Stand Out from the Crowd: How to Attract and …...Crowd: How to Attract and Retain the Right DTC...
Transcript of Stand Out from the Crowd: How to Attract and …...Crowd: How to Attract and Retain the Right DTC...
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Stand Out from the Crowd: How to Attract and Retain the Right DTC CustomersDTC WINE SYMPOSIUM 2019
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DECLINING VISITATION
SKY-HIGHCONSUMER
EXPECTATIONS
DEMAND FOR PERSONALIZATION
INCREASED COMPETITION
SHIFTING DEMOGRAPHICS
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Declining VisitationAVERAGE MONTHLY VISITOR COUNTS IN TASTING ROOMS
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020040060080010001200140016001800
Average NapaCounty SonomaCounty2015 2016 2017 2018
Guests visit one fewer
winery per trip
Source:2018WBM/SVBTastingRoomSurveyReport
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Rise of the downtown tasting room
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+2,000 new TRs each
year
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Demographic Shifts% OF US WINERY SALES
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Source:2018WBM/SVBTastingRoomSurveyReport
0%5%10%15%20%25%30%35%40%45%50%
Millennials(23-37) GenXers(38-53) Boomers(54-72) Matures(73+)2014 2015 2016 2017 2018
Boomers represent 40%, for
now…
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Millennials ruin everything…
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DELIGHTENGAGEATTRACT
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W IN E D I R E C T. C OM
How can I ensure my winery succeeds in this new environment?
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WINEDIRECT.COM / 12
Let’s sell wine on your terms.
THE WINERY’S CHAMPION
WineDirect provides everything your winery needs to start, manage and grow your direct to consumer (DTC) business:
WINE CLUB POINT OF SALE ECOMMERCE MARKETPLACE DISTRIBUTION
FULFILLMENT
Coming soon 2019 DTC
Report: Wine Club
Edition
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DELIGHTENGAGEATTRACT
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• More intimate• More personal• Higher club
conversion rates• Higher AOV
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Are consumers being priced out? AVERAGE STANDARD AND RESERVE TASTING FEE BY MARKET
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$-
$10
$20
$30
$40
$50
$60
$70
Rest ofUS
WA Rest ofCA
PasoRobles
OR SantaBarbara
Average Sonoma Napa
STANDARD RESERVE
DECLINING VISITATION?
Source:2018WBM/SVBTastingRoomSurveyReport
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How do you justify paying for Customer Experience?
WINEDIRECT.COM / 16Source:McKinsey/Fuel,2018
A one-point improvement on a ten-point customer satisfaction scale corresponds to at least a three-percentage-point increase
in the revenue-growth rate.
MULTI-YEAR, MULTI-INDUSTRY NATIONWIDE SURVEY OF RETAIL, BANKING, AND AUTO-INSURANCE SHOWS:
1/10 = +3%
DELIGHT
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WINEDIRECT.COM / 17
Consumers visit fewer
wineries per trip
Providing “experiences’
can be expensive
Visitation is down in some
regions
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Attracting the right guest is critical
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Traditional DTC Customer Journey
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• Press• Referrals• Balloons
• Visit tasting room
• Purchase some wine• Join a club• Occasional email
or phone call• Club perks,
discounts & events
DELIGHTENGAGEATTRACT
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Modern Customer Journey
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DELIGHTENGAGEATTRACT
• SEO• PPC, Online, Mobile and Social
Ads• Online reservations• Landing Pages• Remarketing • Blog Outreach• Marketplaces• Content Marketing• Press• Industry Referrals• Friends/ Family• Balloons
• Email nurturing • Social Media
engagement• Attend an event• Ecommerce
optimization• Buy wine online to ship
or pick up• Visit tasting room
• Personalized, consistent communication• Customizable club options• Earn / Redeem Loyalty Points• Fast, cheap shipping• Exclusive events & product
offers• Facebook Groups• Referral Programs• Join a club• Club perks, discounts &
events
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Leveraging Digital MethodsPOPULARITY OF DIGITAL DISCIPLINES AMONG WINERIES
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11% 13%
26%29%
33%36%
55%
0%
10%
20%
30%
40%
50%
60%
RETARGETING SEARCHENGINEMARKETING
MARKETINGAUTOMATION
SOCIALMEDIALISTENING
SEARCHENGINEOPTIMIZATION
CUSTOMERSEGMENTATION
SOCIALMEDIAADVERTISING
Source:2018WBM/SVBTastingRoomSurveyReport
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WINEDIRECT.COM / 22
Borrow, don’t buy
reach
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Online Reservations is the killer app
• Upsell & cross-sell in advance
• Reduce no-show rate
• Attract guests at off-peak times
WINEDIRECT.COM / 23ATTRACT
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WINEDIRECT.COM / 24
Ready built SEO and Social Integrations
ATTRACT
90% of reservation
discovery begins with
search
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Position yourself with best-in-class experiences.
ATTRACT
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GATHER CUSTOMER DATA FIRST, AND PERSONALIZE THE EXPERINCE
• Easy for your customers to book.
• Online and Mobile Ready.
• Deep customer insights enable you to offer unrivaled hospitality and increase sales
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Get discovered and be “personalization ready”
DELIGHTENGAGE
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Case study: MacRostie Winery & Vineyards
20% more guests seated each Saturday using table management tools.
• Increased bookings at non-peak times
• Improved guest service through real-time consumer data sync with club member details
• Reduced customer service work by 10 hours/week through appointment management features
HIGHLIGHTS:
DELIGHTENGAGE
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Yes36%
No64%
Winery Benchmarking Data: ReservationsDO YOU OFFER ONLINE RESERVATIONS?
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Source:2019WineDirectDTCReport,Survey
50% of ”No’s” plan to add
this year.
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USE THIRD PARTY PLATFORMS TO IMPROVE YOUR DIGITAL FOOTPRINT (FOR FREE)
CASE STUDY:
500 third-party orders led to, 6X Increase in web site sales, after launching various third-party programs.
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What options exist for wineries?
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Borrow, don’t buy
reach
DELIGHTENGAGEATTRACT
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The state of wine clubs
WINEDIRECT.COM / 32
1,800 wineries,
1.3 million club members
31 months average membership length
+49% increase in Club AOV
since 2015
Source:2019WineDirectDTCReport,Data
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General Trend Data Average order value increase
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Source:2019WineDirectDTCReport,Data
$0
$50
$100
$150
$200
$250
$300
$350
Club POS Website
2015 2016 2017 2018
Avg YOY change: +0%'15-'18 change: -1%
Avg YOY change: +4%'15-'18 change: +13%
Club AOV increased
+15% annually
+49% since 2015
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Retaining club members is top priorityRETENTION RATE VARIES BY CLUB SIZE
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Source:2019WineDirectDTCReport,Data
ClubMembershipSize AnnualRetentionRate
1- 100 84%101– 500 78%501– 1000 74%1001+ 73%
• Food Kits like Blue Apron and Hello fresh see 30-35% retention rate within 6 months.
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Club Cancellation ReasonsWHAT DO YOU MEAN TOO MUCH WINE?
WINEDIRECT.COM / 35Source:2019WineDirectDTCReport,Data
Financial reasons
30%
Too much wine22%
Health/ Pregnancy
20%
Moving11%
Not Given/ Other
17%
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WHAT DO YOU MEAN TOO MUCH WINE?
36
McKinsey&Companysurveyof5,000USconsumers
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Common Types of Subscription Services
WINEDIRECT.COM /37
ACCESS
• Food Kits, Beauty
• Just Fab, NatureBox
• Value Driver: Provides
special access to products
and VIP perks.
• Razors, Paper Towels
• Dollar Shave Club, Amazon Subscribe & Save
• Value Driver: Convenience and Savings
REPLENISHMENT
• Food Kits, Beauty
• Blue Apron, Stich Fix
• Value Driver: Curation,
Surprise and Delight
CURATED
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WHY DO CONSUMERS STAY?
WINEDIRECT.COM / 38
28%Personalization
17%Surprise &
Delight
Source:2018McKinseyConsultingSubscriptionsStudy
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When asked, 100 consumers say the number one reason to continue a subscription is a personalized experience.
WINEDIRECT.COM / 39
”Good news, that wine you love is back in stock!”.
Happy Birthday!
“Happy Birthday, here’s a gift for you or share with a friend!”
“Thank you for rating wines, here’s a few other wines we think you’ll love”
Just for you!!
ImageCredit:McKinsey/FuelDELIGHTENGAGE
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WINEDIRECT.COM / 40
14%Lack of
Flexibility
27%Bad Experience
WHY DO THEY LEAVE?
Source:2018McKinseyConsultingSubscriptionsStudy
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Offering Flexibility through Club Tiers CAUTION: BEWARE OF DECISION FATIGUE.
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Remember the Jam Study!
Source:2019WineDirectDTCReport,Survey
DELIGHT
0%5%
10%15%20%25%30%35%40%45%50%
1 2 3 4
How many club tiers do you offer?
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Offering flexibility through User Choice ClubsCAUTION: BEWARE OF DECISION FATIGUE.
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Source:2015SVBandWines&VinesDTCReport
Consumers stay 3 months
longer in User Choice
clubs
DELIGHT
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Wineries custom clubs nearing full adoption
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Source:2019WineDirectDTCReport,Survey
84% offer custom clubs
16%do not
DELIGHT
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But some skeptics still exist
WINEDIRECT.COM / 44Source:2019WineDirectDTCReport,Survey
Do you plan to offer customization this year?
Yes25%
No75%
DELIGHT
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But some skeptics still exist.
WINEDIRECT.COM / 45Source:2019WineDirectDTCReport,Survey
Too much administrative
work33%
Customers haven't
asked for it27%
Not enough
wine27%
Don't see value in
flexibility13%Why don’t you
offer a custom club?
DELIGHT
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Don’t forget about the in box experience
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• Tissue Wrap• Toppers• Velvety shipping
inserts• Surprise Gifts
DELIGHT
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W IN E D I R E C T. C OM
Online Sales
47
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Increasing mobile visits and sales
WINEDIRECT.COM / 48
0%
10%
20%
30%
40%
50%
60%
2017 2018
Mobile/Tablet Desktop
0
50000
100000
150000
200000
2017 2018
Site visitors
• By 2021, 54% of online purchases are predicted to be mobile
• 51% of users will abandon their cart if experience not optimized for mobile
Mobile orders up
33% in 2018
Mobile/Tablet Orders
Source:2019WineDirectDTCReport,Data
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Web sales still small, but becoming more significant.
WINEDIRECT.COM / 49
Other19%
Club34%
POS33%
Website14%
Source:2019WineDirectDTCReport,Data
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What is the purpose of your website?125 WINERIES RESPONDED
WINEDIRECT.COM / 50Source:2019WineDirectDTCReport,Survey
38%
26%
19%
17%
Sell wine online
Promote brand awareness
Drive tasting roomvisitation
Provide a membershipportal
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Wineriesareontrend!
WINEDIRECT.COM / 51ENGAGEATTRACT
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Wine club member survey:200 CLUB MEMBERS SURVEYED IN 2017
Where did you learn about the club?
Visited the winery, 81% Through a friend, 6.5%Found winery online, 6% At an event, 2%
Where did you sign up for the club?
Tasting Room, 72% Website, 21%Phone, 5% At an event, 2%
Collect those emails!
WINEDIRECT.COM /
ENGAGEATTRACT
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The customer journey can start anywhere.
WINEDIRECT.COM / 53
CLUBTASTING ROOMRESERVATION
CLUBMAILING LISTWEB ORDER
DELIGHTENGAGEATTRACT
MAILING LISTTASTING ROOMINSTAGRAM
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WINEDIRECT.COM / 54
YOU’VE GOT THIS
PERSONALIZATION DOESN’T HAVE TO
BE HARD
IS YOUR SITE MOBILE READY
LEVERAGE PARTNERS TO
DRIVE TRAFFIC
Big take-aways:
CUSTOMER JOURNEY CAN
START ANYWHERE
YOU GOT THIS
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Visit the DTC Knowledge Center
• New 2019 DTC Study on WineClubs• eBooks• Webinars• Local Event Schedule• Blog posts
www.WineDirect.com/Resources
WINEDIRECT.COM / 55
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Thank You!