3 Best Ways To Increase Ecommerce Sales Under 40 Characters
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How to sell more wine through ecommerce. Brent Johnson will cover the top 3 ways to increase your winery's ecommerce sales. This is based off a presentation given at the VinCo conference in 2015.
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3 Best Ways To Increase Ecommerce Sales Under 40 Characters
- 1. The 3 Best Ways To Increase Your Ecommerce Sales
- 2. Hello My Name is Brent Johnson
- 3. The 3 Best Ways To Increase Your Ecommerce Sales
- 6. “Buy Wine Online” 230,000,000 Results
- 8. Ecommerce World Is Moving Crazy Fast
- 9. Amazon “Anticaptory Shipping” Picture can be headlines, etc of a article. Amazon Anticipatory Shipping
- 10. Amazon Delivery by Drone Delivery By Drone
- 11. Wake Up & Smell The Bacon
- 13. 0 50 100 150 200 250 2008 2009 2010 2011 2012 2013 2014 US Ecommerce Sales in Billions Ecommerce Is Growing
- 14. Does Wine Sell Online?
- 15. 0 500000 1000000 1500000 2000000 2500000 3000000 3500000 4000000 2010 2011 2012 2013 Wine DTC Is Growing
- 17. - 50,000,000 100,000,000 150,000,000 200,000,000 250,000,000 300,000,000 350,000,000 400,000,000 450,000,000 500,000,000 Bottom 80% Top 20% Vin65 Top 20%
- 18. The 3 Best Ways To Increase Your Ecommerce Sales
- 19. 1. Use Offline to Get Them Online 3 Ways
- 20. 2. Go Mobile 1. Use Offline to Get Them Online 3 Ways
- 21. 2. Go Mobile 1. Use Offline to Get Them Online 3. It’s the Shipping 3 Ways
- 22. Use Offline to Get Them Online1
- 23. Source % Of Sales Tasting Room 62% Club 20% Ecommerce 6% Events 12% Wine Business Tasting Room Survey (May 2013 issue) Wine DTC Sales Breakdown
- 24. Source % Of Sales Tasting Room 62% Club 20% Ecommerce 6% Events 12% Wine Business Tasting Room Survey (May 2013 issue) Your goal is to make this 40%, not 6%. Wine DTC Sales Breakdown
- 26. Visitor
- 28. Visitor First Time Buyer Repeat Purchaser
- 29. Visitor First Time Buyer Repeat Purchaser Club Member
- 30. Visitor First Time Buyer Repeat Purchaser Club Member
- 31. Let’s Put It In Action
- 32. 0.0% 10.0% 20.0% 30.0% 40.0% 50.0% 60.0% 70.0% All Email (Action, System, Mass) All Buyers - Action Email 1st Time Buyers - Action Email 2014 Email Open Rates (Vin65)
- 33. 0.0% 10.0% 20.0% 30.0% 40.0% 50.0% 60.0% 70.0% All Email (Action, System, Mass) All Buyers - Action Email 1st Time Buyers - Action Email 2014 Email Open Rates Proof that emailing tasting room visitors works
- 34. 10 Million Visitors – Jan 1, 2014+ Number of Orders From Those Visitors 0 2000000 4000000 6000000 Email Search Engines 0 20000 40000 60000 Email Search Engines SEO vs. Email Website Visits Website Orders
- 35. 10 Million Visitors – Jan 1, 2014+ Number of Orders From Those Visitors Proof that email works. 0 2000000 4000000 6000000 Email Search Engines 0 20000 40000 60000 Email Search Engines SEO vs. Email Website Visits Website Orders
- 36. $1 Per Email
- 37. How To Execute
- 38. Action Email
- 39. 1. Thank Them For Their Visit Perfect 1st Time Buyer Email
- 40. 2. Recognizes They Are a 1st Time Buyer 1. Thank Them For Their Visit Perfect 1st Time Buyer Email
- 41. 2. Recognizes They Are a 1st Time Buyer 1. Thank Them For Their Visit 3. Solicit Feedback Perfect 1st Time Buyer Email
- 42. 2. Recognizes They are a 1st Time Buyer 1. Thank Them for Their Visit 3. Solicit Feedback 4. Incentivizes Them to Buy More Perfect 1st Time Buyer Email
- 43. A Good Action Email from Vin65 #3 Andrew to Find Email
- 45. A Good Action Email from Vin65 #3 Andrew to Find Email Karson – Wrong Email. Use the one with Subject “Thank You For Visiting”
- 46. Focus On The Subject Line A Great Email Roundhouse Riesling on Sale until Tuesday Ninja Wine Party! Join us on June 21st Black Belt Blowout Sale Starts Now Chuck Norris News: Master Merlot wins 1st
- 47. Are we making this email look better? Single Focus
- 48. Personalize
- 50. Mobile Friendly
- 52. Go Mobile2
- 53. Mobile Websites
- 54. 0% 5% 10% 15% 20% 25% 30% 35% Nov 2010 Nov 2011 Nov 2012 Nov 2013 Nov 2014 Dec 2014 Desktop 55.9% Mobile 31.1% Tablet 13.0% Vin65 Mobile Stats
- 55. http://marketingland.com/report-65-of-marketing-emails-were-opened-on-mobile-devices-in-q4-2013-71387 Mobile 48.23% Desktop & Tablet 51.77% % Of Email Opened
- 56. 0 200000 400000 600000 800000 1000000 1200000 1400000 Checkout Contact About Cart Club Events Visit Mobile Content Viewed
- 57. 0 1000000 2000000 3000000 4000000 5000000 6000000 Checkout Contact About Cart Club Events Visit Wines Mobile Content Viewed
- 58. First Time Purchase 2nd Time Purchase 3rd Time Purchase 2014 Mobile Sales
- 59. Path To Purchase
- 60. 0.00% 2.00% 4.00% 6.00% 8.00% 10.00% 12.00% 14.00% Mobile Sales on Non-Mobile Site Mobile Sales on Mobile Optimized Site Mobile Sales
- 61. Is Your Website Accessible?
- 62. How To Execute
- 63. Seamless & Responsive Design
- 65. Make Your Forms Shorter
- 66. Get Faster
- 67. Shop Your Own Site on Mobile
- 69. Your Winery Ground Free Priority Mail $7.00 2 Business Days $15.00 1 Business Day $25.00 Ground ?? Priority Mail ?? 2 Business Days ?? 1 Business Day ??
- 70. But What About Wine
- 71. Excuses For High Shipping Rates 1. Wine is Heavy and Fragile
- 72. Excuses For High Shipping Rates 2. Packaging Costs 1. Wine is Heavy and Fragile
- 73. Excuses For High Shipping Rates 2. Packaging Costs 1. Wine is Heavy and Fragile 3. Adult Signature Required
- 74. Excuses For High Shipping Rates 2. Packaging Costs 1. Wine is Heavy and Fragile 3. Adult Signature Required 4. Inability to Negotiate with Carriers
- 75. Excuses For High Shipping Rates 2. Packaging Costs 1. Wine is Heavy and Fragile 3. Adult Signature Required 4. Inability to Negotiate with Carriers 5. Distance to Consumer
- 76. Change This
- 77. My Users Don’t Care About Shipping C B A
- 78. My Users Don’t Care About Shipping C B A Your mom, brother, nephew.
- 79. My Users Don’t Care About Shipping C B A ‘C’ Customers don’t love you enough to pay $21.
- 80. How To Execute
- 81. Do NOT Pass On The Shipping Rates
- 82. Be Upfront About Shipping Costs
- 84. Promos
- 86. Start One
- 87. Join One
- 88. 46Brix Customers 0 500 1000 1500 2000 2500 Yearly Avg Before 46Brix 12 Months Before 46Brix After Joining 46Brix
- 89. Beyond Shipping
- 90. Tracking Numbers
- 91. Delivery Time
- 92. Move Products Closer To Customers
- 93. The Packaging
- 94. 2. Go Mobile 1. Use Offline to Get Them Online 3. It’s the Shipping 3 Ways
- 95. brent@vin65.com
Editor's Notes
- And before we talk about wine ecommerce, lets look at what’s happening in ecommerce today.
- I’m Brent Johnson, GM of Vin65. My first year in the wine industry back in 2008 – I was one of four guys that though, hey, “we know ecommerce” and we like alcohol, ,we lived in rural town that doesn’t get good wine and we thought – hey, we can make a way better experience for consumers to buy wine. So literally I drove 3 hours to go knock on doors in the Okanagan (BC’s wine region) trying to sell ecommerce and club software – the response we got: a)ecommerce isn’t big, we don’t need it, or b) we have a club, but we call it a newsletter we send out about once a month…. What?!?!
- It’s not like “Field Of Dreams” if you build it, it doesn’t mean people will flock to your website and buy from you.
- Stats from 2013. Over 220,000+ new wine labels added in 2013 alone. 2014 will be more that 220,000.
- Search for “buy wine” on Google – and it results in 230,000,000 results – and not only are there no wineries listed on the first page – you also are competing with Amazon and Wine.com
- Your competing with Amazon, with Wine.com, your competing with Brick and Mortar retailers like K&L, and your competing with everyone.
- Technology and ecommerce world is moving crazy fast. Dizzying. Let’s look at a few things happening
- Amazon patented “anticapatory shipping” – this is where they ship items to you that you haven’t ordered yet in anticipation that you are going to order them.
- And another one from Amazon – Amazon delivery by Drone.
- Here’s another one – Oscar Meyer announced “Wake up and Smell the Bacon” – and your starting to hear more about “Smell O Vision”. Picture the ability to allow customers to smell your wine before they buy from their iPhone. I don’t know about you, but I’m not sure which one of my programmers wakes up at 10:55!
- As fellow Canadian Kevin Oleary would say Money Talks (Sharks Tank & Dragon’s Den)
- Let’s talk about facts. First Ecommerce is growing – these are the 2008-2014 stats for US Retail Ecommerce Sales in Billions
- Okay – those ideas are pretty far out there. Does wine sell in general? (if you build it they will come) – if you make wine will it sell? But does Wine actually sell online?
- According to Wines and Vines DTC report – DTC wine is up year over year http://www.winesandvines.com/pdf/2014Direct-to-Consumer-Shipping-Report.pdf Looking forward to 2014 numbers
- At Vin65 we are the largest ecommerce company in the wine space – and we know that DTC is growing. In our fulfillment we also know DTC wine sales is growing. In 2014, we processed over $515 million across 1051 wineries. That’s $490,000 per winery – that’s almost ½ of a million dollars per winery.
- But it’s not so rosy. As business owners or manager, you’ve likely heard of the 80/20 rule; where 80% of your business comes from 20% of your customers. Well the same for the wine ecommerce instruct. 20% of the wineries pump through 80% of all wine ecommerce sales. End with – the 20% is clearly doing something right! Now I’m going to show you how
- So how do you get there? Are you thinking, that 20% has to be the big guys, Constellation, Foley, Pernod Ricard, Treasury, KJ…. We’ll that’s not really the case, there are some small wineries, family run wineries that are putting through massive amounts online. 2 years ago we had 10 ways to sell wine. Last year we had 5 ways – but this year, I’m only going to take the top 3 and focus on them because they are all that matters.
- Offline to online
- Go mobile
- Shipping
- Your tasting room has a lot of potential. You have a fantastic opportunity. Consumers come to you to have fun, drink alcohol, get an experience. But it’s not all about the tasting room. If you look at Nordstrum– people go there to buy a luxury product, and they do. But they have a massive online presence and ecommerce. They are selling clothes (hard for ecommerce too).
- Here is a break down of wine DTC.
- Here’s your goal.
- When your doing sales, you want to take people from visitor, to first time buyer, to repeat buyer, to club member. The way to move an out of town visitor from 1st Time Purchaser to Repeat Purchase is via Email
- 3 Goals: 1) Get them drunk, 2) get their money, and 3) get an emails address.
- It’s all about getting them to buy again? How are you going to do that without any info? Email address? 1 Goal: Get information from them.
- They love you, they’ve bought your wine a few times – now you want to get the commitment. 1 Goal – Get a commitment.
- The golden ticket. You’ve made it – now work on keeping them. 1 Goal: Contact them to keep them happy.
- Here’s what wineries are good at – taking a visitor and turning them into a buyer. Here’s what wineries are not good at – turning a buyer into a repeat buyer. I’m going to show you how to do this – no magic, just one question. What is your email address. A few reasons why wineries struggle with this? I.e. not visiting your tasting room again.
- 2012, we were building a mobile POS system. We wanted to test it and show a winery (Tinhorn Creek in the Okanagan). So we packed up and drive 3 hours to observe the winery sell and see how consumers and their staff interacted. When we got there, they were short staffed and asked us if we would sell for them – they even said – “it’s easy!” I had some retail experience working at Foot Locker back in high school, Karson and Andrew… not so much – they are programmers. Let me tell you how the day turned out. $2500 in sales with 86 orders – not so bad, but we weren’t going to quit our day jobs. – but the key thing is, we captured 86 email addresses – went 86 for 86 on collecting an email – why? Because we asked.
- And when we analyze email – action email is the best perform in Vin65. 28.9% 40.5% 59.2% MailChimp – has ecomm at 21%. Personalize, customize, relevant – it’s triple. Hard, but you’re lucky because they want to hear from you – they took their vacation there.
- And when we analyze email – action email is the best perform in Vin65. 28.9% 40.5% 59.2%
- Here is what I know - email is the single biggest driver of sales for wineries. Show some graphs/numbers.
- Here is what I know - email is the single biggest driver of sales for wineries. Show some graphs/numbers.
- Brian baker from Chateau Montelena gives his staff $1 per email they collect. How does he get to this number? They send out our an email blast to 1000s of customers. They have a set conversion rate of 2.5% to 2.7% on their emails
- A visitor comes to your tasting room, you grab their email address, and 10 days later you ask them to come back and buy some wine online.
- Ask them to rate your product – reviews lift conversion by 16%
- If a programmer wrote your action email – here is what it would say. Here’s a good example.
- Here’s a good example.
- Here’s a good example.
- If Chuck Norris has a winery – here are 4 subject lines they he’d use Email works best when it provides consumers with real value Something that is really useful, personalized, and makes it clear in the subject line Don’t treat everyone as generic Write an email that deserves attention
- Single Focus – make sure the email is a single point – don’t have too many offers.
- Personalize This doesn’t have to be “Dear Chuck” Make sure the content is personal – Show them wines they want, or ratings they might care about.
- Give something away. You got to have a great promo. What works better 1 cent shipping or 20% off How about 1 cent shipping or 40% off How about 1 cent shipping or 60% off
- Mobile Friendly – mobile accounts for 47 percent of all emails.
- Tuesday = best day. Best time to send an email. 10:00am, 11:00am, 2-6:00pm
- Coming to Colorado – I love wine, wanted to checked out who I should visit. Easy to get frustrated, here’s why.
- So I took a look at some of your websites on my mobile phone – and here is what I saw: Left: Canyon Wind Middle: Stone Cottage Cellars Right: Carlson Vineyards
- Over 31% of your traffic is mobile. This does not include iPad traffic. It’s growing at a staggering rate.
- Furthermore, almost 50 percent of email is open on mobile.
- This is what people on mobile devices visit on your website.
- Now we add ‘Wines’ into the previous graph. Mobile visitors clearly come to view products. The reason for this is that people do their research online before they buy – leads to a conversion later.
- Repeat buys are more rare on a mobile device.
- Mobile is growing huge. World wide usage stats. https://blog.kissmetrics.com/surprising-mobile-ecommerce/ People coming to you will start from a mobile device.
- Mobile sales on optimized sites outperform by a factor of 3X.
- If 30% of visitors to your tasting room showed is a pet – you would make your tasting room the most pet friendly tasting room around. We know that 30% of your website visitors show up on mobile – yet your websites on mobile suck! 30% of your traffic can’t see your site. Dog friendly.
- Or better yet get a responsive design. A responsive design is one website that works on web, tablet, and mobile – and it responds to or creates the right experience on each device.
- These screens – there not that big – especially for those of you still on an iPhone Often times web pages have a lot of elements and design going on. Especially as you try to tell your story. When it comes to mobile – simplify everything. Remove the distractions – and only show the content that is absolutely necessary.
- Entering content on mobile device sucks. You end up switching back and forth between text and numbers, and you lose where you are on forms. Keep your forms short. 4 or less (expect for club and order forms)
- Remember speed is critical on mobile – Up here in Kelowna you still have 3G, 1X, etc. Lighten the pages, images, etc. Get faster - 3 seconds or less.
- And of course – the best way to succeed at this – shop your own website. At Vin65 we have a eat your own dog food – dog fooding it. – you should as well,
- In general ecommerce (not talking about wine – just talking general ecommerce) – Shipping is the single biggest driver of sales. Wine is heavy, it’s hard to ship, you live in Colorado which has advantages (shipping to TX, and disadvantages. $0 shipping is the #1 offer to sell wine.
- Zappos – pair of Shoes Vs How Much Do you charge for a bottle of wine. When do you let the consumer know? The earlier you show them, the less abandoned card/drop off you will get.
- Amazon and Zappos are tough examples – Amazon has 40 warehouses in the US – they forward stage inventory closer to the customer (position their inventory). So what’s going on with shipping wine.
- Remember that 80 / 20 rule? Consistency, the top 20% of wineries’ shipping charge is only 5% or less for an order. This means if someone buys $100, shipping should be $5 or less. How do you compare? Literally – shipping will sell your wine if you have the right strategy. Having the wrong one will stop your sales. You know how I know if you’re not in the 20% - you use those excuses to charge for shipping.
- Amazon and Zappos are tough examples – Amazon has 40 warehouses in the US – they forward stage inventory closer to the customer (position their inventory). So what’s going on with shipping wine. Loves you almost as much as your mom. Your ‘C’ customers don’t love you enough to pay $21 in shipping.
- Amazon and Zappos are tough examples – Amazon has 40 warehouses in the US – they forward stage inventory closer to the customer (position their inventory). So what’s going on with shipping wine. Loves you almost as much as your mom. Your ‘C’ customers don’t love you enough to pay $21 in shipping.
- Amazon and Zappos are tough examples – Amazon has 40 warehouses in the US – they forward stage inventory closer to the customer (position their inventory). So what’s going on with shipping wine. Loves you almost as much as your mom. Your ‘C’ customers don’t love you enough to pay $21 in shipping.
- So how do you execute a great shipping strategy on the web?
- Most profitable sale. Treat it as a marketing strategy, not a cost to consumers.
- Be upfront abut shipping costs. Shipping is expensive – you know that. Come up with reasonable rates and be upfront about it.
- Use shipping as an incentive – clear way to either upsell or get the order.
- 40% off products vs. free shipping 60% off products vs. free shipping Shipping wins. Try it yourself and see.
- Amazon prime – pay $79/year and get free 2 day shipping. They keep adding things to the program so more and more people signup. They’ve added movies, books, etc. Doesn’t include wine – so what do you do as a winery.
- Constellation USA introduced a program called ‘Star Shipping’ – similar to Amazon Prime – where you pay $99 a year and shipping is free on all orders – this has worked well for Constellation to sell across Robert Mondavi, Simi, Ravenswood, etc. Maybe something for CO wineries?
- For smaller wineries, at Vin65 we announced a program in the US – consumers pay $79/year and get $0 shipping from over 30 wineries. This about the expose
- This has increases customers purchases by 3x – in $ value, they are buying $1200 more when they join the program. Think about the exprose. People pay money for it, they want to get their money’s worth
- Shipping use to be just about shipping – but Amazon, Zappos, and others have changed all of that – look at that they are doing now – they are making something boarding, cool again. Diff pictures.
- We get to talk to UPS, FedEx and Amazon a lot over the years and I can tell you that consumers are tracking their packages 6-8 times before it arrives. Buy a pair of Zappos shoes and notice how quickly the tacking number gets to you – email, maybe even SMS – it’s lightning fast.
- Like it or not, the ecommerce giants are setting the stand, which set the expectation for consumers. 5 years it was acceptable to get a package 5 to 7 days after the order. Today, you’re looking at 1 to 3 days. Amazon keeps pushing the bar offering same day delivery – order in the morning, get it in the evening.
- Florida, New York, and California are large wine drinking states – all are 3 or more days from Colorado. If you had a shipper to forward stage your inventory, you’d be able to hit 90% of states in 2 days or less.
- Final thing – the box matters. ----- Meeting Notes (14-12-22 16:14) ----- this one fine...
- So here they are – the top 3 Best Ways to Increase your Ecommerce sales. Use images here.