Welcome to the Vin65 blog. We are using this space to try and convey our little piece of insight into winery websites, POS systems, and best practices to sell more wine.
Whether it’s a TV show highlighting thrifty families using coupons, or an inbox full of retail store offers, consumers are becoming more "deal" conscious when selecting where they choose to shop. In a sea of conflicting prices and promotional offers what can help your offer rise and get noticed while others sink into the proverbial junk box? Let's take a look at 4 keys to an effective coupon or promo strategy for selling wine.
The way you word your promotion will not only affect how consumers read it but also how they react to it, whether they purchase or not. When wording your promotion here are a few points to consider:
Percentage or dollar off offers work well to generate interest for new shoppers. Club discounts that are automatic and easy to use can help promote brand loyalty and boost club memberships. However there is one promotion type that appeals to all consumers…free shipping. For our American winery clients you need to word your promotion as "Shipping Included" for legal reasons.
Here are a few compelling reasons why you should offer free shipping:
*Statistics provided by Freeshipping.org
Shipping is just one more cost that a consumer is mentally factoring in while they shop online. If you offer free shipping, it’s one less item you have to worry about. Customers are more likely to buy more, more often, when they don’t have to worry about additional costs.
Make sure your offer gets noticed. Prominent places such as homepage pods or sliders make your offer visible to anyone visiting your ecommerce store. To target newsletter signups, why not add a promotion code to an automatic confirmation email giving a discount off their first order? For those offering frequent promotions, why not consider creating a page dedicated to showcasing your current offers? This will help to keep deal seekers looking for coupon codes on your site, training them to visit your site rather than searching Google for the latest deals.
Whatever your offer, make sure you test its functionality before you release it. Finding a broken promotion is disappointing and frustrating to a consumer, and may be perceived as a "bait & switch" tactic. You should let consumers know how and where to use coupon codes, and where they will see the discounts appear. Then just make sure your promotion works as described.
Agree? Disagree? What promotions are working for you?
Developing the correct content strategy for your mobile site can be a bit confusing. It's still early in the game and we are seeing consultants offer different strategies on what content belongs on a mobile website.
Should you limit the content displayed on the mobile version of your website? How about the number of products? Should that be limited?
Originally, our team here at Vin65 thought the answer should be yes. Mobile phone screen sizes are small, the 3G data speeds are slower than regular broadband, and customers visiting your mobile site typically want to do something quickly, such as calling your winery or locating your winery.
Now that our mobile platform is more than a 1.5 years old, the above answer should be "no". Here's why.
1) Users need to see your content.
16-20% of emails are opened on a mobile device (source). A customer opens your email on a mobile device, they click a link - where does that take them? Hopefully to a mobile optimized version of a page. Unfortunately, more often than not, mobile websites are built as a "light" version of a brand's site and the mobile content is an after-thought - and the email link doesn't work.
More than 350 million Facebook users access Facebook through their mobile device (source). People "like" and share your content all the time. Similar to the email scenario, users on mobile devices need to be able to click links and see the mobile version of that content. Unlike the email scenario, you can't control the links people are sharing and if you only have a "light" version of your mobile site, the shared links won't work.
2) Mobile is not a second class citizen.
The problem with limiting content on your mobile site is you now have two sites to manage. Every time you add a page to your regular site, you have to decide if you should add it to your mobile site. It's extra work, and you often forget or neglect the content on the mobile site. (Our first version of our mobile had two sets of page content and wineries constantly let the mobile site go stale).
We recommend that all of your content, all of your products, everything on your primary website should also exist on your mobile site. Every URL on your primary site has to work from a mobile phone (you don't control what other people are sending out, linking to, etc). You create a page, you add a product, etc - it should just work on your mobile site. This way, if a customer on a mobile phone views an email, reads Facebook, clicks on a tweet, all of the links, pages, etc. will just work.
We also recommend that the navigation on your mobile site be different than your primary website. People who come directly to your mobile phone do so with purpose - primarily to call, get your address, or look up a product. Screen size on a mobile phone is limited, and you want to promote the content that people are most likely to be seeking on their mobile phone.
Do you have a mobile optimized website? How do you decide what content to display?
There is no doubt that smart phones are changing the way we live. It's no surprise that major retailers have integrated mobile as part of their overall marketing strategy. But what about mobile for wineries? Is it important to have a mobile presence? How can this channel drive overall traffic and revenue? We believe that it is important and can drive traffic and revenue, here are three reasons why.
According to StatsCounter, mobile traffic in North America is around 7.25% of all web traffic. It was only 1% three years ago. (source)
On our platform, which is specific to wineries, we are seeing over 10% of the traffic from mobile phones with several wineries in the 15-18% range. (If you want assistance calculating your percentage, it's really easy to do if you have Google Analytics installed - just ask us)
You only have to surf your regular website on a mobile phone to figure out it's probably not going to cut it. Flash photo galleries won't display on the iPhone and the performance is terrible on Android phones. You have to pinch and zoom to read the content. Adding something to your cart is next to impossible. It takes forever to load pages. The whole customer experience is terrible.
In general, 50% of mobile phone owners are using their device to shop online or to assist while shopping in stores (source).
On our wine-ecommerce platform, we are seeing wine sales on mobile devices (however these sales do lag behind their respective traffic - for example if 10% of your traffic is on mobile, less than 10% of your ecommerce sales will be from mobile).
We are seeing consumers viewing emails on their mobile phones (16% of them) or using Twitter or Facebook apps on their mobile phones. From these emails or from these apps, they click links to wines, and then view and purchase these wines on their mobile devices.
As a winery, it's pretty easy to get a mobile website. Most of the major wine ecommerce platforms now offer a mobile solution and independent designers have more tools than ever to assist in building a mobile website. Most of the solutions are relatively cost effective and fairly easy to implement. It's a great opportunity to improve your customers experience and it's early enough that you can experiment a little before a mobile site is expected.
If you’re like most internet users, you start your day by checking Facebook and you probably check again at the end of the day. If you’re like our employees, you’re probably also checking Facebook at work. There are over 800 million active users on Facebook, and Facebook accounts for 1 in 5 pages accessed on the internet.
So Facebook has a large audience, but will this audience buy wine? Here's 5 reasons I think they will.
1. Facebook already drives ecommerce traffic to your website.
There is some debate about whether Google or Facebook drives more traffic to a website, but it’s clear they are both key traffic sources. Facebook is the number one or number two driver of traffic to your ecommerce site. (Source / Source).
2. Facebook customers are good customers.
American Eagle found Facebook-referred visitors spend an average of 57% more money than non-Facebook-referred visitors. GiantNerd.com saw a 100% increase in revenue from Facebook within two weeks of adding the like button. There are several other Commerce Stats here. (Source)
3. Facebook is where your customers hang out.
There are more than 800 million active users on Facebook. More than 50% of users log onto Facebook in any given day. (Source)
4. Facebook is already a viable retail platform.
According to Booz Allen, there are $5 billion in goods being sold on Facebook in 2011. In the alcohol market, Social Commerce Today has a great story about Magners Cider and closer to California, wineries such as Silver Smith Vineyards are already selling wine on Facebook. (Source / Source / Source)
5. Facebook commerce is growing.
According to the same graph in number 4 above, Facebook commerce will be a $30 billion industry in 2015. (Source)
At Vin65, we launched our Facebook Ecommerce App today. Show and sell your wine inside Facebook. Create custom Facebook fan pages. While there is a small setup fee, there is no additional monthly charge to our existing clients, and it’s fully integrated with our platform.
In developing this app, we stepped on the shoulders of other innovators including both Vintank Social Connect (Cruvee) and Social Candy who have developed great apps on Facebook.
While I might have some bias, I really believe that Facebook commerce is here. One of the key pieces for me in our Facebook Ecommerce App build was the addition of Google Analytics along with our reporting and dashboards. Like mobile and our iPad app, we’ll be watching closely as Facebook traffic grows and our Facebook ecommerce app evolves.
Check out some live examples and let us know what you think.
Demo Store: http://www.facebook.com/PineWines
Ceja Vineyards: http://www.facebook.com/CejaVineyards
Twisted Oak: http://www.facebook.com/twistedoak
In your tasting room consumers can stroll up to the tasting bar, speak to enthusiastic staff and then sniff, swirl and sip your wine. It’s not that easy to excite consumers on your wine e-commerce website. You need to find ways to engage and convert consumers with content, images, tasting notes, consumer and professional reviews.
It’s been proven that videos can help e-commerce. Over the past few years, Zappos.com has said their videos have impacted sales on their products anywhere from 6 to 30 percent.
While Zappos.com is an e-commerce giant, Ceja Vineyards is a perfect example of a midsized winery producing well-executed product video at a minimal cost.
You may not need to make a video for the branded clothing you’re selling online, or the tickets to a concert but videos are a perfect medium for your tasting staff or wine maker to convey their passion for each wine that consumers are sampling in your tasting room.
“Video might be overkill for some pitches and products, and become more of a distraction than an incentive to convert,” said Stefan Tornquist, research director for MarketingSherpa. “For something complex, visceral, or new, video can be a great fit. Selling fly fishing in the Arctic? Video is going to do a better job of putting the prospect in a buying frame of mind than all the copy you can muster.”
Ceja Vineyards uses YouTube but there are many solutions for hosting your videos with different benefits, Facebook for example would be a great fit if you’re using Facebook fan pages and help cross promote by linking to your fan page and website.
Vimeo does not allow for commercial videos, instead you could use Viddler’s ‘b2b’ hosting.
If you’re looking for a more professional video solution that feautures product overlay, enabling the consumer to purchase right form the video, you could look at a company like Overlay.tv. Your winemaker could lead a tasting of your wine portfolio and consumers can purchase wines featured by clicking on a hotspot in the video, converting them while they're excited and ready to buy (See an Armani Exchange example).
|Here’s another example from Inman Family Wine, as Kathleen explains her wine in a way words on a webpage simply can’t:|
If you haven't tried videos, I recommend talking to a few wineries that have such as Ceja or Inman. Start small, a simple Flip camera is only around $150 then use YouTube, Facebook or Vimeo to place the video on your e-commerce site and measure your results.
I was at Unified last week and I overheard a couple of people talking about ecommerce and one person asked another if they could really improve their conversion rate. (I didn't butt in, but I should have). I've written about how powerful a benchmark conversion rate is to a winery's ecommerce performance analytics.
What is conversion and conversion rate? Conversion is the process of taking online visitors and turning them into buyers. There are a number of ways conversion rate is calculated, but the two most common are: number of orders divided by the number of carts started (in which case conversion rates should be high) or it's calculated as the number of purchasers divided by the number of visitors (in which case the percentage will be a lot lower).
The number one objection to conversion optimization? "If a person really loves my wine will they not wade through our website and figure out how to buy it (no matter how bad the ecommerce experience is)?" Truthfully some of your best fans and your nicest relatives will but I won't. And lots of your customers won't. Why invite visitors to your wine ecommerce store after a great experience in the tasting room only to disappoint them with an aggravating ecommerce experience?
3 proven ways to increase conversion your conversion rate?
1) Remove the create account requirement at checkout. Unfortunately, we still see this all the time. (I saw it last week on a new Sonoma Wineries website - gorgeous website doing a lot of things right - but still asking for a password in the checkout). A visitor adds wine to their cart and then proceeds to the checkout. They want to give you their credit card - they don't want to create a unique username and password. Here's the proof that this is killing sales. (Link, link, or link)
2) Create a streamline checkout. A visitor adds wine to their cart - how fast can they check out? The 2010 Olympics in Vancouver proved that a one-screen streamlined checkout process will increase conversion.
3) Add consumer ratings and reviews to your wine? You're on Amazon.com. What sells better? A book with a great description and a review from the New York Times or a book with a great description, a review from the New York Times, and 10-30 regular customers sharing their personal thoughts on the book? Wine.com proved it in the wine industry. Having customers reviews on your site will sell more wine.
The right design and functionality will increase your conversion rate.
Below are the slides of my 15-20 minute presentation at Unified Wine & Grape Symposium on "Making Your Direct-To-Consumer" work.
It was great to be a panellist along with Quinton Jay (Bacchus Capital), Stacie Jacob (Paso Robles Wine Country Alliance), and Ray Johnson (Sonoma State University). I also want to thank Jeff Stai for organizing everything, moderating the panel, and inspiring me the night before to make my presentation better.
My particular segment was on customer conversion - something I'm fairly passionate about. Enjoy.
I believe the audio version of the presentation will be available for sale here soon. http://www.unifiedsymposium.org/audio.html
Feel free to post your questions or comments below (or send an email directly to me)
Here are the slides and an overview of my 7-10 minute presentation at DTC Wine Symposium on CRM Demystified. It was great to be a panelist along with Bronwyn Ney from Hall Wines and Susan Hanshaw from Innerarchitect. Also thanks to Mary-Colleen Tinney for organizing everything.
My particular piece was on customer segmentation.
Slide #1 - Intro
Slide #2 - Segmentation
Slide #3 - Why Segment?
Slide #4 - Why Segment?
There are a lot of reasons to segment, here are 3:
Slide #5 - How Do Enterprises Segment?
Enterprises segment on RFM. Recency, Frequency, and Monetary Value.
Recency - when was the last time this customer purchased?
Frequency - how often does this customer purchase?
Monetary Value - how much does this customer purchase?
Slide #6 - CaseStudy: WineTasting.com
A/B test from winetasting.com on a recent email targeting 'inactive' segement of their customers. (Inactive being customers who have not purchase in one year or more)
Slide #7-8 - CaseStudy: WineTasting.com
Custom tailored message outperformed regular message
Slide #9-11 - How can you segment your list?
Slide #12 - Key To Success
Don't just segment your list, but custom tailor the message to specific target audience.
Slide #13 - Thanks
Special thanks to WineTasting.com and Kristina Palko for letting us use this case study.
If you heard my talk, I would love your feedback. Either shoot me an email or leave it in the comments below.
It's fairly easy to pick apart websites and list everything that is being done wrong from an ecommerce perspective (and some of my recent posts have done that) but there are a lot of wineries and wine retailers that are doing it right (both on our platform, and on other platforms). Today as I was browsing through our portfolio, I wanted to highlight a few websites that are doing it right.
What I like about WineTasting.com:
What I like about TwistedOak.com:
What I like about CejaVineyards.com:
Site designed by BR Pacific
Pithy Wine gets it. Before we had an iPad app, they bought iPads for their tasting room and used their website on the iPad to collect visitor information.
What I like about PithyWine.com:
Site designed by Pithy Wine
What I like about InmanFamilyWines.com
Site designed by Sight Design
Over the last few years we have seen a lot of wineries and wine retailers increase their efforts on the web. There are a lot of great sites both on our platform and on other platforms. (If your site isn't listed above, it's not because I don't like it.) Keep raising the bar.
I was contemplating a geeked out blog post talking about some of the cool stuff we've learned at Vin65 in 2010 (some of us are learning new programming languages, others are spending time in HTML5, CSS3, iPad and mobile technologies, etc). Instead I opted for the non-geeky, somewhat more-directly-relevant to our customers, 5 Things We Learned in 2010.
At the end of 2009 we saw mobile traffic reach the 5% mark on some of our websites. At Vin65 we knew we had to do something to improve user experience while visiting websites from a mobile device so we created our mobile platform. Visit a site like www.twistedoak.com on your iPhone, Android Phone, or Blackberry Torch and you’ll be presented with our mobile experience.
Mobile visitors who visit a website with a mobile specific experience are far more engaged than mobile visitors on a traditional site. Mobile users spend more time on the mobile website, they visit more pages, they click through more often and they purchase more frequently, but none of this is really surprising.
What is surprising is this... while mobile traffic is now closing in on 10% of traffic on some sites, mobile sales aren’t 10% of total ecommerce sales. The number one thing mobile visitors do on the mobile winery site is view wine, and the number two thing is visit the ‘contact us’ page. (On a traditional site, the 'contact us' page will often be in the top 10 but never at the 2nd or 3rd spot).
Mobile visitors do buy on their mobile phones (we aren’t going to give away the numbers), but they are different than the regular visitor on traditional sites and most wine ecommerce sales are still done on the traditional site. This data is helping us identify new ways to engage mobile visitors.
2011 will be a big year to watch as smart phones continue to be more prominent, more websites start to embrace mobile traffic, and more customers start to use their smart phones for web surfing.
Wine ecommerce platforms are getting to a place where wineries and wine retailers now care more about customer support than additional features. Sure features matter, and we think we meet or exceed our competitors on features, but with all the great platforms available, customer support weighs heavily in the decision.
Customer support via video documentation, online training, live telephone support, responsive emails, etc. is what our customers and prospects care about the most.
As a side note, the online training done by Brent has really taken off. Be sure to check it out.
The iPad was one of the most exciting technologies for consumers in 2010. We saw some of our clients, more specifically Pithy Wines embrace it immediately (long before we had an iPad app). Pithy purchased a number of iPads and displayed their web page with a 'subscribe' form to engage with tasting room visitors.
The iPad was our number one product launch in 2010. (I knew it was going to be great, but we were overwhelmed with inquiries).
The iPad (and tablet technology) has the power to replace the traditional paper signup forms to really engage visitors and wineries have been quick to embrace it.
Wineries want more insight and a 360 degree view of their customers. Wineries want to know lifetime value, last order, most recent visit, etc. across channels. We are seeing real time integrations between systems like ours with POS systems. Other wine vendors are producing great CRM tools. (The dashboard analytics being produced by VingDirect this past year are amazing.)
I first heard the phrase 'actionable CRM' from Paul Mabray at VinTank. What wineries really need is the ability to act on the information they have. For example: A visitor enters a tasting room. How do you engage this customer - not just in this visit, but also in the future? Wineries are exploring the iPad, POS integration, and other tools that not only capture, but take action with these visitors.
On the web, we are seeing some clients really mine their data. Some of our clients chase abandoned carts. Some clients telemarket to their best customers. Some clients contact their good customers who have stopped buying. We are also seeing clients measuring the results from these CRM activities. 2010 was a great year to watch actionable CRM start to take root with wineries.
Social Media has been everywhere the past couple years. We are now seeing social ecommerce taking root (sites like Groupon, wineries selling wine on Facebook thru Cruvee). It’s been fun watching Deals from the Vines and other social type of sales. We also worked with WineTasting.com and some of their partners to do some social sales - with mixed results. In 2010 we saw social commerce start to take off and things are going to get even more innovative in 2011.
As a winery or wine retailer you should be watching the social space and starting to investigate social commerce.
2010 was a banner year for learning, not only for me personally but also for our team. In 2011 I’m sure we'll see improvements on all of these areas and we’ll continue to learn and bring those findings into strategies to enhance our platform.
What has been the #1 thing you learned in 2010?
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