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Winery DTC Case Studies

A presentation created for the WineDirect Roadshows that showcase three case studies - one on Facebook Ads, one on email design and one on custom wine clubs.

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Winery DTC Case Studies

  1. 1. Short Stories Three Case Studies on DTC Best Practices
  2. 2. @WineGlassMktg 707-205-0871 Susan DeMatei WineGlass Marketing About the Author
  3. 3. Zinderella How a small, simple winery attended the Facebook Ball and attracted many Prince Charmings that bought wine.
  4. 4. Once Upon a Time, there was a simple winery in Napa with a DTC princess named Zinderella… 84.45% 10.95% 3.82% 0.78% Customer Database by Status Prospect 1st Time Customer Repeat Customer Club Member 1 2 3 ~5,000 member database Not a strong club following 4 The majority of their database are prospects Sales in the first half of 2016 were significantly depressed
  5. 5. While other wineries in the kingdom had titles, castles and servants, Zinderella had none. No tasting room for list growth, trial or sales No staff for events or outreach No famous winemaker or vineyard Average-to- good scores, but 
 nothing extraordinary No large marketing budget
  6. 6. Her fairy Godmother implemented a Social Media plan… Extending email campaigns onto Facebook to increase reach and use the audience to spread word in an organic manner Link back to the website – particularly the store Keep engaged with any comments on posts Email to Facebook Boost messages using $5 and $10 to extend reach Created a custom audience including the mailing list and club Extend Reach Using non campaign topics from a third party to tie back to the winery e.g. “We tried this recipe for red wine hot chocolate using our Pinot Noir. Buy your bottle here and try it out for yourself.” Different Topics
  7. 7. Facebook was used to support email campaigns and timed to coincide with launches. Over 5 cases sold, with combination of 1st time, repeat customers, and club members 4 cases sold with 1 case being sold to a 1st time customer
  8. 8. Ongoing support around the holiday gift sets provided a “halo effect” for the season. Over 10 cases of wine were sold after these supporting posts, all to but 6 bottles to 1st time customers
  9. 9. After 6 months, Social Media posts are generating sales on their own… This post generated 4 sales: all were 1st time customers, 3 of whom purchased this Cabernet Sauvignon
  10. 10. This Social Media plan, implemented in July 2016, has helped sales recover, created 1st time customers from prospects, as well as increase sales from repeat customers. January February March April May June July August September October November December Website and AdminPanel Sales 2016 2017
  11. 11. The transformation is apparent in other areas, too… Social media helped promote brand awareness and is partially responsible for 21.74% growth in the database over the last year. Zinderella saw a dramatic increase in the number of social media referrals to the website. •  0.44% in July 2016 to 7.31% in January 2017
  12. 12. The making of a fairy tale? While not every social media post will cause a direct sale, social media can: Contribute to action (sales) for your overall campaigns when combined with email and other channels Influence your customer base to go to your site, forward information and sign up for mailing lists Result in new customers Result directly in sales
  13. 13. The Little Mer(lot)maid How a winery princess proved that the best way to communicate might not be with words.
  14. 14. Once upon a time, there was an underwater winery who had been sending out newsletters for years and years… The emails were carefully crafted and painstakingly written by the Little Mer(lot)maid’s father to provide educational paragraphs of content This was the main marketing channel as this winery didn’t have it’s own tasting room or a big marketing budget
  15. 15. The Little Mer(lot)maid took over marketing for her father, and knew there needed to be a change. But she thought she could do better… She had heard that mobile phones 
 changed best email design Current research suggests 60% of emails 
 are read on phones Mobile Design Her average open rate was a respectable 26% and her average CTR 3.35% These are about industry average according to MailChimp Click Rates
  16. 16. So she devised a test, and sent a newsletter, designed two ways, each to half of her database The traditional version had the entire copy from her father in the email A B The revision had the first paragraph then a link to the site, which left more room for additional content like a recipe and second wine
  17. 17. The results were shocking! In addition, the #1 link clicked on the original version of this email was “unsubscribe” while in the revision it was to the store for the Cabernet featured in the recipe Original Version (average) Revised Version % Change Open Rate 26.50% 32% +23% CTR 3.25% 9% +275% A B The email design that divided the content into digestible bits with links to the website performed dramatically better
  18. 18. Now the email design is consistent, and efforts are under-way for better list-generation. Email lists decay at a rate of 22% per year Meaning you have to grow your list at least that much to stay equal *Marketing Sherpa’s research shows that data decays at a rate of 2.1% per month. This is an annualized rate of 22.5%. Email Lists The average order value of a “POS Guest” sale is typically half of those who you collect names from (non club). •  higher value shipping customers •  when someone gives you their contact information, there is an implied connection, if handled correctly, will lead to more sales via the email channel. Average Order Value
  19. 19. Snow Wine and the Seven Hundred Club Dwarfs How a winery added 57% more sales to their wine club without selling more memberships
  20. 20. Once upon a time, there was a winery with a large wine club that drove the Club Manager, Snow Wine, crazy with requests Snow Wine offered lots of wines in the shipments, but members knew what they liked and weren’t shy of changing their club shipment when they found out what wines were chosen •  This forced her pay the dwarfs overtime during this period to handle all the calls, which angered the evil queen in accounting Shipment Changes She also saw a cluster of club cancellation right before and after shipments. •  Reasons included “too much wine” and just simple “no responses” to three calls to update a card •  This also angered the evil queen Club Cancellations
  21. 21. The matter was discussed in depth. The concerns were: A handsome prince recommended Snow Wine change hers to a Custom Club, but keep the same flat rate shipping. 1 The club had been consistently organized for a very long time – they might not understand 2 Too many might take advantage of this – causing even more work and organization 3 How to handle pickups – which were pre-packaged and a limited space
  22. 22. The resulting conclusion was to test this for one year (four shipments) of the ship only members of the oldest club.
  23. 23. % Customized Additional Volume Additional Sales May 2016 5.2% 11% 7.7% Aug 2016 6.9% 17.3% 17.6% Nov 2016 2.6% 2.0% 10.9% Feb 2017 8.7% 15.7% 20.9% 23.4% 46.0% 57.1% The results dramatically reinforced the decision to move toward the custom club program Over the first year: •  Add-ons increased sales by 57% 
 (over what standard shipment cost would have been) •  They sold 46% more bottles •  Only 23% of the club customized 
 (the most was 8% at a time) •  New signups went up 75% to this club tier prior to the period before the test •  Cancellations dropped in half
  24. 24. $0.00 $50.00 $100.00 $150.00 $200.00 $250.00 $14,500.00 $15,000.00 $15,500.00 $16,000.00 $16,500.00 $17,000.00 $17,500.00 $18,000.00 $18,500.00 Fall 2015 Summer 2016 Fall 2016 Winter 2016 Pre- and Post- Change Club Shipments revenue AOV A princess in a neighboring kingdom ran a similar test with similar results but average order value decreased This club may want to consider what wines are being offered to club members and how the shipments can be customized.
  25. 25. All shipping clubs have now been rolled out with custom options, and even the evil queen is happy