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WineDirect Admin
 
November 29, 2007 | WineDirect Admin

Improving Email ROI - The Easy Way

We’ve been talking a lot about Email Marketing at Inertia this month. As you know, Email is an effective means of communication with your customers, and one that – when used appropriately – can help bring cost efficient and effective results. But there’s one element we don’t generally spend a lot of time on – and that’s the Subject Line.

The Subject Line is the introduction to your email that appears in the in-box of your email recipient, and – much like a billboard as you’re cruising down the highway – has about a 3 second chance of convincing the recipient to take action – specifically to Open the Email.

It’s worth paying attention to. Subject Lines represent one of those often-ignored marketing levers that can greatly influence ROI. We all do it: spend time, money and effort in the planning, designing, and manipulating of the body of an email marketing release, and then casually throw a Subject Line up during testing – the point when we’re reminded we need to add it.

In reality, your Subject Line can be as impactful as the body of the email. It’s important that you put some time and thought into the development of the Subject Line. Case in point:

- Use specific spam-filter unfriendly words and your message won’t be delivered.
- Use exclamation points and excessive capitalizations and your message will be ignored as spam, or even caught by spam-filters before it’s delivered.
- Use a Subject Line that has nothing to do with the content of your email – and risk confusing your audience – or worse yet, leaving them feeling deceived.
- Use a Subject Line that’s irrelevant or flat, and your message is ignored.

On the flip side, when used effectively, Subject Lines can have great impact on driving Open Rates up – your primary objective when setting a Subject Line. Some techniques to think about when setting yours:

- Be Direct – Tell your recipient what you want them to act on.
- Connect the Subject Line with the promotional messaging in the body of your email.
- Avoid capital letters (no SCREAMING!).
- Avoid excessive exclamations or punctuations.
- Keep number of words limited: Let your recipient see the full Subject Line in their in-box.
- It’s not mandatory that you include your brand name in the Subject Line. Consider and use appropriately.

Some examples that I’ve received recently which represent the above strategies:

- Great for Giving: Monogrammed Gifts (William-Sonoma)
- Last Chance – Only One Day Left to Save (Cellar 360)
- Gift Ideas for Wine Lovers (In Wine Country)
- 15% Off Personalized Wine Gifts - 4 Days Only (Windsor Vineyards)
- Just Arrived: Perfect Holiday White, 91 WS under 11 bucks (Wine Library)
- Free Shipping. Brilliant Gifts. (Crate and Barrel)
- Free Shipping on $200 or More (Ambrosia)
- Thoughtful Gifts for Everyone on Your List (Room & Board)

There are plenty of examples of what NOT to do. In the interest of protecting the innocent, I’ll leave it to you to scan your own in-box and see what catches your eye. In the end, Subject Line development isn’t an art. It’s an easy – and necessary – consideration point in your Email Marketing strategy.

Happy Emailing.

Kristi


 

WineDirect Admin
 
November 26, 2007 | WineDirect Admin

Channel Surfing

Innovation stems from necessity. If the need for an alternative distribution channel was not previously evident, recent moves in the wine industry should make it so.
For decades, E&J Gallo was the world’s largest wine producer pumping out an estimated 75 million cases under more than 40 labels; Constellation Brands Inc. now holds this title. The recent acquisition of many big hitters including Geyser Peak and Clos du Bois, push the industry giant to a production level of over 110 million cases a year.

Throwing out some more numbers, in 2006 California’s top 10 wine producing companies introduced 41 new brands. Because of the sales clout these companies’ poses; shelf placement was achieved more often than not. A staggering 100,000 line items are now available to the U.S. wine consumer.

Consolidation of wine companies pair well with the shrinking number of wholesalers, as big distributors prefer big suppliers. From a small winery prospective, this means less access to large markets.

Many of the IBG partners I speak with have trouble claiming a spot in the distributors “book” as small producers are an irritant. If they do get a spot, the movement is often minimal as their vinification efforts age past perfection. In all fairness the mega distributors are willing to represent smaller wineries, although there is only some much time a rep can spend with an account and many of California’s 2,400 wineries are left in the cold searching for a solution to this quagmire.

Although the wine market’s competitive, it is growing, and there are plenty of pallets to please. One solution is the Direct-to-Trade channel. Does opening up this channel mean that smaller wineries will sell out vintage after vintage? It could, but along with producing quality wine they are also going to have to market and sell themselves. The competition is fierce but an alternative channel is now open. The power rests with the wineries once again.


 

WineDirect Admin
 
November 25, 2007 | WineDirect Admin

Does your 2008 business plan include growing your e-business?

Have you ever used an automated teller machine? Of course you have. Have you ever ordered theater or movie tickets using an automated phone system or computer? Have you signed your name on a handheld computer to accept delivery of a package? Do you receive electronic mail from your customers? Do you receive emails or faxes from your suppliers with quotes, product information and delivery status updates? Have you ever gone onto the World Wide Web to get more information about a type of product you are interested in buying? If you have answered “yes” to any of these questions, then you realize the importance of e-commerce and how it affects our daily lives; it makes our business lives easier and our personal lives easier-this includes our wine buying purchases.

One of the most significant advances in technology today is the combination of the Internet and the World Wide Web. The ubiquitous nature of the Internet, with its inexpensive web browser clients and universal access, makes it an excellent platform for communicating and offering products more effectively with customers. New companies are springing up whose only presence-at least to customers-is via the web. These “virtual” companies, such as Amazon.com, Google, E-Bay, Yahoo and hundreds more, have created “fanatical” customer loyalty. They have figured out how to lure customers and how to keep them without relying on face-to-face interactions. They carefully streamline every aspect of the customer’s interaction with them. Many people think of the Internet as impersonal. Yet virtual companies have created very close bonds with their customers. Can you think of a better bonding experience then sharing/buying wine? I know what you are thinking, “yes, but I’m not in the technical business and my customers are loyal, in fact, I even have an online shopping cart.” Great. Are you growing your “Direct” business sales? Do you know your customers’ buying habits? Are you relying soley on mother nature for the best product and distributor sales to push your wine in various markets? Are you really in control? Customers are now rating products from toys, computers and their overall buying experience- and YES! They are sharing their wine experience by the thousands via online wine related blogs and wine sites. Your brand should be the one they are talking about whether it’s a great value, a fabulous find or simply the hospitality one received from visiting your tasting room. If you are not making one customer into three and not gathering the information to stay in contact with them, you are missing out on sales.

In 2006, purchases from wine tasting rooms were down by 13% across the country. This was primarily due to high fuel costs and airline restrictions. Mean while, e-commerce wine sales were up 22% and this trend is growing at a rapid pace. In fact, direct to consumer wine sales hit 1 Billion dollars! In 2008, you should expect to see your “direct” sales grow 20% or more with the right strategy. If you don’t have a strategy and actual business plan to get you there and it’s just “meeting speak”; start an action plan today. If you are the lucky few that are selling out of your wine each year; what can you do to increase margins? The winning formula starts by focusing on your existing customers, figuring out what they want and need and how you can make life easier for them. Then you can expand your efforts to reel in prospective customers. There are many aspects of a successful e-business strategy and it starts with commitment. This commitment will take time, money and effort. There are companies designed to help you create your virtual tasting room and fanatical-loyal customer. I work for one of those companies and can assist with your e-commerce business plan. Together, let’s make 2008 a year of good cheer and increased margins. Salute’!

WineDirect Admin
 
November 21, 2007 | WineDirect Admin

Awaken the Creative Within

Do you ever have days where you wake up to the sound of birds chirping outside of your bedroom window? You wake up feeling rejuvenated, refreshed and ready to start your day. Your ordinarily congested ’stop-and-go’ commute to work is reduced down to a cool cruisin’ fifteen minute ride.

When you get to work, the coffee has already been made and tastes just right - not too strong, not too sweet. It’s just the way you like it. When you get to your desk you notice that the usual stack of paperwork waiting on your chair isn’t there.

Throughout the day, you have a fountain of ideas - flowing seamlessly, one after another. You are like a jaguar. Sleek. Agile. Fast. Nothing can stand in your way.

Ahhhhh, if only every day could be like this. You can almost hear the resonance of Astrud Gilberto’s euphoric melody above your ringing phone.

But as they say “what goes up, must come down”.

Just as many of us have experienced days like these, we have also endured the opposite.

You are abruptly awakened by the dreaded pitch of your alarm. Your habitually long commute to work becomes even longer when you get stuck behind a semi that causes you to wait through three streetlight passes before actually being able to make your turn on a green.

Moreover, the coffee pot does not contain fresh, aromatic coffee. Rather, the remnants from last night’s final pot is stinking up the kitchen.

Worst of all, throughout the day - ALL DAY LONG - you’ve got Creative Block and can’t come up with any solid ideas.

As Charlie Brown would say:


For many of us in the creative field, this is a typical dilemma that comes up again and again. Before, (and not so long ago) I used to think that creativity was simply something you’ve either got or don’t got. Your ability to exert your creative skill was like a movement in nature - uncontrollable, unpredictable and at the mercy of a higher force.

But this was a passive assumption. It is true that it helps to be naturally gifted in your career field, or at least a convincing fit for your role. In the film “Mighty Aphrodite” Woody Allen references to this when he explains to Mira Sorvino that “Clint Eastwood doesn’t play a meek little hairdresser”. (Ideally, you are investing your time in a field where you have “some” natural competence.) However, creativity does not consist entirely of “raw” innate talent that you are either born with or not.

Creativity can be practiced, taught and learned. My first art director was the first to correct me on this. Whereas before, I felt that I could only move with the pace of my creative flow - which had its own erratic rhythm - I realized that the defeat of habit through originality is also a learned skill which requires practice and constant prodding.

All of this considered, I do have a laundry list of things I like to do when I feel myself getting stuck with Creative Block.

Maria Piscopo, from Communication Arts, states that creatives need to take time to recharge their batteries.

The Basics
First and foremost, make sure that you are taking care of your basic needs. How’s your diet? Are you well rested? Do you get enough sleep? Have you exercised lately? Taking care of your essential needs is critical in order to function at full speed. There’s no way you will be able to perform your best when the needle is pointing to “E.”

Aside from tending to the basics, I have acquired a few other tips from other creatives searching to breathe new life into their work.

Mood Enhancers
Not St. John’s Wort. Rather, are there special foods, drinks or music that you like to have on hand when you are brainstorming? Are you aware and sensitive to these idiosyncrasies? When I am feeling high anxiety, I break out my jazz albums and let Sarah Vaughn’s deep, soulful voice recalibrate my gears. I clear my mind and start over with a sharper, stronger focus.

Superstition
Like many athletes, some creatives have special traditions or rituals they will engage in when trying to achieve a certain goal. At a former agency I worked at, our copywriter would storm through the office pacing back and forth with a deep contemplative expression on his face as he tried to come up with headlines. When those perfect five words were slow coming, he would hide in his office and close the door where he claimed the **magic** happened. Never to disappoint, he always emerged from his **magic** feng shuied office with new and fresh ideas.

Novelty
“When you need new ideas, do new things.” Simple but effective advice. If you are looking for new ideas or inspiration, why not approach the situation from a different angle? If you continue to use the same method over and over and it does not yield the results you were hoping then maybe you should rethink your process.


 

WineDirect Admin
 
November 20, 2007 | WineDirect Admin

NEW Industry Standard this Holiday Season?

According to a 2007 eHoliday Study commissioned by Shop.org “Most Retailers Will Offer Shipping Promos This Holiday”. Surprised? To me this is further evidence that shipping continues to be the greatest hurdle for online consumers, regardless of product, price, or promotion. And for the first time this decade, a majority of retailers have shifted toward promotions with shipping discounts* as standard practice for eliminating this barrier to purchase. Here are some of the key stats that surfaced as a result of the study (survey sample size of 2,695 online buyers and 116 online retailers):

  • 78% of retailers will offer free shipping with minimum purchase requirements.
  • 60% of retailers will also use free shipping upgrades.
  • 54% of retailers will offer discounted shipping.
  • 41% of retailers will offer free shipping without conditions.

[61% of the online buyers surveyed said free shipping without conditions is one of the promotions they would like to see for the holiday season.]

Retailers also reported that they plan to use other marketing techniques to increase sales:

  • 63% will offer online-only sales.
  • 56% will offer refer-a-friend promotions.
  • 37% will give repeat-buyer discounts.
  • 35% will give early shopper discounts.

Consumers are becoming more comfortable shopping online—35% of those surveyed said they planned to do more of their holiday shopping online this year.

Some of the top reasons that surveyed consumers prefer to shop online instead of in stores:

  • 59% for the ability to shop at any time of day.
  • 44% don’t want to fight the crowds.
  • 39% prefer the convenience of shopping on the Internet.

The survey also stated that to increase sales, retailers plan to integrate channels more than ever this year.

  • 81% of online retailers with stores will advertise their Web sites in their stores.
  • 76% will offer in-store e-mail registration for customers.
  • 48% will offer the ability for store associates to place Web orders for customers.
  • 31% will offer in-store Web kiosks.

As I have stated in previous blogs, I believe that the wine industry should take a serious look at subsidizing part or all of shipping costs in an effort to stimulate direct sales. Many wineries choose to discount their prices online which results in conditioning of customer purchase behavior so that over time they do not respond to purchase at full retail pricing. This makes it difficult to offer pre-release promotions on wines because most customers know that it is only a matter of time before the wine price is discounted. Finally, by subsidizing the shipping cost wineries can prevent price erosion which helps to support their other channels of business as well.

* Due to direct shipping laws which frown upon the use of ‘FREE’, remember to be careful when using the word ‘FREE’ in your online promotions - ‘Complimentary Shipping’ is the better alternative.

Sources: Shop.org
 

WineDirect Admin
 
November 19, 2007 | WineDirect Admin

Email tips and a reminder for 11/28 email marketing day!

With the Holidays upon us, the time is right to reach out to your winery customers and offer special shipping rates and/ or discounts. We’ve listed a few quick tips below to help make this process a little easier for you.

  1. Whenever possible, personalize the email by using the customer’s name.
  2. Be sure to add pertinent links in the email. If you are inviting the customer to view new wines or specials, include the link in the email so the customer can go to that page, without having to hunt for this information on your website.
  3. Always check the “From address.” This should accurately reflect the department or winery name sending the email.
  4. Be especially careful copying a word document into the template. Use only ISO characters. Several common non-ISO characters will appear as bad characters in email clients, and should therefore be avoided in the textual content. The most common improperly displayed character is the Windows “em dash” or “–” character, often inserted by word processors. Other non-ISO characters to avoid include:

&82; , &93; ”

&83; f &94; ”

&84; ,, &95; *

&85; … &96; -

&88; ^ &97; –

&89; ° / °° &98; ~

&8B;

&91; ` &9C; OE

&92; ‘

(You may also wish to consult the W3 Consortium’s list of Character entity references in HTML 4. Not all browsers recognize the complete set of entity names, so you may wish to use e.g. - - instead of — to enter an em dash.)

Also, you may want to brush up on this module before getting started. We’ve included our online webinar here.

Warm wishes for a wonderful Thanksgiving Holiday.
Jennifer Gibbons
Inertia Customer Support

Special thanks to iPost for supplying bad character information and links!
 

WineDirect Admin
 
November 15, 2007 | WineDirect Admin

Lessons from the E-Myth - The keys to building a successful small business

A group of us at Inertia Beverage recently finished reading the E-Myth revisited by Michael Gerber. This is one of my favorite books on building a successful small business. We chose this book to read, because we understand that the majority of our clients are just that, small businesses. We in the wine industry tend to place so much romance around wine, the process of growing the grapes, making the wine, etc., that we forget that this is still a business.

Gerber has three central themes in his book;

  1. The typical small business spends all their time working in the business, not working on it.
  2. To build a successful business, the business has to have a repeatable process that could succeed without the owner being part of it. Gerber calls this the franchise model.
  3. There are three personalities working in any business, the Entrepreneur, the Manager, and the Technician. The personalities can reside in the same person or in different individuals.

How would I summarize the conclusions of the E-Myth? First, as the owner/founder of a business, you need to take time to take a step back, get away from the day to day demands of making the business work, and look at the bigger picture. Where is my enterprise headed, where do I want it to go, and how do I get it there?

Second, how much is this business dependent on the owner. Does all knowledge reside in the owner’s head? If the business was sold, and the current owner left, would the business fail? If the owner to these questions is yes, than the owner needs to build a set of processes that are a roadmap for running the business.

Lastly, what personality is dominating the decision making in the business. It needs to be the Entrepreneur, but very frequently it is the other two.

Certainly it is not possible to do this 120 page book justice in three or four paragraphs, but I highly recommend you read it. If you are an IBG client, ask your CDM what he/she thought of the book. We all enjoyed it, and hopefully learned some things that we can use in helping our clients grow.

WineDirect Admin
 
November 13, 2007 | WineDirect Admin

Promotions and ROI

Everyone likes a good promotion. Wineries like them because they increase sales and consumer exposure. Customers, well, need I explain why customers like them? But, what is less clear is how wineries should make decisions about promotions: when should they run them? in which channels? using what promotion tactics (i.e., price cuts vs. shipping discounts vs. group discounts vs. general wine blasts, etc.)?

Well, like any other sound business decision, choices about promotions should be made based on the return on your investment, or “ROI” as we like to say in the biz. Meaning, the key to a successful promotion is getting the most bang for your buck—or, in marketing lingo, the most lift for your promotion costs.

And what is lift, you may ask? Well, “lift” is the incremental volume you achieve from running a promotion above the volume you would have sold without running the promotion, or “above your baseline”. Next, what are the promotion costs? Those are all the opportunity costs of the promotion: the cost of sending out a mailing or generating an email campaign; the cost of taking a per-bottle revenue hit when you offer a price discount, etc. Importantly, these costs generally apply to every bottle of wine you sell (i.e., baseline volume and lift volume), not just the lift volume.

So why is this ROI or “lift per cost” perspective so powerful? Because the key to promotions is that they generally do have big opportunity costs. In the case of a traditional sale, you have to sell all your wine at the lower cost, even that baseline volume of wine that customers would have purchased even without the sale price. So, the lift the promotion gains better be large enough to outweigh that opportunity cost, or you will lose money on the promotion. The ROI metric captures just that.

After you begin to measure ROI, you can use it to evaluate the performance of all your different promotions– across all your different channels and promotion tactics. Then you can run only the types of promotions that have the highest ROI. And that is the simple way to get the most bang for your buck.


 

WineDirect Admin
 
November 11, 2007 | WineDirect Admin

Set Yourself Apart

Consumers today are empowered - they’re better educated than in any previous generation thanks to advanced technology. Customers decide what they want, when they want it, and technology allows them full access to buy it on the spot. The difficult task that any online winery must undertake is anticipating the needs of the consumer. You must know what they’ll want before they do, so you’re ready for them when they want it. To do this you must know your customer.

Do you know your customer well enough? Your product has to be more than good, it needs to be exactly what they want. The only way to do this is to understand consumer buying habits. Knowing them better than they know themselves allows you to decide what the next trend will be. With the influx of technology and Web 2.0 there is an overload of information about your customer. Focus on user generated content, what are your top products according to your customers? Which websites are referring to yours, and which top 3 pages do these visitors view most often? In order to find these answers, you need to look at your monthly sales reports as well as your website statistics.

We’d like to continue this discussion in subsequent blog posts to come. The aim is to equip you with enough information to become the innovator not the follower. We are hoping to spark a discussion on this topic and look forward to your feedback.

WineDirect Admin
 
November 8, 2007 | WineDirect Admin

Green living does in fact relate to wine - that’s right biodynamics

Good friends of mine recently founded an exciting company - Low Impact Living (LIL). They want to help you lower the environmental impact of your home and your daily life. To do that, they help you find the best green products, practices and service providers to help you achieve your environmental goals. And they will also help you understand the environmental benefits and economic trade-offs of your choices. Their primary goal is to make the path from inspiration to implementation as short and as smooth as possible. Only by taking action will we collectively reduce the damage to our planet and ecosystems.

With that said, they are constantly searching for great green products and services to bring to their customers. With the holiday season upon us, I asked if they would be interested in featuring some “green” wineries in their holiday guide. Indeed they would! What a natural fit - wineries practicing biodynamic agriculture. For those of you not in the know, and I did need to look up the details on wikipedia, this is a method of organic farming that treats farms as unified and individual organisms emphasizing balancing the holistic development and interrelationship of the soil, plants, animals as a closed, self-nourishing system. Biodynamic farming includes organic agriculture’s emphasis on manures and composts and exclusion of the use of artificial chemicals on soils and plants.

I am pleased to say that several of our clients are exploring or are engaging in biodynamic programs: Medlock Ames, Chumeia, McFadden, Gryphon, Amity, Barra, Matthiasson, and Girasole to name a few. If you are a “green winery” by all means let us know and we will connect you with our friends at Low Impact Living. Please email Rachel.Reed@inertiabev.com to learn about how to work with LIL. And, of course, if you are striving to be green, please check out their informative and exciting website and blog @ www.lowimpactliving.com/blog. Eventually, I’d love to see an entire section dedicated to organic wines and foods. We will keep you posted on progress there.

Cheers,