vin65 ecommerce 101: southeastern wine symposium november 2016

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WineryEcommerce101HowtosucceedwithDTCinthedigitalage

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Hi,mynameisKevin

©Copyright2016Vin65.Allrightsreserved.

DTCwineisgrowing

3

2010 2011 2012 2013 2014 2015

2.7million

2.9million

3.2million

3.5million

3.9million

4.2million


Ecommerceisgrowing

4

2010 2011 2012 2013 2014 2015 2016

167billion

194billion

224billion

256billion

290billion

325billion

262billion


Winebeingsoldonlineissmall

5

Wine Apparel Electronics Books GeneralRetail

It’seasytoseethisdoublingor

tripling

3%

14%

35%

74%

9%


1,500+winery

ecommercesitesonVin65


Vin65platformDTCsales

7

2013 2014 2015 2016

308million

528million 772

million

1billiondollars!


Across1,200+wineries

$1.8billioninsales

Over9million

transactions


Top20%ofWineries

Bottom80%ofWineries

9

89%ofsalesaremadebythetop20%ofwineries


Howdotheydoit?


CaseProduction?

BigScores? Location?

HighBottlePrices?

DemographicFocus?

Dotheyhaveanunfairadvantage?

11


CaseProduction?

BigScores? Location?

HighBottlePrices?

DemographicFocus?

Dotheyhaveanunfairadvantage?

12


Howdotheydoit?


3xmoreecommercesales

14

9%

24%

41%

26%

Admin Club POS Ecomm

13%

23%

57%

7%3x


4xlargeremaillistsize

15

4944 6010

21608

29100

2014 2015

Bottom80% Top20%

+35%


AOVisover$100more

16

$209 $212$235

$330 $335$363

2013 2014 2015

Bottom80% Top20%


50%lessshippingfees

17

10.37%

5.89%

Bottom80% Top20%

Shippingasa%ofSales


HowYOUcandoit


1. Useofflinetodriveonlinesales

2. Sendbetteremail

3. Givethemareasontobuymore

4. Focusontheuserexperience

5. Theexperiencedoesn’tendaftercheckout

HowYOU candoit


Offlinetoonline,acasestudy

20

$2,500innetnewecomsales

63%opened,7.5%converted

89emailscapturedandsent.

89TRTransactions($7500).


What’sthevalueofanactionemail…

21

TRtransactions/day 50

Emailcapturerate 50%

Actionemailsent 25

7.5%conversionrate 1.875

AOV $318

Netnewecom sales(day) $596.25

Newsales,annualized $ 131,175.00


Emailreceiptsareappealingto41%ofconsumers

22

41%


Howdoyoucaptureemails? ?


Payyourstaff$1peremail


Usekiosks



2. Sendbetteremail




HowYOU candoit


Whatmakesa

greatemail? ?


Personalize


Firsttimebuyer

Repeatcustomer

Loyalcustomer

Segmentyouremaillist

29

Clubmember


Singlefocus


Focusonthesubjectline


"CellarCabonsaleuntilTuesday!"

"Freeshippingfor48hoursonly"

"VIPparty– you'reinvitedJune1st"


Transactionemail


Mobile-friendlyemailisessential


Desktop35%

Smartphone49%

Tablet16%

35

65%ofemailswereopenedonasmartphoneortablet

Source:marketingland.com



2. Sendbetteremail




HowYOU candoit


Theartoftheupsell

Buy12Bottlesandgetshippingincluded!


Flexiblewineclubs


Whyshippingincentives?

39

Willadditemstocarttoqualifyforfreeshipping

Willjoinaloyaltyprogramtoqualifyforfreeshipping

58%

31%

Willtakeactiontoqualifyforfreeshipping

93%

Reasonforcartabandonment:higherthanexpectedshippingcosts

#1

Source:UPSPulseoftheOnlineShopperReport2014


46Brixshippingloyaltyplan

40

• LikeAmazonPrimeforwine

• Customerspay$79/yearandgetfreegroundshippingonordersfromparticipatingwineries

• Afterjoining,customersspend108%moreperyear

$2,232

$4,640

Before46Brix After46Brix

AnnualOrderValue



2. Sendbetteremail




HowYOU candoit


WhatMakesAGreatUserExperience? ?


Clearproductpages

43

CabernetSauvignonOnly3leftinstock

$24.99

AddToCart


Clearcheckout

44


NotForcedtoCreateAnAccount

45


Makeiteasytobuyonmobile


Seamlessresponsivedesign


Peoplearebuyingonline

48

Source:Deloitte2016HolidaySurvey


Vin65mobiletraffic

49

2010

5%

2011 2012 2013 2014 2015

10%

18%

27%

31%

35%


Vin65mobile&tablettraffic

50

46%ofwebsitetraffic

24%ofsales


Shopyourownsite



2. Sendbetteremail




HowYOU candoit


Orderconfirmation

53


Shippingconfirmation

54


Deliverydateconfirmation

55


Deliveryexemption

56


Real-timeshipmentredirect

57


SMSmessaging

58


3xEcommerceSales

4xEmailListSize

AOVisover$100more

50%LessShippingFees

WineryEcommerce101Recap

Whatmakesthetop20%different?

1. UseOfflinetoDriveOnlineSales

2. SendBetterEmail3. GiveThemaReasonto

BuyMore4. FocusontheUser

Experience5. Don’tletitendafter

Checkout!

Whatcanyoudotocompete?


WheredoIstart?

60

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vin65 ecommerce 101: southeastern wine symposium november 2016

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