Sell More Wine Online - ShipCompliant DIRECT 2016 - Jim Agger
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Sell More Wine Online - ShipCompliant DIRECT 2016 - Jim Agger
- 1. SELL MORE WINE ONLINE
- 3. Single men typically change their bed sheets 4 times/ year. Source: Guardian UK
- 4. 2010 2011 2012 2013 2014 2015 2.66 million 2.93 million 3.17 million 3.5 million 3.9 million 4.19 million DTC Wine Is Growing
- 5. 2010 2011 2012 2013 2014 2015 2016 167.3 billion 194.3 billion 224.2 billion 256 billion 289.8 billion 325.2 billion 261.9 billion Ecommerce is Growing
- 6. Wine Apparel Electronics Books General Retail It’s easy to see this doubling or tripling 3% 14% 35% 74% 9% Wine Being Sold Online Is Small
- 7. 1400+ Ecommerce Sites on Vin65
- 8. 2013 2014 2015 308 million 528 million 772 million Vin65 Platform DTC 2016 One billion dollars
- 9. 2013-2015 Over 9 million transactions Across 1,200+ winery websites $1.79 Billion in sales
- 10. 89% of all sales. Through 2015
- 11. Source: Warner Bros. Picture What makes the top 20% so special?
- 12. Do they have an unfair advantage? Source: Hasbro
- 14. Source: Pando.com So what does the data tell us?
- 15. top 20% bottom 80% 9% 24% 41% 26% Admin Club POS Web 13% 23% 57% 7% Admin Club POS Web 3x more ecom!
- 16. Purchases on Mobile in 2015 2014 2015 top bottom Average email list size. 4X larger
- 17. 2013 2014 2015 $100 more Average Order Value.
- 18. 75% more 0.00% 2.00% 4.00% 6.00% 8.00% 10.00% 12.00% Top 20 Bottom 80 Shipping as a % of sales 50% less
- 19. Email list is 4x larger AOV is $100 more Shipping is 50% less How is the top 20% different?
- 20. What does the data show us?
- 22. 46 wineries 2X’d ecom sales in 2015.
- 23. ..up by 130%
- 25. 1) Used offline to drive online sales.
- 26. Action emails
- 27. Offline to Online, a case study $2,500 in net new ecom sales 63% opened, 7.5% converted 89 emails captured and sent. 89 TR Transactions ($7500).
- 28. What’s the value of an action email… TR transactions/ day 50 Email capture rate 50% Action email sent 25 7.5% conversion rate 1.875 AOV $318 Net new ecom sales (day) $ 596.25 New sales, annualized $ 131,175.00
- 29. Email receipts are appealing to 41% of consumers No Yes 41%
- 30. How Do You Capture Emails?
- 31. Pay Your Staff $1 Per Email
- 32. Use Kiosks
- 33. Email Is The Most Effective Digital Marketing Tactic
- 34. What Makes A Great Email?
- 35. Single Focus
- 36. Simple Is Better
- 37. Personalize
- 39. Two Other Things About Email
- 40. Time To Send Sunday Monday Tuesday Wednesday Thursday Friday 26.5% 29.4% 32% 30.1% 26.5% 28.1% 27.4% Saturday
- 41. Vin65 Platform Email Open Rates 100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% Average 26% Open Rate
- 42. How did they double?
- 43. 2) Focused on user experience
- 45. What Makes A Great User Experience?
- 47. Traffic is Mobile in 2015 35%
- 48. #mobilegeddon
- 50. Mobile Friendly email is essential
- 51. General Retail Stats Almost 1/3 of sales are mobile
- 52. Make it easy to buy on mobile
- 54. Simplify Forms
- 55. Secure
- 56. Faster
- 57. Shop Your Own Site
- 58. The Experience Doesn’t End When The Checkout Happens
- 64. SMS Messaging
- 66. Why Shipping Incentives? Will add items to cart to qualify for free shipping Will join a loyalty program to qualify for free shipping Source: UPS Pulse of the Online Shopper Report 58% 31% Will take action to qualify for free shipping 93% Reason for cart abandonment: higher than expected shipping costs #1
- 67. Carrot Engine SHIPPING INCLUDED ON SIX OR MORE BOTTLES
- 68. Yes, you can do it.
- 69. Loyalty Programs
- 70. Does it work? Yup. Consumers spend 108% more after joining 46Brix.
- 71. Offline to Online User Experience Loyalty Programs How did new entrants double?
- 73. 1. Use offline to drive online sales • Get action emails setup • More more paper receipts • Pay $1 per email
- 74. • Killer subject line • Mobile Ready • Single focused • Personalized 2. Send great emails
- 75. • Test free shipping over discounts • Offer free shipping a a reward for buying more bottles • Build or join a “prime” like shipping program 3. Embrace free shipping included
- 76. Thank you!
- 77. Interested in doubling this year? sales@vin65.com jim.agger@winedirect.com
Notes de l'éditeur
- Hello – I’m Corinna Wang – the marketing manager at Vin65. We’re talking today about selling more wine online. You’ve got to focus on experience – it’s what sets you apart. Let’s look at how important experiences are: Baby Boomers – birthday party $2 Gen X – birthday party $20 Millennials – birthday party $200
- First off, I’m not a math guy. I am one of the 4 out of 3 people that struggle with math. Since, I’m not a math guy I’d like to start with some easy to understand, and sometimes surprising statistics from outside wine, to get myself warmed up before we dig in.
- Is well, is just gross. Gross, but believable. Come on dudes? But getting back to selling wine online, the big eye opening fact to come out of our analysis is:
- According to Wines and Vines DTC report – DTC wine is up year over year
- Let’s talk about facts. Here’s what we do know. First Ecommerce is growing – these are the 2010-2016 stats for US Retail Ecommerce Sales in Billions
- And if you look at the grand scheme of things - wine being sold online is such a small percentage. Today 3% of wine is sold online. 14% for apparel. 35% of electronics. 74% for books. General merchandise is 9%. It’s easy to see that wine can double or triple. Opportunity is huge.
- There are over 1400 wineries on Vin65 doing ecommerce today. Today I will be sharing the results of a study we have performing
- At Vin65 we are the largest ecommerce company in the wine space – and as we look at these stats - we know that DTC by wineries on our platform is growing.
- In preparation for today, we looked at over 6 million transactions, across 1000 wineries from all over the USA, Canada and Australia. During this period, those 1,000 wineries sold over $1B in wine DTC. So, its safe to say we have a really large sample size, and we believe the observations we have made are applicable to all wineries selling DTC.
- 89% of winery ecommerce business is done by just 20% of wineries. To put that into perspective, if this room represented all wineries selling DTC, these ten people in the front row would be making nearly all the sales to consumers online. So when you have a group of roughly 200 wineries that are far out performing the rest it begs the question….
- What are they doing to sell so much wine online? And of course….
- Do they have an unfair advantage?
- So we dug into the data to figure out, what is so special about the top 20% that allows the to sell so much more than everyone else. We looked at case production, and Small, Medium and Large wineries are equally represented in the top 20% and bottom 80% group. We looked at location. It wasn’t that there are wineries from three countries, and states such as TX, FL and VA in the top 20%. We also looked at Scores, and Bottle Price, and there was no correlation on any of these factors. Even the demographic profile of the wineries in the top and bottom group were exactly the same… MAYBE ADD PIE CHARTS FOR DEMO DATA
- So what does the data tell us? There were a few areas where the top 20% really stood apart from other wineries.
- So when you look at the mix, the top 20%, are doing three times as much ecommerce business as the bottom 80%. So if I’m a VP of DTC at a winery, and ecommerce is 7% of my total sales, I look at this and think a two things: 1) Great it’s possible to triple my ecommerce sales, there are at least 200 wineries out there just crushing it.
- Number one, the wineries in the top 20% have an email list size that is 4x larger than those in the bottom 80%. The average email list size of a winery in the top 20% is close to 20,000, and growing at a faster pace as well.
- The Second key finding: Wineries in the top 20% have an average order value that is $100 more than the wineries in the bottom 80%. Last year at this conference we shared three strategies for increasing AOV, and if you are interested in that topic that presentation is available on the WD website.
- And three: the Wineries in the top 20% are charging 50% less for shipping than those in the bottom 80%.
- More than any other factors, these are the three things that really differentiate the wineries that are doing nearly all the DTC ecommerce sales, from the pack. The take away here is: it doesn’t matter where your winery is located. Wineries in TX, FL, Canada, and all over CA are represented in the top 20%. It doesn’t matter if you’re big or small, have a high, medium or low bottle price. More than anything the data shows us is you must cultivate a large email list, you must take actions to drive AOV up, and you must have a sensible shipping policy.
- In short, the data tells anyone can succeed at selling more wine online, and execution is everything.
- BUT – this doesn’t mean ecommerce is easy. It takes a a lot of work. Selling a bottle of wine over the internet is hard.
- In fact, just last year, on the Vin65 platform 46 Wineries busted into the top 20% by more than doubling their ecommerce sales 2014 vs 2015, .
- Those 46 wineries increases their ecom sales 130% or more,
- So I want to spend a few minutes talking about that group, and share some insight around how those 46 wineries doubled their ecom business in 2015. How did they do it? Well, I surveyed the wineries who jumped into the top 20% and this is what I found out.
- So its possible you are already on Vin65 and you have the last two items taken care of. The third and final tactic that was used by wineries to double ecom sales n 2015 was using Offline activity to Drive Online activity. That simply means, sending an email to your customers after every face-to-face interaction.
- By implementing an automated follow up to customers that simply says, thanks for visiting us why don’t you visit our online store to rate your wines, see some exclusive offers, really anything. You can double the amount of wine you are selling online. Here is a quick real life example of how this works:
- This is a real example from a Vin65 winery customer in Canada. On this day the TR staff member sold $7,500, to 89 unique customers. The staff member collected 89 emails that day, simply by requesting an email so they could send the receipt. 3X typical open rate.
- Here is another example of a winery that boosted their email capture rate to 50%, and by simply collecting 25 email addresses a day they added over $100,000 in net new ecommerce revenue. Just by sending a simple follow up email.
- If you have any hesitancy around enforcing an email receipt policy for your customers, consider this. In the recent UPS Pulse of the customer survey 41% of respondents stated email receipts are an appealing enhancement to the retail experience. SO not only is it not an inconvenience, but any consumer think it is an upgrade to receive an email receipt.
- So – if capturing emails are the #1 way to sell more wine online. What’s the best way to capture emails?
- If you ask me – you should pay your staff $1 for every email addy they capture. Your TR staff should be laser focused on collecting email addresses of everyone who walks thru the door.
- You can setup a kiosk in your tasting room. Enter to win a contest – guess the number of corks, etc. The point here is that when your tasting room is slammed – you’re still collecting the holy grail email address.
- How do you do that? EMAIL! Email is rated as the most effective digital marketing tactic – and at Vin65 - we know if is the #1 way to sell more wine online
- Ok – now you’ve captured email addresses and are ready to start emailing. My former boss used to always say that ‘Good is the opposite of great’. You don’t want to send good emails – you want to send great emails! So what makes a great email?
- Your emails should be Single Focused – make sure the email is a single point – don’t have too many offers.
- Simple emails work better than complex emails.
- Personalize This doesn’t have to be “Dear Corinna” Make sure the content is personal – In this case – a beach BBQ in their hometown
- When you work on ecommerce – it doesn’t always have to be promotional email. - Transaction Email – such as Order Confirmation, delivery updates, etc are great ways to prompt sales.
- When you send your email matter too. Best time to send an email 10:00am, 11:00am, 2-6:00pm People are messing around at work
- On Vin65 – this is the open rate of email. From 0% to 95%. This is a graph over over 4000 email campaigns that all had at least 1000 recipients. How do you get a great open/response rate?
- How did they do it? Well I asked them?
- What do I mean by user experience? I mean creating a customized, remarkable and pleasant interaction with your consumers.
- He’s going to choose Virgin for his next train journey – and will probably be a customer for life.
- How many wine labels are in the US today? What makes your wine better than your neighbor? Well – actually, usually it’s the experience. Experience is the only differentiator in an infinite choice of wines.
- One website that looks good on any device. You get the same great experience on your phone – not a dumbed down version.
- More and more purchases are made on mobile devices. This image shows how mobile devices, in red, are making up a greater portion of online transactions. It just not acceptable to have a site that requires your customer to pinch and zoom to shop.
- In 2015 there was a panic among designers and some business as Google has started to down-rank sites that are not mobile ready. Think about that, your site is not optimized for mobile your business may fall of the first page of Google.
- Here is another piece of data that shows the importance of have a mobile ready store, 65% of emails are now opened on a smartphone or tablet. So imagine for a moment, you send a beautifully crafted email offer, and your customer can’t act on it because your site is not mobile ready.
- Mobile Friendly –47 percent of all emails are read on a mobile device.
- In fact – if you step out of the wine industry – Mobile accounts for more than 30% of ecommerce sales. So – people are clearly getting accustomed to buying with their mobile phones.
- Focus on the subject line – this makes or breaks whether someone opens an email. 50 characters or less is what we found to be the magic number
- These screens – they’re not that big . Web pages have a lot of elements and design going on. You want to keep it simple and optimized.
- WHO HAS FILLED OUT AN ONLINE FORM WITH A MOBILE PHONE? So – you know that entering content on mobile device sucks. You end up switching back and forth between text and numbers, and you lose where you are on forms. Keep your forms short.
- Ensure your checkout is secure – and give people a visual sense of security. With recent hacks at big retail chains like Home Depot and Target – security is top-of-mind.
- Remember speed is critical on mobile – especially if the data connection isn’t great – like 3G, 1X, etc. Lighten the pages, images, etc.
- And of course – the best way to succeed at this – shop your own website. See where you can get it better.
- So – let’s look at 3 ways to sell more wine online. BAIT, BUY, BAG
- Upon checkout a customer needs to immediately – within a minute or two – receive an order confirmation message.
- Within 3-4hrs the customer should receive a message that their order has shipped and get a tracking #.
- Let customers know what day their package is going to be delivered on – so they can be home to sign for it.
- We are also experimenting with emailing customers delivery exception emails. If they aren’t home to sign for their wine – they receive an email. Keeping in contact with your customers keep them in the know and get them assured you’re taking care of them,
- SMS messaging can be used in several ways – text out promotional codes, send out order updates, etc. This is a great revenue driving example at a concert.
- SMS messaging can be used in several ways – text out promotional codes, send out order updates, etc. This is a great revenue driving example at a concert.
- So its possible you are already on Vin65 and you have the last two items taken care of. The third and final tactic that was used by wineries to double ecom sales n 2015 was using Offline activity to Drive Online activity. That simply means, sending an email to your customers after every face-to-face interaction.
- In UPS’s recent Pulse of the Consumer Report, a comprehensive study of consumer preferences. 93% of respondents reported that they will take action to qualify for free shipping. Wow.
- Carrots target sales based on behavior. You set up messaging based on actions people take on your website. The customer here knows they won’t be charged higher shipping if they add more wine to their cart.
- In bait we talked about how emails are the #1 way to sell more wine online. Conversely, Shipping is the #1 deterrent to buying wine online – let me say that again – shipping is the #1 deterrent to buying wine online. Don’t pass on your rates – don’t use it as a revenue booster. Think of shipping as a marketing tactic. Use it to increase AOV and upsell customers.
- In bait we talked about how emails are the #1 way to sell more wine online. Conversely, Shipping is the #1 deterrent to buying wine online – let me say that again – shipping is the #1 deterrent to buying wine online. Don’t pass on your rates – don’t use it as a revenue booster. Think of shipping as a marketing tactic. Use it to increase AOV and upsell customers.
- In bait we talked about how emails are the #1 way to sell more wine online. Conversely, Shipping is the #1 deterrent to buying wine online – let me say that again – shipping is the #1 deterrent to buying wine online. Don’t pass on your rates – don’t use it as a revenue booster. Think of shipping as a marketing tactic. Use it to increase AOV and upsell customers.
- In bait we talked about how emails are the #1 way to sell more wine online. Conversely, Shipping is the #1 deterrent to buying wine online – let me say that again – shipping is the #1 deterrent to buying wine online. Don’t pass on your rates – don’t use it as a revenue booster. Think of shipping as a marketing tactic. Use it to increase AOV and upsell customers.
- Have a killer subject line, make it single focused, personalized and include some value. See how your open and click thru rates improve. See if you can increase your open rate by 10%.
- Have a killer subject line, make it single focused, personalized and include some value. See how your open and click thru rates improve. See if you can increase your open rate by 10%.
- Using your mobile phone, surf your website and buy a bottle of wine – pretend you are a first time visitor Go through the complete process – see where it can get better – then make it better.