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

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#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

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#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

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#3DON'T ASSUME

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LEARN

WHO ARE YOUR TOP 20% OFCUSTOMERS BY LIFETIME VALUE?

How are youdetermining

LTV?

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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

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#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?

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Average Order Value atSeated/ReservationStyle Tasting = $392

VS$75 at Tasting Room Bar

SVB Tasting Room SurveyMay, 2015

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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