Wine Clubs and Recurring eCommerce: the times a-changing
•
6 gefällt mir•4,042 views
This presentation was from a workshop series done in New Zealand in Q1 2015. It covered: - why traditional eCommerce and email marketing has failed to increase direct-to-consumer sales - how to grow your wine club and successfully sell it at the cellar door - how to calculate wine club profitability - how to structure a wine club, including schedules, quantities and prices Note a wine club is not a newsletter rather it is a "subscription" agreement. The wine consumer gives the winery their credit card details and agrees to periodically buy wine. This credit card subscription is the fundamental difference between selling multiple bottles over time rather than a single bottle at the cellar door. Indeed 83% of wineries in the US have this sort of wine club and the Australian wine industry has started to notice and now the likes of Brown Brothers, McWilliams, De Bortoli and many more have moved to subscription-type wine clubs. Bruce McGechan is a wine digital media expert, the author of "Wine Marketing Online: How to Use the Newest Tools of Marketing to Boost Profits and Build Brands", and head M&P a specialist wine ad agency.
Empfohlen
Empfohlen
Weitere ähnliche Inhalte
Was ist angesagt?
Was ist angesagt? (20)
Andere mochten auch
Andere mochten auch (20)
Ähnlich wie Wine Clubs and Recurring eCommerce: the times a-changing
Ähnlich wie Wine Clubs and Recurring eCommerce: the times a-changing (20)
Kürzlich hochgeladen
Kürzlich hochgeladen (20)
Wine Clubs and Recurring eCommerce: the times a-changing
- 1. Wine Clubs vs eCommerce: the times a-changing February/March 2015 Bruce McGechan, M&P
- 2. Agenda • eCommerce is failing the wine industry • What’s a Wine Club and why have them? • Wine Club Structures • How to Grow a Wine Club • Metrics • M&P 2
- 3. Why isn’t normal eCommerce working for wine consumers? • Retail in-store purchase gives immediate gratification • Higher freight and fulfillment costs of eCommerce vs going to a retailer • and vs other industries’ freight costs • Enjoyment of shopping at a fine wine stores • Online experience can be frustrating, credit card fraud concerns • Winery brand stories are much weaker online than at the cellar door 3 Source:“Wine Marketing Online” (2013) p.68
- 4. Why isn’t it working for wineries? • “Build it and they will come” assumption • Single purchase eCommerce acquisition costs are high • Brand story is hard to tell online • Channel conflict with retailers restricts discounting • Cheaper at the local store/supermarket • Fulfillment once per day for small amounts is costly — almost the same as large amounts using batch fulfillment • Ad hoc (and custom choice wine clubs) are hard to scale • Concerns about technology and internal training issues 4
- 5. The movement to wine clubs 5
- 6. Australian Wine Clubs 6 0% 15% 30% 45% 60% 2009 2015 Source:Australian industry estimate Percentage of Australian Wineries with Traditional and Recurring eCommerce Wine Clubs
- 7. • eCommerce is failing the wine industry • What’s a Wine Club and why have them? • Wine Club Structures • How to Grow a Wine Club • Metrics • M&P Agenda 7
- 8. What is a Wine Club? 8 Email List with offers Recurring purchase paper form Recurring purchase via POS or eCommerce Programs: Email & Loyalty Continuity: #/period, fixed shipping dates Member-onlybenefits creditcard Discount Club - website / login
- 9. Why have a Wine Club? • More high margin sales • Save fulfillment cost and time • Brand building 9
- 10. 1. Direct-To-Consumer (DTC) worth much more • Assuming @$50 higher price per DTC case vs distributor case • 1000 DTC cases = $50,000 of additional revenue (and profit) 10 Source: Deloittes NZ WineVintage 2014 report 4000 cases = $200,000 10,000 cases = $500,000
- 11. 1.Wine club customers are worth much more • Cellar Door order value*: $70 • Wine Club order value*: $480 (over 26 months) • Idea is to sell clubs not bottles • e.g.14,400 visitors pa of whom 1.7%* buy wine = 245 people • At $70 = $17,150 of wine (at cellar door) • At $480 = $117,600 of wine (over 26 months) • Difference in revenue of $100,400 11 *Source: SVB Tasting Room Survey 2014 (slides 14 and 35) Recurring > 7X= $100K more revenue Single>
- 12. Wine Clubs have little overhead vs other channels • Distributor and trade channel • sales staff, travel, accommodation, entertainment, coop spend, trade events • Cellar door channel • cellar door building, staff, cellar door marketing and events • Wine club alongside a cellar door • software • (wine club manager) 12
- 13. 2. Fulfillment efficiencies 1.Division of Labour • Famous example: 1 person making pins, made 20 pins per day. • Breaking the process into 18 separate steps, with 10 people made 48,000 pins a day (4800/person) 2.Automation of tasks • Process of normal eCommerce shipments, done one by one: check payment, print label, arrange shipping, email customer • Recurring eCommerce and batch shipping process: in one go using software • 10X more efficient example of a large wine club • 30 days reduced to 3 days using more efficient fulfillment practices and technology 13
- 14. 3. Brand building • Make your customers feel part of the “inside circle” • More opportunities to communicate with your customers • Brand messages with the shipments and via email • Member only benefits build the brand • Become more loyal • Advocates 14
- 15. • eCommerce is failing the wine industry • What’s a Wine Club and why have them? • Wine Club Structures • How to Grow a Wine Club • Metrics • M&P Agenda 15
- 16. Wine Club Structures Product • Red only, white only, mixed, varietal, reserve • Majority of subscriptions red only • Club member only wines Frequency • Monthly, Bi-monthly, Quarterly, Biannual Quantity • 2—4—6—8—12 bottles per shipment 16 Subscription Price • Tiers • Low—a few lower priced wines in some lower priced packages, lower frequency, fewer bottles • Normal—regular wine selections, regular frequency • High—reserve wine in some higher priced packages
- 17. Wine Club Structure Commitment Period • Depends on discount • Little or no discount then no commitment • Do you really need a commitment period? • People who sign up for discounts quit the club earlier 17 Discounts • None—see member benefits • Member only discounts on all bottles • Discounts for additional purchases over and above the wine club shipment • Some wines, or lower discounts on reserve wines • Free tastings • Other products T-shirts, food • Events
- 18. Member benefits • What would you do when your friends andVIPs visit the cellar door? = your wine club • Special wines • Exclusive or first time access to scarce wines • Exclusive tours • Members-only tasting events, reserve tastings • Special member tasting room, lounge, or roped off area 18
- 19. Wine Club Events (instead of discounts) • Events: off-site, winemaker events, parties, art gallery shows… • Estate walks, mushroom hunts, horse buggy rides in the vineyards • Regular wine education events • Shakespeare or film festivals • Concerts and music events 19 Source: www.intowine.com/sonoma-wine-clubs-club-club-assessment-author-jim-arnold
- 21. Brown Brothers (quarterly) 21Source: www.brownbrothers.com.au/packages/subscriptions/
- 22. Benziger 22 Example: Plus: • complimentary vineyard tram tour • member-only tasting room and events
- 23. Stella Bella 23
- 25. Moshin 25 “ The Moshin Wine Club is a pre-release tasting program.You’ll receive 6 bottles of yet-to-be-released small production wine 2 times a year. Once you try the wine, you can have 6 weeks to reorder your favorites for an extra 5% off…”
- 26. • eCommerce is failing the wine industry • What’s a Wine Club and why have them? • Wine Club Structures • How to Grow a Wine Club • Metrics • M&P Agenda 26
- 27. Grow your wine club • #1 is Cellar Door • A cellar door without a wine club is like a car without an engine • At events • Online • Email marketing • Direct mail and phone sales 27
- 28. Cellar Door Training • Cellar door staff training • Pour, inform, and sell • Conversation naturally and respectfully includes wine club information • information about member only wines, free tastings, events • Straight forward pitch • Ask on purchase and/or at end of brand story/tour • Enthusiasm should show: the club really should be a great thing! 28
- 29. Cellar Door Wine Club Sales • Offer commission (for cellar door team and individual) • Show daily, weekly, month sales by individual and team • Wine Club has high visibility in the Cellar Door • posters, brochures, forms, iPad sign-up apps 29
- 30. • eCommerce is failing the wine industry • What’s a Wine Club and why have them? • Wine Club Structures • How to Grow a Wine Club • Metrics • M&P Agenda 30
- 31. Conversion rate and Net Wine Club Growth 31 Average attrition rate is 20%, growth is 35% (SVB ) Use Door counter and POS Can be as high as 20%
- 33. • eCommerce is failing the wine industry • What’s a Wine Club and why have them? • Wine Club Structures • How to Grow a Wine Club • Metrics • M&P Agenda 33
- 34. Convert Consideration Discovery Repeat Workshops 2015 - Cellar Door Focus • Social Media (Last month) • Wine Clubs: boosting wine purchases (Feb/Mar) • Driving Cellar Door and Website Traffic (May/Jun) 34
- 35. About M&P • M&P: Wine Specialist Digital Marketing and Ad Agency • Wine Websites: eCommerce & Wine Clubs • Advertising (online, social media and traditional) & Design (logos and labels) • Social media management software and Mobile Apps • Marketing and Cellar Door Strategy • NZ Exclusive Distributor of Specialist Wine Website,Wine Club, and Social Media Software 35
- 36. Questions? Contact Details: Bruce McGechan Mobile: 021-245-8881 Email: bruce@winemarketingpros.com Facebook: http://facebook.com/WineMarketingPros Twitter: @BruceMcGechan Blog: www.WineMarketingPros.com/blog 36