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CRAFT BEVERAGE EXPO
MAY 20, 2016
"DIRECT-TO-CONSUMERSALES DO'S AND DON'TS"
Welcome!
Founder, DTC Wine Workshops and theDTC Consultant Network
President, Women for WineSense NapaSonoma
Steering Committee Member, DTC WineSymposium
Speaker, National and InternationalIndustry Events
Publisher, DTC Wine Case Studies Series& Blog and Wine Country This WeekMother, of Tyler (24) and Christian (19)
MOST IMPORTANT JOB EVER! Wife to Mark Hess, J Lohr Vineyards &
Wine
Today's workshop has beenprepared by Sandra Hess
SINCE 2010THE VALUE OF THE DTC WINE SHIPPING INDUSTRYHAS GROWN BY
66%THE VALUE OF WINES SHIPPED NATIONALLY
IN 2015 RESULTED IN $2 BILLION
Balance
The Brewers Association defines Americancraft brewers as "small, independent and
traditional": "small" is defined as an"annual production of 6 million barrels ofbeer or less"; "independent" is defined as
at least 75% owned or controlled by a craftbrewer; and "traditional" is defined as
brewing in which at least 50% ...
WHAT IS A CRAFT BEVERAGE?
The RIGHT Technology withthe RIGHT Processes
Balance
#1DO Leverage
DTC Wine Case Studies
KEY TAKE-AWAY'S
1. Phone contactINCREASES
CUSTOMER LOYALTYAND DIRECT SALES
(Duckhorn)
2. Use of Mobile POSfor large group tastingsresult in higher averageorders value due toCONSPICUOUS
CONSUMPTION (GloriaFerrer & William Chris)
DTC Wine Case Studies
KEY TAKE-AWAY'S
3. Social Monitoring &Management = 30 newgroups per month andAVERAGE OF $20K INNEW SALES MONTHLY(Cornerstone Cellars)
4. Solid Shipping Strategiesw/ Customer Service toolsGROW DIRECT SALESNATIONALLY & RETAINLOYAL CUSTOMERS
(Grgich Hills)
5. Effective use ofReservation Managementtools results in HIGHER
ORDER VALUE &INCREASE IN NEW
VISITORS (WENTE)
The Offline with OnlineCustomer Experiences
Balance
#2Balance
"Consumers spent $69.08billion online this past HolidayShopping Season, and $12.65billion was via mobile devices.Mobile accounted for 1 in 5online purchases during the2015 Holiday Season." -
ComScore Data January 8, 2016
Peer ReviewsSell WineOnline
Use the"INCENTIVES& CARROTS"to Delight &Up-Sell!
WHAT IS YOURCUSTOMERTOUCH-POINTSCHEDULE?
TOUCH-POINTS =OPPORTUNITIES TO
DELIVEREXCEPTIONAL SERVICEIN BETWEEN VISITS
1. Minimum of 4-6 timesper year (two weeksafter each clubshipment)2. Birthdays
3. Club Anniversaries4. Invite to an Event5. Just because (WOWMoments with top 20%)6. Annual Survey by
phone
USE AUTOMATED EMAILS To Re-Engage and Retain
USE PERSONAL EMAILS To Invite and Surprise
• It costs FIVE TIMES more to acquire new customers than it does to keep currentones. (Forrester)• Returning customers spend on average 67% more than first-time customers. (Bain)• Customers are 77% more likely to buy a new product when learning about it fromfamily and friends. (Nielsen)
Average Club Membership is 18-24 months. What is yours?
STAY CONNECTED IN BETWEEN VISITS
You KNOW what customers want -USE reporting tools & segmentation
Balance
#3DON'T ASSUME
Balance
LEARN
WHO ARE YOUR TOP 20% OFCUSTOMERS BY LIFETIME VALUE?
How are youdetermining
LTV?
Balance
LEARN
HOW CAN YOU LEVERAGE CUSTOMERDATA TO INCREASE DIRECT SALES?
DO useSocial CRM
DATA Sourcesto Watch
Top 20% Lifetime ValueReportsWine Club Trends &VariancesDTC Sales ConversionTrendsReservation DetailsVisitor Demographics(DOB/State)Top Ship-To States
DATA Sourcesto Watch
Email Marketing Open& Conversion RatesSocialMedia Conversion RatesSurvey Results fromboth Club Segmentand Other CustomersE-Commerce Site AnalyticsReferral Trackingwith Hospitality Partners
Balance
#4DO INVITE
Customers BACK with RESERVATION MANAGEMENT TOOLS & ONLINE STORE PROMOTIONS
REDEFINE CONVERSION
PATHS
PERFECT WORLD = 1st time visitor isqualified and converts to club member MORE REALISTIC WORLD = 1st timevisitor to buyer then repeat buyer andrepeat visitor (already member of 3-5clubs). Sell Bundles w/Peer ReviewsIDEAL WORLD = 1st time visitorconnects with brand (qualified) buyssame day and is invited back to in-person or online depending on GEO.Responds to meaningful invite and isinvited to join the RIGHT CLUB
What tools does your team useto work in an IDEAL WORLD?
Balance
Average Order Value atSeated/ReservationStyle Tasting = $392
VS$75 at Tasting Room Bar
SVB Tasting Room SurveyMay, 2015
Balance
Online Brand Mentions, Customer Feedback and SocialShares. Leverage Social Interactions to STAY
CONNECTED & MAKE REAL-TIME IMPROVEMENTSBalance
#5DON'T IGNORE
TOP 5 KEY TAKE-AWAY'S
1. LEVERAGE the right technology
with the right processes
2. BALANCE the Online with the
Offline
3. LISTEN to what your customers
want
4. INVITE customers back in
meaningful ways
5. RESPOND to online brand
mentions in a timely manner
Q & A
Thank You
Sources:http://www.shipcompliant.com/2016-direct-to-consumer-report/
http://www.winebusiness.com/wbm/?go=getArticle&dataId=46704http://www.winebusiness.com/wbm/?go=getDigitalIssue&issueId=6633
https://www.internetretailer.com/2016/01/08/mobile-accounts-nearly-1-5-online-holiday-purchaseshttp://svbwine.blogspot.com/2015/05/replay-of-2015-dtc-videocast-chat.html
Contact: sandra@dtcwineworkshops.com
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