From the vineyard to The Multi-channel World

Contents: • A quick history • Revenue by channel • Direct Wines and the web • What we’ve learned

Contents:

• A quick history

• Revenue by channel

• Direct Wines and the web

• What we’ve learned

A quick history … • 1965 Tony Laithwaite gets the wine bug in Bordeaux • Brings back a van load of wine • Sells to friends, door-to-door • Sets up Bordeaux Direct under Windsor railway arches • Starts mail shots Going along very nicely, but small scale, and then …

The big break … • Wine scams exposed in Sunday Times • 1973 Tony with Hugh Johnson starts Wine Club for Times readers • Club launched through off-the page advertising • Database grows … in-bound call centre grows … mailings grow …

• Wine scams exposed in Sunday Times

• 1973 Tony with Hugh Johnson starts Wine Club for Times readers

• Club launched through off-the page advertising

• Database grows … in-bound call centre grows … mailings grow …

£15m turnover by 1990 • Then … recruitment scales up through lots more off-the-page and direct mail • More new Wine Clubs – Banks, British Airways, National Trust and more • £100m turnover by 1999 • £200m by 2004 Currently £265m and growing …

• Then … recruitment scales up through lots more off-the-page and direct mail

• More new Wine Clubs – Banks, British Airways, National Trust and more

• £100m turnover by 1999

• £200m by 2004

Currently £265m and growing …

The numbers today • Database – 750,000 active customers today + large lapsed/reactivation base + large prospect base • Range – 3,500 wines (from £4 to £350) + beers, cider, spirits, oils • Multiple wine clubs – 15 ‘business partner’ clubs, actively seeking new opportunities • Complementary businesses acquired (Avery’s, Warehouse Wines, Virgin Wines, Australian Wine Club)

• Database – 750,000 active customers today + large lapsed/reactivation base + large prospect base

• Range – 3,500 wines (from £4 to £350) + beers, cider, spirits, oils

• Multiple wine clubs – 15 ‘business partner’ clubs, actively seeking new opportunities

• Complementary businesses acquired (Avery’s, Warehouse Wines, Virgin Wines, Australian Wine Club)

Which channel does revenue come in through?

Which channel generates revenue?

It’s a multi-channel world … • Customers have to be able to choose which channels they use • BUT businesses have to play to their strengths

• Customers have to be able to choose which channels they use

• BUT businesses have to play to their strengths

Our web history • Web sites launched 1999 … hooray! • … BUT depressed overall sales! • Why? - Sites not good enough - Not enough users - Delayed response vs instant DM response - No broadband - Gave customers incentives to go to web

• Web sites launched 1999 … hooray!

• … BUT depressed overall sales!

• Why?

- Sites not good enough

- Not enough users

- Delayed response vs instant DM response

- No broadband

- Gave customers incentives to go to web

… and the web today • Hugely improved usability, design and speed • 250,000 visitors per month • 45% year-on-year increase (traffic and revenue) • Growing revenues from web-only offers • Growing revenues from emails including Direct Mail support emails • Sites rich in information about products and wine advice • Great PR tool • Great customer research channel • Many more opportunities to come…

• Hugely improved usability, design and speed

• 250,000 visitors per month

• 45% year-on-year increase (traffic and revenue)

• Growing revenues from web-only offers

• Growing revenues from emails including Direct Mail support emails

• Sites rich in information about products and wine advice

• Great PR tool

• Great customer research channel

• Many more opportunities to come…

What we’ve learned • No-one comes to your web site unless you promote it! - get to grips with SEO, links and banners - tell customers about your site off-line, in-store • Customers look first for bargains on the web - leverage that interest - but don’t lose control of margins - and don’t make web offers too much better than off-line

• No-one comes to your web site unless you promote it!

- get to grips with SEO, links and banners

- tell customers about your site off-line, in-store

• Customers look first for bargains on the web

- leverage that interest

- but don’t lose control of margins

- and don’t make web offers too much better than off-line

What we’ve learned (cont) • Site functionality is 100% critical. Customers expect reliability and ease of use as standard. • Check out and payment process most important of all. • Keep your site up-to-date. Have the right management, creative and technical resource in place but beware of ‘the bottomless pit’. • Integrate off-line and on-line communication – share digital assets

• Site functionality is 100% critical. Customers expect reliability and ease of use as standard.

• Check out and payment process most important of all.

• Keep your site up-to-date. Have the right management, creative and technical resource in place but beware of ‘the bottomless pit’.

• Integrate off-line and on-line communication – share digital assets

What we’ve learned (cont) • Use sites to build your brand – new customers will check you out – control affiliates - don’t let them subvert your brand – ‘ free space’ allows you to do things you can’t afford to do in print etc – keep trying new things (eg video clips) – online surveys are a powerful research tool

• Use sites to build your brand

– new customers will check you out

– control affiliates - don’t let them subvert your brand

– ‘ free space’ allows you to do things you can’t afford to do in print etc

– keep trying new things (eg video clips)

– online surveys are a powerful research tool

What we’ve learned (cont) • Emails matter! - find out what works for you (subject lines and offers) - Don’t be afraid of frequent contacts … but make sure they’re relevant to customers - not just offers, news and brand-building too - keep them personal

• Emails matter!

- find out what works for you (subject lines and offers)

- Don’t be afraid of frequent contacts … but make sure they’re relevant to customers

- not just offers, news and brand-building too

- keep them personal

A thought … “ On the scale of human suffering, receiving an unasked for mail pack or email does not even begin to register” … but check out unsubscribe rates

“ On the scale of human suffering, receiving an unasked for mail pack or email does not even begin to register”

… but check out unsubscribe rates

Most important of all … • Don’t forget that behind all the stats, clicks and data there are real customers in a real competitive market. • The multi-channel world gives you more opportunities than ever before to get things right for them. Thank you. Questions please.

• Don’t forget that behind all the stats, clicks and data there are real customers in a real competitive market.

• The multi-channel world gives you more opportunities than ever before to get things right for them.