Wine entrepreneurship Spring 2017

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DTC Marketing

Presented by: Ron Scharman

Wine EntrepreneurshipDirect to Consumer Digital Marketing

April 5th, 2017Sonoma State University

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Presentation Available in Digital Format

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• Currently CEO Astra Digital Marketing Services and FlyWithWine

• Instructor, SSU Wine Business Institute – 4 Years• Previously 2 years as COO of Chatterbox Wine

Marketing Services and VinoVisit.com• 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• More info on LinkedIn at http://bit.ly/2cRRL5C

Who am I and Why am I here?

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TIME TO LEARN ABOUT YOU

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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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The Past, Present, and Future of Wine DTC

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MAYBE………

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Wine eCommerce

The evolution from early 2000’s to present day, “personal computing” has changed 10 fold.

What’s changed? Bigger, More Complex Sites

2003

2015

2007

2016Amazon Dash/Echo Dot

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Digital Experiences are Increasingly Important

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Looked at Another Way

The faithful gather in 2005 near St. Peter's to witness Pope John Paul II's body being carried into the Basilica for public viewing.

St. Peter's Basilica at the Vatican, on March 13, 2013

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THE WEB HAS BEEN GROWING FASTER THAN STORES….

*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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MOBILE COMMERCE SOARS

Source: *IBM; **Adobe

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MORE PC’S GATHER DUST

*Source: U.S. Commerce Dept., Internet Retailer

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SHARE OF MOBILE ONLINE SALES ON BLACK FRIDAY FROM 2013 TO 2016

*Source: Statista 2016

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MY PHONE IS MY LIFENOT MOBILE-ONLY, BUT MOBILE-FIRST

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People have transformed how they live, work, shop, and buy.

Businesses need to adapt…….

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It’s All About the Customer: Omni-Channel Marketing

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Remember That the Journey is Non-Linear

Find the customer where they want to be found…

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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

Apps

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Wine eCommerce

vs

Wine Commerce

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How is Your Customer Experience At Your

Winery?

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How is Your Customer Experience When Finding

Your Winery Online?

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Answer the Important 3 Questions:

1) Why do I exist? (My Brand)2) Why should you care? (The Consumer)3) How do I measure success? ($$, Visitors)

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MODEL OF CUSTOMER PROGRESSION

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The Science of Discovery

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Attracting Visitors

• Videos• Blogs• Social media• Newsletters• Articles on other

websites• Events• Reviews

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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

Ron Scharman

I would like to add:Socializing Bricks and Mortar - Customer Discovery

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Specialized Wine Discovery Tools

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Apps for the consumer

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And More……….

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Specialized Winery Discovery Tools

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Apps for the consumer

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Cellarpass.Com

Discover Me Now

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VinoVisit.Com

Discover Me Now

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Yelp SeatMe

Discover Me Now

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Winery Passport

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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

Ron Scharman

I would like to add:Socializing Bricks and Mortar - Customer Discovery

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Transforming the customer

journey across all channels

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Latest Stats February 2017

• 234 Million Adults in U.S.• 14% High Frequency Drinkers• = 33 Million HF Drinkers

• 24% Occasional Drinker• = 56 Million Occasional

Drinkers

• Total = 89 Million Prospects

*Wine Market Council – 2016 High Frequency Wine Consumer Study

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*Wine Market Council – 2016 High Frequency Wine Consumer Study

234 Million Adults in U.S.14% High Frequency Drinkers = 33 Million HF Drinkers

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The Art of Engagement

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Engagement is about “what’s in it for me”?

ie. The consumer

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Think “making a difference in people’s lives”!

Videos Blogs Recipes Special offers Invitations to special events Charitable causes Downloadable relevant content Gamification Sharable experiences

Online Engagement Tools

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Visual Communication: The Next Step in Marketing

If you haven't already heard, visuals can play a big part in boosting the performance of your

marketing messages.

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How Not to Lose Out In the Future

Communicating to the customer has become considerably more challenging as a result of the transformation from word to visual.

It’s all about the execution.

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*Social Media Today – Jan 2017 – Andrew Hutchinson

What?

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Why?

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How?

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And Finally


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The Results Speak for Themselves

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Web Analytics: Customer Preferences

Ron Scharman

I would like this slide to be moved back to come right after "Things to Watch" Slide.

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The Results Speak for Themselves – Google Analytics

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Tell Me You Love Me

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Transforming the customer

journey across all channels

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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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And Delighting Customers

Make Me Feel Special

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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

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Emotional loyalty demands:

1) Consistency across channels

2) Relevant and timely promotions

3) Customer intimacy; and

4) A real excite and delight element built on top of a standard

“I’ve got great wine to sell at a good price” story.

The DNA of Customer Loyalty

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Get Social - Build Your Brand Advocacy

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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 systemSegmenting customers for marketingCustomer can access their profile onlineAccess customer information from anywhereOne 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.

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.

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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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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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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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What’s New? Social CRM

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THE DIGITAL MARKETING PLANNING CHECKLIST & THOUGHT PROCESS

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Why Do Digital Experiences Matter?

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HOW TO KICKSTART

YOUR PLANNING

PROCESS

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NOW WHAT.

LET’S TALK ABOUT THE ACTUAL COMPONENTS OF A DIGITAL MARKETING PLAN

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WHAT MAKES UP A DIGITAL MARKETING PLAN

1. OBJECTIVE 2. STRATEGY 3. TACTICS 4. SCHEDULE

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WHAT MAKES UP A DIGITAL MARKETING PLAN (4 CORE THINGS)

1. OBJECTIVE

2. STRATEGY

3. TACTICS

4. SCHEDULE

(*Why*) The over-arching business problem you were tasked with solving

(*What*) Your approach, the layer between the business problem, and how exactly you did it.

(*How*) The means you took to satisfy your strategy, the actual details of how you executed

(*How Much*) Which partners, for how much, and how long.

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1. OBJECTIVE

2. STRATEGY 3. TACTICS 4.

SCHEDULE

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1. OBJECTIVE


Your objective should be:

• Come from a company-wide KPI• Clear• Actionable• Map directly to a company-wide KPI

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EXAMPLES OF OBJECTIVES:

1. OBJECTIVE


Increase the number of website visitors and/or conversions Increase the # of email addresses we have in our databaseIncrease visitor traffic/wine club signups at the winery tasting room

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2. STRATEGY

Your strategies should be:

• Clear• Actionable• Map directly to your objective (how are they solving your biz problem?)• The hardest part of a digital media plan.

(*What*) Your approach, the layer between the business problem, and how exactly you did it.

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LETS MARRY THEM TOGETHER

Target your demographic audience on the social networks they visit most with best selling wines, or other special offers Encourage new site visitors to redeem an introductory offer in exchange for their email addressDrive traffic by promoting off-site tasting events and community-oriented events, focusing on Bay Area residents

1. OBJECTIVE 2. STRATEGY

Increase the number of website visitors/conversions Increase the # of email addresses we have in our database

Increase visitor traffic to the winery tasting room

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5. PRICING 6. COSTING

7. PARTNER SELECTION


1. OBJECTIVE


SCHEDULE

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PRICING THEORY

IN PRACTICE


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WHAT DOES $1 DO FOR THE DIGITAL MARKETER

TRAFFIC

WEBSITE TASTING ROOM APP 3-Tier PRINT/

WEB

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ONCE TRAFFIC IS IN THE DOOR IT CAN DO MANY THINGS (DIGITALLY-FOCUSED)

BOOK A TASTING

BUY WINE

JOIN A WINE CLUB

POST A REVIEWDOWNLOAD

RECIPES

RE-ENGAGEMENT

SHARESBROWSE - TIME ON

SITEVIDEO PLAYS

ENTRIES/VOTES

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1. OBJECTIVE


SCHEDULE

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HOW MUCH DO THINGS

COST?

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AVERAGE CPC GUIDELINES + OBJECTIVES

Base Additions (each is an incremental cost)

Avg. Untargeted CPC Gender Age Interest Occupation Education Geo

$0.35 +$0.25 +$0.25 +$0.30 +$0.25 +$0.15 +$0.45

In other words, a fully loaded CPC would be $2.00

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1. OBJECTIVE


SCHEDULE

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BUDGETING:

HOW MUCH SHOULD I SPEND ON ADVERTISING?


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KNOWING HOW MUCH YOU ARE WILLING

TO SPEND (WITH WHO) HAS TO DO WITH

YOUR RISK TOLERANCE.

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?: HOW RISKY ARE

WE?

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CHECK YOUR SPEEDOMETER:

AGGRESSIVE OR CONSERVATIVE DRIVER?

IDENTIFYING YOUR APPETITE FOR RISK

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AGGRESSIVE

WHEN AN AGGRESSIVE STRATEGY IS RIGHT FOR YOU

ROI

VOLUME

• You are looking to acquire as many new customers as possible in an effort to gain traction and grow wine brand awareness.

• Or you are have fewer metric constraints (spending our budget is more important than measuring it!)

• This strategy means being comfortable with a higher cost per acquisition in exchange.

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AGGRESSIVE OR CONSERVATIVE?

CONSERVATIVE

ROI

VOLUME

• Looking to maintain the best profit margin possible,

• You are much more metrics-driven, or potentially cash-strapped.

• This strategy comfortable with simply acquiring less new customers.

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Are you comfortable acquiring new users at a loss? (spend $10, make $5)

Are comfortable acquiring new users & breaking even? (spend $10, make $10)

If we break even or lose money now, can we monetize these users in 3, 6, 12 months?

How good were we this month at getting our existing customers to come back and spend time on our site?

How many new users do you want to acquire, and in what time frame? HINT: “As many as possible ASAP” is not good enough. Be specific.

YOUR CHECKLIST FOR RISK & COSTING

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1. OBJECTIVE


SCHEDULE

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FOR YOUR 1ST DIGITAL PLAN, KEEP YOUR PARTNERS SIMPLE

Fee’s

Social Search B2BDisplay

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BEFORE COMPLETING A DIGITAL MARKETING PLAN YOU HAVE

TO PROJECT WHAT YOUR EFFORTS WILL DELIVER

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Customer Acquisition• Wine club signup

– Most traditional tasting room business model • Digital and Social Marketing• Email Campaigns• Telesales • Direct Mail, Catalog

– Can still be effective; can drive ecommerce conversions• Social media, events, other

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LET’S SAY YOU RUN A WINERY THAT HAS THE FOLLOWING CRITERIA:

EXAMPLE

WORLD’S GREATEST WINESPrice $100Goal ROI 200%Goal New Customers 1,000Average Conversion Rate

2.00%

Expected Cost Per Click

$1.00

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Winery Digital MetricsKey Metric Benchmarks Test CampaignOnline Sales 1 100

Avg Online Sale $100 $10,000

Sale Conversion Rate 2% 2%

Visits Required 50 5,000

Cost per Click (CPC) $1 $1

Cost per Sale $50 $5,000

Click thru Rate (CTR) 1% 1%

Impressions Required 5,000 500,000

Cost per Thousand (CPM) $10 $10

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FINAL WORD ON SOCIAL

MARKETING

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If You Do Not Pay to Advertise on Facebook, It Is Estimated That You Only

Reach 3-5% of Your Fan BaseForbes.com

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LAST BUT NOT LEAST,BEFORE DOING ANY ADVERTISING THINK:

HOW GOOD ARE WE DOING THINGS NOW BEFORE WE PAY FOR TRAFFIC?

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What is the Conversion Rate, Average Order Value, and Time Spent for:Our best traffic source Our worst traffic source (with the most visits) Our highest traffic source

Do we have appropriate landing pages to make our desired action as simple & easy as possible

Are we confident that paid traffic is going to help us do more of the desired action we want

Are we maximizing what we are getting out of our organic/free traffic (existing partnerships, search, etc.)

YOUR CHECKLIST FOR HOW GOOD WE ARE

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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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Tell your story + tell it well

(the magic 15%)

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And Delighting Customers

Make Me Feel Special

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Contact Info

Ron ScharmanCEO/Astra Digital Marketing [email protected] 5392Find Me on LinkedIn at http://bit.ly/1WyFHpA

mailto:[email protected]