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It’s All About Trust Who & What Influences Consumer Wine Purchases Paul Rickett VPIWF, April 1 2011

It’s all about trust vpiwf rev3

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Slides from a presentation given at Vancouver Playhouse International Wine Festival in April 2011. Uses data from published study (download info in slides) on consumer influences on wine purchases plus extra material from other customer surveys done in our store.

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Page 1: It’s all about trust   vpiwf rev3

It’s All About Trust

Who & What Influences Consumer Wine Purchases

Paul RickettVPIWF, April 1 2011

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Annual Customer Survey

• 4th annual survey• 2 pages in 2010, most on first

page• Mix of standard and unique

questions each year• 2010 Focus – Influence and BC

wine • Results statistically accurate

for our store +/-10%• 52/48% male/female response• Respondents buy 10K btls wine

each year/drink 1.3 btls p.w.

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“When it comes to wine, I tell people to throw away the vintage charts and invest in a corkscrew. The best way to learn about wine is the drinking.” --- Alexis Lichine

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The Challenge is...

Getting consumers to move beyond their ‘default’ brand or type of wine

Propensity to try something new varies by gender and age

Females 2:1Males 4:1Age group 26-40 8:1

Source: BIBWS customer survey 2008

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So who influences what those ‘Experimenters’ buy?

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Major Influences

Trusted Staff Friends & Family Store Signage Bottle Labels Restaurants Other store staff Canadian Press US Press Ind. Bloggers

Who/What influences a Customer to buy wine for the first time

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People Use Multiple Influences...

1 2 3 4 5 6 7 8 90

5

10

15

20

25

30

Respondents

# of Influences marked as Important

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...Some are more frequent than others

SunProvinceGeorgia Straight

33% Use local Press

91% Use trusted store staff& FF

61% Use other store staff

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Influences work differently ...

US Press

Other store staff

Restaurants

Friends & Family

Trusted Staff

Ind. Bloggers

Store Signage

Canadian Press

Bottle Labels

-40% -30% -20% -10% 0% 10% 20% 30%

By Gender

Female

Male

Female

Male

Trusted Store Staff

Canadian Press

US Press

Store Signage

Friends & Family

Ind. Bloggers

Other store staff

Bottle Labels

Restaurants

-40% -30% -20% -10% 0% 10% 20% 30% 40%

Over 40 yearsUnder

40 years

<----Relative Strength of Influence vs Opposing Segment---->

By Age

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...from every angle

Bottle Labels

Store Signage

Canadian Press

Trusted Store Staff

Ind. Bloggers

Friends & Family

Restaurants

US Press

Other store staff

-20% -10% 0% 10% 20% 30% 40% 50%

By Weekly Volume Purchased

Low Volume Buyers(2 or Less per week)HV

(3+ p.w)

<----Relative Strength of Influence vs Opposing Segment---->

Ind. BloggersRestaurants

Store SignageUS Press

Canadian PressTrusted Store Staff

Other store staffBottle Labels

Friends & Family

-100% -80% -60% -40% -20% 0% 20% 40% 60% 80%

By Price Point – low buyer vs high buyer

Over C$20

Under C$15

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Influence increases nearer Point of Purchase (POP)

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Influence at P.O.P.

?

Today

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Future

Changing Influences

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A Validating Postscript

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You can pay £1300…Wine consumers wary of blogger recommendations, according to research Independent bloggers are one of the least trusted wine information sources in the UK, USA and France, according to research published today, despite the growing importance of the Internet as a source of information about wine. Data published in the new Wine Intelligence Internet and Social Media report series shows that 1 in 5 regular wine drinkers in the UK trust what independent bloggers say about a wine, compared with the 50%+ who trust what they hear over the counter in a wine merchant. Trust levels for blogger recommendations are similarly low in the USA, while 80% of US regular wine drinkers say they trust what their local wine merchant recommends. The French are even more sceptical, with only 10% of wine drinkers seeing independent bloggers as a trusted source.Wine Intelligence Ltd. Report 25/1/11 http://www.wineintelligence.com/wp-content/uploads/Social-media-Press-release-25-01-11.pdf

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… Or, download a FREE copy of It’s All About Trust at http://ow.ly/1KmUe

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Thank you Have a great VPIWF

Twitter: @paulrickettEmail: [email protected]