DTC Marketing: Past, Present and Future of the Direct to Consumer Channel
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Ron Scharman gave a presentation on direct-to-consumer marketing to students at Sonoma State University. He discussed his background working in various roles in the wine industry for over 15 years. The presentation covered the past, present and future of the direct-to-consumer wine sales channel. Scharman analyzed the ecosystem of the direct-to-consumer channel and discussed omni-channel marketing approaches. He explored strategies for connecting, collecting and converting customers, including the use of websites, mobile, social media, email and customer relationship management tools. Scharman also discussed building an effective digital marketing plan and budget.
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DTC Marketing: Past, Present and Future of the Direct to Consumer Channel
- 1. 1Bus-810W DTC Marketing Presented by: Ron Scharman Bus-810W: Direct to Consumer Marketing June 14th, 2016 Sonoma State University
- 2. 2Bus-810W DTC Marketing Presentation Available in Digital Format
- 3. 3Bus-810W DTC Marketing • Currently Chief Operating Officer of Chatterbox Wine Marketing Services and VinoVisit.com • Instructor, SSU Wine Business Institute • Previously 7 years as President of eWinery Solutions • Previously 2 years as COO of New Vine Logistics • Previously 4 years as CEO of Morrell Wine Group • 15 years as a specialty retailer • MBA Cornell University Johnson School of Management • Lover of all things food & wine • Passionate about direct to consumer wine marketing Who am I and Why am I here?
- 4. 4Bus-810W DTC Marketing TIME TO LEARN ABOUT YOU
- 5. 5Bus-810W DTC Marketing Where are We Headed Today? • Past, present, future overview of direct to consumer channel • Analyze the DTC channel ecosystem • Learn about Omni-Channel marketing • Explore the D-E-A-L model of customer progression to Connect/Collect/Convert customers and prospects • Discuss web, mobile, social, email and other marketing strategies and execution • Break out customer retention, loyalty and engagement strategies • Dive in to customer relationship management (CRM) • Learn how to build an effective digital marketing plan and budget
- 6. 6Bus-810W DTC Marketing QUESTION FOR THE DAY:
- 7. 7Bus-810W DTC Marketing QUESTION FOR THE DAY: How do we sell a 3-dimensional story in a 2-dimensional world?
- 8. 8Bus-810W DTC Marketing THE TRUTH IS, ITS HARD. VERY HARD. It is hard to capture the essence of your brand online. This is everyone’s challenge. Visitors are exposed to a number of stimuli that help frame their experience at your winery. They breathe fresh warm air that blows across the valley floor as they enjoy expansive views, marvel at architectural details, and soak in the overall ambiance of your tasting room during their visit. All of these things help engage and interest them.
- 9. 9Bus-810W DTC Marketing Tell your story + tell it well (the magic 15%)
- 10. 10Bus-810W DTC Marketing It’s Not Only Me……. “Marketing is no longer about the stuff you make, but the stories you tell.” Seth Godin Best Selling Author, Entrepreneur and Marketer
- 11. 11Bus-810W DTC Marketing The Past, Present, and Future of Wine DTC
- 12. 12Bus-810W DTC Marketing GROWTH STATS The consumer direct channel of the wine industry is the fastest growing and most profitable channel. Do you have all the tools necessary to be successful and ride the wave?
- 13. 13Bus-810W DTC Marketing GROWTH STATS • The U.S. has been the largest wine consuming nation in the world since 2010. • Direct to Consumer (DTC) shipments by US wineries grew at an 8% in 2015, hitting a record $1.97BB (vs +15% growth in 2014). Total volume was 4.3 million cases, up 8.8% over the prior year. This represents 23 consecutive years of volume growth. *Data from Wine Institute, Wines&Vines, & ShipCompliant
- 14. 14Bus-810W DTC Marketing EFFECTS OF 2005 SUPREME COURT RULING Supreme Court decision on May 16, 2005 changed forever the wine landscape for the direct-to-consumer wine market. The Court’s majority opinion stated, "If a state chooses to allow direct shipments of wine, it must do so on evenhanded terms." The Court ruling: Regulate, But Do Not Discriminate The States response: Regulate, Don’t Discriminate, But Do Complicate
- 15. 15Bus-810W DTC Marketing OPPORTUNITY OF THE DIRECT TO CONSUMER MARKET Domestic / Intl Wine Producer Wholesalers Retailers / On Premise Consumers Direct to consumer 10% of sales ($3.8BB) Wholesaler distribution 90.0% of sales ($37.6BB)
- 16. 16Bus-810W DTC Marketing WINE INSTITUTE LATEST UPDATE • 44 States out of 50 have some provision for winery direct shipping to consumers (95% of consumer markets) • Importers and internet retailers are restricted to fewer states, depending on method of shipment and licenses held.
- 17. 17Bus-810W DTC Marketing How Important is the DTC Channel to the Majority of the 9,300+ Wineries and Wine Brands?
- 18. 18Bus-810W DTC Marketing ...VERY!! SMALL WINERIES DOMINATE DTC
- 19. 19Bus-810W DTC Marketing The evolution from early 2000’s to present day, personal computing has changed 10 fold. What’s changed? Bigger, More Complex Sites 2003 2015 20032003 2007
- 20. 20Bus-810W DTC Marketing Looked at Another Way The faithful gather in 2005 near St. Peter's to witness Pope John Paul II's body being carried into the Basilica for public viewing. St. Peter's Basilica at the Vatican, on March 13, 2013
- 21. 21Bus-810W DTC Marketing THE WEB HAS BEEN GROWING FASTER THAN STORES…. 27% 25% 24% 20% 3% 2% 16% 15% 16% 17% 15% 6% 5% 5% 3% 0% -3% 2% 4% 4% 4% 4% -5% 0% 5% 10% 15% 20% 25% 30% 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 Annual growth rate 2004-2014* eCommerce versus retail spending Growth in e-commerce Growth in non-e-commerce retail *Source: U.S. Commerce Dept., Internet Retailer Note: All other retail sales excludes auto dealers, gasoline stations and fuel dealers, and restaurants and bars.
- 22. 22Bus-810W DTC Marketing THE WEB HAS BEEN GROWING FASTER THAN STORES…. *Source: UPS 2016 Annual Survey
- 23. 23Bus-810W DTC Marketing MORE PC’S GATHER DUST *Source: U.S. Commerce Dept., Internet Retailer 44% 11% 45% Percentage of time on retail web sites Smartphone Tablet PC
- 24. 24Bus-810W DTC Marketing MOBILE COMMERCE SOARS Source: *IBM
- 25. 25Bus-810W DTC Marketing LOOKED AT ANOTHER WAY
- 26. 26Bus-810W DTC Marketing MY PHONE IS MY LIFE NOT MOBILE-ONLY, BUT MOBILE-FIRST
- 27. 27Bus-810W DTC Marketing THINGS TO WATCH PERIOD
- 28. 28Bus-810W DTC Marketing People have transformed how they live, work, shop, and buy. Businesses need to adapt…….
- 29. 29Bus-810W DTC Marketing It’s All About the Customer: Omni-Channel Marketing
- 30. 30Bus-810W DTC Marketing OMNI-CHANNEL RETAIL Today’s shoppers expect a single shopping cart that follows them on their customer journey THAT MEANS through multiple touchpoints – instore, online or on the move – so that customers have a seamless experience. Omni- Channel Retail Direct to Consumer Retailers Direct Sales Marketing Wine Club Events eCommerce
- 31. 31Bus-810W DTC Marketing Omni-Channel Marketing Transforming the customer journey across all channels
- 32. 32Bus-810W DTC Marketing DTC Best Practice: 360 Degree Customer View eCommerce Wine Club Allocations Tasting Room Recipe Engine Social Media (Social Commerce) Mobile Telesales (inbound & outbound) SMS (Text) Email Marketing Visitor Reservations Newsletter Mobile POS Search Engine Optimization (SEO) Fax Winery DTC Ecosystem
- 33. 33Bus-810W DTC Marketing Let’s Clear Something Up First……. “Just as you cannot not communicate, you cannot not market - Every time you answer the phone, it’s marketing. - Every time you send an email, it’s marketing. - Every word on your website is marketing. - If you build software, your error messages are marketing. - If you’re in the restaurant business, the after-dinner mint is marketing.” Rework by 37signals
- 34. 34Bus-810W DTC Marketing Wine eCommerce vs Wine Commerce
- 35. 35Bus-810W DTC Marketing The DTC Winery e-cosystem
- 36. 36Bus-810W DTC Marketing WINERY COMMERCE ECOSYSTEM Mobile Commerce Wine Apps SMS Text Commerce Anywhere Pop Up Virtual Commerce Social Commerce Facebook/Pinterest/Twitter Crowdsource In Home POS Mobile POS Kiosk Tasting Room Wine Club Allocation/Mailing List Email
- 37. 37Bus-810W DTC Marketing WHAT IS ONLINE DTC TODAY? Growing Number of Wine Commerce Business Models Winery Retailer – 9,300+ wineries in North America Internet Retailer – www.wine.com, www.elanvineyards.com(17/20) Discount Internet Retailer – www.wineaccess.com Crowdsourced Production – www.nakedwines.com Marketplace – www.amazon.com Community Member Site – www.winecommune.com Flash Sale/Daily Deal Site – www.winestillsoldout.com Affiliate Marketing Site – www.bottlenotes.com Wine Auction Site – www.winebid.com Cause Marketing Wine Site - www.onehopewine.com Mileage Redemption – www-lh-worldshop-gourmet.com Loyalty Programs - www.foleyfoodandwinesociety.com/About-Us/Membership-Benefits
- 38. 38Bus-810W DTC Marketing eCommerce Basics The digital footprint is increasingly important for small-to-medium-size wineries that are shut out of the three-tier distribution channel. It starts with a great website…………
- 39. 39Bus-810W DTC Marketing How is Your Customer Experience At Your Winery?
- 41. 41Bus-810W DTC Marketing How is Your Customer Experience When Finding Your Winery Online?
- 43. 43Bus-810W DTC Marketing Where Do We Go From Here?
- 44. 44Bus-810W DTC Marketing Why Wineries Fail at eCommerce Merchants at heart, who won’t play the part Read my Blog at http://bit.ly/1FyqPS0
- 45. 45Bus-810W DTC Marketing Top 5 Reasons • Magic: Wine is approximately 85% water, and 15% magic. • Stories worth reading: There may be stories worth telling in the winery DNA, but they are rarely found on winery websites. • Differentiators : Why do so many winery websites look alike? Most winery websites look like cookie cutters of most other winery websites on a gallery wall. • What’s in it for me: As a consumer, there is no compelling reason I should care about the brand, the user experience, or why I should stay browsing on the site. It’s all about “them”. • Mobility: Recent national all industry data shows that only 45% of website traffic now occurs on a desktop computer. Yet most winery sites give a poor mobile user experience.
- 46. 46Bus-810W DTC Marketing This Time It’s Me “The bottom line is that making great wine has nothing to do with creating a great visual palate and making me care about the brand online. It needs to be relevant to my life, not just the vintner’s.” Ron Scharman Wine Consumer Advocate
- 47. 47Bus-810W DTC Marketing USING YOUR WEBSITE TO TELL YOUR STORY Strong branding is key Include rich content Use the tools built into your website to improve your SEO Gather data and market smart Go Mobile!
- 48. 48Bus-810W DTC Marketing So how do I build a great website?
- 49. 49Bus-810W DTC Marketing Understanding Where I Have Been and Where I am Going. What am I Trying to Achieve With My Online Presence?
- 50. 50Bus-810W DTC Marketing Answer the Important 3 Questions: 1) Why do I exist? (My Brand) 2) Why should you care? (The Consumer) 3) How do I measure success? ($$, Visitors)
- 51. 51Bus-810W DTC Marketing What’s the Difference Between Good and Bad? GREAT AD TERRIBLE WEBSITE
- 52. 52Bus-810W DTC Marketing Building Blocks for Websites Factors to Consider • Software platform • Compliance Solution • Design/Project Management • Features • Why websites fail to perform Software/Compliance • CMS/Cart Options • Cost • Training/Ease of use • Integrations -ShipCompliant, CRM, Marketing options • Designer considerations, data • User experience, SEO Why Winery Websites Fail • Design by committee, boring • Hard to navigate, hard to buy • Not engaging brand story or user experience • Bad Q/C, stuff doesn’t work • Browser incompatibility • Content/Data not updated Features • Ease of shopping – “1 Click” • Ease of navigation • Compliance made easy • Rich, relevant content –SEO • Multiple data capture opportunities • Promotional marketing tools Design • Designer/template • Site Map/Navigation • Wire frames/sketches • Functionality testing • Brand relevance • User Experience
- 53. 53Bus-810W DTC Marketing “Mobile is the glue that holds omni-channel shopping experiences together, enabling marketers to continuously engage with consumers as they move through an increasingly non-linear sales funnel.” And Don’t Forget Mobile
- 54. 54Bus-810W DTC Marketing Consumers are on-the-go and want quick and easy access to basic information. 99% of the time, they want to do one of five things: Call Winery Find Tasting Room Locate Wine Buy Wine Join Wine Club Go Mobile!
- 55. 55Bus-810W DTC Marketing The Self-Fulfilling Prophesy of Fear Marketing: Please Cancel Me From Your Ecosystem
- 56. 56Bus-810W DTC Marketing D-E-A-L Model of Customer Progression
- 57. 57Bus-810W DTC Marketing MODEL OF CUSTOMER PROGRESSION DISCOVERY • Search engine • Word of mouth • Advertisement • Social Media ENGAGEMENT • Visits website • Visits tasting room • Social Media • Mobile ACQUISITION • Purchases wine online • Buys wine in tasting room • Joins wine club LOYALTY/LOVE • Email communication • Facebook shares • Special events • Ratings
- 58. 58Bus-810W DTC Marketing The Science of Discovery DISCOVERY • Events/Restaurant/Retail •Search engine •Word of mouth •Advertisement • Social Media
- 66. 66Bus-810W DTC Marketing Attracting Visitors • Videos • Blogs • Social media • Newsletters • Articles on other websites • Events • Reviews
- 67. 67Bus-810W DTC Marketing How do you attract visitors and grow your customer base? Inbound Marketing is a system that allows interested buyers to actually FIND YOU via a combination of: Content Marketing Search Engine Optimization Social Media Lead Generation & Nurturing Discovery: Getting Found
- 68. 68Bus-810W DTC Marketing Discovery: Content Marketing 1. Create useful, usable content that adds value to the customer experience with your brand. 2. Perform outreach, and determine the best outlets to publish (high-profile guest blogging, social networks, your own website). 3. Identify influencers who will share your content and further discussion. 4. Pay attention to the responses, and engage your audience. 5. Analyze the results, measure the impact (new links to your website, new visitors, increased social media activity, more sales).
- 69. 69Bus-810W DTC Marketing Wine, food, travel forums Existing customers Referrals from local businesses Social media channels Friends and family Special events Wine publications and blogs Search Engine Optimization Search Engine Marketing Ratings and Reviews Getting Found Building Advocates Discovery: Socializing Bricks & Mortar Source: www.tripadvisor.com, Ram’s Gate Winery
- 70. 70Bus-810W DTC Marketing Wine, food, travel forums Existing customers Referrals from local businesses Social media channels Friends and family Special events Wine publications and blogs? Search Engine Optimization Search Engine Marketing Ratings and Reviews Getting Found Building Advocates Discovery: Socializing Bricks & Mortar Source: www.tripadvisor.com, Ram’s Gate Winery
- 71. 71Bus-810W DTC Marketing Ratings and Discovery Why Should I Care?
- 72. 72Bus-810W DTC Marketing People To People • People are already writing reviews • Opportunities to connect directly with customers • Helps search engines find you and increases ranking • 90% of local searches = purchase or visit
- 75. 75Bus-810W DTC Marketing Heavy Traffic • More than 178 million visitors to the Yelp website each month. • 53% of the visits are on a mobile device • 42% of users are in the 18 -34 age group and 20% over 55. • 34% have household income less than $59k and 39% over $100K. Comscore 2015
- 77. 77Bus-810W DTC Marketing Heavy Traffic • TripAdvisor has more than 84 million members, and more than 250 million reviews • More than 375 million travelers visit TripAdvisor each month • TripAdvisor offers a wide range of marketing opportunities, advertising and content solutions
- 78. 78Bus-810W DTC Marketing Heaviest Traffic – It’s Google
- 79. 79Bus-810W DTC Marketing Heavy Traffic • Google has 52,613 searches per second worldwide • Put another way, it’s at 100 Billion per month, 1.17 Billion unique users per month • 75.2% of all searches in U.S. on Google • 89.2% of all mobile search in U.S. on Google
- 80. 80Bus-810W DTC Marketing Advertising Options • Targeted local advertising • Premium placement on search and competitor business pages • Displays on mobile devices too
- 81. 81Bus-810W DTC Marketing Make It Personal
- 82. 82Bus-810W DTC Marketing Specialized Wine Discovery Tools Apps for the consumer
- 83. 83Bus-810W DTC Marketing Specialized Wine Discovery Tools
- 84. 84Bus-810W DTC Marketing Specialized Wine Discovery Tools
- 86. 86Bus-810W DTC Marketing Specialized Winery Discovery Tools Apps for the consumer
- 89. 89Bus-810W DTC Marketing CANVAS App CANVAS and VinoVisit join two great winery resources. The Concierge Alliance offers the hospitality industry a clear and easy way to book their customers at wineries in Napa and Sonoma.
- 90. 90Bus-810W DTC Marketing Social Media Marketing - Discovery IT’S A BIG TOPIC!
- 91. 91Bus-810W DTC Marketing Wine, food, travel forums Existing customers Referrals from local businesses Social media channels Friends and family Special events Wine publications and blogs? Search Engine Optimization Search Engine Marketing Ratings and Reviews Getting Found Building Advocates Discovery: Socializing Bricks & Mortar Source: www.tripadvisor.com, Ram’s Gate Winery
- 92. 92Bus-810W DTC Marketing Remember That the Journey is Non-Linear Transforming the customer journey across all channels
- 93. 93Bus-810W DTC Marketing The Science of Social Discovery + The Art of Engagement
- 94. 94Bus-810W DTC Marketing Ryan Neergaard Business Development and Social Media Manager Chatterbox Wine Marketing Services and VinoVisit.com LinkedIn Profile: https://www.linkedin.com/in/ryan-neergaard-57519456?trk=hp-identity-name
- 95. 95Bus-810W DTC Marketing ABOUT ME • 7 Years in Wine Tourism Media Communications • Domaine Chandon • Napa Valley Wine Train • VinoVisit.com • Chatterbox Wine Marketing Services • Currently lead a team responsible for customer acquisition, engagement, and conversion on website, social media, and blog platforms • Develop and Manage Synergistic Partnerships with companies such as: • Warner Brothers • BottleRock • BayArea.com • And More • Buffalo Bills Fan • 100% Foamer! • No Occasion is Started Properly Unless With Bubbles!
- 96. 96Bus-810W DTC Marketing SOCIAL MEDIA VS SOCIAL MARKETING
- 97. 97Bus-810W DTC Marketing SOCIAL MEDIA Websites and applications that enable users to create and share content or to participate in social networking.
- 98. 98Bus-810W DTC Marketing SOCIAL MARKETING Social marketing is an approach used to develop activities aimed at changing or maintaining people's behavior for the benefit of individuals and society as a whole.
- 100. 100Bus-810W DTC Marketing Remember That the Journey is Non-Linear Find the customer where they want to be found…
- 101. 101Bus-810W DTC Marketing Or They May Feel Like This…
- 103. 103Bus-810W DTC Marketing BUILD TRUST, THEN THEY WILL BUY social is the best discovery engine, but there are 2 steps 1. Trust 2.Need
- 104. 104Bus-810W DTC Marketing Lead Your Consumer Down The Path of: 1. Discover 2. Trust 3. Buy
- 105. 105Bus-810W DTC Marketing DISCOVER, TRUST, BUY FB ad friend hotel referral I discover you 1 I trust you 2 I buy when in need 3 FB post tweet email FB post winery visit Social helps each step
- 109. 109Bus-810W DTC Marketing STEP 1 Identify Social Media Platforms It is critical to know your audience. Do they want to see pictures? Use Instagram. Do they want behind the scenes video? Use YouTube. Do they want to read about the day to day operations of the winery? Use LinkedIn. Each social platform continues to become more and more content specific. Understanding what your audience wants to consume will lead you down the right path to selecting the right social platform for your content. *Mistakes Wineries Make – Taking on too many platforms before they are ready. Content takes time to generate. It is much better to master 1-2 platforms than to be mediocre on 5-6.
- 110. 110Bus-810W DTC Marketing WHAT ARE THE VEHICLES RELEVANT IN THE WINE INDUSTRY?
- 111. 111Bus-810W DTC Marketing 7TH ANNUAL SOCIAL MEDIA MARKETING REPORT - Surveyed 3,720 Marketers, Solopreneurs, and Small to Medium Sized Businesses
- 112. 112Bus-810W DTC Marketing WHAT IS THE MOST RELEVANT? Marketers want to learn most about Facebook: While 93% of marketers are using Facebook, 68% want to learn more about it and 62% plan on increasing Facebook activities.
- 113. 113Bus-810W DTC Marketing STEP 2 Define The Content Mix A strategy is only effective if the content is compelling. The content may be the same but should be delivered differently depending on the platform. (Ex - #WineWendnesday) Relevant on Twitter and Instagram, but almost considered a nuisance on Facebook.
- 115. 115Bus-810W DTC Marketing STEP 3 Organize and Plan Your Content Take the necessary time to organize and plan content. Many businesses start well but fail to remain consistent. If the content delivery slows, becomes sporadic or stops, your social media strategy becomes stale and your audience will too. Stay consistent by planning content ahead of time. I recommend two tools to assist in this: 1. A Simple Content Posting Calendar 2. Automated Posting/Monitoring Services
- 118. 118Bus-810W DTC Marketing STEP 4 Use High Quality Photos The difference between an average picture and a great one can sometimes boil down to two words, “Crop” and “Enhance”. So you don’t have a full time graphic designer at your fingertips. No problem! Most smart phones have the ability to take average photos and make them great. Take the time to know how to perform those two simple functions on your phone and make your pictures more impactful when you post.
- 119. 119Bus-810W DTC Marketing THE GOOD THE BAD
- 120. 120Bus-810W DTC Marketing STEP 5 Promote Your Content
- 121. 121Bus-810W DTC Marketing If You Do Not Pay to Advertise on Facebook, It Is Estimated That You Only Reach 3-5% of Your Fan Base Forbes.com
- 122. 122Bus-810W DTC Marketing STEP 6 Test and Track Your Stats Social media platforms and automated services are not always perfect. Follow up posts by double-checking that the message(s) intended for that day on the platform it was intended for. Verify that the links contained actually work. Take note of the amount of time it takes to load images and videos. Also, record any comments that are generated by a particular post. This will give you immediate feedback as to what might be working.
- 125. 125Bus-810W DTC Marketing RECAP 1. Identify Social Media Platforms 2. Define The Content Mix 3. Organize and Plan Your Content 4. Use High Quality Photos 5. Promote Your Content 6. Test and Track Your Stats
- 127. 127Bus-810W DTC Marketing Think “making a difference in people’s lives”! Videos Blogs Recipes Special offers Invitations to special events Charitable causes Downloadable relevant content Gamification Sharable experiences Online Discovery Tools
- 128. 128Bus-810W DTC Marketing 7TH ANNUAL SOCIAL MEDIA MARKETING REPORT - Surveyed 3,720 Marketers, Solopreneurs, and Small to Medium Sized Businesses
- 132. 132Bus-810W DTC Marketing Suggested Reading How to Know if Your Winery Should Blog Read Larry Chandler’s Blog at http://bit.ly/1SUJIV5
- 134. 134Bus-810W DTC Marketing Engagement is about “What’s in it for me”? ie. The consumer
- 135. 135Bus-810W DTC Marketing Organic Social Posting
- 137. 137Bus-810W DTC Marketing Respond to Comments and Interact with Fans!
- 138. 138Bus-810W DTC Marketing Blog – Social Paid Promotion Targeted audience Paid promotion Organic promotion thanks to people’s shares
- 143. 143Bus-810W DTC Marketing WHAT WERE THE TOP 3 QUESTIONS MARKETERS WANTED ANSWERED? • What social tactics are most effective? • What are the best ways to engage my audience on social media? • How do I measure return on my social marketing?
- 146. 146Bus-810W DTC Marketing DIFFERENT APPLICATIONS OF SOCIAL MARKETING • Developing Lists Using Contests • Converting Lists Into Purchasers • Creation of Website Traffic
- 147. 147Bus-810W DTC Marketing COMMON THREAD IN ALL OUR WORK • Goal Setting • Timeline For Execution • Call to Action • Recording of Stats
- 148. 148Bus-810W DTC Marketing CASE #1 BRETT DENNEN • Goal – Convert Facebook Followers • Timeline – 2 Weeks • Call to Action – Art Give Away
- 149. 149Bus-810W DTC Marketing CASE #1 BRETT DENNEN
- 150. 150Bus-810W DTC Marketing CASE #1 BRETT DENNEN Stats: • 2,500 Emails Generated • 15 Cases of Wine Sold • Engaged 68% of Fan Base
- 151. 151Bus-810W DTC Marketing CASE #2 BOTTLEROCK • Goal – Gain New Email List Members and Drive Traffic to BottleRock Site • (Cost Per Click) • Timeline – 3 Weeks • Call to Action – Ticket Give Away
- 153. 153Bus-810W DTC Marketing CASE #2 BOTTLEROCK Stats: • 2,000 Emails Generated • 15,000 Clicks To BottleRock Site • (27,000 Clicks in Total)
- 155. 155Bus-810W DTC Marketing EXTERNAL CASE #3 CONTEST GIVEAWAY • Goals – Capture Emails for Marketing and Drive Traffic to VinoVisit.com • Total Time Lapsed– 10 weeks
- 156. 156Bus-810W DTC Marketing Case #3 Contest Giveaway
- 157. 157Bus-810W DTC Marketing Contest –Social Paid Promotion Targeted audience Paid promotion Organic promotion thanks to people’s shares (bonus entries) Encourage people to like your page
- 158. 158Bus-810W DTC Marketing CASE #3 CONTEST GIVEAWAY Stats: • 126,000 Clicks on Contest • 76,000 Entries Into Contest
- 159. 159Bus-810W DTC Marketing Remember That the Journey is Non-Linear Find the customer where they want to be found…
- 161. 161Bus-810W DTC Marketing MAKE ME FEEL SPECIAL!
- 163. 163Bus-810W DTC Marketing Lead Your Consumer Down The Path of: 1. Discover 2. Trust 3. Buy
- 164. 164Bus-810W DTC Marketing Then Do It Again And Again And Again…..
- 166. 166Bus-810W DTC Marketing Wine, food, travel forums Existing customers Referrals from local businesses Social media channels Friends and family Special events Wine publications and blogs? Search Engine Optimization Search Engine Marketing Ratings and Reviews Getting Found Building Advocates Discovery: Socializing Brick & Mortar Source: www.tripadvisor.com, Ram’s Gate Winery
- 168. 168Bus-810W DTC Marketing Remember That the Journey is Non-Linear Transforming the customer journey across all channels
- 169. 169Bus-810W DTC Marketing •The User's Search or Query - This is the thing a searcher types in. In the example above, someone is looking for information or products relating to Apple computers. •Organic SERP Listings - These are the "natural" listings. To produce these results, Google uses a series of metrics to ensure that your site is relevant. To have your site show here, you have to effectively "score well" on that algorithmic test. •Paid SERP Listings - These are advertisements, or "sponsored links." You can have your ad displayed here by launching a pay- per-click search campaign, and by ensuring that your maximum CPC bids and Quality Score allow you to secure a high enough ad position for the keyword you're targeting. SERP Basics – 3 Key Components
- 170. 170Bus-810W DTC Marketing Why Do SERPs Matter to Me? Because ranking your site in the proper SERP position will be the difference between success and failure in your search marketing campaigns. Consider the following insights provided by recent Google published stats: • 68% of searchers select a result on the first page of search results. • There is a disproportionate number of clicks (approximately 40%) on the number one listing. • Reaching the first page in paid search is equally important. • In other words, most people click on the first page, and most of those people click on earlier results. The higher your search engine results page ranking, the more traffic you'll get.
- 171. 171Bus-810W DTC Marketing How to Improve Your SERP Positions • Research Key words • Organize (group) the keywords • Manage your SEO workflow • Manage your PPC workflow • Act on the analytics • Observe the results • Repeat!
- 173. 173Bus-810W DTC Marketing Your Website is a Marketing Tool 3 Traffic Sources you must cultivate: Organic search engines. Referral sites, especially from local regional sites. Local maps search results. Varietals •Cabernet, Rose, Muscat Regional •Carneros, Willamette, Rutherford Others •Wine tasting/tours •Weddings •Boutique Build a relevant list of keywords • Your website should be a flytrap for tourists looking to plan their vacation, or visit that special winery with a picnic area, great view, or wedding venue. • Create a list of keywords that you can associate that go beyond your brand name. Branded search traffic accounts for about 95% of most winery websites traffic.
- 174. 174Bus-810W DTC Marketing Focus on Local SEO T0 Attract More Visitors When you do a search for "your region" + "winery" does your website appear in the maps area? This is the "Places" results, and these search results differ from regular organic search results in that they appear for people located very close to your business. They want to find you, but are you listed high enough? In order to rank well in the local search results, you need a two things. A verified Google+ Local page for your business. www.Google.com/places. Multiple NAP (name, address, phone) listings on site like citysearch.com, yp.com, hotfrog.com and others. For a more complete list of sources to get business citations, visit Getlisted.
- 175. 175Bus-810W DTC Marketing Discovery: The Customer Funnel Unaware • Purpose: Create awareness, brand discovery • Blog posts, web page, customer stories, advertising, industry trends Interested • Purpose: Provide usefulness, education, create interest • Regional travel guides, events, independent articles, demonstrated values, email newsletters Desire • Purpose: Incentivize, stir emotion, demonstrate values • Demonstrate charity contributions, connect with lifestyles, build community of social sharing Purchase • Purpose: Secure customer, provide good experience, build loyalty • Reviews & ratings, customer service, upsells and promos, personalized content, streamlined checkout
- 176. 176Bus-810W DTC Marketing Discovery To Do List – Top 5 Things 1. Expand company profiles on both local and national travel and tourism sites like Fodors, Wine Travel Guides, Virtual Tourist, and Lonely Planet. 2. Encourage visitors and fans to leave reviews at Trip Advisor, Zagat, Google+, Facebook. 3. Create useful and usable website content that includes resources, things to do, local knowledge, and popular destinations near your winery. 4. Claim your Google+ Local page. 5. Contribute guest blog posts on travel blogs and websites to increase exposure from new audiences.
- 178. 178Bus-810W DTC Marketing Tell your story + tell it well (the magic 15%)
- 179. 179Bus-810W DTC Marketing MODEL OF CUSTOMER PROGRESSION DISCOVERY • Search engine • Word of mouth • Advertisement • Social Media ENGAGEMENT • Visits website • Visits tasting room • Social Media • Mobile ACQUISITION • Purchases wine online • Buys wine in tasting room • Joins wine club LOYALTY/LOVE • Email communication • Facebook shares • Special events • Ratings
- 180. 180Bus-810W DTC Marketing The Art of Engagement ENGAGEMENT • Visits website •Visits tasting room •Calls winery •Social Media •Mobile
- 181. 181Bus-810W DTC Marketing What’s the Difference Between Good and Bad? GREAT AD TERRIBLE WEBSITE
- 182. 182Bus-810W DTC Marketing Engagement is about “what’s in it for me”? ie. The consumer
- 183. 183Bus-810W DTC Marketing Engagement: Online Shopping Experiences Sources: KJ.com, LaCrema.com, Lindemans.com and UnderdogWine.com
- 189. 189Bus-810W DTC Marketing Every tasting room visitor is a potential customer Collect email addresses Personally invite to Tasting Room Events and Winemaker Dinners Welcome “Check ins” via FourSquare, Facebook Promote reviews of your business (Yelp, TripAdvisor) and wines (Cellartracker) Communicate Club benefits and incentives Convey your winery’s story Don’t be afraid to ask for the sale Engagement: Build Relationships
- 190. 190Bus-810W DTC Marketing Think “making a difference in people’s lives”! Videos Blogs Recipes Special offers Invitations to special events Charitable causes Downloadable relevant content Gamification Sharable experiences Online Engagement Tools
- 193. 193Bus-810W DTC Marketing Final Words on Engagement……. “Don’t just focus on your product. Think about who your customers are, what they care about, and where they hang out. Embracing and engaging with your customers means understanding them, their needs and desires. The goal is to become part of your customers’ everyday lives, not just a company at the other end of a financial transaction.” Jacek Blout, Blogger
- 194. 194Bus-810W DTC Marketing What’s Next? Experiential Retail Coming to a Winery Near You
- 195. 195Bus-810W DTC Marketing WATCH: http://www.youtube.com/watch?v=E1rUdTITGCg Things to Watch: Engagement Experiences Macy’s Magic Fitting Room
- 196. 196Bus-810W DTC Marketing MODEL OF CUSTOMER PROGRESSION DISCOVERY • Search engine • Word of mouth • Advertisement • Social Media ENGAGEMENT • Visits website • Visits tasting room • Social Media • Mobile ACQUISITION • Purchases wine online • Buys wine in tasting room • Joins wine club LOYALTY/LOVE • Email communication • Facebook shares • Special events • Ratings
- 197. 197Bus-810W DTC Marketing The Results Speak for Themselves ACQUISITION • Signs up for Newsletter/Blog • Purchases wine online • Buys wine in tasting room • Joins wine club • Signs up for wine event • Purchases from catalog or telephone driven by email
- 198. 198Bus-810W DTC Marketing Web Analytics: Customer Preferences
- 199. 199Bus-810W DTC Marketing Converting visitors • Wine club signup – Most traditional tasting room business model – Let’s discuss • Newsletter signup form – Critical best practices – Let’s discuss • Email Campaigns – Critical best practices – Let’s discuss • Telesales – With click-to-call email digital campaign • Direct Mail, Catalog – Can still be effective; can drive ecommerce conversions • Social media, events, other
- 200. 200Bus-810W DTC Marketing Converting visitors • Wine club signup – Most traditional tasting room business model – Let’s discuss • Newsletter signup form – Critical best practices – Let’s discuss • Email Campaigns – Critical best practices – Let’s discuss • Telesales – With click-to-call email digital campaign – Let’s discuss • Direct Mail, Catalog – Can still be effective; can drive ecommerce conversions • Social media, events, other
- 201. 201Bus-810W DTC Marketing Don’t Forget About Wine Clubs
- 202. 202Bus-810W DTC Marketing Please read my blog from January 2015 http://bit.ly/1iMI6yJ
- 203. 203Bus-810W DTC Marketing The Winery Determines Selection and Spend Traditional
- 204. 204Bus-810W DTC Marketing Traditional Wine Club Member Options: • 3 shipments per year • Winery selects the wine to be shipped (6 bottles per shipment) • No annual commitment • 20% Discount on purchases
- 206. 206Bus-810W DTC Marketing Transitional Fully customizable from whatever is available at the winery
- 207. 207Bus-810W DTC Marketing The Future Wine Club Member Options: • Minimum 6 bottles per year • You choose the wines you wish to receive (increments of 3 bottles) • 1 year commitment • Additional orders do not count toward your annual allocation
- 208. 208Bus-810W DTC Marketing “In today’s world, the concept of winery wine clubs must change and evolve, but the importance of continuity programs and relationship annuities lives on.” Ron Scharman Blog The Future
- 209. 209Bus-810W DTC Marketing Converting visitors • Wine club signup – Most traditional tasting room business model • Newsletter signup form – Critical best practices – Let’s discuss • Email Campaigns – Critical best practices – Let’s discuss • Telesales – With click-to-call email digital campaign • Direct Mail, Catalog – Can still be effective; can drive ecommerce conversions • Social media, events, other
- 210. 210Bus-810W DTC Marketing Newsletter Best Practices – Make It Easy! 1 - 5 1. Your registration form should request the user’s email and as little else as possible. 2. Present the opportunity to sign up on every page on your site, and in the same spot. 3. Try to show an actual sign-up form on each page instead of just a link. 4. A one-time pop-up requesting visitors to sign up is okay. 5. Include a link to your Privacy Policy as close to the form as possible.
- 211. 211Bus-810W DTC Marketing Newsletter Best Practices – Make It Easy! 6 - 10 6. Include an example of what your customers are signing up for. 7. Present a clear confirmation after your customer signs up. 8. Wait until AFTER the initial sign-up to ask more detailed questions. 9. Send an email confirming the user’s registration. 10. Consider a discount code for a future purchase in the Confirmation Email.
- 212. 212Bus-810W DTC Marketing Newsletter Signups - Good
- 213. 213Bus-810W DTC Marketing Acknowledge and Reward
- 214. 214Bus-810W DTC Marketing Newsletter Signup – Or Make It Hard If you want someone to sign up for your newsletter, make it easy. Do not: 1. Hide your newsletter link 2. Ask for huge amounts of information 3. Demand more information after the user submitted what was asked for. 4. Force customers to enter all their information all over again if they make a mistake in one particular field 5. Forget about thanking them for subscribing
- 215. 215Bus-810W DTC Marketing Newsletter Signups - Not So Good
- 216. 216Bus-810W DTC Marketing Converting visitors • Wine club signup – Most traditional tasting room business model • Newsletter signup form – Critical best practices • Email Campaigns – Critical best practices – Let’s discuss • Telesales – With click-to-call email digital campaign • Direct Mail, Catalog – Can still be effective; can drive ecommerce conversions • Social media, events, other
- 217. 217Bus-810W DTC Marketing Email Marketing for Success
- 218. 218Bus-810W DTC Marketing Email Still Rules • Based on recent consumer marketing data by ExactTarget (a Salesforce company), most large companies outside the wine industry still view email marketing as a better return on investment. • Better than SEM, content marketing, social media, offline direct marketing, affiliate marketing, online display advertising, and mobile marketing. • Success in this channel starts with higher deliverability and conversion rates that lead to greater profitable wine sales.
- 219. 219Bus-810W DTC Marketing How Money is Spent vs. ROI *Source: Direct Marketing Association 2015
- 220. 220Bus-810W DTC Marketing *Source: Etail and Critio, Trends in Digital Retail Report 2015
- 221. 221Bus-810W DTC Marketing Please read my blog from September 2015 http://bit.ly/1K9dpZY THE COST/BENEFIT ANALYSIS OF BUILDING YOUR EMAIL SUBSCRIBER LIST
- 222. 222Bus-810W DTC Marketing Sent Delivered Opened Clicked Product Views Cart Additions Checkouts Orders Revenue Units The power of browse
- 223. 223Bus-810W DTC Marketing Volume versus conversion Wine Club Red White Cart Abandonment • Low volume • High conversion Browse & Process Abandonment • High volume • Lower conversion { {
- 224. 224Bus-810W DTC Marketing Managing the Output – SilverPop Stats Program Open Rate Conversion Rate Broadcast 18.1% 1.6% Purchase Confirm -- 2.4% Welcome 34.4% 1.4% Browse Remarket 41.8% 2.2% Cart Abandon 27.9% 23.1% SKU Notify -- 23.9%
- 225. 225Bus-810W DTC Marketing Email Marketing 1 - 5 "Think of how you can make the user love your mails rather than how to land in the Inbox." • Know your audience • Find Out What Subscribers Want and Honor and Deliver on That • Mitigate Deliverability Risks by Delivering Value Not Just Email • Have a clear value proposition for subscribers and customers • Don’t just batch and blast – segment your list and use preference based marketing data
- 226. 226Bus-810W DTC Marketing Email Marketing 6 - 10 "Think of how you can make the user love your mails rather than how to land in the Inbox." • Test different types of content and promos to see what generates the best engagement rates, and look beyond opens and clicks to measure success – spam complaints, unsubscribes, etc. • Think responsibly, and responsively – make sure your emails are mobile optimized • Test your promos carefully before blasting away • Use designated landing pages or guide customers to product pages that are relevant • Use an email marketing platform that guarantees high deliverability rates
- 227. 227Bus-810W DTC Marketing Ideas to Consider
- 229. 229Bus-810W DTC Marketing Please read the blog from September 2015 by Graham Clark http://bit.ly/1NHLGam A/B TESTING: THE SUBJECT LINE PARADOX
- 230. 230Bus-810W DTC Marketing Browser Compatibility Does your email look beautiful everywhere? Litmus software lets you preview your campaigns across 40+ real email clients and devices in minutes. It’s make email testing easy.
- 231. 231Bus-810W DTC Marketing Hedge your bets – Add “View in Browser option” “View This Email In Your Browser”
- 232. 232Bus-810W DTC Marketing • Make each email personalized to address the winery customer. • Examples – Use first name in greeting/offer – Reference customer state in shipping offer – Reference customer purchase history – Birthday or other special occasion emails Personalization
- 233. 233Bus-810W DTC Marketing Create a Path to Purchase - Landing pages It’s critical that your customer arrives at a specific landing page that is responsive in design, and that streamlines their path to purchase. And regardless of device or operating system.
- 234. 234Bus-810W DTC Marketing + Social Media Marketing
- 235. 235Bus-810W DTC Marketing + Social Media Marketing
- 236. 236Bus-810W DTC Marketing +Social Media Marketing
- 237. 237Bus-810W DTC Marketing Make It Personal
- 238. 238Bus-810W DTC Marketing + Social Media Marketing ReachMail 2015
- 239. 239Bus-810W DTC Marketing Click – To – Call Email
- 240. 240Bus-810W DTC Marketing Click – To – Call
- 241. 241Bus-810W DTC Marketing The Changing of the Guard and What It Means for You
- 242. 242Bus-810W DTC Marketing *Source: Etail and Critio, Trends in Digital Retail Report 2015
- 243. 243Bus-810W DTC Marketing • Largest Web-based email service in the world • Has become the standard bearer for ad supported, consumer email services. • Currently has more than 600 Million users worldwide.* • Adding more than 1 Million new users per week.* • 66% of Gmail users open their email on a mobile device. ** • One Billion people have downloaded the Gmail Android App as of 2014.*** * Quora 2015 **Mashable 2014 ***Digital Trends 2014 Gmail Achieves World Domination
- 244. 244Bus-810W DTC Marketing *Source: Strategy Analytics 2015 And Android Too
- 245. 245Bus-810W DTC Marketing The New World of Gmail
- 246. 246Bus-810W DTC Marketing • Clean your data • Send out test emails first to an email address at major ISP’s • Use “Content Dialysis” software to check your content for spam inducing results. Ex. Content Detective • Stop using the word “Free”, all caps, colored fonts, etc. • Try sending text format emails vs. HTML. • Go light on imagery, links, and heavy content. • Drip your emails, and break down your large lists • Provide a clear unsubscribe list So What Do I Do Now?
- 247. 247Bus-810W DTC Marketing Suggested Reading Winery Email Marketing: How to Shoot for the Stars Read Steven Smith’s Jan 2015 Blog at http://bit.ly/1SUJIV5
- 248. 248Bus-810W DTC Marketing Data Security Message
- 249. 249Bus-810W DTC Marketing What Not to Do
- 250. 250Bus-810W DTC Marketing What to Do Response from Winery Owner: “Hi Ron: I appreciate you bringing this issue to my attention. Apparently, our team is not aware of the compliance infraction nor the potential downside. I will discuss it with everyone and moving forward avoid doing this again in the future.”
- 251. 251Bus-810W DTC Marketing Remember: You are Responsible for Your Customer Data
- 252. 252Bus-810W DTC Marketing Cart Abandonment Pit Stop
- 253. 253Bus-810W DTC Marketing It’s All About Retargeting
- 254. 254Bus-810W DTC Marketing What is Cart Abandonment? “Shopping cart abandonment — when shoppers put items in their online shopping carts, but then leave before completing the purchase — is the bane of the online retail industry, and that includes the wine industry.” BusinessInsider.com
- 255. 255Bus-810W DTC Marketing Why Should I Care?
- 256. 256Bus-810W DTC Marketing Here’s Why • Approximately $4 Trillion worth of merchandise will be abandoned in online shopping carts this year = approximately 68% of all shopping cart transactions • 63% of these are potentially recoverable, according to BI Intelligence. • Shopping cart abandonment will continue to increase as more consumers shift to online and mobile shopping. BusinessInsider.com
- 257. 257Bus-810W DTC Marketing And Really Why • An abandoned cart does not automatically translate to a “lost sale”. • Three-fourths of shoppers who abandon shopping carts say they plan to return to the retailer’s website or store to make a purchase. • Initial emails, sent 3 hours after a consumer abandons a cart, average a 40% open rate, and 20% click through, according to Listrak. • You can expect up to a 20% recovery rate on abandoned carts with a well executed retargeting program BusinessInsider.com
- 258. 258Bus-810W DTC Marketing VWO Ecommerce Survey 2014 Reasons for Cart Abandonment
- 259. 259Bus-810W DTC Marketing What Should I Do About It?
- 260. 260Bus-810W DTC Marketing Talk to Your eCommerce Provider
- 261. 261Bus-810W DTC Marketing Shopping Cart Recovery Tips • Strike fast – 50% of carts are typically recovered in the first few hours after abandonment. • Produce a series – typically 3 emails over a 7 day period. • Stage your incentives for returning – increase the discount or other incentives through the series of emails. • Segment and test different creative, subject lines, offers, calls to action, and messaging to see what works best. • Appreciate the value of an email address – no recovery possible without it.
- 262. 262Bus-810W DTC Marketing MODEL OF CUSTOMER PROGRESSION DISCOVERY • Search engine • Word of mouth • Advertisement • Social Media ENGAGEMENT • Visits website • Visits tasting room • Social Media • Mobile ACQUISITION • Purchases wine online • Buys wine in tasting room • Joins wine club LOYALTY/LOVE • Email communication • Facebook shares • Special events • Ratings
- 263. 263Bus-810W DTC Marketing Tell Me You Love Me LOYALTY/LOVE • Email communication • Join Wine Club • Newsletter/Blog • Facebook shares • Special events • Ratings • Imagination
- 264. 264Bus-810W DTC Marketing Remember That the Journey is Non-Linear Transforming the customer journey across all channels
- 265. 265Bus-810W DTC Marketing WHY IS UNDERSTANDING THE JOURNEY VITAL? A return customer is…. 10-15x more likely to buy in the future after the 1st purchase
- 266. 266Bus-810W DTC Marketing Retention: The Heart of the Matter AT THE CORE OF DIGITAL RETENTION: USERS CAN LEAVE YOUR BRAND FOR SOMEONE ELSE. ALWAYS REMIND CUSTOMERS WHY THEY FELL IN LOVE WITH YOU IN THE FIRST PLACE
- 267. 267Bus-810W DTC Marketing Retention Defined Actions a company takes so that their existing customers continue buying the services and products offered by that company in the future.
- 268. 268Bus-810W DTC Marketing Retention vs. Loyalty Loyalty is About Growth Loyalty and loyalty marketing programs work to transform a customer’s positive interactions with a winery into positive outcomes for the customer on an ongoing basis. They recognize the right behaviors and result in a higher value customer for the winery and higher value experience for the customer.
- 269. 269Bus-810W DTC Marketing Retention vs. Loyalty Retention is About Decline Retention is about the preservation, rather than growth of a customer. Retention campaigns are focused on a positive indication that this customer is on their way out the door. It’s no longer about growth or what could be, it’s about knowing what is about to happen to your customer and doing something about it.
- 270. 270Bus-810W DTC Marketing Retention vs. Loyalty You Should Do Both Retention and Loyalty are two different types of marketing campaigns. You need both campaigns working in tandem as part of the on-going customer conversations. Without these campaigns, businesses miss critical communication points that could result in bigger returns and long lasting relationships.
- 272. 272Bus-810W DTC Marketing So Where Does Loyalty Begin?
- 273. 273Bus-810W DTC Marketing Hopefully It Starts With: “You had me at hello…….”
- 275. 275Bus-810W DTC Marketing And Delighting Customers Make Me Feel Special
- 276. 276Bus-810W DTC Marketing The DNA of Customer Loyalty The three results that reflect the general components of customer “emotional” loyalty programs are: • Retention – keeping customers • Advocacy – getting new customers through recommendation • Life Time Value – increasing spend and frequency from existing customers
- 277. 277Bus-810W DTC Marketing Emotional loyalty demands: 1) Consistency across channels 2) Relevant and timely promotions 3) Customer intimacy; and 4) A real excite and delight element built on top of a standard “I’ve got great wine to sell at a good price” story. The DNA of Customer Loyalty
- 278. 278Bus-810W DTC Marketing Loyalty and Love
- 279. 279Bus-810W DTC Marketing Delight customers • Wine club discounts • Wine club special offerings • Club member events • Loyalty bonuses • Special access • The Unexpected
- 280. 280Bus-810W DTC Marketing Reinventing the Delivery Experience “The luxury experience we are so very carefully cultivating stops at delivery. We don’t need to accept that. I think we can extend that luxury experience and fill the gap.” Jason Eckenroth Founder/CEO ShipCompliant
- 281. 281Bus-810W DTC Marketing Reinventing the Delivery Experience
- 282. 282Bus-810W DTC Marketing Reinventing the Delivery Experience
- 283. 283Bus-810W DTC Marketing Reinventing the Delivery Experience
- 284. 284Bus-810W DTC Marketing And Keep Delighting Customers Make Me Feel Special
- 285. 285Bus-810W DTC Marketing Love is Sharing with Others
- 286. 286Bus-810W DTC Marketing Get Social - Build Your Brand Advocacy
- 287. 287Bus-810W DTC Marketing Whether a customer buys wine in your tasting room, or on your website, their information flows to one central location. Tangible benefits: Full purchase history in one system Segmenting customers for marketing Customer can access their profile online Access customer information from anywhere One central customer record shared across multiple systems Tasting room Wine club Website Customer Relationship Loyalty: One Customer, One Database
- 288. 288Bus-810W DTC Marketing CRM Customer Relationship Management
- 289. 289Bus-810W DTC Marketing CRM – Customer Relationship Management Simply put, CRM is putting customers at the heart of a business. Today it is more important than ever to build better relationships with customers as, in this day and age of social media, they now talk to ???? people at a time. With the support of technology, the goal of CRM is to have a 360-degree view of the customer which will enable you to improve the quality and satisfaction of each customer interaction and maximize the profitability of customer relationships.
- 290. 290Bus-810W DTC Marketing CRM Requirements for Success 1. Strategy. Your customer strategy identifies the customers the organization intends to serve and articulates the desired customer experience to be delivered. 2. Process. Business processes are comprised of the practices associated with major customer facing business functions in the organization. For example, marketing, eCommerce, wine club, hospitality, customer service, and field service. 3. Technology. Your technology environment plays an important role in enabling the CRM business processes and is comprised of customer analytics, customer data management, and technology infrastructure. 4. People. How people are organized and led has a large role in determining success with CRM. You must pay attention to the organization’s corporate culture, leadership practices, collaboration methods, training programs, and performance measurement approaches.
- 291. 291Bus-810W DTC Marketing Know Thy Customer What kind of relationship do you want to build with your target audience?
- 292. 292Bus-810W DTC Marketing Know Thy Customer 1. How do you define your target audience (age-group, gender, education, income, likings, ethnicity, lifestyle etc) and where majority of them live? 2. Who are your best customer types in terms of revenue generation and why? 3. What kind of relationship you want to build with your target audience? 4. What are the desires and expectations of your target audience? 5. What is the level of product use? Are your customers loyal to you? 6. What are the most common objections raised by your customers? 7. Who are the actual decision makers (who has the final say)?
- 293. 293Bus-810W DTC Marketing 360 Degree View of Your Customer Information about your members collected at each touch point outside your website should be attached to the member profile record, creating a complete view of your customer.
- 294. 294Bus-810W DTC Marketing Preference Based Marketing • Your member data should not be limited to just online sales and wine club members. • As the direct to consumer sales channel grows customers are finding more and more touch points to interact with wineries or wine brands. • Information about your members that is collected at these touch points outside your website is easily fed into the member profile creating a complete detailed profile of each of your customers preferences.
- 295. 295Bus-810W DTC Marketing Filter and Segment Data • CRM tools filter and segment data. • The first step to understanding how to market and sell to your customers and prospects is to first build custom fields to segment by preferences, buying habits and behaviors. • Filtering tools are used to create custom marketing lists so that the right message is delivered to the right customer at the right time.
- 296. 296Bus-810W DTC Marketing Email List Segmentation • Content is Primary • Segmentation comes next – Varietal preferences (Special offer on Reds) – Locals (Come to our next event) – Order history (We’ve missed you) – Club join date (One year anniversary together) – Credit card set to expire (Update your profile)
- 297. 297Bus-810W DTC Marketing Manage Member Data • The integrity of your member data is the key to successful CRM. • Member maintenance tools allow you to consolidate duplicate member records, keeping your data clean and accurate. • Match your potentially duplicated member records, then merge the suggested matches, consolidating address, payment and order history. • Clean data is useful data. Find duplicate data and merge records.
- 298. 298Bus-810W DTC Marketing Business Intelligence Listen, Learn, Act • Tap into real-time critical business data to increase your ROI on sales and marketing initiatives. • Business intelligence reporting delivers key point-of-sale, ecommerce, club member, inventory, CRM, and telesales information on-demand, with responsive mobile ready reporting capabilities.
- 299. 299Bus-810W DTC Marketing Google Analytics • Google Analytics is a powerful tool for evaluating the effectiveness of your website in getting and keeping user traffic. • Implementing Google Analytics tracking codes on your website helps you gauge the amount of traffic to your site and how consumers behave while visiting your website. • This information from your website appears in your Google Analytics dashboard where you can view this data and use it to optimize your site.
- 300. 300Bus-810W DTC Marketing What’s New? Social CRM
- 301. 301Bus-810W DTC Marketing Next Generation: Listening and Engagement Combined Web Analytics CRM Social Metrics
- 302. 302Bus-810W DTC Marketing Big Data in Action The rise of the Datarati. “Big data” is one of the most over-used and over-hyped words in 2016. While much of it is hype, what is not are companies’ continued focus on data analysis. Companies continue to invest in measuring social media, understanding customer value and modeling customer behavior. If you do not use your data to talk to your customers, others will.
- 303. 303Bus-810W DTC Marketing THE DIGITAL MARKETING PLANNING CHECKLIST & THOUGHT PROCESS
- 304. 304Bus-810W DTC Marketing HOW TO KICKSTART YOUR PLANNING PROCESS
- 305. 305Bus-810W DTC Marketing NOW WHAT. LET’S TALK ABOUT THE ACTUAL COMPONENTS OF A DIGITAL MARKETING PLAN
- 306. 306Bus-810W DTC Marketing WHAT MAKES UP A DIGITAL MARKETING PLAN 1. OBJECTIVE 2. STRATEGY 3. TACTICS 4. SCHEDULE
- 307. 307Bus-810W DTC Marketing WHAT MAKES UP A DIGITAL MARKETING PLAN (4 CORE THINGS) 1. OBJECTIVE 2. STRATEGY 3. TACTICS 4. SCHEDULE (*Why*) The over-arching business problem you were tasked with solving (*What*) Your approach, the layer between the business problem, and how exactly you did it. (*How*) The means you took to satisfy your strategy, the actual details of how you executed (*How Much*) Which partners, for how much, and how long.
- 308. 308Bus-810W DTC Marketing WHAT MAKES UP A DIGITAL MARKETING PLAN 1. OBJECTIVE 2. STRATEGY 3. TACTICS 4. SCHEDULE
- 309. 309Bus-810W DTC Marketing WHAT MAKES UP A DIGITAL MARKETING PLAN • Your objective should come from: • A company-wide KPI (drive new customers or more visitors) • Ownership/Senior marketing lead/DTC manager (CMO) • The closest senior member of your team 1. OBJECTIVE (*Why*) The over-arching business problem you were tasked with solving • Your objective should be: • Clear • Actionable • Map directly to a company-wide KPI
- 310. 310Bus-810W DTC Marketing WHAT MAKES UP A DIGITAL MARKETING PLAN EXAMPLES OF OBJECTIVES: 1. OBJECTIVE (*Why*) The over-arching business problem you were tasked with solving Increase the number of website visitors and/or conversions Increase the # of email addresses we have in our database Increase visitor traffic/wine club signups at the winery tasting room
- 311. 311Bus-810W DTC Marketing WHAT MAKES UP A DIGITAL MARKETING PLAN • Your strategies should come from: • You. • Should always answer how you plan to take action before you know anything about executing 2. STRATEGY • Your strategies should be: • Clear • Actionable • Map directly to your objective (how are they solving your biz problem?) • The hardest part of a digital media plan. (*What*) Your approach, the layer between the business problem, and how exactly you did it.
- 312. 312Bus-810W DTC Marketing LETS MARRY THEM TOGETHER Target your demographic audience on the social networks they visit most with best selling wines, or other special offers Encourage new site visitors to redeem an introductory offer in exchange for their email address Drive traffic by promoting off-site tasting events and community-oriented events, focusing on Bay Area residents 1. OBJECTIVE 2. STRATEGY Increase the number of website visitors/conversions Increase the # of email addresses we have in our database Increase visitor traffic to the winery tasting room
- 313. 313Bus-810W DTC Marketing 5. PRICING 6. COSTING 7. PARTNER SELECTION WHAT MAKES UP A DIGITAL MARKETING PLAN 1. OBJECTIVE 2. STRATEGY 3. TACTICS 4. SCHEDULE
- 314. 314Bus-810W DTC Marketing PRICING THEORY IN PRACTICE WHAT MAKES UP A DIGITAL MARKETING PLAN
- 315. 315Bus-810W DTC Marketing BUDGETING FOR YOUR TACTICS ANSWERS 2 QUESTIONS: If I had one dollar, where would I spend it. If I had a 2nd dollar, where would I spend it.
- 316. 316Bus-810W DTC Marketing HOWEVER YOU ANSWERED THE LAST QUESTION: AD DOLLARS GENERALLY ARE RESPONSIBLE FOR DOING 1 THING… (BESIDES INCREASING AWARENESS OF YOUR BRAND)
- 317. 317Bus-810W DTC Marketing WHAT DOES $1 DO FOR THE DIGITAL MARKETER TRAFFIC WEBSITE TASTING ROOM APP 3-Tier PRINT/WEB
- 318. 318Bus-810W DTC Marketing ONCE TRAFFIC IS IN THE DOOR IT CAN DO MANY THINGS (DIGITALLY-FOCUSED) BOOK A TASTING BUY WINE JOIN A WINE CLUB POST A REVIEW DOWNLOAD RECIPES RE-ENGAGEMENT SHARES BROWSE - TIME ON SITE VIDEO PLAYS ENTRIES/VOTES
- 319. 319Bus-810W DTC Marketing 5. PRICING 6. COSTING 7. PARTNER SELECTION WHAT MAKES UP A DIGITAL MARKETING PLAN 1. OBJECTIVE 2. STRATEGY 3. TACTICS 4. SCHEDULE
- 320. 320Bus-810W DTC Marketing WHAT MAKES UP A DIGITAL MARKETING PLAN HOW MUCH DO THINGS COST?
- 321. 321Bus-810W DTC Marketing BACKGROUND ON HOW AD PRICING WORKS CPM (cost per thousand) CPC (cost per click) Publisher charges you every time: CPL (cost per lead) MOST COMMON (EARLIEST FORM OF PRICING, LEAST RISKY FOR PUBLISHER) INCREASINGLY COMMON (MORE RISK TAKEN ON BY PUBLISHER) RAREST (MOST RISKY FOR PUBLISHER, GENERALLY WILL OWN THE SIGNUP EXPERIENCE) Display/Websites Paid Search Paid Social Lead Gen companies (Lead Genius)
- 322. 322Bus-810W DTC Marketing DIGITAL AD PRICING FORMULAS CPM COST PER THOUSAND (COST/IMPRESSIONS) * 1000 CPC COST PER CLICK COST/CLICK Ad Buying Pricing Units (how all online ads are bought and sold) PRO TIPS: CPM: Better for brand advertisers. CPC: best for Direct Response advertisers; most of you should be buying on a CPC. CPL: Best for B2B CPL COST PER LEAD COST/LEADS
- 323. 323Bus-810W DTC Marketing WHAT DOES THE AD PRICING MARKET LOOK LIKE Inexpensive Average Expensive CPM $1.25 $3.50 $5-$15+ CPC $0.25 $0.50-$0.75 $1.50+ CPL $25 $50 $100+ All these prices completely depend on your site, pricing, and business
- 324. 324Bus-810W DTC Marketing AVERAGE CPC GUIDELINES (ACTUAL MAY DIFFER) Base Additions (each is an incremental cost) Avg. Untargeted CPC Gender Age Interest Occupation Education Geo $0.35 +$0.25 +$0.25 +$0.30 +$0.25 +$0.15 +$0.45 But a fully loaded CPC would be $2.00
- 325. 325Bus-810W DTC Marketing AVERAGE CPC GUIDELINES + OBJECTIVES Base Additions (each is an incremental cost) Avg. Untargeted CPC Gender Age Interest Occupation Education Geo $0.35 +$0.25 +$0.25 +$0.30 +$0.25 +$0.15 +$0.45 In other words, a fully loaded CPC would be $2.00
- 326. 326Bus-810W DTC Marketing 5. PRICING 6. COSTING 7. PARTNER SELECTION WHAT MAKES UP A DIGITAL MARKETING PLAN 1. OBJECTIVE 2. STRATEGY 3. TACTICS 4. SCHEDULE
- 327. 327Bus-810W DTC Marketing BUDGETING: HOW MUCH SHOULD I SPEND ON ADVERTISING? WHAT MAKES UP A DIGITAL MARKETING PLAN
- 328. 328Bus-810W DTC Marketing KNOWING HOW MUCH YOU ARE WILLING TO SPEND (WITH WHO) HAS TO DO WITH YOUR RISK TOLERANCE.
- 329. 329Bus-810W DTC Marketing ?: HOW RISKY ARE WE?
- 330. 330Bus-810W DTC Marketing CHECK YOUR SPEEDOMETER: AGGRESSIVE OR CONSERVATIVE DRIVER? IDENTIFYING YOUR APPETITE FOR RISK
- 331. 331Bus-810W DTC Marketing AGGRESSIVE WHEN AN AGGRESSIVE STRATEGY IS RIGHT FOR YOU ROI VOLUME • You are looking to acquire as many new customers as possible in an effort to gain traction and grow wine brand awareness. • Or you are have fewer metric constraints (spending our budget is more important than measuring it!) • This strategy means being comfortable with a higher cost per acquisition in exchange.
- 332. 332Bus-810W DTC Marketing AGGRESSIVE OR CONSERVATIVE? CONSERVATIVE ROI VOLUME • Looking to maintain the best profit margin possible, • You are much more metrics-driven, or potentially cash-strapped. • This strategy comfortable with simply acquiring less new customers.
- 333. 333Bus-810W DTC Marketing Are you comfortable acquiring new users at a loss? (spend $10, make $5) Are comfortable acquiring new users & breaking even? (spend $10, make $10) If we break even or lose money now, can we monetize these users in 3, 6, 12 months? How good were we this month at getting our existing customers to come back and spend time on our site? How many new users do you want to acquire, and in what time frame? HINT: “As many as possible ASAP” is not good enough. Be specific. YOUR CHECKLIST FOR RISK & COSTING
- 334. 334Bus-810W DTC Marketing 5. PRICING 6. COSTING 7. PARTNER SELECTION WHAT MAKES UP A DIGITAL MARKETING PLAN 1. OBJECTIVE 2. STRATEGY 3. TACTICS 4. SCHEDULE
- 335. 335Bus-810W DTC Marketing BEFORE COMPLETING A DIGITAL MARKETING PLAN YOU HAVE TO PROJECT WHAT YOUR EFFORTS WILL DELIVER
- 336. 336Bus-810W DTC Marketing LET’S SAY YOU RUN A WINERY THAT HAS THE FOLLOWING CRITERIA: EXAMPLE WORLD’S GREATEST WINES Price $100 Goal ROI 200% Goal New Customers 1,000 Average Conversion Rate 2.00% Expected Cost Per Click $1.00
- 337. 337Bus-810W DTC Marketing IF WE WANT 1,000 NEW CUSTOMERS AND OUR SITE HAS A 2.0% CONVERSION RATE… HOW MUCH TRAFFIC DO WE NEED TO DRIVE?* EXAMPLE *Yes, we’re assuming this new traffic would convert at the same rate as our current traffic, which may or may not happen. This is modeling, though – it’s not perfect, but it’s useful for our purposes here. VISITS = NEW USERS/CONVERSION RATE
- 338. 338Bus-810W DTC Marketing WE NEED 50,000 VISITS FOR 1,000 NEW CUSTOMERS. SO HOW MUCH COULD 50K VISITS COST US? >> TRAFFIC COST: 50,000 VISITS * $1.00/CLICK = $50,000 AD SPEND EXAMPLE
- 339. 339Bus-810W DTC Marketing HOW MUCH WOULD I NEED TO SPEND TO HIT MY TARGET ROI OF 200%? >> TRAFFIC COST: 50,000 VISITS * $1.00/CLICK = $50,000 AD SPEND >> CONVERSION: 50,000 VISITS * 2.00% CR = 1,000 CUSTOMERS >> REVENUE: 1,000 CUSTOMERS * $100 PRICE = $100,000 REVENUE >> $100,000 REVENUE/$50,000 SPEND = 200% ROI EXAMPLE So under these circumstances, we could hit our ROI Goal & New Customer Goal, with a $50,000 marketing budget. Don’t have $50k? Adjust goals accordingly, this is important!
- 340. 340Bus-810W DTC Marketing FINAL WORD ON SOCIAL MARKETING
- 341. 341Bus-810W DTC Marketing WHAT ARE THE VEHICLES RELEVANT IN THE WINE INDUSTRY?
- 342. 342Bus-810W DTC Marketing If You Do Not Pay to Advertise on Facebook, It Is Estimated That You Only Reach 3-5% of Your Fan Base Forbes.com
- 343. 343Bus-810W DTC Marketing LAST BUT NOT LEAST, BEFORE DOING ANY ADVERTISING THINK: HOW GOOD ARE WE DOING THINGS NOW BEFORE WE PAY FOR TRAFFIC?
- 344. 344Bus-810W DTC Marketing What is the Conversion Rate, Average Order Value, and Time Spent for: Our best traffic source Our worst traffic source (with the most visits) Our highest traffic source Do we have appropriate landing pages to make our desired action as simple & easy as possible Are we confident that paid traffic is going to help us do more of the desired action we want Are we maximizing what we are getting out of our organic/free traffic (existing partnerships, search, etc.) YOUR CHECKLIST FOR HOW GOOD WE ARE
- 345. 345Bus-810W DTC Marketing Final Thoughts Things to consider in your DTC marketing strategy: • What makes you different or your story compelling? • How do you deliver the message to visitors in person or digital? • Why should they care? • What is your plan for building and maintaining customer loyalty?
- 346. 346Bus-810W DTC Marketing Tell your story + tell it well (the magic 15%)
- 347. 347Bus-810W DTC Marketing And Delighting Customers Make Me Feel Special
- 348. 348Bus-810W DTC Marketing Addendum The Future is Now
- 349. 349Bus-810W DTC Marketing Constellation Customer Segmentation Study “The Genome Project” Constellation Brands released in 2014 the results of a comprehensive study identifying six segments of wine drinkers based on their purchase behavior, motivations and preferences. The study follows up on a similar study conducted ten years ago. Please read the article on the study in Wine Business Daily: http://www.winebusiness.com/news/?go=getArticle&dataid=134683
- 350. 350Bus-810W DTC Marketing Constellation Segmentation Study Outlines Motivations, Behaviors of Today's Wine Consumers Consumer Segment - Consumer Profiles Price Driven (21% of consumers) • I believe you can buy good wine without spending a lot • So price is a top consideration Everyday Loyals (20% of consumers) • Wine drinking is part of my regular routine • When I find a brand I like, I stick with it Overwhelmed (19% of consumers) • I drink wine, but it does not play an important role in my life • I don’t enjoy shopping for wine, and find it complex and overwhelming Image Seekers (18% of consumers) • How others perceive me is important • I want to live a life that impresses others • I want to make sure the wine I choose says the right thing about me Engaged Newcomers (12% of consumers) • I'm young and new to an intimidating category • Wine is a big part of the socializing I do • I’m interested in learning more Enthusiasts (10% of consumers) • I love everything about the wine experience • I love researching purchases, reading reviews, shipping, discussing, drinking, sharing with others
- 351. 351Bus-810W DTC Marketing Contact Info Ron Scharman Chatterbox/VinoVisit ron@chatterboxwinemarketing.com 707-556-2322 Find Me on LinkedIn at http://bit.ly/1WyFHpA
Editor's Notes
- The crowd is here: Facebook reportedly is nearing the 700 million-user mark. Every month, according to Facebook, its members spend 700 billion minutes on the network. The average user clicks the Like button nine times a month, and three-quarters of users have “liked” a brand. Consumers’ comfort level has tipped: People have been buying virtual goods within Facebook since it introduced the (now defunct) Gift Shop in 2007; the practice exploded with the introduction of FarmVille virtual currency in 2009. Analysts believe virtual goods could bring in around $12.5 billion worldwide this year, almost double 2009 sales, according to Adweek. If people are paying real money for virtual goods, it’s not much of a leap to start paying for tangible items. And, of course, e-commerce has become second nature for many consumers, who are by now quite comfortable with the idea of feeding their credit card information into e-commerce sites. Internet retailing is expected to take in $197 billion in 2011 and grow to $279 billion by 2015, according to Forrester Research. Purchasing an item with a few clicks has become a habit for many people.
- At the broadest level, we create content to drive brand awareness within our target market. Your videos, blog content, social media presence represent most trustworthy outlets in customer’s eyes.
- Macy’s Magic Fitting Room: In September 2010,Macy’s showcased the “Magic Fitting Room” at its flagship Herald Square store in New York. The kiosk’s mirror was linked to a touch-screen tablet computer, and shoppers scrolled through selected items, chose which pieces to “try on” (these were then superimposed on the shopper’s image) and shared the results via Facebook, email and text to find out what their friends thought of the various outfits. NOTE: Image linked to: http://www.youtube.com/watch?v=E1rUdTITGCg
- Prospects want content that relates to their interests. Think beyond your wine, and connect with a broader lifestyle.
- Prospects want content that relates to their interests. Think beyond your wine, and connect with a broader lifestyle.
- Prospects want content that relates to their interests. Think beyond your wine, and connect with a broader lifestyle.
- Prospects want content that relates to their interests. Think beyond your wine, and connect with a broader lifestyle.
- What we find, and why this relates to site design, is that so many ecommerce companies say to themselves, ‘I need to increase revenue! I need to increase visits!’ Well, yes, this is true, but it’s not the whole picture. Conversion rate is actually a pretty good high-level indicator of the performance of your site design. That may be a new way to describe site design for many of you. It might look absolutely stunningly gorgeous, but if your redesign drives half the conversion rate of your previous site, then it’s performing poorly. As an industry benchmark - and this does vary depending on a number of factors - a conversion rate between 1% and 2% is what we’d call healthy. Really we love to see 1.5% and higher, but for some sites 1% is okay too. If you’re less than 1%, things become very difficult for you. Here’s why: Let’s go back to our friend who wants to increase revenue by increasing visits. Obviously, any significant increases will result from successful marketing and/or advertising campaigns, which typically cost money. If your site has a poor conversion rate, then it’ll still leak many potential customers no matter how many visitors you pour into the top. All of this is to say that for many ecommerce business owners, when they look to grow their business, their first ideas are typically marketing related. It pays to examine your site first, though. Because if you’re able to design and build a well-oiled machine of a site, it will pay itself back many many times over through higher conversions on your brilliant marketing ideas.
- What we find, and why this relates to site design, is that so many ecommerce companies say to themselves, ‘I need to increase revenue! I need to increase visits!’ Well, yes, this is true, but it’s not the whole picture. Conversion rate is actually a pretty good high-level indicator of the performance of your site design. That may be a new way to describe site design for many of you. It might look absolutely stunningly gorgeous, but if your redesign drives half the conversion rate of your previous site, then it’s performing poorly. As an industry benchmark - and this does vary depending on a number of factors - a conversion rate between 1% and 2% is what we’d call healthy. Really we love to see 1.5% and higher, but for some sites 1% is okay too. If you’re less than 1%, things become very difficult for you. Here’s why: Let’s go back to our friend who wants to increase revenue by increasing visits. Obviously, any significant increases will result from successful marketing and/or advertising campaigns, which typically cost money. If your site has a poor conversion rate, then it’ll still leak many potential customers no matter how many visitors you pour into the top. All of this is to say that for many ecommerce business owners, when they look to grow their business, their first ideas are typically marketing related. It pays to examine your site first, though. Because if you’re able to design and build a well-oiled machine of a site, it will pay itself back many many times over through higher conversions on your brilliant marketing ideas.
- What we find, and why this relates to site design, is that so many ecommerce companies say to themselves, ‘I need to increase revenue! I need to increase visits!’ Well, yes, this is true, but it’s not the whole picture. Conversion rate is actually a pretty good high-level indicator of the performance of your site design. That may be a new way to describe site design for many of you. It might look absolutely stunningly gorgeous, but if your redesign drives half the conversion rate of your previous site, then it’s performing poorly. As an industry benchmark - and this does vary depending on a number of factors - a conversion rate between 1% and 2% is what we’d call healthy. Really we love to see 1.5% and higher, but for some sites 1% is okay too. If you’re less than 1%, things become very difficult for you. Here’s why: Let’s go back to our friend who wants to increase revenue by increasing visits. Obviously, any significant increases will result from successful marketing and/or advertising campaigns, which typically cost money. If your site has a poor conversion rate, then it’ll still leak many potential customers no matter how many visitors you pour into the top. All of this is to say that for many ecommerce business owners, when they look to grow their business, their first ideas are typically marketing related. It pays to examine your site first, though. Because if you’re able to design and build a well-oiled machine of a site, it will pay itself back many many times over through higher conversions on your brilliant marketing ideas.
- What we find, and why this relates to site design, is that so many ecommerce companies say to themselves, ‘I need to increase revenue! I need to increase visits!’ Well, yes, this is true, but it’s not the whole picture. Conversion rate is actually a pretty good high-level indicator of the performance of your site design. That may be a new way to describe site design for many of you. It might look absolutely stunningly gorgeous, but if your redesign drives half the conversion rate of your previous site, then it’s performing poorly. As an industry benchmark - and this does vary depending on a number of factors - a conversion rate between 1% and 2% is what we’d call healthy. Really we love to see 1.5% and higher, but for some sites 1% is okay too. If you’re less than 1%, things become very difficult for you. Here’s why: Let’s go back to our friend who wants to increase revenue by increasing visits. Obviously, any significant increases will result from successful marketing and/or advertising campaigns, which typically cost money. If your site has a poor conversion rate, then it’ll still leak many potential customers no matter how many visitors you pour into the top. All of this is to say that for many ecommerce business owners, when they look to grow their business, their first ideas are typically marketing related. It pays to examine your site first, though. Because if you’re able to design and build a well-oiled machine of a site, it will pay itself back many many times over through higher conversions on your brilliant marketing ideas.
- What we find, and why this relates to site design, is that so many ecommerce companies say to themselves, ‘I need to increase revenue! I need to increase visits!’ Well, yes, this is true, but it’s not the whole picture. Conversion rate is actually a pretty good high-level indicator of the performance of your site design. That may be a new way to describe site design for many of you. It might look absolutely stunningly gorgeous, but if your redesign drives half the conversion rate of your previous site, then it’s performing poorly. As an industry benchmark - and this does vary depending on a number of factors - a conversion rate between 1% and 2% is what we’d call healthy. Really we love to see 1.5% and higher, but for some sites 1% is okay too. If you’re less than 1%, things become very difficult for you. Here’s why: Let’s go back to our friend who wants to increase revenue by increasing visits. Obviously, any significant increases will result from successful marketing and/or advertising campaigns, which typically cost money. If your site has a poor conversion rate, then it’ll still leak many potential customers no matter how many visitors you pour into the top. All of this is to say that for many ecommerce business owners, when they look to grow their business, their first ideas are typically marketing related. It pays to examine your site first, though. Because if you’re able to design and build a well-oiled machine of a site, it will pay itself back many many times over through higher conversions on your brilliant marketing ideas.
- What we find, and why this relates to site design, is that so many ecommerce companies say to themselves, ‘I need to increase revenue! I need to increase visits!’ Well, yes, this is true, but it’s not the whole picture. Conversion rate is actually a pretty good high-level indicator of the performance of your site design. That may be a new way to describe site design for many of you. It might look absolutely stunningly gorgeous, but if your redesign drives half the conversion rate of your previous site, then it’s performing poorly. As an industry benchmark - and this does vary depending on a number of factors - a conversion rate between 1% and 2% is what we’d call healthy. Really we love to see 1.5% and higher, but for some sites 1% is okay too. If you’re less than 1%, things become very difficult for you. Here’s why: Let’s go back to our friend who wants to increase revenue by increasing visits. Obviously, any significant increases will result from successful marketing and/or advertising campaigns, which typically cost money. If your site has a poor conversion rate, then it’ll still leak many potential customers no matter how many visitors you pour into the top. All of this is to say that for many ecommerce business owners, when they look to grow their business, their first ideas are typically marketing related. It pays to examine your site first, though. Because if you’re able to design and build a well-oiled machine of a site, it will pay itself back many many times over through higher conversions on your brilliant marketing ideas.
- What we find, and why this relates to site design, is that so many ecommerce companies say to themselves, ‘I need to increase revenue! I need to increase visits!’ Well, yes, this is true, but it’s not the whole picture. Conversion rate is actually a pretty good high-level indicator of the performance of your site design. That may be a new way to describe site design for many of you. It might look absolutely stunningly gorgeous, but if your redesign drives half the conversion rate of your previous site, then it’s performing poorly. As an industry benchmark - and this does vary depending on a number of factors - a conversion rate between 1% and 2% is what we’d call healthy. Really we love to see 1.5% and higher, but for some sites 1% is okay too. If you’re less than 1%, things become very difficult for you. Here’s why: Let’s go back to our friend who wants to increase revenue by increasing visits. Obviously, any significant increases will result from successful marketing and/or advertising campaigns, which typically cost money. If your site has a poor conversion rate, then it’ll still leak many potential customers no matter how many visitors you pour into the top. All of this is to say that for many ecommerce business owners, when they look to grow their business, their first ideas are typically marketing related. It pays to examine your site first, though. Because if you’re able to design and build a well-oiled machine of a site, it will pay itself back many many times over through higher conversions on your brilliant marketing ideas.
- What we find, and why this relates to site design, is that so many ecommerce companies say to themselves, ‘I need to increase revenue! I need to increase visits!’ Well, yes, this is true, but it’s not the whole picture. Conversion rate is actually a pretty good high-level indicator of the performance of your site design. That may be a new way to describe site design for many of you. It might look absolutely stunningly gorgeous, but if your redesign drives half the conversion rate of your previous site, then it’s performing poorly. As an industry benchmark - and this does vary depending on a number of factors - a conversion rate between 1% and 2% is what we’d call healthy. Really we love to see 1.5% and higher, but for some sites 1% is okay too. If you’re less than 1%, things become very difficult for you. Here’s why: Let’s go back to our friend who wants to increase revenue by increasing visits. Obviously, any significant increases will result from successful marketing and/or advertising campaigns, which typically cost money. If your site has a poor conversion rate, then it’ll still leak many potential customers no matter how many visitors you pour into the top. All of this is to say that for many ecommerce business owners, when they look to grow their business, their first ideas are typically marketing related. It pays to examine your site first, though. Because if you’re able to design and build a well-oiled machine of a site, it will pay itself back many many times over through higher conversions on your brilliant marketing ideas.