[June 27, 2024 – Sandra Beals]
The US Wine Industry is certainly experiencing some shifts as distributor consolidation and increased direct wine competition continues to play out. There are 11,691 wine brands across the nation today, representing about 400 more than in 2021, according to the Wines Vines Analytics Winery Database. The number of distributers in the U.S. has decreased by 62.47% with only 1,126 left standing today – down from around 3,000 in 1995. The doom and gloom news headlines don’t help, especially with so much fake news and sensationalism being fed to today’s wine consumers. I have written several letters to editors requesting corrections and in some cases retractions on behalf of clients and winery associations. Regardless, many are feeling a sense of confusion and chaos when it comes to alarming news flashes. What was once a space to retreat, relax, and get away from it all has in some cases become more like work for many wine enthusiasts. I believe that it’s time to reset and return to the basics. There is still a lot of opportunity to inspire and educate a new wave of wine enthusiasts. While we keep a close eye on the consistent growth of the RTD (ready to drink) category as well as craft beer and spirits, we also see the average order values of younger drinkers continuing to swing upward.
So how can we return to the basics while remaining relevant to the up and coming wine buyer? Top performing hospitality teams know that each member must be consistently good at repeating the basics to deliver exceptional guest experiences day in and day out. The same is true for how winery leadership teams establish visitor options and direct wine sale offerings. From the top down, there must be a consistent approach to designing consumer engagement strategies that build loyalists for life. As my clients know, “one size fits all” direct sales and marketing strategies don’t work and we have proven models of success outside of this outdated way of doing business for the past 11 years. In any direct to consumer sales industry, we know that “customizations”, “personalizations”, “accommodations”, and “surprise/delights” are the expectation of today’s connected consumer. To expect brand loyalists to reengage and reinvest year after year, a direct to consumer brand must continue to ask for feedback, listen, analyze, and deliver updated offerings as part of the present and future consumer journey mapping process.
Beginning July 8th, I will be opening registration for a new “Winery Lifestyle & Community Development Coaching Program”. Over 6-8 weeks, leadership teams will create a solid plan for introducing the most relevant wine brand offerings and consumer experiences by leveraging complimentary lifestyle partnerships. Deliverables include a Winery Lifestyle & Community Development Template and framework for expanding consumer reach beyond the tasting room. At the core of this program, Consumer Community Building best practices and Case Studies will be shared to help teams better understand their unique positioning within key consumer segments.
Today, I challenge winery leadership teams to return to the basics and have provided top five tips to get started. Reach out to share your progress and good news!
Tip #1 – Revisit the WHY behind your visitor options. Is the minimum point of entry $50+ per person to visit/taste? If so, you may need to move away from this “one-size-fits-all” approach and design offerings that allow prospective visitors to choose their own adventure. I am not speaking to the Allocation-Only wine brands with this recommendation as that is a different business model entirely. For all others, can your hospitality team return to the basics by offering let’s say a $25 tasting for the rest of the summer? This could be a modified tasting such as a Start of the Day tour and tasting in the vineyards, winery production and barrel room space, etc. If you don’t have a winery space, maximize use of your urban tasting room by opening an hour earlier Friday through Sunday. Provide pastries from a local bakery and 2-3 tastes to start the day right. Capture new visitors at a fair entry point while they have fresh palates and pocketbooks. Tasting fees don’t build wine brands and should always be used as a cost of acquisition to convert new visitors to wine purchases, membership sign-ups, event ticket purchases, etc. So cover your costs or use as a cost of marketing if needed to fill your visitor center with new visitors this summer season and beyond. Get creative with this and leverage your unique access points to create some buzz. Remember, that the second sale and beyond is the most important measure of success in the direct wine sales space so be sure to always invite back.
Tip #2 – Confirm WHAT your hospitality team could be offering to improve guest connections that better convert and build long-lasting communities. Perhaps this includes three tastes of current release wines and a surprise (barrel taste of a future release or a library wine from a past release of one of the same varietals)? OR two whites and two reds in a comparative style discussion with your wine educator? The point here is to develop two to three entry points in a “choose your adventure” offering to cater to the younger as well as new wine consumers, interested in exploring and learning. Members and VIPs can still get the most love, wine access, and swanky offerings if they choose. Stop doing the same old thing and expecting better results. Now is the time to move away from belly up to the tasting room bar service as well as stuffy seated experiences as the only options to engage new audiences. Instead communicate care and connection with all guests by offering a variety of choices.
Tip #3 – Take a look at WHO represents your wine brand at all consumer touch points. Do you have the right talent in place when matching staff to direct wine sales initiatives? In our mystery shop reports, we still find a glaring miss when it comes to hosting tasting room guests. Wine enthusiasts take the time to make the reservation, book travel, and make the trek to your beautiful visitor center. Begin time with guests with a warm welcome, smile, and a word of thanks for making it out instead of immediately spewing an abundance of information at them. Slow down at the front and prioritize connection, exploration, and enjoyment. Move away from transactional “processes” and internal “policies” when welcoming guests PERIOD. Who you place at your front door to receive guests is one of the most important decisions that need to be made when going from good to great today. Does your “Greeter” care and value every interaction with guests as they arrive and depart your visitor center? They aren’t there to check guests in, they are there to welcome, thank, care, inform, and handoff in a warm and thoughtful manner. The same goes for your inside sales and member services team members. Take time to mystery shop these important members or your direct to consumer teams as they will make or break your business. Perhaps its time for the winery owner or winemaker to get back to the basics by reaching out to long time members and VIPS with an invitation to a private bite and bottle share.
Tip #4 – Revisit the WHERE when returning to the basics. Start with all of your digital outlets and ask some key questions. Are inviting and welcoming messages displayed at the time of arrival? Are there flexible, choose your own adventure style CHOICES available to convert first time visitors? Focused, concise, call to actions can be as simple as one sentence against an inspirational photo. 70% of your digital content should be all about your target audiences because you know who they are and what they want. The other 30% should be focused on the Three Pillars of Storytelling as it relates to Past, Present, and Future wine brand journeys. Leverage brand loyalist quotes and testimonials more often. Move from the digital updates to all consumer facing print materials as well as staff training documents. Time is the number one commodity of wine consumers today so don’t waste it. Train every member of your direct sales and marketing teams to value time and know exactly which consumer touch-points they are responsible for.
Tip #5 – Confirm WHEN to announce new visitor options and to personally contact your top brand loyalists. Start with your top lifetime value customers when delivering the good news as they should always get first access. Get a plan dialed in that speaks the right language to each of your consumer audiences and at the time that they can be most receptive. Tuesdays and Wednesdays between 10:00 and 2:00 are ideal times to reach connected consumers by text, phone, social IM, and personal email. Know their time zone before reaching out and keep the communication positive, concise, and all about them. Offer to make a reservation, comp shipping on a new qualified wine order, schedule a private meet-up with family or winemaker, etc. when starting a personal chat with a brand loyalist. Take the initiative to deliver the unexpected and anticipate needs when communicating in between visits. As far as marketing to the masses, find ways to combine your announcements with lifestyle marketing partners in advance of their large-scale marketing initiatives such as a local event, music festival, dinner party, etc. And possibly combine your offer with their event follow up messages as an added perk for ticket holders.