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Key Strategies to Build Your Wine Club Business
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Key Strategies to Build Your Wine Club Business

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If you’re in the business of selling wine, you probably have -- or are seriously considering -- a wine club. Reaching your customers directly with automatic shipments of wine is a great way to build ...

If you’re in the business of selling wine, you probably have -- or are seriously considering -- a wine club. Reaching your customers directly with automatic shipments of wine is a great way to build your business and your profitability.

In this free 30-minute webinar, we will explore the best ways to build your wine club and share proven strategies for making your club attractive to your best customers. We'll also review the key components of a successful wine club and tips for continued success once your club grows.

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    Key Strategies to Build Your Wine Club Business Key Strategies to Build Your Wine Club Business Presentation Transcript

    • 3/13/2014 1 Key Strategies To BuildYour Wine Club Business
    • 3/13/2014 23/13/2014 2 Fred Dilkes, VP WineWare Software Introduction • Serving wineries since 2003 • WineClub, E-Commerce & Tasting Room POS Software • Hundreds of wineries nationwide use our solutions
    • 3/13/2014 33/13/2014 3 For most small wineries, Direct-to- Consumer sales represent nearly 70% of all case sales. Why A Wine Club? That’s why 75% of wineries have a wine club Source: http://www.winebusiness.com/wbm/?go=getArticle&dataId=89075; http://www.winebusiness.com/wbm/?go=getArticle&dataId=99945 70% 75%
    • 3/13/2014 43/13/2014 4 DTC wine sales expected to rise this year Why A Wine Club? While other wine sales may fall Source: http://www.cnbc.com/id/100966091 13% -8%
    • 3/13/2014 53/13/2014 5 Club Benefits Source: http://www.winebusiness.com/wbm/?go=getArticle&dataId=99945 2/3 It’s estimated that the wine club contributes 2/3 of the profitability at most wineries. • Guaranteed, reliable income & Cash flow • Direct access to end consumers • Higher margins • More likely repeat purchases • Loyal Advocates = New Customers
    • 3/13/2014 63/13/2014 6 Emotional Benefits: • Enjoy a treat • Have something special • Easily entertain • Impress your friends • Be part of a community • Bring friends to events • Use wine as gifts Member Benefits Intellectual Benefits: • Discounts • Free Tastings • Exclusive Events • Exclusive Wines Appeal to both sets of benefits when selling your club!
    • 3/13/2014 73/13/2014 7 Create A Club Source: “Using Data for Better Decision Making” presentation at the Unified Wine & Grape Symposium, Jan 28, 2014 59% Of wine clubs offer the guest a choice of clubs to join Consider: • Reds / Whites / Mixed • Price point – entry level, premium • Quantity of bottles (2, 4, 6) • Frequency (Quarterly, Semi, Yearly) • Personality / themed clubs • 1 to drink, 1 to share, 1 to collect
    • 3/13/2014 83/13/2014 8 Shipping Strategy Source: http://simplehedonisms.com/archives/4353 Consider subsidized shipping to boost volume & stand out Example 1: Customer Pays Shipping 100 customers, 4 bottles ea. Avg. $20 per bottle 30% margin Net Profit: $2400 Example 2: Free Shipping on 6 bottle club 100 customers, 6 bottles ea. Avg. $20 per bottle 23% margin Net Profit: $2760
    • 3/13/2014 93/13/2014 9 Create A Club Do: • Reflect Your Brand • Think “Value Add” • Personalize • Have Fun Don’t: • Let Customers pick the wines • Dump overstock or excess inventory • Send the same thing each time.
    • 3/13/2014 103/13/2014 10 Create A Club Source: http://www.winebusiness.com/wbm/?go=getArticle&dataId=75974 $25 and less 4% $26-$50 19% $51-$75 27%$76-$100 12% $101-$150 19% $151-$200 5% > $200 6% Don’t Know 8% Average Price of Wine Club Shipments 2010 Most Popular Also Good!
    • 3/13/2014 113/13/2014 11 Boost Your Club Creative Ideas: • Exclusive wines • Discount on wine purchases • Member events • Added benefits for higher club tiers • “Velvet rope” club-only tasting area • Concierge services in area – help with trip planning • Pick up parties for members • Pairings with artisan cheese, chocolate, olive oil • Lifetime tasting pass • Refer a friend promotion • Wine Seminars • “Education” such as science of wine or aromas • Organize a wine tour or vacation for members
    • 3/13/2014 123/13/2014 12 New Competition • Winery Growth • Web-based multi-winery clubs • Magazine, Hotel & other branded clubs • Chain tasting rooms (Vino Volo) Interactive Small Sample Bottles Vote For Favorites Feedback from customers “Customized” shipments Focus on education Vertical tastings / regions / flights “Competitions” & “Status” Source: http://www.cnbc.com/id/100966091
    • 3/13/2014 133/13/2014 13 Brand Your Club Your club should be a unique reflection of your brand! • Think about what makes your winery unique • Structure your club around your brand Be sure you can continue to offer the promised benefits when your club grows in membershipTIP
    • 3/13/2014 143/13/2014 14 Promote Club Source: http://www.winebusiness.com/wbm/?go=getArticle&dataId=75974 1084 Average number of members in a winery’s club 10% Average conversion of tasting room visitors to club members
    • 3/13/2014 153/13/2014 15 Promote Club Source: http://www.winebusiness.com/wbm/?go=getArticle&dataId=46704 http://www.winebusiness.com/wbm/?go=getDigitalIssue&issueId=6633 In the Tasting Room: 90% Of club members are signed up in the tasting room 34% In a 1000 tasting room visit study, only 34% mentioned the wine club
    • 3/13/2014 163/13/2014 16 Promote Club In the Tasting Room: • Train & Script Staff • Provide proper incentives: Cash, gift cards, logo apparel, merchandise, team & individual • Brochures & Signage visible • Show club prices on wine lists
    • 3/13/2014 173/13/2014 17 Train Staff Uncover hidden objections: • Do they know why the club is important? • Do they feel the club is a hassle to manage? • Do they feel it is a benefit to your guests? • Do they understand your brand’s story? • Do they understand the structure of the club? • Do they have materials to present? • Are they incented properly? • Are you keeping score and celebrating success? Do a tasting before each shipment so staff can answer questions and promote reorders TIP
    • 3/13/2014 183/13/2014 18 Promote Club Outside The Tasting Room: • Outside events, tastings. • Cultivate your e-mail list • Social media • Target customers who have purchased a case • Refer a friend promotion • Promote Gift Memberships • Work with businesses who send customer gifts
    • 3/13/2014 193/13/2014 19 Manage Your Club The Power of Wine Club Software • Easy to process shipments • Complete customer history – purchases & interactions • Manage compliance issues • Inventory Tracking • Easy, secure credit card processing
    • 3/13/2014 203/13/2014 20 What to Look For Flexibility • Multiple club types • Configurable pricing tiers / discounts • Customizable Reporting
    • 3/13/2014 213/13/2014 21 What to Look For Integrations • Integrate with your tasting room POS • Share inventory info • Share customer data, pricing • Ship Compliant integration • Shipping software integration • Easy print of labels, pack slips, etc. • E-Commerce integration
    • 3/13/2014 223/13/2014 22 What to Look For Customer Service • Member self-serve form • Join or update profile from tasting room or website • Complete customer tracking • Pre-paid, gift, no charge memberships • Skip shipment for vacation or absence
    • 3/13/2014 233/13/2014 23 What to Look For Credit Card Processing • Security – PCI Standards! • Decline Minimizer: • Automatically updates expiration & new card number • Reduces need to call / potential cancels
    • 3/13/2014 243/13/2014 24 What to Look For Communications • Always get an e-mail! • Segment “E-mail only” customers & recruit them • Stay in touch with club members • Easy integration from club software
    • 3/13/2014 253/13/2014 25 What to Look For Cloud vs. Local? • Our software keeps data locally in your winery. • Reliable access to data – many wineries are in remote areas with unreliable internet. • Cloud Outages • Ownership / control of data.
    • 3/13/2014 263/13/2014 26 Tracking Results What to Track: • Membership Growth – new members added • Membership Attrition – members who cancel • Sales per Member – above & beyond club • Conversion in tasting room – for email & club Graph Courtesy VingDirect
    • 3/13/2014 273/13/2014 27 Improve Retention Average member lifespan is 18-24 mo. What is yours? 18-24 mo. 30-60% You may experience 30% - 60% attrition per year!
    • 3/13/2014 283/13/2014 28 Improve Retention Communication: • Welcome members to the club • Special thank you on anniversary of club membership • Communicate between shipments • As members get close to average drop-out time, reach out, give extra benefits. • Escalate benefits in 2nd year.
    • 3/13/2014 293/13/2014 29 Improve Retention Connection: • Encourage members to share with social media • Issue a membership / loyalty / gift card • Encourage guests at events • Foster community • Make it fun – surprises, gifts, treats
    • 3/13/2014 303/13/2014 30 Improve Retention Flexibility: • Offer a lower priced option or less frequent shipments • Allow a 6 mo. Hiatus from shipments while keeping other benefits
    • 3/13/2014 313/13/2014 31 Improve Retention Follow Up: • Survey customers who leave – why? • Stay in touch after they leave – keep marketing. They may still purchase a gift membership or wines.
    • 3/13/2014 323/13/2014 32 Conclusion Make Your Wine Club Shine! Great Club Benefits Great Promotions Great Technology Great Follow Up
    • 3/13/2014 333/13/2014 33 Can We Help? SmartPOS Tasting Room Software Tablet or Traditional POS SmartClub Wine Club Software +More E-Commerce Website Hosting Marketing Solutions Payment Processing www.winewaresoftware.com 805-227-0202