VIDEO:	  THE	  NEXT	  BEST	  THING	                   TO	  BEING	  THERE.	                Ken Nerlove, Elkhorn Peak Cellar...
Today’s	  Objec<ves	          • Look	  at	  the	  Elkhorn	  Peak	  1	       Cellars	  Case	  Study	          • Learn	  abo...
KEN	  NERLOVE,	  	  ELKHORN	  PEAK	  CELLARS	  KEN@ELHORNPEAK.COM	  	  FACEBOOK.COM/ELKHORNPEAKCELLARS	  YOUTUBE.COM/USER/...
Elkhorn	  Peak	   •  The	  first	  winery	  in	  Jamison	  Canyon	  (1983)	   •  Seven	  clones	  of	  Pinot	  Noir	   	  	...
Distribu<on	  Strategy	  2008-­‐2012	  •  Answered	  the	  economic	                                DTC	       Wholesale	 ...
Marke<ng	  Strategy	   •  Assets	  included	  a	  clean,	  personal,	  contact	  list	   •  Decided	  on	  email	  because...
Consistent	  Layout	  for	  5	  Years	              Headline/Chronology	                Pictures	  of	  Loca<on	    Start	...
Three	  Phased	  Approach	                                                                                           Used ...
Videos	  in	  Email	  •  “Pinot	  Cam”	  added	     to	  Pinot	  Chronicles	  •  Up	  front	  –	  quick	     introduc<on	 ...
LISA	  GOTTFRIED,	  	  VIDEO	  IN	  A	  MINUTE	  LISA@VIDEOINAMINUTE.COM	  	  	  FACEBOOK.COM/VIDEOINAMINUTE	  YOUTUBE.COM...
Video	  
Video	  Strategy	  The	  Power	  of	  the	  Personal	  Invita<on	  •  Join	  the	  Wine	  Club	  	  Ken’s	  Strengths	  • ...
Video	  Content	  Added	  Value:	  Do	  not	  sell	  to	  me	  	  •  Entertainment	  •  Educa<on	        –  In	  the	  Vin...
Video	  Format	  • Short	  and	  Sweet	  • High	  End	  Look/Sound	  • Consistent	     – Intros	  and	  Outros	     – Musi...
Video	  SEO	  • Ready	  to	  buy?	  	  	  • Ready	  to	  Connect?	  • Beyond	  Youtube	      – Dailymo<on	  	      – Metac...
Video	  SEO	  Results:	  2	  Years	  Later	      • Ken’s	  Channel:	  	             – “Pinot	  Cam	  Veraison	  2011”	    ...
Evergreen	  Video	  • Website	  	      – Video	  Archives	      – Blog	  • DVD:	  En<re	  Growing	  Cycle	      – Consumer...
In	  House	  or	  Not?	  • Video	  Quality:	  Match	  Brand	  • Hidden	  Costs	  of	  In-­‐House	  • The	  Back	  Burner	 ...
Par<ng	  Thoughts	  • Do	  What	  Already	  Works	  • One	  to	  Many	  • Bring	  Tas<ng	  Room	  	  to	  Living	  Room	  ...
Par<ng	  Thoughts	  Seth	  Godin:	  	  Marke0ng:	  Its	  a	  process,	  not	  an	       event.	  •  Da<ng	  is	  a	  proce...
SUSAN	  DEMATEI,	  	  WINE	  GLASS	  MARKETING	  SUSAN@WINEGLASSMARKETING.COM	  	  	  FACEBOOK.COM/WINEGLASSMARKETING	  @S...
Elkhorn	  Peak	  Data	   •  Sent	  10-­‐12	  emails	  a	  year	  for	  5	  years	   •  12	  data	  points	  for	  each	  i...
Approaching	  Analy<cs	    1.  Remove	  abnormali<es	        –  In	  our	  case,	  January	  –	  July	  for	           200...
Impact	  on	  List	  Size	  Large	  jump	  ini<ally	  due	  to	  pass	  along	  •  In	  three	  years	  (2008-­‐2011)	  gr...
Impact	  on	  Wine	  Club	  •  In	  three	  years	  (2008-­‐2011)	  added	  42	  •  In	  past	  18	  months	  (w/video)	  ...
Impact	  on	  Quality	  of	  List	               Overall	  trend	  in	  bounces	  and	  unsubscribes	               con<nu...
Video	  Alone	  Isn’t	  Enough	  to	  Affect	  Open	                    Rate	  –	  but	  Does	  Increase	  CTR	  up	  to	  ...
Where	  Are	  they	  Clicking?	                         •  Average	  of	  20%	  go	  to	  Website	  (Buy	  Now)	          ...
Video	  Impact	  on	  Email	  Sales	    •  Emails	  with	  video	       contributed	  to	  a	  25%	  lis	  in	       sales...
Really	  Apparent	  Was	  The	  Impact	  of	                        Timing	  (Phase	  2	  versus	  3)	                    ...
Impact	  on	  Word	  of	  Mouth	   •  You	  Tube	      shows	  42%	      of	  views	      came	  from	      searchers	    ...
ROI=	             250%	  Did	  not	  count	  value	  of	  future	  purchases	  for	  new	  customers…and	  Wine	  Club	  	  
Conclusion	  for	  Case	  Study	   •  In	  Elkhorn	  Peak	  Cellars	  case,	  video	  increased	  sales	  and	      wine	 ...
Conclusion	  for	  YOU	   •  Video	  is	  best	  used:	        –  In	  a	  series	  	               •  For	  messaging,	  ...
Direct to Consumer Wine Symposium Case Study
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Direct to Consumer Wine Symposium Case Study

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

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Direct to Consumer Wine Symposium Case Study

  1. 1. VIDEO:  THE  NEXT  BEST  THING   TO  BEING  THERE.   Ken Nerlove, Elkhorn Peak Cellars Lisa Gotfried, Video in a Minute Susan DeMatei, Wine Glass Marketing Mark Elcombe, Sonoma-Cutrer Vineyards
  2. 2. Today’s  Objec<ves   • Look  at  the  Elkhorn  Peak  1   Cellars  Case  Study   • Learn  about  Video  2   Messaging  and   Distribu<on  Strategies   • See  if  Video  can  provide  3   a  strong  ROI  
  3. 3. KEN  NERLOVE,    ELKHORN  PEAK  CELLARS  KEN@ELHORNPEAK.COM    FACEBOOK.COM/ELKHORNPEAKCELLARS  YOUTUBE.COM/USER/ELKHORNPEAKCELLARS  
  4. 4. Elkhorn  Peak   •  The  first  winery  in  Jamison  Canyon  (1983)   •  Seven  clones  of  Pinot  Noir        
  5. 5. Distribu<on  Strategy  2008-­‐2012  •  Answered  the  economic   DTC   Wholesale   downturn  by,  deciding   100%   to  a)  reduce  produc<on   90%   and  b)  move  as  much   80%   70%   distribu<on  as  possible   60%   to  the  Consumer  Direct   50%   40%   channels.   30%       20%   10%     0%   2008   2009   2010   2011   2012  
  6. 6. Marke<ng  Strategy   •  Assets  included  a  clean,  personal,  contact  list   •  Decided  on  email  because  of  cost,  and  ability  to  create   a  connec<on  with  audience   •  Objec<ve  was  to  bring  the  experience  back  to  their   home  and  make  them  feel  part  of  the  winery   –  Sales   –  Mailing  list  growth  (pass  along)   –  Wine  Club  growth  and  reten<on   •  Focused  on  an  consistent,  programma<c  email   campaign  of  monthly  newsle_ers  and  offers      
  7. 7. Consistent  Layout  for  5  Years   Headline/Chronology   Pictures  of  Loca<on   Start  story,  but  finish  below   Get  to  Offer  in  first  1/3   Mul<ple  Links   Repeat  Offer   Finish  Story   Sign  Off  
  8. 8. Three  Phased  Approach   Used video as sale reminder.Email  Learnings/List  Growth   Ask for club sign up. All else same.   Added video when available. No other changes.   Pinot Chronicles 10 x annually. Stories & Offer.   2008   2011   2012  
  9. 9. Videos  in  Email  •  “Pinot  Cam”  added   to  Pinot  Chronicles  •  Up  front  –  quick   introduc<on  and   link  •  S<ll  got  to  offer  in   top  1/3  and   con<nued  other   standards  
  10. 10. LISA  GOTTFRIED,    VIDEO  IN  A  MINUTE  LISA@VIDEOINAMINUTE.COM      FACEBOOK.COM/VIDEOINAMINUTE  YOUTUBE.COM/USER/DIGITALWEAVERS  
  11. 11. Video  
  12. 12. Video  Strategy  The  Power  of  the  Personal  Invita<on  •  Join  the  Wine  Club    Ken’s  Strengths  •  Gruff  and  Lovable  •  Down  to  Earth,  Tell  it  Like  it  is  •  Amazing  Educator  =  Fans  for  Life  •  Interests  outside  of  wine/  restores  old  cars   and  slot  machines  Nuts  and  Bolts  •  3  hours  •  Every  other  month  •  2  Videos  each  shoot  •  1  Edi<ng  Video  every  month  •  3  Month  Trial/12  Month  Agreement  
  13. 13. Video  Content  Added  Value:  Do  not  sell  to  me    •  Entertainment  •  Educa<on   –  In  the  Vineyards   –  Custom  Crush   –  Barrel  Tas<ng  •  Emo<onal  Connec<on    Bonus  Videos:  •  Tes<monials  about  Ken/Wine  •  Bio:  Get  to  Know  Ken  •  Thank  You  for  Joining   –  Behind  the  scenes  video    
  14. 14. Video  Format  • Short  and  Sweet  • High  End  Look/Sound  • Consistent   – Intros  and  Outros   – Music  and  Branding   • Always  with  car,  truck,  farm   equipment   – Messaging:  Educa<on   – Call  to  Ac<on      
  15. 15. Video  SEO  • Ready  to  buy?      • Ready  to  Connect?  • Beyond  Youtube   – Dailymo<on     – Metacafe     – Vimeo  • Beyond  Facebook/Twi_er   – Myspace     – Blogger     – Wordpress.com     – Live  Journal,  etc.  
  16. 16. Video  SEO  Results:  2  Years  Later   • Ken’s  Channel:     – “Pinot  Cam  Veraison  2011”   • Video  in  a  Minute’s  Channel:   –   “Best  Kept  Secret  Wineries,  Napa  Valley,  Pinot  Noir,   Veraison,  Small”     Keytag  Phrase   Google  Page   #  CompeJtors   Secret  Winery  Pinot   1   1,060,000   Secret  Winery  Napa   2   1,230,000   Napa  Valley  Veraison   2   397,000   Pinot  Veraison   2   727,000  
  17. 17. Evergreen  Video  • Website     – Video  Archives   – Blog  • DVD:  En<re  Growing  Cycle   – Consumers   – Distributors   – Wine  Shops   – Tas<ng  Room  • Social  Media  Content  • Thank  You’s  
  18. 18. In  House  or  Not?  • Video  Quality:  Match  Brand  • Hidden  Costs  of  In-­‐House  • The  Back  Burner  Syndrome  • Hybrid  Possibili<es  • Scheduling  that  Works   – Once  a  Month   – Quarterly   – Once  and  Done  
  19. 19. Par<ng  Thoughts  • Do  What  Already  Works  • One  to  Many  • Bring  Tas<ng  Room    to  Living  Room  • Play  to  Your  Strengths  • Quality  of  Rela<onships  =  Sales    
  20. 20. Par<ng  Thoughts  Seth  Godin:    Marke0ng:  Its  a  process,  not  an   event.  •  Da<ng  is  a  process.  So  is  losing   weight,  being  a  public  company   and  building  a  brand.  •  On  the  other  hand,  puqng  up  a   trade  show  booth  is  an  event.   So  are  going  public  and  having   surgery.  •  Events  are  easier  to  manage,   pay  for  and  get  excited  about.   Processes  build  results  for  the   long  haul.    
  21. 21. SUSAN  DEMATEI,    WINE  GLASS  MARKETING  SUSAN@WINEGLASSMARKETING.COM      FACEBOOK.COM/WINEGLASSMARKETING  @SDEMATEI  
  22. 22. Elkhorn  Peak  Data   •  Sent  10-­‐12  emails  a  year  for  5  years   •  12  data  points  for  each  including:   –  List  size,  dates,  crea<ve  offers   –  Email  (sent,  bounced,  unsubscribed)   –  Response  (clicks,  sales,  club  sign  ups)    Total  of  720  data  points….    
  23. 23. Approaching  Analy<cs   1.  Remove  abnormali<es   –  In  our  case,  January  –  July  for   2008  –  2012   –  13  emails  prior  to  video,  13   aser  intro  of  data   2.  Decide  on  baseline   –  Phase  1   •  Impact  of  video  in  Phase  2   •  Impact  of  video  and  <ming  in   Phase  3   3.  Organize  your  data  
  24. 24. Impact  on  List  Size  Large  jump  ini<ally  due  to  pass  along  •  In  three  years  (2008-­‐2011)  grew  6%  •  In  past  18  months  grown  5.5%   List  Size  4500  4000  3500  3000  2500  2000  1500  1000   500   0  
  25. 25. Impact  on  Wine  Club  •  In  three  years  (2008-­‐2011)  added  42  •  In  past  18  months  (w/video)  added  33   121   88   46   2008   2009   2010   2011   2012  
  26. 26. Impact  on  Quality  of  List   Overall  trend  in  bounces  and  unsubscribes   con<nues  to  decrease   •  Bounces   –  In  three  years  (2008-­‐2011)  were  1.4%   –  In  past  18  months  were  .65%   •  Unsubscribes   –  In  three  years  (2008-­‐2011)  were  .73%   –  In  past  18  months  were  .57%   4.50%   4.00%   3.50%   3.00%   2.50%   2.00%   1.50%   1.00%   0.50%   0.00%   Bounces  %   Unsubscribes  %  
  27. 27. Video  Alone  Isn’t  Enough  to  Affect  Open   Rate  –  but  Does  Increase  CTR  up  to  2x   30.00%   Non  Video   Video   25.00%   •  Comparing  non  video   20.00%   open  rates  to  open  rates   15.00%   with  emails  containing   10.00%   Open  Rates  by  Month  08-­‐12   video     5.00%   –  Lag  for  first  year   0.00%   –  Phase  III  –  saw  impact   because  subject  line  12.00%   Click  Through  Rates  2011/12   follow  up  to  offer  10.00%   8.00%   •  Looking  at  last  two  years   6.00%   of  CTR  –  Videos  Emails   4.00%   are  1.5-­‐2x  higher   2.00%   0.00%   3/1/11   4/1/11   5/1/11   6/1/11   7/1/11   8/1/11   9/1/11   10/1/11   11/1/11   12/1/11   1/1/12   2/1/12   3/1/12   4/1/12   5/1/12   6/1/12   7/1/12  
  28. 28. Where  Are  they  Clicking?   •  Average  of  20%  go  to  Website  (Buy  Now)   •  80%  go  to  You  Tube  to  watch  video   Click  LocaJons   7/1/12   5/1/12   3/1/12   1/1/12   %  You  Tube,   %  Website,  11/1/11   79.7%   20.3%   9/1/11   7/1/11   5/1/11   3/1/11   0%   10%   20%   30%   40%   50%   60%   70%   80%   90%   100%  
  29. 29. Video  Impact  on  Email  Sales   •  Emails  with  video   contributed  to  a  25%  lis  in   sales  over  emails  without   video   •  Emails  with  video  brought  in   over  2.5x  new  customers/ club  members  than  emails   without  video  
  30. 30. Really  Apparent  Was  The  Impact  of   Timing  (Phase  2  versus  3)   •  Video  when  used  as  a  follow  up  to  an  offer,   saw  more  than  twice  the  response  rate  in   sales  and  up  to  5x  the  ability  to  a_ract  new   customers  due     12  $12,000     to  pass-­‐along   10   8  $10,000     Wine  Club   6   New  Customers   $8,000     4   $6,000     2   Sales   $4,000     0   Video   Video  as  Follow  Up   $2,000     $0     Video   Video  as  Follow  Up  
  31. 31. Impact  on  Word  of  Mouth   •  You  Tube   shows  42%   of  views   came  from   searchers   (new  brand   visits)   •  Facebook   shows  spikes   when  Pinot   Cam  shared  
  32. 32. ROI=   250%  Did  not  count  value  of  future  purchases  for  new  customers…and  Wine  Club    
  33. 33. Conclusion  for  Case  Study   •  In  Elkhorn  Peak  Cellars  case,  video  increased  sales  and   wine  club  sign  ups  more  than  not  including  video   –  List  size  and  Wine  Club  grew  same  amount  in  last  18  months   as  previous  3  years   –  Unsubscribes  and  bounces  decreased   –  No  affect  on  open  rates  –  but  double  the  CTR   –  Sales  lised  by  25%   –  Wine  Club  and  New  Customers  Doubled   –  ROI  250%   •  Other  contribu<ng  factors  of  the  success  are:   –  Quality  and  cleanliness  of  the  mailing  list   –  Consistency  of  the  communica<on  and  style   –  Variety  of  offers  and  crea<vity  of  content  
  34. 34. Conclusion  for  YOU   •  Video  is  best  used:   –  In  a  series     •  For  messaging,  and  economic  scaleability   –  With  a  strong  call  to  ac<on   –  Delivered  with  easy  pass-­‐along  opportuni<es   •  Video  is  not  a  silver  bullet,  but  if  used  in  conjunc<on   with  your  marke<ng  strategy,  and  delivered   intelligently,  there  are  strong  returns  to  be  seen.  

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