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Vin65 Blog

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.

Andrew Kamphuis
 
August 17, 2010 | Andrew Kamphuis

Creating a Shoppable Wine Website

You’ve had a website for a number of years (at least I hope your winery has a website) and now you want to add an ecommerce store. Here are the key elements to creating a shoppable wine website:

Product Information: Ensure that you have great product pages with rich product information, the product price and the ability to add to cart. Make sure the shopper has everything they need to know about your wine. If your customers are asking the same questions about your wine and that information isn't included on your product page, respond by adding it. Go the extra mile to establish trust by including customer ratings and reviews and enable social sharing. (For more info read our post on The Anatomy of a Great Wine Page)

Professional Wine Bottle/Label Images: The images of your product often make or break the sale. People like to see pictures of the wine they buy. (While we don’t have hard numbers, we can definitely say products with images outsell products without images). Professional crisp images are far superior to pictures taken with a consumer grade digital camera and reflect positively on your brand.

Shipping Rates / Policies: Shipping cost is the number one deterrent to buying wine online. Be upfront with your customers about shipping rates. Try something like Inman Family Wines where they show their shipping on the left side of their product pages. Also ensure that you have the standard shipping policy, privacy policy, and terms of use pages.

Contact Information: Have your contact information everywhere. (We recommend including your phone number right on your website header like WineTasting.com). Build trust by having both contact us and customer service pages (customers like to know how to contact you if their is a problem with their product).

Frictionless Checkout Process: No online shopping experience is complete without a shopping cart and allowing customers to checkout easily. Build a frictionless checkout by reducing forms to only necessary information and enabling guests to checkout without registering. (For more info read our post on
Reducing Friction Points in Checkout)

Before you launch the ecommerce portion of your site, ensure you have all the necessary elements to make your customers feel comfortable. Inspire confidence and trust by providing all of the information they’ll be looking for without having to search for it.  Try purchasing wine from your own site and ensure the experience is optimized.

P.S.  One of my favorite "shoppable" wine sites we've launched recently is the Inman Family Wines site.  

Time Posted: Aug 17, 2010 at 8:00 AM
Andrew Kamphuis
 
August 10, 2010 | Andrew Kamphuis

How Wine Tasting Network Increased Club Reorders by 255%

It's always great when we hear or see our clients dedicating time and resources to marketing and testing their wine e-commerce store. Tweaking store content, optimizing email promotions, and general testing can take your e-commerce sales to the next level.

Our client/partner Wine Tasting Network (WTN) is a company we love working with because of the amount of testing they do. They gave us permission to share one of their most recent tests including the results. WTN has a few websites on our platform including Geerlings and Wade. Club members can reorder wine from their club shipment and receive 20% off if they purchase $200 or more. The director of marketing, Kristina Palko recently conducted a test to see if highlighting/reminding club members of this discount would increase reorders.

Creative for May VIP Package Insert  

Starburst On June Newsletter

Objective

The object is to increase reorder revenue from Passport Wine Club members.

Strategy

  • With the May club shipment, WTN included a printed VIP card with the standard 20% off club member discount.
  • With the June club shipment, WTN included the same offer but this time it was in the form of a dollar amount ($50 off $250 or more). It was given an increased presence in the newsletter and there was no VIP card.  (A starburst was placed on the newsletter to highlight the 20% off.)

Results

  • Club member purchases in May/June increased 255% over club member purchases in January, February and March. The average order value also rose 18%.
  • While the number of orders in May and June for each offer was the same, the average order value for the VIP card insert program was a whopping 66% higher ($261 versus $435).

Next Steps:

Test a dollar offer versus a percentage offer to see if the average order size is directly related.

Here are a few of my takeaways for wineries:

  • Offer club members an easy way to re-purchase the wines in their club shipment.
  • Measure often (WTN knows how well their offers perform by measuring every single month).  Also note that they have a baseline to gauge against (They know the data from Jan, Feb, March).
  • Measure multiple variables (WTN knows the average order value as well as the number of orders).
  • Always be retesting (WTN has laid out a path of what to test next based on the past results).
  • A simple reminder like a VIP package insert may help to increase reorders and order value.

Thank you WTN (specifically Chris Edwards for allowing us to post your test on our blog, and Kristina for running and tracking tests like these).

Time Posted: Aug 10, 2010 at 8:00 AM
Andrew Kamphuis
 
August 3, 2010 | Andrew Kamphuis

The Two Most Important Wine Ecommerce Analytics You Should Evaluate Every Month

There are tens if not hundreds of analytic measurements you can conduct on your website. Unique visitors, page views, top content, where people are visiting your site from, are all great things to look at.

The two most powerful, but often overlooked measurements are conversion rate and customer retention rate.

Conversion Rate

Conversion rate is the total number of sales divided by the total number of people visiting your site. (Technically conversion rate is the number of goals achieved divided by the number of visits, and there are a number of measurements people use such as total number of sales divided by total number of carts started, etc – the important thing is to measure it consistently month over month).

Total Number Of Visitors
Total Number Of Sales

Conversion rate gives you a benchmark of how well your ecommerce is performing month over month. Once you have a measurement, you can start to play with factors that affect conversion rate including usability, content, navigation, etc. Try changing button sizes, minimizing steps to checkout, having larger images, etc and gauge whether it increases or decreases conversion rate.

(One of the best resources on the web for conversion rate optimization is the blog at Future Now Inc)

Customer Retention Rate

Customer retention refers to the percentage of customers that continue to return as customers with you after a given time period.

In the wine industry, customer retention should be measured in two areas:

  • Club retention rate: how many customers that were in your club last month and are still in your club this month.
  • Ecommerce retention rate: the number of customers who bought from your winery website last month who are placing an order this month. (You may prefer to use a longer time period than a month when measuring ecommerce retention)

                 Total Number of Club Members Last Month                
Total Number of Club Members That Remain In The Club This Month

It’s far easier and costs significantly less to retain customers than to gain new customers. Bautomation claims that a 2% increase in customer retention has the same effect as decreasing costs by 10%.

~~

The next time you are looking to see how well your ecommerce is performing, skip unique visitors and page views and calculate conversion and retention rates.

Time Posted: Aug 3, 2010 at 8:00 AM
Andrew Kamphuis
 
June 30, 2010 | Andrew Kamphuis

How often should you update your winery website?

Keeping your website fresh is key to its success. Visitors won’t return if the content is stale and dated.

So how often should you update your site? As often as possible! (Sorry for the smart ass answer.) In reality the answer varies from website to website and depends on your audience and your goals.

Let’s look at the different sections of your site.

Ecommerce:
Update your specials and offerings as often as you want customers to return to your site. For wine retailers you probably want customers returning every week or two weeks. For wineries it's probably more realistic for customers to return once a month.

You also want to ensure your product content is as accurate as possible. New products should be offered on the site at the same time they are offered in your tasting room or store. Product ratings, reviews, awards, and other details should be updated as soon as possible.

At a minimum, you should review your store once a month.

General Content:
Some content might not be important to update as often. For time sensitive information (such as events, allocation information, etc) a strategy should be in place to ensure this information is kept up to date (Most content management systems allow for content to be added or removed from a site on specific dates). If the most recent winery events that appear on your page are several months (or years) old, your web visitors will get a sense that you're not enthused or not paying attention to details.

You should probably review your general content at least once a month.

Blog:
If your goal is daily or weekly visitors then you need daily or weekly blog content. With blogging it’s important to have consistent updates if you want long term readership.

Design:
The design of your site needs to be updated a lot less frequently than the content. Your design should be updated if it's starting to look stale, if you’re missing features, if it's falling short when compared to your competitors; or anytime you update your brand, logo, or business cards.

Design changes should be evolutionary rather than revolutionary. Repeat visitors need to feel like your site is changing for the better and should be able to figure out any design changes.

For most wineries and wine stores, we suggest the design of your website should be rrefeshed every one and half to two years (again this often should be evolutionary and minor rather than full scale redesigns).


If you feel like you need to update your website... you're probably right.  What do you think? 

Time Posted: Jun 30, 2010 at 8:00 AM
Andrew Kamphuis
 
June 2, 2010 | Andrew Kamphuis

Would you buy wine from your website?

I was in a client meeting recently where I've had the opportunity to listen to several brilliant marketers. The best piece of advice: pretend you are a customer and try to buy a bottle of wine from your site. (If you're doing this exercise I would encourage you to pick a specific customer you know from your customer list and pretend you're are him or her and go through the shopping process.)

As a customer, here are my biggest peeves when I shop for wine online:

1) Having to create an account.
Having to create an account is a large deterrent. This has been and proven over and over again (I still see it everywhere when I shop online - often in dated websites). As a customer, I want to buy a bottle of wine and give you money.  I don't want to pick a unique username, password, have to authenticate, or anything else. If you still force people to create an account, you're losing a large portion of your sales.

Visualize these lost sales. According to Forrester Research, cart abandonment rate is 23%. That means you're losing 23% of your site visitors somewhere during the checkout process because they don't want to create an account on your site.

2) Insane shipping rates.
Let's face it, wine is expensive to ship. As a customer, if I buy wine on your site at your retail price I'm in your most profitable customer segment. If I'm outside of driving distance, it means that I must really like your wine and I have chosen your wine over a wine store close to me that would gladly sell wine that I could consume immediately. Why are you taking the most profitable customer segment, that customer who is fan enough to buy your wine online, and charging them rates that are sometimes above UPS posted rates?

3) Minimum Quantities.
I was talking to a wine retailer recently who forces web customers to order in quantities of 6. What if I only want two bottles? Having quantity discounts, or shipping included in the price after a certain bottle count makes sense, but don't force me to buy 6 or 12 bottles. If I only want two bottles and you attempt to force me to buy six, you probably lost a sale!

4) Lengthy Checkout Processes
As a customer I've stumbled through your site selecting a couple wines and now I'm entering the checkout process. At this point I'm prepared to give you my payment and wait for my wine. Endless forms, profiling questions, multiple pages (often very slow due to processing and security), all drag the experience down. Form fatigue is a real issue. Do you track how many people start the checkout process and never complete it? The faster the checkout line, the happier the customer and the more likely they are to complete the sale.

5) Security Assurance
When I enter my credit card I want to feel safe. Is the webpage under SSL. Does it look professional (yes the design of the page has a lot to do with how secure a person feels). I'm still shocked sometimes when I see unsecure checkouts, or checkouts that send me off to some third party unknown site to enter my credit card.

~~

Today my question for you is - have you shopped your own wine website?

Time Posted: Jun 2, 2010 at 9:00 AM
Andrew Kamphuis
 
May 12, 2010 | Andrew Kamphuis

Follow Up: Is it time for your winery/wine store to have a mobile website?

A little over a month ago we launched our mobile ecommerce/website platform. We've been seeing mobile web browsing increase across our platform over the last year. More and more people own iPhones, Android Phones, and other smart phones and these people are surfing the web on these phones.

Most of our winery websites (all the ones without flash) preview well on a modern smart phone, but here's what happened when we introduced winery websites specifically designed for smart phones.

  1. Smart phone visitors view more pages on a mobile website than they did on the same winery's standard site a few months earlier. (They are viewing 20-45% more pages than they previously viewed on the standard site).
  2. Smart phone visitors spend more time on the mobile websites than they did on on the same winery's standard website.

These conclusions are in line with what we anticipated. When surfing on a smart phone, a mobile formatted site is easier to view, loads faster, and delivers a better experience overall, which results in the visitor being more engaged.

~~

Want to calculate how much traffic you are missing out on if you don't have a mobile site?  Google Analytics makes this pretty easy to do.  Once you login to Google Analytics, on the top right hand side click 'Advanced Segment' option and select 'Mobile Traffic'.  

Once you have the advanced segment set to Mobile Traffic there are two things you should look at:

  1. What is your overall 6 or 12 month visitor trend?  Our experience is that mobile should be increasing over time as more people buy smart phones.
  2. Now drill down into page views.  How many page views are mobile visitors viewing?  Our experience (which is specific to our platform only) is that you should see a 20-45% increase in page views.

~~

Want to test out the mobile experience for yourself?  On your iPhone or Android phone visit one of these three sites:  www.twistedoak.com, www.cuvaison.com, or www.pinewines.com.  Play around on the site for awhile (by default you will be seeing the mobile site if you are on an iPhone or Android phone).  

Now click the link at the bottom of each of these 3 sites that reads 'Standard Site'.  You will now be viewing the site in standard mode.  What difference did you experience when viewing the mobile vs standard site? 

Time Posted: May 12, 2010 at 7:00 AM
Andrew Kamphuis
 
May 3, 2010 | Andrew Kamphuis

Interview with Direct-to-Consumer Marketing Rock Star - Chris Oggenfuss

Chris Oggenfuss is a 13 year Direct-to-Consumer wine marketing veteran working at wineries such as V. Sattui Winery, Benziger Family Winery and Imagery Estate Winery. In 2009 he founded Oggenfuss Wine Marketing and over the last year has executed several marketing initiatives. My two personal favorites are the V. Sattui iPhone App and his OWMarketing Channel on Youtube

I've had a few opportunities to talk and work with Chris and I have always been impressed. This past week he agreed to an interview about Direct-to-Consumer marketing and here is what he had to say:

Chris, for wineries just getting started or ramping up their direct-to-consumer marketing plans, which key tactics should they prioritize?

Start with the end in mind and develop a strategy. Ensure that you are customer focused; create a great experience for the consumer and build a relationship. The next step is to focus on data collection. This needs to happen across all customer contact points.  I cannot stress enough how important this is! The goal is to get everyone’s email information whether you're connecting with the customer through your tasting room, website or phone. No one will ever get 100% conversion, but that should be what you strive for. Next, get yourself a database or software that helps you manage the customer data that you are collecting. Best case is to have a POS and E-commerce solution that automatically feeds this database or CRM (Customer Relationship Management) software, that way you are not only collecting customer data, but customer behavior and purchase history. The end goal should be a 360 degree view of your customer.

Relationship marketing: what are some simple, effective ways to provide personalized touches that can help deepen a winery's relationships with its customers?

Follow up on purchases no matter where they are made (either virtual or from your physical site) with a personalized thank you note.  I can’t stress enough how far a personal thank you note can go in cementing a long-term relationship.

Acknowledge your best customers by interacting with them. Don’t let this be a one-sided relationship where the only time you communicate with them is when you send them a receipt or email them an offer.

Be available and engage where your customers and potential customers are. Be it at your winery, in a virtual sense or in social media. Are you listening to what is being said about your brand? Are you engaging at the point of need or demand? Are you adding to the conversation as opposed to broadcasting a message? When someone speaks of your brand positively follow up and thank them. If there is negative conversation engage and exercise the opportunity to convert that person into an evangelist.  Some of my clients have had great success in doing this.

Humanize your brand by understanding your customer. This comes from listening and paying attention to each individual customer's needs. How do you accomplish this? Data collection - the more data you collect on a customer the more information you have to act on and personalize each contact point.

How does social media, location-based apps like Foursquare play a part in that? Anything in the pipeline that we should watch for?

Social Media allows your brand to be available 24/7, it allows you to build your peer-to-peer brand ambassadors who will help you build trust and earned media.  You can continue that one-on-one conversation or relationship virtually. By becoming part of the conversation your relationships are strengthened and become even more genuine. When you build a relationship you do a lot of listening and respond according to the other persons needs, when this happens trust is built, resulting in brand loyalty and profits.

Foursquare is great in that it allows businesses to do some pretty creative things when it comes to recognizing loyalty and rewarding visitors who put you on the social map. You can see who has checked in and reach out to them in real life and start a relationship that is sure to continue.

I think we are just at the tip of the iceberg when it comes to social media and augmented reality, especially as far as businesses can leverage the potential. I would look for more social media integration across a winery’s digital and physical assets. We are actually working on a project that does just that and also integrates data collection to convert the visitor into a customer.

One of your recent YouTube videos on the OWMarketing Channel addressed the hub and spoke analogy. Tell us more about that.

Well, the way I see it is that your website should be the hub of all your activity, meaning that this is where you want the revenue producing engagement to happen. I see Twitter, Facebook, etc as the spokes that should be used to drive traffic to your hub. I can’t tell you how many websites are doing just the opposite. They are driving the traffic, conversation, and interaction away from their sites onto the ancillary social networks. In my mind the role of social media is to help you not only engage and acquire new followers and friends, but then to help drive them back to your website where you can convert them into customers. This is how the ROI question about social media is going to get answered. The sites that are themselves set up for social commerce will be able to do this most effectively.

Your newly developed iPhone and Android app for V. Sattui Winery: Tell us about it and how wineries can use mobile apps in their marketing strategies.

We are very excited about V. Sattui’s iPhone app, they are one of the first to leverage an app to help strengthen consumer relationships and deliver relevant content to a mobile device. The app was originally developed for the music industry but we saw that a lot of its functionality could be adapted to a winery’s needs, so we approached V. Sattui winery and got them excited to the possibilities. The app allows wineries to take advantage of push notification and even geo-target that notification. Imagine you are a winery and your winemaker is in Chicago selling wine in the market. With the app you would be able to send a push notification to all your followers who are in Chicago and invite them to a special winemaker dinner. You can send push notification when a new wine is released and drive traffic to your shopping cart or tasting room. The marketing possibilities here are endless. The app also allows for full social media integration with Facebook and Twitter as well as having it’s own fan wall. It has an events calendar, allows for purchases within the app, mailing list sign up, and streaming video. It even allows you to stream live video direct to the user's phone. Basically it allows the winery to be available around the clock on a device that people carry around with them everywhere, freeing the information from the constraints of a computer. It also allows the winery access to rich analytics.

Which tactics do you recommend to increase a winery's online sales?

Here again it’s about fostering your relationship and providing a great experience.  Let’s address the relationship part first. Do you understand your customer? (This goes back to being able to collect data). Are you able to target your offerings and campaigns to those customers that are most likely to purchase? Do you know what a particular customer's preferences are? Customers want to be understood and have their needs met and a well-crafted and targeted email campaign does just that. Now for the experience part, you need to make sure that your ecommerce site is easy for the consumer to use and navigate. Nothing is worse then a shopping cart that requires the user to hunt for what they want and then requires them to click through 7-10 pages to execute a purchase. Remember amazon.com has defined how users expect the online shopping experience to be. Do some RMF analysis of your database to identify your top customers and then tailor an experience accordingly. Make sure that every offer you send has urgency and a clear call to action. The final point is to make the content of your site, email campaign, and social media efforts exciting and engaging. Use video! A recent comScore study shows that online video viewers spend 20% more on e-commerce than the average Internet user.

Remember you are not just selling a product; with wine you are selling lifestyle and romance.

How do you feel about wine product pages that feature consumer reviews?

I absolutely think that is the right way to go because it leverages peer endorsements.  Studies have shown that next to trial tastings, friend and peer recommendations are the second biggest driver of wine sales. I am always surprised at how many wineries have not yet incorporated this in their e-commerce solution. The future of online sales is in integrating social media in your website (aka social commerce). Think amazon.com and zappos.com. Remember your goal is to engage your customer on your site, why would you force them to review your products somewhere else? Think of it as your 24/7 focus group.

What do you say to wineries who are afraid to receive lukewarm or negative reviews?

You need to get over it! People are going to talk about your brand and products whether you give them the opportunity to do so on your site or not. Customers trust peer reviews because it helps them make a decision. Reviews drive sales. If you make a great product, have great service and meet your customers expectations why be afraid? When you are delivering on the aforementioned fronts you are sure to have more positive reviews then negative, plus your good and regular customers are going to be your biggest supporters and allies, they will help self-moderate the reviews and defend you against the negative ones. I have seen this happen time and time again. Besides, I am of the mind set that a complaint or negative review is a gift, as it allows you to take action and win over one more customer.

Which areas of direct-to-consumer marketing do you see wineries struggling with the most? Why do you think that is? Your advice to them?

The Direct-to-Consumer areas that most wineries struggle with are strategy, technology, customer data analysis, and how to use social media to drive conversions and sales.  
 
Develop a clear direct-to-consumer strategy! While tactical actions can get you only so far, a well-developed strategy can help you make the most of your resources. If you don’t know where you are going, how will you know when you get there?
 
Invest in technology across your entire direct-to-consumer business and make sure that technology is integrated and talks to each other. The goal here is a 360 degree view of the customer not only for the winery, but also for the customer. Your strategy will dictate your technology needs.
 
Spend time analyzing your customer data and applying RFM principals to this data. This is the low hanging fruit! It is far easier and cheaper to increase revenue from an existing customer and extend their lifecycle and lifetime value (LTV) then it is to acquire a new customer. Yet time and again I see wineries spending their time and efforts on customer acquisition and neglecting their current customers
 
Use social media not just because it is there, use it to build your business!  Again strategy here is key. Contrary to popular belief you can drive conversions and sales using social media. It all starts with building a relationship and setting expectations. A consumer following a business on social media is doing so to have access to information, stay in touch and yes, receive special offers. A recent eMarketer study supports this.

Chris, thank you for taking the time to answer my questions. Your recommendations to our readers are much appreciated.

Chris can be found on Twitter, Facebook, his YouTube Channel or contacted through his website.

Time Posted: May 3, 2010 at 9:00 AM
Andrew Kamphuis
 
April 8, 2010 | Andrew Kamphuis

Ramping up your Direct-to-Consumer Marketing - Interview With Digital KungFu Master - Paul Mabray

One of the biggest voices in the wine technology space is that of Paul Mabray, CEO of VinTank and founder and former-CEO of Inertia Beverage Group.

Paul is truly visionary and far-from-shy about leading the way to develop, critique and implement ideas and strategies to improve the online wine world. Paul and VinTank are valuable partners of ours as well as close friends.

I had the opportunity to ask Paul a few questions recently and he stayed up way late answering them for us.

Paul, for wineries just getting started or ramping up their direct-to-consumer marketing plans, which key tactics should they prioritize?

I don’t want to start as a broken record but a plan is key. Strategic and tactical. However, the core of all DTC strategies should be customer centric. Google put the power into the consumers hands. Social networks put a megaphone and an interconnectivity never before seen in human history. Both positive and negative consumer reactions to your product can spread like flash fires. Being customer centric is part of the new world. 

Relationship marketing: what are some simple, effective ways to provide personalized touches that can help deepen a winery's relationships with its customers? How does social media, location-based apps like Foursquare play a part in that? Anything in the pipeline that we should watch for?

There are many marketing components that Location Based Service (LBS) like BrightKite, Yelp, Foursquare, Gowalla, et al bring to a winery. But in the end these are just customer connection mediums (adding a new dimension of locality). This could include rewarding visitors when they notify you and the world they are at your location or give them recommendations when they go to other locations. They are just new methods to create deeper engagement with your customers. However, the first statement about whatever strategy or tactic you choose to leverage these platforms, your view still needs to be customer centric. 

You recently tweeted that "Pro-direct doesn't mean anti-distribution" (something to that effect). Tell us more about that.

I’ll break this into two segments of direct: DTT and DTC

DTT provides a healthy route to market for small brands or products. It acts as an incubator for brand building. Remember, wholesalers provide a necessary service to wine brands that have good strong velocity and require high service. However, smaller brands (due to the total quantity worldwide of 55K) and due to the regulations of wholesaler being required to buy the products (no consignment). Excuse me while I geek out on wine industry dynamics and economics. Wine is a what we call a SUPER long tail industry (an amplification of the www.longtail.com theory) and only one of four consumer good package industries that has this level of different products (books, movies, music, and wine). We produce at least 250K different wine products per year and far more SKU’s than that (375 ml, 750 ml , etc). This SKU load compounds in the market vintage to vintage and remains alive three to ten years in the market (sometimes more). e.g. 3 years into the future times 250K products equals 750K products! Can you imagine a wine store with 750K products? Or go ten years into the future how about 3M? And unlike the other three super long tail products, who are increasingly being distributed digitally, wine is the only absolute physical product. You can’t deliver wine virtually. Ever. One other unusual aspect about the wine industry’s long tail is the price is not as normalized like other three super long tail products and almost has an inverse pricing structure to the demand curve. e.g. Kistler has far more carrying costs and inventory risk than Mondavi Woodbridge. In essence it is the prohibitive economics of wine buying in the middle tier that create dysfunction. Wholesalers can’t support the product load and would benefit from an alternative channel that allows wineries to build a trade customer base to a level that requires their support and doesn’t force them to take inventory positions until the winery has market penetration and awareness. DTT is key for the health of all tiers of the market. They provide that incubator and pressure relieve valve of product overload for wholesalers. They provide alternative route to market (even to the product level for wineries). And they give restaurants and retailers a more diverse selection to compete in the market to better distinguish themselves to the consumers.

DTC is over demonized by wholesalers. Remember that most consumers buy wine and consume it within 3 hours of purchase. DTC does not support that behavior. However, it does allow consumers to purchase wine they enjoy and if they are in need, they will buy within the local market. It builds awareness and customer loyalty as well. Wineries that have combined DTC and traditional distribution are stronger as brands and the wholesaler pull is better than those without DTC in the market. DTC acts as pull marketing due to the industry dynamics. Also DTC gives back strong margins to wineries to help them become and remain healthy companies. This health allows them to reinvest dollars into sales and marketing efforts THAT SUPPORT wholesalers trade efforts. Wholesalers, don’t you want financially healthy partners?

#NapaValleyTweetup: Tell us about it and how wineries can use tweetups in their marketing strategies.

Tweetups are an interesting marketing vehicle. They can work in many ways but here are two that are most easy to recognize. First, it is an easy way to not only speak with you customers, but to allow them to meet each other and talk amongst themselves. At its core it is community building with your brand as a key element. It is also very obviously a point of purchase catalyst for IN-MARKET as well as DTC purchasing. How else are the consumers in out-of-state markets going to get the wine to taste? The tweetup provides value at all tiers. The winery connects with its customers, creates sales catalysts, and brand equity. The wholesaler gets the benefit of in-market pull. The retailer gets the benefit of in-market pull as well as the opportunity to participate in the conversation with consumers (many theirs). And the consumer gets to interact directly with the winery & retailer, create relationships with other wine consumers, learn about wine and wine tasting, and enjoy an experience.

Which tactics do you recommend to increase a winery's online sales?

  • Invest in the channel (human and financial resources). 
  • Create a customer centric strategy to SUPPORT your ecommerce and more. 
  • Choose your foundation of software partners wisely. The last one is key. Not only do they have to be aligned with your interests, they need to play nice in the sandbox with other best of breed vendors. 
  • Do not let accounting lead the reason for your software decisions. Let sales and marketing lead the decision.
  • For larger wineries, make sure brand ALIGNS its interest with consumer direct. Most sites led by brand managers do NOT take into account web best practices (SEO, conversion, etc) that are healthy for both the brand in market as well as DTC sales.

How do you feel about wine product pages that feature consumer reviews? What do you say to wineries who are afraid to receive lukewarm or negative reviews?

I think consumer reviews are key for helping consumers overcome the friction associated with buying ANY item online. Per kiwitobes.com, and his class with former Chief Scientist at Amazon) Andreas Weigend, Amazon makes 20-30% of its sales from recommendations. Only 16% of people go to Amazon with explicit intent to buy something. If I were to learn something about e-commerce, I definitely would look to Amazon (I think they know a thing or two). The fear of a negative review is understandable and tactics and methods for addressing low reviews from consumers is as much art as science (no brand wants a product sheet filled with expletives). However, with proper processes, tools and company rules of engagement, even negative comments can be assets to create deeper customer engagement and trust.

Which areas of direct-to-consumer marketing do you see wineries struggling with the most? Why do you think that is? Your advice to them?

E-commerce, Social Media and CRM. It is not a winery’s fault, we just don’t have enough talent in those disciplines to date. Remember online ecommerce has only been really viable for barely 5 years (before that it was viable, but only accessible to 14 states). As a result it is also the least healthy DTC channel for wineries and thus, the least in importance for investment, resources, and understanding. Ironically it is ecommerce that gives the wineries a window to many, many more customers than a tasting room ever could. With the tasting you room you are limited by the amount of people that come to you. The internet gives you access to the world.

Anything else?

I believe the future of wine online starts with the wineries cleaning and solidifying the foundation of our houses. That to me means ensuring customer and product data are ready for tomorrow. If I were to ask a winery to do four things to ensure the health of their brand online it would be:

  • Invest in the channel (I know I said this before but I can’t stress it enough). If you don’t feed it, it will never become healthy and flourish. For that matter, invest properly in DTC in general. It may yield less gross sales, but more than make up for it in net revenue.
  • Create a customer centric strategy. Paraphrased from Zappos.com “One day, 30% of all retail transactions in the US will be online. People will buy from the company with the best service...” I know where I want my partners to be, on the winning side of that 30%.
  • Put your COMPLETE information into yourwineyourway.com (for FREE) to manage your digital footprint. One place, 50+ outlets that you get to control the way your brand is being represented in the digital arena.
  • Start planning your consumer CRM platform to support your consumer centric strategy. IMHO tomorrow’s future of our brands will be built on how well we understand our customer and create service that caters to their preferences while delivering great product. CRM is the foundation to build a customer centric strategy.

Paul, I appreciate your insights and candor here. As always, great info on where wineries should consider looking to increase their DTC sales.  I really appreciate the time you took to share.

Follow Paul on Twitter here, become a fan of Vintank on Facebook and/or contact him via Vintank's website.

Time Posted: Apr 8, 2010 at 9:55 AM
Andrew Kamphuis
 
April 6, 2010 | Andrew Kamphuis

Is it time for your winery/wine store to have a mobile website?

Late last year I was looking through one of our customers web analytics, analyzing some sales and browsing patterns and noticed something interesting - someone using an iPhone bought wine on this particular website.

We are hearing more and more about internet usage on smartphones - so is it time to target these mobile visitors? Let's look at some stats:

All of the websites we build work on the iPhone and Android phones, but the experience hasn't been particularly great. Like most traditional websites, when they are viewed on an mobile device it involves a lot of tapping, zooming, and scrolling.

While there are some big numbers in the links above, looking at the wine websites we build, we are only seeing between 2-5% of traffic from mobile devices. However even with these small numbers, I would argue that the time for a mobile site is now - for the following reasons:

  • The people who saw the largest successes from social media were the first people in, being early in gives you some first mover advantage.
  • Get in early, make mistakes early, and learn while the traffic is still small. Figure out what is working and what isn't working.
  • People might not spend a lot of time on your site with their mobile device because the experience isn't great right now. (Try visiting your own site on an iPhone or Android phone - would you want to spend a lot of time on it?) When the experience improves, they will spend more time and interact more - this has been proven.

~~

Today we launched our mobile ecommerce solution. If you have an iPhone or Android Phone visit http://twistedoak.com, http://cuvaison.com or our demo site http://pinewines.com. Let us know what you think of the experience.  I would also like to hear your opinions on mobile websites and mobile commerce.
 

Time Posted: Apr 6, 2010 at 6:30 AM
Andrew Kamphuis
 
March 30, 2010 | Andrew Kamphuis

Interview with Email Marketing Rock Star - Kristina Palko

Kristina Palko, is a Napa Valley native with deep experience in wine industry sales, operations and marketing.  She is currently the Direct Marketing Manager at Wine Tasting Network, a  1-800-Flowers company that has several direct to consumer e-commerce websites include Geerlings & Wade, Ambrosia, and Wine Tasting Network. (WTN is a client of Vin65.)

Kristina is responsible for an enormous amount of direct-to-consumer email and has seen first-hand what works and what doesn't. It was great to have the opportunity to ask her a few questions about email marketing specific to the wine industry.

What are some of the common goals of your campaigns?

  1. Acquire new customers and activate older customers
  2. Retain current customers
  3. Engage customers on a deeper level through social networking, product reviews, blogging and more

With such a large mailing list, what are some of your strategies for segmenting and engaging your mailing list members to increase effectiveness?

  • By Order Recency or Frequency. For example, customers who have not ordered in over 12 months or, customers who have only purchased one time.
  • By Wine Club Status. Cancelled, expired, former wine club gift recipients and potential prospects.
  • By Previous Purchase History. We follow up with new customers with product review emails which encourage feedback and increase brand awareness. We also offer special pre-release notification emails.

What types of promotions get the best results?

In terms of overall response rates free shipping and aggressive discounting with short offer expiration dates and, holiday related gift sets at attractive price points. In terms of engagement, follow up product reviews and surveys.

Have you seen any emerging trends or changes in email marketing?

There has been a lot of emphasis on deliverability in which creative design & sender reputation play a big role. There is also a big movement towards the incorporation of animation and video within emails. I suggest signing up for The Retail Email Blog which reports the top retail emails of the day. Fun read called the “Oopsy Hall of Fame” as well...everyone make mistakes!

How often should a winery/wine business measure and evaluate results of their email marketing campaigns?

Unlike direct mail, you can get a good read within 5-7 days of the email deployment date. I suggest both a weekly and monthly evaluation. Create a layout that allows you to compare results at a glance so you can see significant differences in open rates, click through rates, click to transaction rates and unsubscribe rates.

When you are ready to take metrics to the next level, Google Analytics can serve as a fantastic means to track not only sales associated to each of your email campaigns (and from which exact click of the mouse) but also provide valuable insight into how your customers are reacting once they get to your landing page such as cart abandonment rates, time spent on site, number of page views and more. Best yet, it’s free.

What advice would you give to a new winery or wine business about list building and email marketing?

  1. Train your staff to collect email addresses at every touch point. It is much harder to obtain them later.
  2. Make sure that every email you receive is tied to the customer purchase history for future segmenting (i.e., don’t start a new massive excel spreadsheet which only contains email addresses).
  3. If you have a website, add an email opt in field on the homepage.
  4. Familiarize yourself with the Can Spam law and email creative design best practices.
  5. Opt in to competitor emails.
  6. Start slow with one really great email per month to gage response. Include personalization, short yet concise copy, a compelling image, a great discount and a sense of urgency (short expiration date).
  7. Resist the urge to overload your customers with multiple products within the same email and/or long winded copy. Remember, the point of an email is to get the customer to click through to the landing page where you can close the deal.
  8. Monitor results. The beauty of email marketing is because an email has such a short shelf life, results are available quickly. Use those results to your advantage in judging what you are doing correct and what you can improve upon.

Kristina I want to thank you for taking some time out to answer my questions. There is a lot of great content here.  "Train your staff to collect email addresses at every touch point".

Time Posted: Mar 30, 2010 at 6:30 AM
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