Post on 12-Aug-2015
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Presented by: Ron Scharman
Digital Marketing +
June 16, 2015
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• 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?
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TIME TO LEARN ABOUT YOU
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QUESTION FOR THE DAY:
How do we sell a 3-dimensional
story in a 2-dimensional world?
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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.
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Tell your story + tell it well
(the magic 15%)
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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
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And Even More………
“ The notion of connecting a luxury wine brand with its wider digital and cultural ecosystem is now a matter of survival.”
Ron Scharman Wine Consumer Advocate
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The Past, Present, and Future of Wine DTC
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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?
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GROWTH STATS• 2013 U.S. wine shipments grew 3% to 375.2 million cases with an estimated retail
value of $36.3BB. This represents 21 consecutive years of volume growth. This trend continued in 2014.
• 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 impressive 15.5% in 2014, hitting a record $1.82 BB. Total volume was 3.95 million cases, up 13.6% over the prior year.
• Direct-to-consumer shipments in February 2015 grew 4% over the same time last year and were up 14% over the past 12 months. The total value of February shipments hit $132 million.
• *Data from Wine Institute, Wines&Vines, & ShipCompliant
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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
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WINE INSTITUTE LATEST UPDATE
43 States out of 50 have some provision for winery direct shipping to consumers.
Importers and internet retailers are restricted to fewer states, depending on method of shipment and licenses held.
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How Important is the
DTC Channel to the Majority of the
8,100+ Wineries and Wine Brands?
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...VERY!! SMALL WINERIES DOMINATE DTC
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The evolution from early 2000’s to present day, personal computing has changed 10 fold.
What’s changed? Bigger, More Complex Sites
2003
2015
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THE WEB HAS BEEN GROWING FASTER THAN STORES….
2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014
-5%
0%
5%
10%
15%
20%
25%
30% 27%25% 24%
20%
3% 2%
16% 15% 16% 17%15%
6% 5% 5%3%
0%
-3%
2%4% 4% 4% 4%
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.
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MORE PC’S GATHER DUST
*Source: U.S. Commerce Dept., Internet Retailer
44%
11%
45%
Percentage of time on retail web sites
SmartphoneTabletPC
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MY PHONE IS MY LIFE
NOT MOBILE-ONLY, BUT MOBILE-FIRST
• More than half of consumers’ digital time is spent on mobile devices (60% according to comScore in June of 2014) – that’s over 3.2 hours per day.
• According to Altimeter, consumers check their smartphones upwards of 150 times per day.
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THINGS TO WATCH: MILLENNIALS
The crowd is here
Comfort level with mobile transactions
Ease of purchasing
Millennials
Growing FAST!
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It’s All About the Customer: Omni-Channel Marketing
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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
MarketingWine Club
Events
eCommerce
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Omni-Channel Marketing
Transforming the
customer journey
across all channels
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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 POSSearch Engine Optimization
(SEO)
FaxWinery DTC
Ecosystem
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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
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Wine eCommerce
vs
Wine Commerce
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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…………
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Why Wineries Fail at eCommerce
Merchants at heart,
who won’t play the part
Read my Blog at http://bit.ly/1FyqPS0
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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.
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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
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USING YOUR WEBSITE TO TELL YOUR STORY
Strong branding is key Include rich contentUse the tools built into your
website to improve your SEO Gather data and market smartGo Mobile!
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So how do I build a
great website?
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Understanding Where I Have Been and Where I am Going.
What am I Trying to Achieve With My Online Presence?
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What’s the Difference Between Good and Bad?
GREAT AD TERRIBLE WEBSITE
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Building Blocks for Websites
Factors to Consider
• Software platform• Compliance Solution• Design/Project Management• Features• Why websites fail to perform
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
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Questions?
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D-E-A-L Model of Customer Progression
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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
D E A L
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The Science of Discovery
DISCOVERY• Events/Restaurant/Retail
•Search engine•Word of mouth
•Advertisement• Social Media
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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
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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
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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
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Ratings and Discovery
Why Should I Care?
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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
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The Players
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Heavy Traffic
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The Players
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Heavy Traffic
• TripAdvisor has more than 60 million members, and more than 200 million reviews
• More than 315 million travelers visit TripAdvisor each month
• TripAdvisor offers a wide range of marketing opportunities, advertising and content solutions
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Heaviest Traffic – It’s Google
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Advertising Options
• Targeted local advertising
• Premium placement on search and competitor business pages
• Displays on mobile devices too
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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!
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Social Media Marketing - Discovery
IT’S A BIG TOPIC!
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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.
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Questions?
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Tell your story + tell it well
(the magic 15%)
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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
D E A L
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The Art of Engagement
ENGAGEMENT
• Visits website•Visits tasting room
•Calls winery•Social Media
•Mobile
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Engagement: Online Shopping Experiences
Sources: KJ.com, LaCrema.com, Lindemans.com and UnderdogWine.com
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Lifestyle
Source: www.kj.com
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Classic
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Aspirational
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Contemporary
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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
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Something New For Engagement
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Define the Problem Please………
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• Tasting rooms captivate the hearts and palates of the consumer
• Tablets extend the engagement instantaneously.
• Email automation monetizes your engagement through highly targeted offers.
Tasting Room Abandonment
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Connect Collect
Convert
VinoVisit Winery Experience Ratings App
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• Use your metrics to evaluate and improve the hospitality at the winery.
• Receive an automatic email when a low rating is received.
• VinoVisit provides the winery with daily reports of all the data points, including reviews.
Using an iPad, this tasting room data collection app is easy to use, fun for the visitors and invaluable for monetizing tasting room traffic.
Winery Ratings Tablet
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Collect data
Build your customer database by collecting Name, Email, and Zip code data.A generous incentive increases the likelihood of getting multiple entries from everyone in the group.VinoVisit provides the winery with a daily report of all data points and customer reviews.
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• Collect valuable feedback on the customer’s tasting room experience
• Build your customer database
• Monetize winery visitations with automatic email offers.
Convert Customers
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The Path to Monetization
Customer Conversion
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• An ecommerce microsite is customized for your special offer
• No internal resources required
• No cost to develop the website
• Microsite is dedicated to “a very
exclusive wine or wines”
The Iron is Hot
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• Website uses your compliance configuration
• Website uses winery payment gateway
• The tasting room customer journey began when they walked through the your doors.
• We help you begin their engagement by connecting with them within 48 hours of opting in to your mailing list.
The Conversion Begins
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Gain Customer Insights
Conclusions
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• “Decomplexifying” customer marketing data is crucial to building and annuitizing a successful DTC business
• We measure success through Google Analytics
• We provide insights into how best to allocate marketing resources ($’s and people) going forward.
By the Numbers
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Questions?
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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
D E A L
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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
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Web Analytics: Customer Preferences
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Converting visitors
• Newsletter signup form
– Critical best practices – Let’s discuss
• Email Campaigns– Critical best practices – Let’s discuss
• Events
– Use your imagination; can drive ecommerce conversion
• Direct Mail, Catalog– Can still be effective; can drive ecommerce conversion
• Telemarketing – Outsourcing for best practices
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Newsletter Best Practices – Make It Easy!
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 site page, and in the same spot.
3. Try to show an actual sign-up form on each page instead of just a link.
4. Include a link to your Privacy Policy as close to the form as possible.
5. Include an example of what your customers are signing up for.
6. Present a clear confirmation after your customer signs up.
7. Consider a discount code for a future purchase in the confirmation Email.8. Wait until AFTER the initial sign-up to ask more detailed questions.
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Newsletter Signups - Good
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Acknowledge and Reward
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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
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Newsletter Signups - Not So Good
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Email Marketing for Success
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Email Still Rules
EMAIL MARKETING ROI
According to Exact Target and HubSpot:
• Companies view email marketing as a better return on investment than PPC, content marketing, social media, offline direct marketing, affiliate marketing, online display advertising, and mobile marketing.
• Email Marketing has an ROI of 4,300% (Based on marginal cost)
• 66% of in-house marketers rate email as having “excellent” or “good” ROI
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How Money is Spent vs. ROI
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Email Marketing
"Think of how you can make the user love your mails rather than how to land in the Inbox.“
• Know your audience – “Don’t just batch and blast”• Have a clear value proposition for subscribers and customers• Test different types of content and promos to see what generates the best
engagement rates• 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
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The Changing of the Guard and What It Means for You
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• 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
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The New World of Gmail
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• 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?
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Remember How Money is Spent vs. ROI
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Cart Abandonment Pit Stop
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It’s All About Retargeting
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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
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Why Should I Care?
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Here’s Why
• Approximately $4 Trillion worth of merchandise will be abandoned in online shopping carts this year..
• This equates to 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
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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
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VWO Ecommerce Survey 2014
Reasons for Cart Abandonment
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What Should I Do About It?
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Talk to Your eCommerce Provider
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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.
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What Else?
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Let the Consumer
Decide
Email and Omni-channel Marketing
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Email +
Relationship-Based Telemarketing+??
Click – To – Call Email
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A Click to Call email is a mobile optimized email announcement for a winery telesales campaign. The object is to allow the consumer to simply call or email their interest to purchase.
What is Click to Call?
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Clear Calls to Action
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• Consumers receive hundreds of emails a day, mostly read on a mobile device.
• Click to Call emails are optimized for all mobile devices.
Optimized for Mobile
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• Each email is personalized to address the winery customer.
• Focused Call to Action - “Call Us” or click to email us is emphasized for greater conversion rates, upsell, and best user experience.
Personalized
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It’s apples and oranges
“CLICK TO CALL”VS.
TRADITIONAL EMAIL MARKETING
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• Mobile optimized with clear call to action “Call Us”.• One Touch – User clicks phone number and it instantly
dials.• Lean: Limited text and imagery.• Content “above the fold”.• No landing page or driver to the cart.• Sales captured through inbound phone calls or email.
The “Click-to-Call” Difference
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A-B Testing
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• More contacts, engagements and sales, plus upsell.
• Phenomenal metrics. Outperforms winery’s existing email software.
• Great customer insights.
How To Define Success
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Tell your story + tell it well
(the magic 15%)
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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
D E A L
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Tell Me You Love Me
LOYALTY/LOVE
• Email communication
• Join Wine Club
• Newsletter/Blog
• Facebook shares
• Special events
• Ratings
• Imagination
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Remember That the Journey is Non-Linear
Transforming the
customer journey
across all channels
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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
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Retention Defined
Actions a company takes so that their existing customers continue buying the services and products offered by that company in the future.
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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.
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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.
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Retention vs. Loyalty
You Should Do Both
Retention and Loyalty are two different types of marketing campaigns. Companies should have 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.
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So Where Does Loyalty Begin?
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Hopefully It Starts With:
“You had me at hello…….”
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And Delighting Customers
Make
Me
Feel
Special
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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
Emotional loyalty demands consistency across channels, relevant and timely promotions, customer intimacy and a real excite and delight element built on top of a standard “I’ve got great wine to sell at a good price” story.
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Loyalty and Love
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Delight customers
• Wine club discounts• Wine club special
offerings• Club member events• Loyalty bonuses• Special access
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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
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Reinventing the Delivery Experience
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Reinventing the Delivery Experience
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Reinventing the Delivery Experience
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Delivery Experience Tools
• Use concierge services.• Doorman.co• Customized winery email on shipment status.• Text customers when “Elvis has left the building”.• Email alternate options.• Ship to “hold at FEDEX”.• Multiple winery fulfillment warehousing locations• Maniacally focus on first-time delivery.• Not allowing FEDEX and UPS to dilute customer luxury brand
experience.
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And Keep Delighting Customers
Make
Me
Feel
Special
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Love is Sharing with Others
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Get Social - Build Your Brand Advocacy
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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
Tastingroom
Wine club
Website
CustomerRelationship
Loyalty: One Customer, One Database
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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)?
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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.
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What’s New? Social CRM
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Anderson Valley
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Tell your story + tell it well
(the magic 15%)
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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?
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And Delighting Customers
Make
Me
Feel
Special
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Questions?
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Contact Info
Ron ScharmanChatterbox/VinoVisitron@chatterboxwinemarketing.com707-556-2322