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For the latest in Direct-to-Consumer sales.  Featuring posts on compliance, direct sales tips and trends in the wine industry.

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WineDirect Admin
 
December 28, 2008 | WineDirect Admin

Improving Your WIne with Customer Service

I recently read a great story about the importance of customer service by e-tailers. If you don’t feel like following the link, the short summary is this: customers buying the same popcorn popper from different online stores gave radically different ratings of the product itself based on the level of service they received when the product broke.

Given the subjectivity at work in how we experience wine there’s an enormous opportunity to influence how people experience this product through customer service. The importance of tasting rooms has already taught us this lesson, but are you providing that same level of service to online customers?

Matthew Mann
 
December 19, 2008 | Matthew Mann

Observations on Wine - Shipping - Compliance

This is neither a retrospective on the wine industry events of 2008 nor a prediction of what will happen in 2009. These are simply my observations on wine, shipping and compliance issues as they currently stand.

Wine Sales Growth
I believe wine sales will continue to grow in the United States despite the economy. They may not grow as rapidly as in the last few years and certainly lower price tiers will benefit at the expense of higher end super-premium wines but overall wine sales will continue to grow. The reasons are pretty straight forward. Relative to Europe and some other parts of the world, not many people in this country drink wine with a meal or on a regular basis. There is still a large untapped market of potential wine consumers. Instead of battling over market share, the battle is still over opening new markets and attracting new consumers.
 

Shipping Costs Stay Where They Are
I think that despite the recent drop in gas prices, wine shipping costs will not drop substantially. For the initial period when gas prices were rising earlier this year, freight and carrier services were absorbing the increases until prices reached a point when that was no longer economically feasible and fuel surcharges and price increases became necessary. As gas prices go back down these shipping company’s want to get back the money they ate in fuel prices earlier in the year. The slow-down in the economy is reducing freight traffic and the volume of goods moved, which usually leads to higher unit costs. I’m no economist but it seems unreasonable that price cutting will happen anytime soon.
 

Shipping Compliance Increasingly Important
As I work with it daily, I continue to see shipping compliance as a critical factor to the success of any winery direct marketing program. The movement towards increasing state accessibility to direct shipment to consumers continues. Even hardcore prohibition states like Utah are creating some form of consumer shipping process (while Utah’s model is not truly direct it is a start in the right direction). To continue this push to open more states, wineries must get and stay compliant. Only if states see wineries playing by the rules will they acquiesce and open their borders to direct shipments. And remember, as states become more sophisticated in their knowledge of wine shipping, so do their accountability systems. It will continue to become more difficult to ship outside the rules.
 

Winery Startups Will Continue To Grow
The bad economy will likely thin out the herd of wineries in the market in the short term as some boutique brands operating in the higher price tiers cannot maintain their operations and some larger brands consolidate to survive. However, overall and in the long-term new winery start-ups will continue to grow. While the market may seem saturated with brands, there are simply too many new wine regions coming online to slow overall growth. The wine business has cachet and that will always attract capital.
 

Consumer Direct Works
With all the above said, I believe that a marketing campaign oriented towards shipping wine direct to consumers is the best way for boutique wineries to develop a base of loyal fans and sell wine at prices that can sustain their operation. It requires a targeted program using technology to reach consumers on a large scale. It also includes well-thoughtout, selective choices on which markets to target initially and then the long-term. It requires staying compliant to keep those markets open. Even with the increased cost of shipping, the margins derived from selling at retail direct can offset the increased cost and gain access to markets the small winery will never see in the 3-tier distributor model.
 

Cool-Climate Syrah
Finally, because they are my favorite: cool-climate Syrahs will continue to be the under-appreciated bargain of the wine world.
 

WineDirect Admin
 
December 15, 2008 | WineDirect Admin

Checklist for Processing a Wine Club Package in REthink

Have you have ever processed a wine club and encountered a problem or two along the way because you forgot to confirm a few items?

Are you about to run your first club?

Well, as you begin the preparation for processing a package, listed below are some important REthink items, which should be added to your checklist to ensure a seamless club run:

  1. Check your inventory levels, SKU codes and bottle weights for the products that are included in the package:
  • Make sure there is enough inventory to fulfill all of the club orders.
  • Check the SKU codes and verify they match what you have submitted to your fulfillment house.
  • Be sure to specify a bottle weight for each of your product SKU’s making certain your shipping charges will be correct.
  1. Review all of the states that are activated to ship wine to and be sure they have a shipping method associated with them.
  2. When setting up the wine club packages double check your package price and shipping for the following:
  • The package price should be set at the Discounted Amount (i.e. total up the wines, apply the club membership discount and the outcome = package price).
  • Don’t forget to select one of the following otherwise SHIPPING WILL NOT be charged:**Use Regular Shipping Rates** OR **Use Flat Shipping Rate**

If you ever have any questions or require assistance with processing your club, please contact our support staff, we will be happy to walk you through the process.

Are you looking for additional REthink training on processing your wine clubs? Come join our next Clubs Modular Training session - scheduled for January 8th at 10am.

You can participate in-house or via a Webinar Broadcast. For more information on our other classes visit the following location: Inertia REthink Training Schedule
 

Sheri Hebbeln
 
December 13, 2008 | Sheri Hebbeln

Engagement and the Interactive Web

As the social aspects of the web continue to broaden and provide new and richer opportunities for consumer interaction, one thing has become clear – traditional metrics rarely tell the full story when trying to measure consumer engagement. Some forms of interaction are easier to measure than others. For example, you can use web analytics to view visits to your website and to get an idea of exactly what people are doing once they get there. Which pages are they visiting? Which products are more popular and where are they dropping off? It becomes more difficult though, to get a feel for the value that information brings to you. Exactly who is your audience and what does that knowledge mean to you? More difficult yet is the task of trying to understand how consumers are engaged with your brand – one of the primary benefits of social media and the form of engagement that ultimately translates to conversion. Traditional metrics such as clicks and page views are still relevant in many ways, but they don’t capture the full picture. They don’t fully measure interactivity and they don’t capture the viral nature of the interactive web. There are many intangibles to be gained from participation: industry recognition, insight into what you’re doing right (and wrong), the opportunity to respond to comments, both positive and negative, and of course word of mouth (people trust the opinions of others over other forms of information). You need a framework for using metrics, and that framework is provided by the intelligence gained from social media. If you’re blogging, or if you’re using Facebook or Twitter, how much feedback are you receiving and what types of comments? That information, used in combination with your metrics, will give you a much better idea of interest level and the types of reactions that help build awareness and ultimately lead to purchase.

WineDirect Admin
 
December 9, 2008 | WineDirect Admin

Do you need a spin doctor?

“Flacks,” ”Spin Doctors,” ”Publicists,” ”Communications Professionals”. They go by a variety of names, but they’ve been around for decades and the wine business has its fair share. The question is, do you need one and can they help you enhance your brand and sales. Here’s what you need to know before you go out looking for a doctor to spin your story.

What Do Publicists Do?
Bottom line: They communicate your unique brand positioning and story to different audiences. They are best known for reaching out to the media and pitching your story, but they may also work with the trade and even directly with consumers. They are communications specialists who bring an expertise to the table on the best way to identify the audience you need to speak to and the best way to reach that audience. That means they spend lots of time on the phone, in front of the computer and writing on their client’s behalf.

What do Winery PR People Do?
Most all wine PR people have a broad background in the workings of the wine industry from production to marketing. But for the typical small to medium sized winery, winery PR people take on the block and tackle work of communicating the winery’s unique message. This includes, but is not limited to, writing and send press releases, writing and designing press kits, writing wine data sheets, maintaining and updating website copy, organizing a media samples program, representing their clients at events, pitching stories to writers and media, organizing the winery’s participation in events, creating “media tours” where the client visits markets and meets with media and members of the trade, maintaining a media list specific to a particular clients needs, and more.

Do You Need a Publicist?
If inside your organization you have the means and staff to efficiently and effectively carry out the communications that a PR person would do for you, then you probably don’t need to hire an in-house publicist or PR agency to do this work. If you don’t have the in-house resources to carry out communications and publicity efforts that you believe would enhance your sales and brand stature, then considering a hire or an agency is probably something worth a thought or two.

What does it cost to hire a publicist?
To bring in an experienced, wine savvy PR professional on staff you are likely looking at a $50,000 salary to begin with. However, for more experienced professionals, the cost could be much higher. In-house publicists almost always report to the Marketing Director since their work directly impacts the marketing side of a business. The other option is hiring an agency. Often times this can be a less expensive option, but it is critical that you and the agency know exactly what is expected in the relationship. Agencies can be hired on a retainer basis, on an hourly basis and for a project-by-project fee. Retainer fees, depending on the work they will carry out for you can range from $1,500 per month to $6,000 per month.

How Do You Find a PR Agency?
As is expected, there are MANY of them. To find those with specific experience in the wine industry, a good place to start is by browsing through Wine Business Monthly’s list of Wine PR Firms.

Good luck!

Matthew Mann
 
December 5, 2008 | Matthew Mann

Happy Repeal Day!

Seventy-five years ago today a mistake was corrected when the 21st Amendment repealed Prohibition. This noteworthy event resulted in the current 3-tier distribution system and the host of legal challenges to it as it begins to show it’s age with technological and cultural changes making it increasingly archaic and in need of an update.

I support the fundamentals of the 3-tier system but it clearly needs some fine-tuning as the marketplace and relationships between suppliers-distributors-retailers has changed over the decades. Still, today is a day to celebrate the end of a great American mistake in social engineering. Raise your glass!
 

WineDirect Admin
 
December 4, 2008 | WineDirect Admin

Use the “PICK UP PARTY” to connect with customers

Where direct sales are concerned, the name of the game is connecting with your buyers; with real people who can become real advocates for your brand and products. This is of course the whole point of the Wine Club, a very special collection of folks who have become so enamored of your wines that they are willing to join your club, give you their credit card and tell you, “ship me wine when you are ready to”.

Any chance you have to become even close to this special collection of club members should be pursued. And that’s the purpose of a particular kind of event that every winery who maintains a Club should host: The Pick Up Party.

The Pick Up Party is a simple concept and easily executed. Instead of simply shipping club members their shipment of 2, 4, 6 or 12 bottles of wine, contact them in advance to attend a special party just for club members at which they cannot only pick up their wines, but taste the wines in the coming shipment and mingle with their peers. The basics of creating a fun, effective Pick Up Party are pretty simple.

  1. Use e-mail or snail mail to contact club members to let them know their shipment is coming soon.
  2. In that communication, let your club members know they are invited to defray shipping costs and come to the winery on a set date to pick up their wines and enjoy an intimate party among club members
  3. Make sure you get RSVPs so you can plan how much food and space you’ll need to arrange for.
  4. Stress that by picking up the wine they avoid all shipping costs
  5. Offer incentive to come such as a deeper discount on a certain wine, the chance to taste from the barrel, good food, entertainment, special guests such as authors of wine books. Give them good reasons to come.
  6. Allow your club members the ability to add to their club shipment order in advance of attending the party.
  7. Make the party special; “For Members Only,” but encourage them to bring a guest.

The “Pick Up” party is one of the easiest of all Wine Club events to organize. It builds loyalty. It strengthens the bond between the customer and the winery. It always leads to increased sales. And it often leads to the sale of more club memberships. We are at a moment in the economy when retention of your best customers is what will get you through. Don’t let the release of the new club wine be just opportunity for your shipping department to work harder. Make it an opportunity to solidify your relationship with your best customers.

Karin Ballestrazze
 
December 1, 2008 | Karin Ballestrazze

Drive more visitors to your website - UPDATE, UPDATE, UPDATE!

Have you noticed these days that whenever you do a search on Google, Yahoo or MSN that articles from blogs are often at the top of the search results? Do you know why? One important reason is that these search engines LOVE regularly updated websites. But they DON’T LOVE static websites. This doesn’t mean you need to go out and start a blog, but it does mean that if you want more visits to your website you need to UPDATE, UPDATE, UPDATE.

 

 

 

  • In part this means just keeping the timely information you have on your site fresh. A few suggestions for keeping fresh…
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    • Take down old events from your “Events Page” and replace them with upcoming events.
    • Consistently rotate, replace or add to the recipes on your “Recipe” pages
    • Update your wine descriptions when you’ve been awarded a competition medal or a great wine score or review
    • If you do have a blog, make sure you are adding new entries at least twice a week

    Inertia’s REthink Engine makes it incredibly simple to update your website. So put that little sticky on your computer monitor that says, “UPDATE WEBSITE” and remember to think about how you can do this on a daily basis. Doing so will help get your site higher in the search engine results and drive more visitors to your website. Let’s face it, your website isn’t a billboard, it’s the place you want folks to actually go to. A search-engine friendly website helps accomplish that goal.