Presented in San Francisco January 24, 2013. A case study about the usage of Video to increase database and Wine Club growth via email with a winery.

1. VIDEO:
THE
NEXT
BEST
THING
TO
BEING
THERE.
Ken Nerlove, Elkhorn Peak Cellars
Lisa Gotfried, Video in a Minute
Susan DeMatei, Wine Glass Marketing
Mark Elcombe, Sonoma-Cutrer Vineyards

2. Today’s
Objec<ves
• Look
at
the
Elkhorn
Peak
1
Cellars
Case
Study
• Learn
about
Video
2
Messaging
and
Distribu<on
Strategies
• See
if
Video
can
provide
3
a
strong
ROI

3. KEN
NERLOVE,
ELKHORN
PEAK
CELLARS
KEN@ELHORNPEAK.COM
FACEBOOK.COM/ELKHORNPEAKCELLARS
YOUTUBE.COM/USER/ELKHORNPEAKCELLARS

4. Elkhorn
Peak
• The
first
winery
in
Jamison
Canyon
(1983)
• Seven
clones
of
Pinot
Noir

5. Distribu<on
Strategy
2008-­‐2012
• Answered
the
economic
DTC
Wholesale
downturn
by,
deciding
100%
to
a)
reduce
produc<on
90%
and
b)
move
as
much
80%
70%
distribu<on
as
possible
60%
to
the
Consumer
Direct
50%
40%
channels.
30%
20%
10%
0%
2008
2009
2010
2011
2012

6. Marke<ng
Strategy
• Assets
included
a
clean,
personal,
contact
list
• Decided
on
email
because
of
cost,
and
ability
to
create
a
connec<on
with
audience
• Objec<ve
was
to
bring
the
experience
back
to
their
home
and
make
them
feel
part
of
the
winery
– Sales
– Mailing
list
growth
(pass
along)
– Wine
Club
growth
and
reten<on
• Focused
on
an
consistent,
programma<c
email
campaign
of
monthly
newsle_ers
and
offers

7. Consistent
Layout
for
5
Years
Headline/Chronology
Pictures
of
Loca<on
Start
story,
but
finish
below
Get
to
Offer
in
first
1/3
Mul<ple
Links
Repeat
Offer
Finish
Story
Sign
Off

8. Three
Phased
Approach
Used video as
sale reminder.
Email
Learnings/List
Growth
Ask for club sign
up. All else same.
Added video
when available.
No other
changes.
Pinot Chronicles
10 x annually.
Stories & Offer.
2008
2011
2012

9. Videos
in
Email
• “Pinot
Cam”
added
to
Pinot
Chronicles
• Up
front
–
quick
introduc<on
and
link
• S<ll
got
to
offer
in
top
1/3
and
con<nued
other
standards

10. LISA
GOTTFRIED,
VIDEO
IN
A
MINUTE
LISA@VIDEOINAMINUTE.COM
FACEBOOK.COM/VIDEOINAMINUTE
YOUTUBE.COM/USER/DIGITALWEAVERS

11. Video

12. Video
Strategy
The
Power
of
the
Personal
Invita<on
• Join
the
Wine
Club
Ken’s
Strengths
• Gruff
and
Lovable
• Down
to
Earth,
Tell
it
Like
it
is
• Amazing
Educator
=
Fans
for
Life
• Interests
outside
of
wine/
restores
old
cars
and
slot
machines
Nuts
and
Bolts
• 3
hours
• Every
other
month
• 2
Videos
each
shoot
• 1
Edi<ng
Video
every
month
• 3
Month
Trial/12
Month
Agreement

13. Video
Content
Added
Value:
Do
not
sell
to
me
• Entertainment
• Educa<on
– In
the
Vineyards
– Custom
Crush
– Barrel
Tas<ng
• Emo<onal
Connec<on
Bonus
Videos:
• Tes<monials
about
Ken/Wine
• Bio:
Get
to
Know
Ken
• Thank
You
for
Joining
– Behind
the
scenes
video

14. Video
Format
• Short
and
Sweet
• High
End
Look/Sound
• Consistent
– Intros
and
Outros
– Music
and
Branding
• Always
with
car,
truck,
farm
equipment
– Messaging:
Educa<on
– Call
to
Ac<on

15. Video
SEO
• Ready
to
buy?
• Ready
to
Connect?
• Beyond
Youtube
– Dailymo<on
– Metacafe
– Vimeo
• Beyond
Facebook/Twi_er
– Myspace
– Blogger
– Wordpress.com
– Live
Journal,
etc.

16. Video
SEO
Results:
2
Years
Later
• Ken’s
Channel:
– “Pinot
Cam
Veraison
2011”
• Video
in
a
Minute’s
Channel:
–
“Best
Kept
Secret
Wineries,
Napa
Valley,
Pinot
Noir,
Veraison,
Small”
Keytag
Phrase
Google
Page
#
CompeJtors
Secret
Winery
Pinot
1
1,060,000
Secret
Winery
Napa
2
1,230,000
Napa
Valley
Veraison
2
397,000
Pinot
Veraison
2
727,000

17. Evergreen
Video
• Website
– Video
Archives
– Blog
• DVD:
En<re
Growing
Cycle
– Consumers
– Distributors
– Wine
Shops
– Tas<ng
Room
• Social
Media
Content
• Thank
You’s

18. In
House
or
Not?
• Video
Quality:
Match
Brand
• Hidden
Costs
of
In-­‐House
• The
Back
Burner
Syndrome
• Hybrid
Possibili<es
• Scheduling
that
Works
– Once
a
Month
– Quarterly
– Once
and
Done

19. Par<ng
Thoughts
• Do
What
Already
Works
• One
to
Many
• Bring
Tas<ng
Room
to
Living
Room
• Play
to
Your
Strengths
• Quality
of
Rela<onships
=
Sales

20. Par<ng
Thoughts
Seth
Godin:
Marke0ng:
It's
a
process,
not
an
event.
• Da<ng
is
a
process.
So
is
losing
weight,
being
a
public
company
and
building
a
brand.
• On
the
other
hand,
puqng
up
a
trade
show
booth
is
an
event.
So
are
going
public
and
having
surgery.
• Events
are
easier
to
manage,
pay
for
and
get
excited
about.
Processes
build
results
for
the
long
haul.

21. SUSAN
DEMATEI,
WINE
GLASS
MARKETING
SUSAN@WINEGLASSMARKETING.COM
FACEBOOK.COM/WINEGLASSMARKETING
@SDEMATEI

22. Elkhorn
Peak
Data
• Sent
10-­‐12
emails
a
year
for
5
years
• 12
data
points
for
each
including:
– List
size,
dates,
crea<ve
offers
– Email
(sent,
bounced,
unsubscribed)
– Response
(clicks,
sales,
club
sign
ups)
Total
of
720
data
points….

23. Approaching
Analy<cs
1. Remove
abnormali<es
– In
our
case,
January
–
July
for
2008
–
2012
– 13
emails
prior
to
video,
13
aser
intro
of
data
2. Decide
on
baseline
– Phase
1
• Impact
of
video
in
Phase
2
• Impact
of
video
and
<ming
in
Phase
3
3. Organize
your
data

24. Impact
on
List
Size
Large
jump
ini<ally
due
to
pass
along
• In
three
years
(2008-­‐2011)
grew
6%
• In
past
18
months
grown
5.5%
List
Size
4500
4000
3500
3000
2500
2000
1500
1000
500
0

25. Impact
on
Wine
Club
• In
three
years
(2008-­‐2011)
added
42
• In
past
18
months
(w/video)
added
33
121
88
46
2008
2009
2010
2011
2012

26. Impact
on
Quality
of
List
Overall
trend
in
bounces
and
unsubscribes
con<nues
to
decrease
• Bounces
– In
three
years
(2008-­‐2011)
were
1.4%
– In
past
18
months
were
.65%
• Unsubscribes
– In
three
years
(2008-­‐2011)
were
.73%
– In
past
18
months
were
.57%
4.50%
4.00%
3.50%
3.00%
2.50%
2.00%
1.50%
1.00%
0.50%
0.00%
Bounces
%
Unsubscribes
%

27. Video
Alone
Isn’t
Enough
to
Affect
Open
Rate
–
but
Does
Increase
CTR
up
to
2x
30.00%
Non
Video
Video
25.00%
• Comparing
non
video
20.00%
open
rates
to
open
rates
15.00%
with
emails
containing
10.00%
Open
Rates
by
Month
08-­‐12
video
5.00%
– Lag
for
first
year
0.00%
– Phase
III
–
saw
impact
because
subject
line
12.00%
Click
Through
Rates
2011/12
follow
up
to
offer
10.00%
8.00%
• Looking
at
last
two
years
6.00%
of
CTR
–
Videos
Emails
4.00%
are
1.5-­‐2x
higher
2.00%
0.00%
3/1/11
4/1/11
5/1/11
6/1/11
7/1/11
8/1/11
9/1/11
10/1/11
11/1/11
12/1/11
1/1/12
2/1/12
3/1/12
4/1/12
5/1/12
6/1/12
7/1/12

28. Where
Are
they
Clicking?
• Average
of
20%
go
to
Website
(Buy
Now)
• 80%
go
to
You
Tube
to
watch
video
Click
LocaJons
7/1/12
5/1/12
3/1/12
1/1/12
%
You
Tube,
%
Website,
11/1/11
79.7%
20.3%
9/1/11
7/1/11
5/1/11
3/1/11
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%

29. Video
Impact
on
Email
Sales
• Emails
with
video
contributed
to
a
25%
lis
in
sales
over
emails
without
video
• Emails
with
video
brought
in
over
2.5x
new
customers/
club
members
than
emails
without
video

30. Really
Apparent
Was
The
Impact
of
Timing
(Phase
2
versus
3)
• Video
when
used
as
a
follow
up
to
an
offer,
saw
more
than
twice
the
response
rate
in
sales
and
up
to
5x
the
ability
to
a_ract
new
customers
due
12
$12,000
to
pass-­‐along
10
8
$10,000
Wine
Club
6
New
Customers
$8,000
4
$6,000
2
Sales
$4,000
0
Video
Video
as
Follow
Up
$2,000
$0
Video
Video
as
Follow
Up

31. Impact
on
Word
of
Mouth
• You
Tube
shows
42%
of
views
came
from
searchers
(new
brand
visits)
• Facebook
shows
spikes
when
Pinot
Cam
shared

32. ROI=
250%
Did
not
count
value
of
future
purchases
for
new
customers…and
Wine
Club

33. Conclusion
for
Case
Study
• In
Elkhorn
Peak
Cellars
case,
video
increased
sales
and
wine
club
sign
ups
more
than
not
including
video
– List
size
and
Wine
Club
grew
same
amount
in
last
18
months
as
previous
3
years
– Unsubscribes
and
bounces
decreased
– No
affect
on
open
rates
–
but
double
the
CTR
– Sales
lised
by
25%
– Wine
Club
and
New
Customers
Doubled
– ROI
250%
• Other
contribu<ng
factors
of
the
success
are:
– Quality
and
cleanliness
of
the
mailing
list
– Consistency
of
the
communica<on
and
style
– Variety
of
offers
and
crea<vity
of
content

34. Conclusion
for
YOU
• Video
is
best
used:
– In
a
series
• For
messaging,
and
economic
scaleability
– With
a
strong
call
to
ac<on
– Delivered
with
easy
pass-­‐along
opportuni<es
• Video
is
not
a
silver
bullet,
but
if
used
in
conjunc<on
with
your
marke<ng
strategy,
and
delivered
intelligently,
there
are
strong
returns
to
be
seen.