Direct Wine Sales News April 2016 – Are Consumers Spending More Direct?
As we wrap up the first quarter of 2016, what do we know about consumer spending as a whole in the US? At 82.6, the February Consumer Spending Forecast is up from last month (78.8) and last year (80.7). The Consumer Spending Forecast is up slightly year-over-year for both discretionary items (+4%) and staples (+1%).*
What do we know about consumer spending at tasting rooms and winery e-commerce websites as we review data from this past quarter? At DTC Wine Workshops, we serve winery teams in several ways; online and in-person training events, project based consulting work and system implementations. We have first-hand insights from wineries throughout the nation around WHAT WORKS and also WHAT DOESN’T WORK when it comes to Direct Wines Sales, Marketing and Customer Retention. We are seeing significant DTC sales growth in evolving wine regions such as Livermore, Paso Robles, Texas and New York. WHY? Winery teams who are winning in the DTC wine sales space, have realized that they need to respond to consumer demand in meaningful ways through use of improved online and in-person experiences. I released a DTC Wine Case Study in March, 2016 showcasing WENTE Vineyard’s use of CellarPass to reach new audiences outside of their immediate region in Livermore with improved marketing and online reservation management tools. WENTE Vineyards now offers several tasting experiences that can be booked ahead of time with use of CellarPass. How does this translate into direct wine sales growth? WENTE Vineyards has experienced an increase of 60% in tasting room visits as well as an increase of 30% in average order value since they launched the online reservation style tastings almost a year ago. In addition, club conversion rates are up by 20% for first-time reservation style visitors.
As far as winery e-commerce growth for Q1 2016, winery teams who have invested in the right mobile E-commerce tools are WINNING. Consumers are spending more time shopping from their Smartphones as the devices have become larger and easier to shop from. Also, wireless networks are faster than ever. Clients with responsive and mobile-friendly websites have reported significant growth in mobile E-Commerce sales this past quarter. The mobile wine shopping experience should consist of no more than 2-3 clicks from home page to checkout and take no longer than five minutes to complete an average transaction. Latest industry reports reveal that mobile E-commerce sales in 2015 resulted in $39 billion.** Is your winery website built to meet the demands of mobile E-commerce customers?
In Q1, 2016 I launched a new workshop series “Staying Connected in between Visits” and have presented to hundreds of winery managers in Napa and Paso Robles over the past three months. I will be presenting the next workshop co-sponsored by CANVAS (Concierge Alliance Napa Sonoma) in Sonoma on May 17th at the Lodge at Sonoma and will wrap up the series on November 5th in St. Helena.Winery teams have expressed great interest in learning how to leverage technology and improved processes to create more meaningful conversations in between visits that result in repeat visits and exceptional in-person experiences. To learn more about the May 17th workshop in Sonoma and read what attendees are saying, click HERE.
IN OTHER NEWS…..
Save the Dates. Members of the DTC Consultant Network will be presenting best practices in “Winery Email Marketing”, “DTC Strategic Planning” and “Customer Retention” at the Central Coast Roadshow on August 23rd Paso Robles and August 24th San Luis Obispo. To learn more, click HERE.
Sandra Hess, presenting at Craft Beverage Expo. Sandra will be presenting on May 20th at 8:30 on “DTC Sales Do’s and Don’ts”. Selling wine and craft brew direct to consumer provides greater profit margins but also requires careful planning to ensure orders are shipped in a timely and safe manner and that the company stays connected with consumers in between visits. Want to join? Use Promo Code: Speak50 at checkout to save 50% on registration HERE.
To learn how your winery team can leverage best practices to grow direct wine sales, retain loyal customers and expand brand awareness contact DTC Wine Workshops at (707) 681-5120 or email: [email protected].
*http://www.forbes.com/sites/forbesinsights/2016/03/03/consumer-confidence-is-off-will-it-affect-spending-3/#7e9381a9577f
**https://www.internetretailer.com/2016/02/17/smartphones-might-eclipse-tablets-m-commerce-sales-next-year