Update on the Top 20%
•
1 like•746 views
Last year, we shared insights into the top 20% of wineries who’ve mastered the art of selling wine online. Since then, some newcomers have joined the ranks. We’ll check in with wineries that are winning at DTC by digging into WineDirect/Vin65 proprietary data representing over $1B in wine transactions across 1,200 wineries. And….we’ll expose the secrets of wineries that have made the biggest gains year-over-year.
Recommended
Recommended
More Related Content
What's hot
What's hot (20)
Similar to Update on the Top 20%
Similar to Update on the Top 20% (20)
More from WineDirect
More from WineDirect (10)
Recently uploaded
Recently uploaded (20)
Update on the Top 20%
- 2. 2013-2015 Over 9 million transactions Across 1200+ winery websites $1.7 Billion in sales
- 3. Do they have an unfair advantage? Source: Pando.com
- 5. 2013-2015 Over 9 million transactions Across 1200+ winery websites $1.7 Billion in sales
- 6. 89% of all sales. Through 2015
- 7. What makes the top 20% so special?
- 8. Do they have an unfair advantage?
- 11. Source: Pando.com So what does the data tell us?
- 12. Purchases on Mobile in 2015 2014 2015 top bottom Average email list size. 4X larger
- 13. 2013 2014 2015 bottom top $100 more Average Order Value.
- 14. 75% more 0.00% 2.00% 4.00% 6.00% 8.00% 10.00% 12.00% Top 20 Bottom 80 Shipping as a % of sales 50% less
- 15. Email list is 4x larger AOV is $100 more Shipping is 50% less How is the top 20% different?
- 16. What does the data show us?
- 17. 2014 89% of all sales.
- 18. 2014 46 wineries 2X’d ecom sales in 2015.
- 21. How did they double?
- 22. 1) Focused on user experience
- 24. Desktop Mobile Tablet Purchases on Mobile in 2015 33%
- 25. #mobilegeddon
- 27. 1) Focus on User Experience
- 29. Uh Oh!
- 30. Guest Checkout
- 31. How did they double?
- 32. 3) Used offline to drive online sales.
- 33. Action Emails
- 34. Offline to Online, a case study $2,500 in net new ecom sales 63% opened, 7.5% converted 89 emails captured and sent. 89 TR Transactions ($7500).
- 35. What’s the value of an action email… TR Transactions/ Day 50 email Capture Rate 50% Action email Sent 25 7.5% Conversion rate 1.875 AOV $318 Net New eCom Sales (day) $ 596.25 New Sales, Annualized $ 131,175.00
- 36. Email receipts are appealing to 41% of consumers No Yes 41%
- 37. User Experience Guest Checkout Offline to Online How did the new entrants double?
- 38. Email list is 4x larger AOV is $100 more Shipping is 50% less How is the top 20% different?
- 40. Interested in doubling this year? sales@vin65.com jim.agger@winedirect.com
Editor's Notes
- Today, I will be sharing the results of a study we have been conducting at WineDirect over the past three years. This study looks at anonymous transaction data for DTC ecommerce orders processed on Vin65, the wine industry’s leading DTC technology platform. First, I will recap some of our key findings over the past three years, and take deeper look at the wineries that joined this elite group of wineries in 2015.
- In preparation for today, we looked at over 6 million transactions, across 1000 wineries from all over the USA, Canada and Australia. During this period, those 1,000 wineries sold over $1B in wine DTC. So, its safe to say we have a really large sample size, and we believe the observations we have made are applicable to all wineries selling DTC.
- Another note about how I prepared for todays presentation. Those of you who know me, know I am a Dad. This is a photo of me and my family on a recent vacation…..here is a close up.
- If you are like me, you often forget to tell your family important details about life, like that you have to spend all day Sunday at the office preparing for a big presentation. So this weekend, as I was headed into my office my son and daughter, for some reason, wanted to join me…even after I told them I was working on an analysis on anonymous DTC transaction data they still wanted to come.
- So I let them join me at the office, and after they got tired of writing on the white board and playing with they stapler, they decided to help me with pick the artwork for some of my slides. I think you will be able to guess which ones…
- Getting back to the study, when we looked at all this transaction data one really obvious and alarming detail jumped out at us….
- 89% of winery ecommerce business is done by just 20% of wineries. To put that into perspective, if this room represented all wineries selling DTC, these ten people in the front row would be making nearly all the sales to consumers online. So when you have a group of roughly 200 wineries that are far out performing the rest it begs the question….
- What are they doing to sell so much wine online? And of course….
- Do they have an unfair advantage?
- So we dug into the data to figure out, what is so special about the top 20% that allows the to sell so much more than everyone else. We looked at case production, and Small, Medium and Large wineries are equally represented in the top 20% and bottom 80% group. We looked at location. It wasn’t that there are wineris from three countries, and states such as TX, FL and VA in the top 20%. We also looked at Scores, and Bottle Price, and there was no correlation on any of these factors. Even the demographic profile of the wineries in the top and bottom group were exactly the same… MAYBE ADD PIE CHARTS FOR DEMO DATA
- Do the have an unfair advantage? Does anyone have any guesses as to why the top 20% are selling so much more wine online?
- So what does the data tell us? There were a few areas where the top 20% really stood apart from other wineries.
- Number one, the wineries in the top 20% have an email list size that is 4x larger than those in the bottom 80%. The average email list size of a winery in the top 20% is close to 20,000, and growing at a faster pace as well.
- The Second key finding: Wineries in the top 20% have an average order value that is $100 more than the wineries in the bottom 80%. Last year at this conference we shared three strategies for increasing AOV, and if you are interested in that topic that presentation is available on the WD website.
- And three: the Wineries in the top 20% are charging 50% less for shipping than those in the bottom 80%.
- More than any other factors, these are the three things that really differentiate the wineries that are doing nearly all the DTC ecommerce sales, from the pack. The take away here is: it doesn’t matter where your winery is located. Wineries in TX, FL, Canada, and all over CA are represented in the top 20%. It doesn’t matter if you’re big or small, have a high, medium or low bottle price. More than anything the data shows us is you must cultivate a large email list, you must take actions to drive AOV up, and you must have a sensible shipping policy.
- In short, the data tells anyone can succeed at selling more wine online, and execution is everything.
- So, even after that uplifting message of hope, you may be thinking is really possible to join the top 20% of wineries that are selling 89% of all wine online? Of course the answer is yes.
- In fact, just last year, on the Vin65 platform 46 Wineries busted into the top 20% by more than doubling their ecommerce sales 2014 vs 2015, .
- Those 46 wineries increases their ecom sales 130% or more,
- 10 of those 46 added $100,000 or more in ecommerce revenue in 2014.
- In fact, 16 wineries that were in attendance here last year, were once outside the top 20% and have busted in to this elite group.
- So I want to spend a few minutes talking about that group, and share some insight around how those 46 wineries doubled their ecom business in 2015. How did they do it? Well, I surveyed the wineries who jumped into the top 20% and this is what I found out.
- How did they do it? Well I asked them?
- All 46 of the wineries that entered the top 20% are using Responsive design. Responsive design is a technology which allows your site to render perfectly, no matter what device your customer is using to access your store. This has never been more important for a few reasons.
- More and more purchases are made on mobile devices. This image shows how mobile devices, in red, are making up a greater portion of online transactions. It just not acceptable to have a site that requires your customer to pinch and zoom to shop.
- In 2015 there was a panic among designers and some business as Google has started to down-rank sites that are not mobile ready. Think about that, your site is not optimized for mobile your business may fall of the first page of Google.
- Here is another piece of data that shows the importance of have a mobile ready store, 65% of emails are now opened on a smartphone or tablet. So imagine for a moment, you send a beautifully crafted email offer, and your customer can’t act on it because your site is not mobile ready.
- All 46 of the wineries that entered the top 20% are using Responsive design. Responsive design is a technology which allows your site to render perfectly, no matter what device your customer is using to access your store. This has never been more important for a few reasons.
- This has to be the granddaddy of all low hanging fruit. Of the 46 wineries that broke into the top 20% this year, 6 did so just by simply leaving an ecommerce system that didn’t offer the concept of a guest checkout.
- Here is an example of a shopping cart that forces the customer to create an account before checking out. If your shopping cart looks like this, you have to make a change immediately, and if you make this change I can guarantee you will double the amount of wine you are selling online. There is a great case study out there called the $300M button, which profiles a user experience designer that removed the create an account button for a major online retail and the retailer experienced a $300M increase in sales over the next year. This story cites that 75% of users that have to request a password will not follow through on their purchase. The 6 wineries that made this one simple change to their ecommerce sites saw their sales double, and they jumped into the elite ranks of wineries selling wine online.
- Here are a couple a great examples, from Pine Ridge Winery and Walmart have the option to login, or continue as a guest just in case the customer doesn’t want to take the time to create an account or request a password.
- How did they do it? Well I asked them?
- So its possible you are already on Vin65 and you have the last two items taken care of. The third and final tactic that was used by wineries to double ecom sales n 2015 was using Offline activity to Drive Online activity. That simply means, sending an email to your customers after every face-to-face interaction.
- By implementing an automated follow up to customers that simply says, thanks for visiting us why don’t you visit our online store to rate your wines, see some exclusive offers, really anything. You can double the amount of wine you are selling online. Here is a quick real life example of how this works:
- This is a real example from a Vin65 winery customer in Canada. On this day the TR staff member sold $7,500, to 89 unique customers. The staff member collected 89 emails that day, simply by requesting an email so they could send the receipt.
- Here is another example of a winery that boosted their email capture rate to 50%, and by simply collecting 25 email addresses a day they added over $100,000 in net new ecommerce revenue. Just by sending a simple follow up email.
- If you have any hesitancy around enforcing an email receipt policy for your customers, consider this. In the recent UPS Pulse of the customer survey 41% of respondents stated email receipts are an appealing enhancement to the retail experience. SO not only is it not an inconvenience, but any consumer think it is an upgrade to receive an email receipt.
- To recap, here are the three strategies you can implement in 2015 that are sure to help you double your ecom business.
- And if you really want to join the ranks of the leaders in DTC wine ecommerce, take action to improve in one or all of these areas in 2016.
- So WineDirect | Vin65 provides modern ecommerce and fulfillment services that you cannot get anywhere else, and our solutions are purpose built to help you sell more wine. We have a great group from WineDirect here today and tomorrow. Come on by to see us to learn more about how we can help you thrill you customers in 2016.
- How did they do it? Well I asked them?
- How did they do it? Well I asked them?
- http://techcrunch.com/2014/11/11/the-rise-of-online-customization/ A 2015 study by A survey of more than 1,000 online shoppers conducted by Bain & Co. found that more than a quarter of shoppers, 25-30 percent, are interested in online customization options, even if only 10 percent have tried it until now. Why the Attraction of Customization? “I Built It, Therefore I Own It” And “I Own It, Therefore It Is Superb” But here is something more concrete for you to consider: Customers will pay more for customization, and in an example
- Four more months.