INFOGRAPHIC: Your Most Valuable Shoppers
Direct-to-Consumer wine buyers often share the following characteristics: 1) they purchase frequently, 2) they belong to multiple wine clubs, and 3) they purchase from multiple wineries throughout the year. They also prefer shipping incentives over product discounts.
Many savvy wine lovers don't need to be convinced to buy online. Direct-to-Consumer buyers often share the following characteristics*:
- They purchase often: The top 10 percent of online wine buyers purchase 4.4 times per year on average.
- They love wine clubs: 17 percent of members simultaneously belong to more than one wine club.
- They frequent more than one winery: More than one-fifth of DTC regulars purchase from multiple wineries throughout the year.
Loyalty plays a major role in continued DTC success. These customers are more likely to spend more per purchase - as much as 27 percent of your revenue could come from the top 10 percent of your client base. In addition, repeat and returning shoppers may spend up to five times as much as brand new customers.
Your Most Loyal DTC Customers Are Particularly Motivated by Shipping Incentives
Whether you use "shipping included" offers or subscription services, access to the most affordable and convenient options will encourage customers to buy more. Amazon gives customers the ability to subscribe to its Prime service for an annual fee in return for free two-day shipping on any purchase. This has the effect of motivating Prime subscribers to limit their purchases to Amazon, because they know that they won't incur extra shipping expenses. Since these customers have already paid the fee, they want to take full advantage of their investment.
Shoppers are motivated to choose the delivery options that save them the most money. In A/B testing, we found that "shipping included" offers generated better results than product discounts of 20 percent.
Think consumer shipping fees don’t matter in the big picture of your overall operation? Think again! Free or discounted fulfillment options have become the norm in the eCommerce industry in general. By December 2013, 62.5 percent of the top 1,000 online retailers extended some form of free shipping to customers, either on all orders or with a minimum purchase limit. Consumers are increasingly coming to expect this from all websites and you risk scaring them off if your delivery fees are too high. In fact, shipping may be a bigger determining factor in purchasing decisions than the cost of the items themselves, with the added expense leading to higher shopping cart abandonment rates.
With WineDirect’s 46Brix program, you can extend a subscription-based service to your customers, allowing them to take advantage of reduced shipping costs, which should ultimately lead to increased loyalty for your winery.
*Vin65 platform statistics