Stand Out from the Crowd: How to Attract and …...Crowd: How to Attract and Retain the Right DTC Customers DTC WINE SYMPOSIUM 2019 WINEDIRECT.COM / 2 WINEDIRECT.COM / 3 WINEDIRECT.COM

Stand Out from the Crowd: How to Attract and Retain the Right DTC CustomersDTC WINE SYMPOSIUM 2019

WINEDIRECT.COM / 2

WINEDIRECT.COM / 3

WINEDIRECT.COM / 4

DECLINING VISITATION

SKY-HIGHCONSUMER

EXPECTATIONS

DEMAND FOR PERSONALIZATION

INCREASED COMPETITION

SHIFTING DEMOGRAPHICS

Declining VisitationAVERAGE MONTHLY VISITOR COUNTS IN TASTING ROOMS

WINEDIRECT.COM / 5

020040060080010001200140016001800

Average NapaCounty SonomaCounty2015 2016 2017 2018

Guests visit one fewer

winery per trip

Source:2018WBM/SVBTastingRoomSurveyReport

Rise of the downtown tasting room

WINEDIRECT.COM / 6

+2,000 new TRs each

year

Demographic Shifts% OF US WINERY SALES

WINEDIRECT.COM / 7


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…

WINEDIRECT.COM / 8

Millennials ruin everything…

WINEDIRECT.COM / 9

WINEDIRECT.COM / 10

DELIGHTENGAGEATTRACT

W IN E D I R E C T. C OM

How can I ensure my winery succeeds in this new environment?

11

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

WINEDIRECT.COM / 13


• More intimate• More personal• Higher club

conversion rates• Higher AOV

Are consumers being priced out? AVERAGE STANDARD AND RESERVE TASTING FEE BY MARKET

WINEDIRECT.COM / 15

$-

$10

$20

$30

$40

$50

$60

$70

Rest ofUS

WA Rest ofCA

PasoRobles

OR SantaBarbara

Average Sonoma Napa

STANDARD RESERVE

DECLINING VISITATION?


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

WINEDIRECT.COM / 17

Consumers visit fewer

wineries per trip

Providing “experiences’

can be expensive

Visitation is down in some

regions

WINEDIRECT.COM / 18

Attracting the right guest is critical

Traditional DTC Customer Journey

WINEDIRECT.COM / 19

• Press• Referrals• Balloons

• Visit tasting room

• Purchase some wine• Join a club• Occasional email

or phone call• Club perks,

discounts & events


Modern Customer Journey

WINEDIRECT.COM / 20


• 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

Leveraging Digital MethodsPOPULARITY OF DIGITAL DISCIPLINES AMONG WINERIES

WINEDIRECT.COM / 21

11% 13%

26%29%

33%36%

55%

0%

10%

20%

30%

40%

50%

60%

RETARGETING SEARCHENGINEMARKETING

MARKETINGAUTOMATION

SOCIALMEDIALISTENING

SEARCHENGINEOPTIMIZATION

CUSTOMERSEGMENTATION

SOCIALMEDIAADVERTISING


WINEDIRECT.COM / 22

Borrow, don’t buy

reach

Online Reservations is the killer app

• Upsell & cross-sell in advance

• Reduce no-show rate

• Attract guests at off-peak times

WINEDIRECT.COM / 23ATTRACT

WINEDIRECT.COM / 24

Ready built SEO and Social Integrations

ATTRACT

90% of reservation

discovery begins with

search

WINEDIRECT.COM / 25

Position yourself with best-in-class experiences.

ATTRACT

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

WINEDIRECT.COM / 26

Get discovered and be “personalization ready”

DELIGHTENGAGE

WINEDIRECT.COM / 27

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

Yes36%

No64%

Winery Benchmarking Data: ReservationsDO YOU OFFER ONLINE RESERVATIONS?

WINEDIRECT.COM / 28

Source:2019WineDirectDTCReport,Survey

50% of ”No’s” plan to add

this year.

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.

What options exist for wineries?

30

WINEDIRECT.COM / 31

Borrow, don’t buy

reach


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

General Trend Data Average order value increase

WINEDIRECT.COM / 33


$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

Retaining club members is top priorityRETENTION RATE VARIES BY CLUB SIZE

WINEDIRECT.COM / 34


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.

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%

WHAT DO YOU MEAN TOO MUCH WINE?

36

McKinsey&Companysurveyof5,000USconsumers

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

WHY DO CONSUMERS STAY?

WINEDIRECT.COM / 38

28%Personalization

17%Surprise &

Delight

Source:2018McKinseyConsultingSubscriptionsStudy

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

WINEDIRECT.COM / 40

14%Lack of

Flexibility

27%Bad Experience

WHY DO THEY LEAVE?

Source:2018McKinseyConsultingSubscriptionsStudy

Offering Flexibility through Club Tiers CAUTION: BEWARE OF DECISION FATIGUE.

WINEDIRECT.COM / 41

Remember the Jam Study!


DELIGHT

0%5%

10%15%20%25%30%35%40%45%50%

1 2 3 4

How many club tiers do you offer?

Offering flexibility through User Choice ClubsCAUTION: BEWARE OF DECISION FATIGUE.

WINEDIRECT.COM / 42

Source:2015SVBandWines&VinesDTCReport

Consumers stay 3 months

longer in User Choice

clubs

DELIGHT

Wineries custom clubs nearing full adoption

WINEDIRECT.COM / 43


84% offer custom clubs

16%do not

DELIGHT

But some skeptics still exist

WINEDIRECT.COM / 44Source:2019WineDirectDTCReport,Survey

Do you plan to offer customization this year?

Yes25%

No75%

DELIGHT

But some skeptics still exist.


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

Don’t forget about the in box experience

WINEDIRECT.COM / 46

• Tissue Wrap• Toppers• Velvety shipping

inserts• Surprise Gifts

DELIGHT

W IN E D I R E C T. C OM

Online Sales

47

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


Web sales still small, but becoming more significant.

WINEDIRECT.COM / 49

Other19%

Club34%

POS33%

Website14%


What is the purpose of your website?125 WINERIES RESPONDED


38%

26%

19%

17%

Sell wine online

Promote brand awareness

Drive tasting roomvisitation

Provide a membershipportal

Wineriesareontrend!

WINEDIRECT.COM / 51ENGAGEATTRACT

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

The customer journey can start anywhere.

WINEDIRECT.COM / 53

CLUBTASTING ROOMRESERVATION

CLUBMAILING LISTWEB ORDER


MAILING LISTTASTING ROOMINSTAGRAM

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

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

http://www.winedirect.com/Resources

Thank You!

Documents

Stand Out from the Crowd: How to Attract and …...Crowd: How to Attract and Retain the Right DTC Customers DTC WINE SYMPOSIUM 2019 WINEDIRECT.COM / 2 WINEDIRECT.COM / 3 WINEDIRECT.COM