_Valley_California-Vacations.html
Blogs:http://justwandering.me/2013/03/09/napa-valley-wine-tasting/
Wine discussion groupsWineberserkers travel forum
There are tons of places where you can tap into new audiences. The wine lifestyle transcends cultures and gives you lots of opportunity to cross-market into other groups that go beyond straight up wine lovers.
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Discovery: The Customer Funnel
Unaware •Purpose: Create awareness, brand discovery•Blog posts, web page, customer stories, advertising, industry trends
Interested •Purpose: Provide usefulness, education, create interest•Regional travel guides, events, independent articles, demonstrated values, email newsletters
Desire •Purpose: Incentivize, stir emotion, demonstrate values•Demonstrate charity contributions, connect with lifestyles, build community of social sharing
Purchase •Purpose: Secure customer, provide good experience, build loyalty •Reviews & ratings, customer service, upsells and promos, personalized content, streamlined checkout
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Discovery To Do List – Top 5 Things
1. Expand company profiles on both local and national travel and tourism sites like Fodors, Wine Travel Guides, Virtual Tourist, and Lonely Planet.
2. Encourage visitors and fans to leave reviews at Trip Advisor, Zagat, Google+, Facebook.
3. Create useful and usable website content that includes resources, things to do, local knowledge, and popular destinations near your winery.
4. Claim your Google+ Local page.
5. Contribute guest blog posts on travel blogs and websites to increase exposure from new audiences.
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Questions?
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Tell your story + tell it well (the magic 15%)
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MODEL OF CUSTOMER PROGRESSION
DISCOVERY
• Search engine
• Word of mouth
• Advertisement
• Social Media
ENGAGEMENT
• Visits website
• Visits tasting room
• Social Media• Mobile
ACQUISITION
• Purchases wine online
• Buys wine in tasting room
• Joins wine club
LOYALTY/LOVE• Email
communication• Facebook
shares• Special events• Ratings
D E A L
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The Art of Engagement
ENGAGEMENT• Visits website
•Visits tasting room•Calls winery
•Social Media•Mobile
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Engagement: Online Shopping Experiences
Sources: KJ.com, LaCrema.com, Lindemans.com and UnderdogWine.com
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Lifestyle
Source: www.kj.com
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Classic
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Aspirational
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Contemporary
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Every tasting room visitor is a potential customer
Collect email addresses Personally invite to Tasting Room Events and
Winemaker Dinners Welcome “Check ins” via FourSquare, Facebook Promote reviews of your business (Yelp,
TripAdvisor) and wines (Cellartracker) Communicate Club benefits and incentives Convey your winery’s story Don’t be afraid to ask for the sale
Engagement: Build Relationships
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Something New For Engagement
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Define the Problem Please………
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• Tasting rooms captivate the hearts and palates of the consumer
• Tablets extend the engagement instantaneously.
• Email automation monetizes your engagement through highly targeted offers.
Tasting Room Abandonment
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Connect Collect
Convert
VinoVisit Winery Experience Ratings App
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• Use your metrics to evaluate and improve the hospitality at the winery.
• Receive an automatic email when a low rating is received.
• VinoVisit provides the winery with daily reports of all the data points, including reviews.
Using an iPad, this tasting room data collection app is easy to use, fun for the visitors and invaluable for monetizing tasting room traffic.
Winery Ratings Tablet
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Collect data
Build your customer database by collecting Name, Email, and Zip code data.A generous incentive increases the likelihood of getting multiple entries from everyone in the group.The winery is provided with a daily report of all data points and customer reviews.
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• Collect valuable feedback on the customer’s tasting room experience
• Build your customer database
• Monetize winery visitations with automatic email offers sent out within 48 hours
Convert Customers
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The Path to Monetization
Customer Conversion
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Gain Customer Insights
Conclusions
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• “Decomplexifying” customer marketing data is crucial to building and annuitizing a successful DTC business
• Measure success through Google Analytics
• Get insights into how best to allocate marketing resources ($’s and people) going forward.
By the Numbers
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Social Media Marketing - Engagement
IT’S A BIG TOPIC!
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Social Media Marketing• Contests• Blogs• Regular integrated posts on all major social platforms• Promoted posts on Facebook, Twitter, LinkedIn• Social media monitoring and response
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Social Media Marketing - Engagement
So How Does this Work? Here’s an Example…..
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Social Media Marketing - Engagement
Define Your Target Audience in Facebook
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Social Media Marketing - Engagement
Ready, Set, Engage!
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Social Media Marketing - Engagement
August – Sept 2015
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Social Media Marketing - Engagement
August – Sept 2015
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Social Media Marketing - Engagement
August – Sept 2015
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Campaign Results• Cost per Click: .09 cents• 42% Conversion Rate from Contest• Cost per Email Acquired: .15 cents• 8,000+ Email Opt-Ins• 1,000+ Likes• 150+ Shares• All Performance Based Promotions
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Questions?
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WATCH: http://www.youtube.com/watch?v=E1rUdTITGCg
Things to Watch: Engagement ExperiencesMacy’s Magic Fitting Room
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MODEL OF CUSTOMER PROGRESSION
DISCOVERY
• Search engine
• Word of mouth
• Advertisement
• Social Media
ENGAGEMENT
• Visits website
• Visits tasting room
• Social Media• Mobile
ACQUISITION
• Purchases wine online
• Buys wine in tasting room
• Joins wine club
LOYALTY/LOVE• Email
communication• Facebook
shares• Special events• Ratings
D E A L
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The Results Speak for Themselves
ACQUISITION
• Signs up for Newsletter/Blog• Purchases wine online• Buys wine in tasting room• Joins wine club• Signs up for wine event• Purchases from catalog or
telephone driven by email
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Web Analytics: Customer Preferences
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Customer Acquisition
• Acquisition– Where do you get traffic from?
• Behavior– What are visitors doing on your website? – How engaged are they? – What content is most interesting to them?
• Outcome– What is the result of their visit? (purchase, signup)– What is the per visit value of a traffic source?
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Converting visitors• Wine club signup
– Most traditional tasting room business model – Let’s discuss• Newsletter signup form
– Critical best practices – Let’s discuss• Email Campaigns
– Critical best practices – Let’s discuss• Telesales
– With click-to-call email digital campaign – Let’s discuss• Direct Mail, Catalog
– Can still be effective; can drive ecommerce conversions• Social media, events, other
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Converting visitors• Wine club signup
– Most traditional tasting room business model – Let’s discuss• Newsletter signup form
– Critical best practices – Let’s discuss• Email Campaigns
– Critical best practices – Let’s discuss• Telesales
– With click-to-call email digital campaign – Let’s discuss• Direct Mail, Catalog
– Can still be effective; can drive ecommerce conversions• Social media, events, other
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Don’t Forget About Wine Clubs
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Please read my blog from January 2015
http://bit.ly/1iMI6yJ
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The Winery Determines
Selection and Spend
Traditional
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Traditional Wine Club Member Options:
• 3 shipments per year
• Winery selects the wine to be shipped (6 bottles per shipment)
• No annual commitment
• 20% Discount on purchases
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Let the Consumer
Decide
The Future
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Transitional
Fully customizable
from whatever is available at the
winery
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The Future Wine Club Member Options:
• Minimum 6 bottles per year
• You choose the wines you wish to receive (increments of 3 bottles)
• 1 year commitment
• Additional orders do not count toward your annual allocation
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“In today’s world, the concept of winery wine clubs must change and evolve, but the importance of continuity programs and relationship annuities lives on.”
Ron Scharman Blog
The Future
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Converting visitors• Wine club signup
– Most traditional tasting room business model – Let’s discuss• Newsletter signup form
– Critical best practices – Let’s discuss• Email Campaigns
– Critical best practices – Let’s discuss• Telesales
– With click-to-call email digital campaign – Let’s discuss• Direct Mail, Catalog
– Can still be effective; can drive ecommerce conversions• Social media, events, other
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Newsletter Best Practices – Make It Easy!1 - 5
1. Your registration form should request the user’s email and as little else as possible.
2. Present the opportunity to sign up on every page on your site, and in the same spot.
3. Try to show an actual sign-up form on each page instead of just a link.
4. A one-time pop-up requesting visitors to sign up is okay.5. Include a link to your Privacy Policy as close to the form as
possible.
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Newsletter Best Practices – Make It Easy!6 - 10
6. Include an example of what your customers are signing up for.7. Present a clear confirmation after your customer signs up.8. Wait until AFTER the initial sign-up to ask more detailed questions.9. Send an email confirming the user’s registration.10. Consider a discount code for a future purchase in the Confirmation Email.
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Newsletter Signups - Good
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Acknowledge and Reward
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Newsletter Signup – Or Make It HardIf you want someone to sign up for your newsletter, make it easy.
Do not:
1. Hide your newsletter link
2. Ask for huge amounts of information
3. Demand more information after the user submitted what was asked for.4. Force customers to enter all their information all over again if they make a mistake in one particular field
5. Forget about thanking them for subscribing
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Newsletter Signups - Not So Good
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Questions?
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Converting visitors• Wine club signup
– Most traditional tasting room business model – Let’s discuss• Newsletter signup form
– Critical best practices – Let’s discuss• Email Campaigns
– Critical best practices – Let’s discuss• Telesales
– With click-to-call email digital campaign – Let’s discuss• Direct Mail, Catalog
– Can still be effective; can drive ecommerce conversions• Social media, events, other
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Email Marketing for Success
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Email Still Rules EMAIL MARKETING ROI
According to Exact Target and HubSpot:
• Companies view email marketing as a better return on investment than PPC, content marketing, social media, offline direct marketing, affiliate marketing, online display advertising, and mobile marketing.
• Email Marketing has an ROI of 4,300% (Based on marginal cost)
• 66% of in-house marketers rate email as having “excellent” or “good” ROI
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How Money is Spent vs. ROI
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Please read my blog from September 2015
http://bit.ly/1K9dpZY
THE COST/BENEFIT ANALYSIS OF BUILDING YOUR EMAIL SUBSCRIBER LIST
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Sent
Delivered
Opened
Clicked
Product Views
Cart Additions
Checkouts
OrdersRevenueUnits
The power of browse
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Volume versus conversion
Wine Club
RedWhite
Cart Abandonment• Low volume• High conversion
Browse & Process Abandonment• High volume• Lower conversion
{
{
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Managing the Output – SilverPop Stats
Program Open Rate Conversion Rate
Broadcast 18.1% 1.6%
Purchase Confirm -- 2.4%
Welcome 34.4% 1.4%
Browse Remarket 41.8% 2.2%
Cart Abandon 27.9% 23.1%
SKU Notify -- 23.9%
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Email Marketing 1 - 5
"Think of how you can make the user love your mails rather than how to land in the Inbox."• Know your audience• Find Out What Subscribers Want and Honor and Deliver on That• Mitigate Deliverability Risks by Delivering Value Not Just Email• Have a clear value proposition for subscribers and customers• Don’t just batch and blast – segment your list and use preference
based marketing data
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Email Marketing6 - 10
"Think of how you can make the user love your mails rather than how to land in the Inbox."• Test different types of content and promos to see what generates the best
engagement rates, and look beyond opens and clicks to measure success – spam complaints, unsubscribes, etc.
• Think responsibly, and responsively – make sure your emails are mobile optimized
• Test your promos carefully before blasting away• Use designated landing pages or guide customers to product pages that are
relevant• Use an email marketing platform that guarantees high deliverability rates
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+ Social Media Marketing
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+ Social Media Marketing
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+ Social Media Marketing
ReachMail 2015
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The Changing of the Guard and What It Means for You
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• Largest Web-based email service in the world• Has become the standard bearer for ad supported,
consumer email services.• Currently has more than 600 Million users worldwide.*• Adding more than 1 Million new users per week.*• 66% of Gmail users open their email on a mobile device. **• One Billion people have downloaded the Gmail Android App as of 2014.***
* Quora 2015**Mashable 2014***Digital Trends 2014
Gmail Achieves World Domination
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The New World of Gmail
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• Clean your data• Send out test emails first to an email address at major ISP’s• Use “Content Dialysis” software to check your content for
spam inducing results. Ex. Content Detective• Stop using the word “Free”, all caps, colored fonts, etc.• Try sending text format emails vs. HTML.• Go light on imagery, links, and heavy content.• Drip your emails, and break down your large lists• Provide a clear unsubscribe list
So What Do I Do Now?
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How Money is Spent vs. ROI
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Questions?
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Cart Abandonment Pit Stop
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It’s All About Retargeting
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What is Cart Abandonment?
“Shopping cart abandonment — when shoppers put items in their online shopping carts, but then leave before completing the purchase — is the bane of the online retail industry, and that includes the wine industry.”
BusinessInsider.com
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Why Should I Care?
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Here’s Why
• Approximately $4 Trillion worth of merchandise will be abandoned in online shopping carts this year..
• This equates to approximately 68% of all shopping cart transactions
• 63% of these are potentially recoverable, according to BI Intelligence.
• Shopping cart abandonment will continue to increase as more consumers shift to online and mobile shopping.
BusinessInsider.com
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And Really Why
• An abandoned cart does not automatically translate to a “lost sale”.
• Three-fourths of shoppers who abandon shopping carts say they plan to return to the retailer’s website or store to make a purchase.
• Initial emails, sent 3 hours after a consumer abandons a cart, average a 40% open rate, and 20% click through, according to Listrak.
• You can expect up to a 20% recovery rate on abandoned carts with a well executed retargeting program
BusinessInsider.com
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VWO Ecommerce Survey 2014
Reasons for Cart Abandonment
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What Should I Do About It?
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Talk to Your eCommerce Provider
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Shopping Cart Recovery Tips
• Strike fast – 50% of carts are typically recovered in the first few hours after abandonment.
• Produce a series – typically 3 emails over a 7 day period.
• Stage your incentives for returning – increase the discount or other incentives through the series of emails.
• Segment and test different creative, subject lines, offers, calls to action, and messaging to see what works best.
• Appreciate the value of an email address – no recovery possible without it.
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Converting visitors• Wine club signup
– Most traditional tasting room business model – Let’s discuss• Newsletter signup form
– Critical best practices – Let’s discuss• Email Campaigns
– Critical best practices – Let’s discuss• Telesales
– With click-to-call email digital campaign – Let’s discuss• Direct Mail, Catalog
– Can still be effective; can drive ecommerce conversions• Social media, events, other
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Let the Consumer
Decide
Email and Omni-channel Marketing
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Email +
Relationship-Based Telesales+??
Click – To – Call Email
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Click – To – Call Email
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Click – To – Call
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Click – To – Call
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A Click to Call email is a mobile optimized email announcement for a winery telesales campaign. The object is to allow the consumer to simply call or email their interest to purchase.
What is Click- to - Email?
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Clear Calls to Action
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• Consumers receive hundreds of emails a day, mostly read on a mobile device.
• Click to Call emails are optimized for all mobile devices.
Optimized for Mobile
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• Each email personalized to address the winery customer.
• Focused Call to Action - “Call Us” or click to email us is emphasized for greater conversion rates, upsell, and best user experience.
Personalized
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It’s apples and oranges
“CLICK TO CALL”VS.
TRADITIONAL EMAIL MARKETING
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• Mobile optimized with clear call to action “Call Us”.• One Touch – User clicks phone number and it instantly
dials.• Lean: Limited text and imagery.• Content “above the fold”.• No landing page or driver to the cart.• Sales captured through inbound phone calls.
The “Click-to-Call” Difference
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• “Click to Call” kicks off the winery telesales campaign.
• The email offer ‘whets’ the consumer psyche before they receive an outbound call.
• Great deliverability, opens, clicks and conversions.
• Winery messaging and branding is consistent from the email to telesales campaign.
Why It’s so Important?
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• Omni-channel - Customer has two ways to order wine.
• Quick and flexible engagement to a specific offering.
• Soft sell that finds lost revenue in your customer database.
• Highly targeted for outbound telesales to customers who have clicked on/opened your email campaign or announcement.
• Allows for profitable upsell beyond initial offer
Quick Engagement
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A-B Testing
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Please read this blog from September 2015
http://bit.ly/1NHLGam
A/B TESTING: THE SUBJECT LINE PARADOX
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• Subject lines are personalized. • Pre-headers with important messaging about your incentive.• Click to Call emails should be rigorously A-B tested to ensure
deliverability.• Each email should be tested through *Litmus for optimal viewing
and user experience across all browsers and devices.• Post send, lists can be appended to acquire updated email and
phone numbers for winery customer base. (*Litmus email testing and marketing analytics)
How Does Deployment Work
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• The Click to Call is the first initiative in a relationship-based telesales campaign.
• Analytics provide insights for follow up marketing efforts.
When Does Deployment Occur
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Additional Omni-Channel Components
• Add direct mail with the same offer at the beginning of telesales and email campaign.
• Add buy button with link to landing page and campaign shopping cart.
• Tie in social media marketing for campaign on Facebook and Twitter – link to call or email.
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Tell your story + tell it well (the magic 15%)
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It’s Not Only Me…….“Don’t just focus on your product. Think about who your customers are, what they care about, and where they hang out. Embracing and engaging with your customers means understanding them, their needs and desires.
Give your customers more than just your product – give them something important and useful to show that you understand them and their needs. The goal is to become part of your customers’ everyday lives, not just a company at the other end of a financial transaction.”
Jacek Blout, Blogger
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Questions?
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MODEL OF CUSTOMER PROGRESSION
DISCOVERY
• Search engine
• Word of mouth
• Advertisement
• Social Media
ENGAGEMENT
• Visits website
• Visits tasting room
• Social Media• Mobile
ACQUISITION
• Purchases wine online
• Buys wine in tasting room
• Joins wine club
LOYALTY/LOVE• Email
communication• Facebook
shares• Special events• Ratings
D E A L
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Tell Me You Love Me
LOYALTY/LOVE• Email communication
• Join Wine Club
• Newsletter/Blog
• Facebook shares
• Special events
• Ratings
• Imagination
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Remember That the Journey is Non-Linear
Transforming the customer
journey across all channels
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WHY IS UNDERSTANDING THE JOURNEY VITAL?
A return customer is….10-15x
more likely to buy in the future after the 1st purchase
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Retention: The Heart of the Matter
AT THE CORE OF DIGITAL RETENTION:
USERS CAN LEAVE YOUR BRAND FOR SOMEONE ELSE.
ALWAYS REMIND CUSTOMERS WHY THEY FELL IN LOVE WITH YOU
IN THE FIRST PLACE
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Retention Defined
Actions a company takes so that their existing customers continue buying the services and products offered by that company in the future.
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Retention vs. Loyalty
Loyalty is About Growth
Loyalty and loyalty marketing programs work to transform a customer’s positive interactions with a winery into positive outcomes for the customer on an ongoing basis.
They recognize the right behaviors and result in a higher value customer for the winery and higher value experience for the customer.
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Retention vs. Loyalty
Retention is About Decline
Retention is about the preservation, rather than growth of a customer. Retention campaigns are focused on a positive indication that this customer is on their way out the door.
It’s no longer about growth or what could be, it’s about knowing what is about to happen to your customer and doing something about it.
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Retention vs. Loyalty
You Should Do Both
Retention and Loyalty are two different types of marketing campaigns. Companies should have both campaigns working in tandem as part of the on-going customer conversations.
Without these campaigns, businesses miss critical communication points that could result in bigger returns and long lasting relationships.
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Remember Reciprocity?
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So Where Does Loyalty Begin?
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Hopefully It Starts With:
“You had me at hello…….”
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And Delighting Customers
Make Me Feel Special
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The DNA of Customer Loyalty
• Loyalty programs are employed to drive customers to shop with a retailer.
• Many schemes are purely “transactional” where the customer enjoys the experience but would switch to another brand at the drop of a hat if the alternative offered a slightly better deal.
• Many wineries and online wine retailers are striving to get their customers to have an “emotional bond” with them, because high retention rates translate into significant business profits.
• Achieving this requires a whole new approach to loyalty.
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The DNA of Customer Loyalty
The three results that reflect the general components of customer “emotional” loyalty programs are:
• Retention – keeping customers
• Advocacy – getting new customers through recommendation
• Life Time Value – increasing spend and frequency from existing customers
Emotional loyalty demands consistency across channels, relevant and timely promotions, customer intimacy and a real excite and delight element built on top of a standard “I’ve got great wine to sell at a good price” story.
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Loyalty and Love
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Delight customers
• Wine club discounts• Wine club special
offerings• Club member events• Loyalty bonuses• Special access
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Reinventing the Delivery Experience
“The luxury experience we are so very carefully cultivating stops at delivery. We don’t need to accept that. I think we can extend that luxury experience and fill the gap.”
Jason Eckenroth Founder/CEO ShipCompliant
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Reinventing the Delivery Experience
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Reinventing the Delivery Experience
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Reinventing the Delivery Experience
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Delivery Experience Tools
• Use concierge services or Doorman.co• Customized winery email on shipment status, and alternative options• Text customers when “Elvis has left the building”• Delivery Experience tools now automatically analyze the destination
temperature of each package prior to shipping• Ship to “hold at FEDEX”• Multiple winery fulfillment warehousing locations• Not allowing FEDEX and UPS to dilute customer luxury brand
experience. Maniacally focus on first-time delivery
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Delivery Experience Tools
• Correlation between deliverability on the first attempt and reorder rates.
• ShipCompliant found that customers were 27 percent more likely to order from a winery again if the wine was delivered successfully on the first attempt.
• Winery customer service staffers report that half of the calls they receive revolve around shipments and package tracking.
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Delivery Experience Tools
• Adult signature requirements, high freight costs, temperature concerns, compliance regulations, and multiple carriers are just some of the challenges wineries face in delivering seamless and personalized customer experience.
• Wineries can send customized, personalized emails to customers to deal with tracking concerns, rather than forcing the customer to deal with shipping carriers.
• Save your customers the aggravation of missing their delivery and improve your bottom line through targeted customer education and a range of delivery options.
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And Keep Delighting Customers
Make Me Feel Special
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Love is Sharing with Others
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Get Social - Build Your Brand Advocacy
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Questions?
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Whether a customer buys wine in your tasting room, or on your website, their information flows to one central location.
Tangible benefits: Full purchase history in one system Segmenting customers for marketing Customer can access their profile online Access customer information from anywhere One central customer record shared across
multiple systems
Tastingroom
Wine club
Website
CustomerRelationship
Loyalty: One Customer, One Database
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CRMCustomer Relationship Management
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CRM – Customer Relationship Management
Simply put, CRM is putting customers at the heart of a business. Today it is more important than ever to build better relationships with customers as, in this day and age of social media, they now talk to ???? people at a time. They have a megaphone, making it easier for positive and negative messages to spread fast and wide. With the support of technology, the goal of CRM is to have a 360-degree view of the customer which will enable you to improve the quality and satisfaction of each customer interaction and maximize the profitability of customer relationships... a win/win for both the business and customers.
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CRM Requirements for Success1. Strategy. Your customer strategy identifies the customers the organization intends
to serve and articulates the desired customer experience to be delivered.
2. Process. Business processes are comprised of the practices associated with major customer facing business functions in the organization. For example, marketing, eCommerce, direct sales, partner sales, customer service, and field service.
3. Technology. Your technology environment plays an important role in enabling the CRM business processes and is comprised of customer analytics, customer data management, and technology infrastructure.
4. People. How people are organized and led has a large role in determining success with CRM. You must pay attention to the organization’s corporate culture, leadership practices, collaboration methods, training programs, and performance measurement approaches.
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Know Thy Customer
What kind of relationship do you want to build with your target audience?
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Know Thy Customer1. How do you define your target audience (age-group, gender, education, income, likings, ethnicity, lifestyle etc) and where majority of them live?
2. Who are your best customer types in terms of revenue generation and why?
3. What kind of relationship you want to build with your target audience?
4. What are the desires and expectations of your target audience?
5. What is the level of product use? Are your customers loyal to you?
6. What are the most common objections raised by your customers?
7. Who are the actual decision makers (who has the final say)?
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360 Degree View of Your Customer Information about your members collected at each touch point outside your website should be attached to the member profile record, creating a complete
view of your customer.
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Preference Based Marketing
• Your member data should not be limited to just online sales and wine club members.
• As the direct to consumer sales channel
grows customers are finding more and more touch points to interact with wineries or wine brands.
• Information about your members that is collected at these touch points outside your website is easily fed into the member profile creating a complete detailed profile of each of your customers preferences.
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Filter and Segment Data
• CRM tools filter and segment data.
• The first step to understanding how to market and sell to your customers and prospects is to first build custom fields to segment by preferences, buying habits and behaviors.
• Filtering tools are used to create custom marketing lists so that the right message is delivered to the right customer at the right time.
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Dynamic List Building• The benefit of building a robust database
is being able to comb through and segment that data so that you can market to your customers in the most personal way possible.
• Website tools help you filter your customers into groupings based on things they share in common.
• Lists are then created which with a 'profile' for a particular type of member, which can be based on things like their buying preferences in the past.
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Manage Member Data• The integrity of your member data is
the key to successful CRM.
• Member maintenance tools allow you to consolidate duplicate member records, keeping your data clean and accurate.
• Match your potentially duplicated member records, then merge the suggested matches, consolidating address, payment and order history.
• Clean data is useful data. Find
duplicate data and merge records.
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Email List Segmentation• Content is Primary• Segmentation comes next
– Varietal preferences (Special offer on Reds)
– Locals (Come to our next event)
– Order history (We’ve missed you)
– Club join date (One year anniversary together)
– Credit card set to expire (Update your profile)
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Business Intelligence
Listen, Learn, Act
• Tap into real-time critical business data to increase your ROI on sales and marketing initiatives.
• Business intelligence reporting
delivers key point-of-sale, ecommerce, club member, inventory, CRM, and telesales information on-demand, with responsive mobile ready reporting capabilities.
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Google Analytics• Google Analytics is a powerful tool
for evaluating the effectiveness of your website in getting and keeping user traffic.
• Implementing Google Analytics tracking codes on your website helps you gauge the amount of traffic to your site and how consumers behave while visiting your website.
• This information from your website appears in your Google Analytics dashboard where you can view this data and use it to optimize your site.
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What’s New? Social CRM
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Connect the Dots Between Web Analytics
By connecting the dots between web analytics and social media metrics, you can understand – at a much deeper level – the types of content that generate the most awareness, value, and online revenue for your company.
Learn how your prospects and customers discover and engage with your social content, and what content and media types drive conversions and sales.
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Next Generation: Listening and Engagement
Combined
Web Analytics
CRMSocial
Metrics
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Big Data in Action
The rise of the Datarati. “Big data” is one of the most over-used and over-hyped words in 2015. While much of it is hype, what is not are companies’ continued focus on data analysis.
Companies continue to invest in measuring social media, understanding customer value and modeling customer behavior. If you do not use your data to talk to your customers, others will.
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Constellation Customer Segmentation Study
“The Genome Project”
Constellation Brands has released results of a comprehensive study identifying six segments of wine drinkers based on their purchase behavior, motivations and preferences. The study follows up on a similar study conducted ten years ago.
Please read the article on the study in Wine Business Daily:http://www.winebusiness.com/news/?go=getArticle&dataid=134683
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Constellation Segmentation Study Outlines Motivations, Behaviors of Today's Wine Consumers
Consumer Segment - Consumer Profiles
Price Driven (21% of consumers)
• I believe you can buy good wine without spending a lot
• So price is a top consideration
Everyday Loyals (20% of consumers)
• Wine drinking is part of my regular routine • When I find a brand I like, I stick with it
Overwhelmed (19% of consumers)
• I drink wine, but it does not play an important role in my life
• I don’t enjoy shopping for wine, and find it complex and overwhelming
Image Seekers (18% of consumers)
• How others perceive me is important • I want to live a life that impresses others • I want to make sure the wine I choose says
the right thing about me
Engaged Newcomers (12% of consumers)
• I'm young and new to an intimidating category • Wine is a big part of the socializing I do• I’m interested in learning more
Enthusiasts (10% of consumers)
• I love everything about the wine experience • I love researching purchases, reading reviews,
shipping, discussing, drinking, sharing with others
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Tell your story + tell it well (the magic 15%)
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Final Thoughts
Things to consider in your DTC marketing strategy:
• What makes you different or your story compelling?
• How do you deliver the message to visitors in person or digital?
• Why should they care?
• What is your plan for building and maintaining customer loyalty?
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And Delighting Customers
Make Me Feel Special
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Addendum
The Future is Now
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New Retail Concepts• Selling the long tail of wine - https://www.youtube.com/watch?v=Pa1-sV9FgjA - The launch of Amazon Wine
• Next Generation Wine Store - https://www.youtube.com/watch?v=IUQLsqkgZ3M
• Wine by Vente-Privee - https://www.youtube.com/watch?v=SKY_3NKE9tE
• A Wine to Change the World - https://www.youtube.com/watch?v=Jd3xxwPnKJ8 - Cause Marketing
• Naked Wines - https://www.youtube.com/watch?v=qC7qop1Omgg – Crowdsourcing Wine Model
• Underground Cellar - Get yo' wine on in the Underground Cellar - https://www.youtube.com/watch?v=eYF9aywOX7E
• Looking Glass - Champagne & Shopping - www.lookingglasshbg.com
• Banshee Wines - https://www.youtube.com/watch?v=ZyMEEdE39EM – Banshee Wines has gone Google
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New Retail Concepts – Wine Apps
• Wine App market is exploding – all trying to connect search to intent to buy.
• Next Glass - The Science Behind Great Beer & Wine Recommendations - https://www.youtube.com/watch?v=dTuWf1A5D1I
• Wine Apps – Vivino - https://www.youtube.com/watch?v=0I802FfNDIY
• Wine Apps – Plonk - https://www.youtube.com/watch?v=0_D7bAsOJVo
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Augmented Reality
• IT'S NOT A FUTURISTIC DREAM, IT’S HERE NOW.
• https://www.youtube.com/watch?v=FHrtvUZSj50 - Augmented Reality Will Change Online Shopping Forever
• https://vimeo.com/50065093 - This is Augmented Reality
• https://vimeo.com/99008123 - Coke Augmented Reality in Athens
• https://vimeo.com/122899989 - Visa Augmented Reality in Poland
• https://www.youtube.com/watch?v=09vxKN1zLNI – Metaio Augmented Reality
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Virtual Retail - Tesco
“The future of retail is happening now”
• Tesco Homeplus Virtual Subway Store in South Korea https://www.youtube.com/watch?v=fGaVFRzTTP4
• Tesco's Interactive Virtual Grocery Store In Gatwick Airport's North Terminal https://www.youtube.com/watch?v=qJkt8uqcWro
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Contact Info
Ron ScharmanChatterbox/[email protected] Me on LinkedIn at http://bit.ly/1WyFHpA