What You Should Know About Wine Customers

Interesting article in Wine Business.com last week by Cyril Penn about how big data can unlock direct-to-consumer (DTC) potential and boost sales. There was a lot of good information in the article, some of which I will go into at a later date. Today I am focusing on some of the statistics about wine consumers that were discussed in the article.

1. Wine consumers are dramatically more affluent than the average U.S. consumers.

  • 57% of wine consumers have a net worth of over 1 million dollars, compared to 12% of the average U.S. consumer.

2. 71% of DTC revenue comes from 30% of the customers.

  • …Every customer matters but a lot of money is coming from the very top segment.

3. Younger women gain parity with men in wine purchasing.

  • This information should get you thinking about who your marketing and how your promotional materials are geared to. Historically wineries focused their marketing on male customers.

4. 42% of DTC customers live less than 150 miles away from the winery, most live farther away.

  • Are you analyzing your customer base by zip code to find out where most of your customers live? Do you have concentrations of customers in certain areas or zip codes? This analysis will affect your marketing and event planning? It is a great tool for planning more successful and profitable events, promotion and advertising.

5. Discover the other interests of your customers.

  • Wine consumers are more likely to be skiers, play tennis, support the arts and they tend to subscribe to financial newsletters. This should also affect your marketing and events.

These few statistics can lead you to many more questions, generate analysis and marketing ideas that can make your winery grow. Whether you are a large or small winery there are things you can put into play that will make your business more successful and your customers feel more connected to your winery.

A tip of the glass from me to you!

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Making the Sale

Most of the wineries I know would like to increase their sales, though many of them are not sure how to go about it. Selling is not hard, it just takes some practice and an understanding of the basics.

Occasionally (very occasionally) someone comes in specifically to buy because they have seen something or the product has been recommended to them. Those people are not numerous enough to push through all your stock. You will have to take the rest of your customers through the four phases of the sale.

  1. Opening

Introduce yourself to the guests before beginning the interaction. Follow the introduction with a few questions about what brought the guests to the winery, the weather, how they like the area. Be sure to give the guests time to answer. This portion of the interaction should not last too long.

  1. Information Gathering

Before you give guests the tasting sheet or start pouring, discover some things that are important to the guests about wine. Ask what wines they drink at home, if they enjoy a glass of wine with dinner, etc. It is important to let them know that you are first interested in them, rather than what they will buy. Additionally, asking questions about why they chose to visit gives the server the information needed to direct the conversation and the experience.

  1. Sell Benefits

How does buying and drinking the wine benefit the guests? Show the guests how their lives will be better or more interesting by drinking your wine. Offer a solution to a problem (for example, they want a wine they can drink regularly). As you are doing this, ask the guests if they have any particular points of concern or questions they would like to ask.

  1. Close the Sale

Ask a few closing questions that will elicit yes answers based on information you already have elicited: “ You prefer white wines, is that correct?” “I believe you said you enjoy dry wines?” “When you were tasting you preferred the Frontenac.” Then summarize the benefits: “You will always be comfortable serving this wine to guests.” “We have a special price on the Chardonnay right now.” (Do not use the word discount – saying special price makes it more… well, special) “How many bottles would you like?”

Selling is simple if you focus on the guest. There are some buyers who want to know all the facts, but they are few and far between. Give guests information they can pass along to their friends about when they get home.

A tip of the glass from me to you!

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Engaging Customers

I have been doing research lately on how to genuinely charm and engage customers. For those of us who serve the public, being charming to our customers should be at the top of the list. Shown below are some of the ideas.

Interest in People:  During the time the customer is with you put them in the spotlight by showing an interest in what they are saying, why they came into your business, and what you can do to help them.

The first thing when dealing with a customer is to introduce yourself and ask for their names. By giving someone your name, you have shown a willingness to have a more personal relationship with these customers, even if it is only for twenty minutes. When people give you information, follow up with an open-ended question to find out more.

Authenticity:  It’s usually easy to tell when someone is not being authentic. If you have no interest in your customers they will recognize it on some level. Even if you are pretending that you do. If you love what you do it will come through to the customers. If you don’t love what you do, it may be a good idea to find something that you enjoy more.

Individual Experiences: Vary your interaction with each customer and focus on things that are most important to them. To achieve that, it’s vital that you start the engagement by finding out his/her wants and needs. You should be looking not only to make a customer but also to make a friend.

Body Language: Your body language is just as important as the words you speak. A smile makes a difference, especially if you smile at a customer s/he will usually smile back at you. That makes them feel good and should make you feel good too. Be open in your body language, arms should not be crossed and your hands should be open. Make eye contact with the person to whom you are speaking.

Belief in the Product: If you can speak with and exude confidence about the products or services that you sell, you are much more likely to make the sale. This does not necessarily mean overwhelming people with facts, but letting customers know the things that are most likely to interest and influence them.

All these things will lead to a better experience for your customers and a better experience for you.

A tip of the glass from me to you!

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Happy Holiday Selling!

Are you ready for holiday sales? It is only a week until Thanksgiving (where does the time go?) so Black Friday is almost upon us. After that, December is looming. So far, in my email inbox I have received a number of winery mailers offering me Thanksgiving wines though only one has even alluded to the December holidays. The holidays are all coming up: Hanukah from December 12 – 20, Christmas – December 25 – January 1, and Kwanzaa – December 26 – January 1.

While researching I found an interesting article by Laura Forer of MarketingProfs, who said that holiday-related sales in the United State are expected to surpass 923 billion dollars, a 3% increase from last season. That is a lot of sales and you want to make sure that you get your share.

Another point, according to the article, is that 35% of shoppers have finished their holiday shopping by Cyber Monday, which this year is on November 27th.

The avenues that people use to research and shop for gifts differ. Most people use more than one source. 24% of shoppers go over emails and newsletters, while 47% frequent brick and mortar stores. Television (43%) and asking for hints from family and friends (44%) are other ways people decide what to buy. For younger customers, such as Millennials or Gen Z use Facebook, Instagram, and Pinterest.

The more specific you are about the holiday gifts you are advertising, the better chance you have of getting people to look at your advertising. Of course, you will also get more eyes on your information if you personalize, which is especially important during the holidays. Using the customer’s name in the subject line will get more people to open your emails. According to MarketingProfs, personalization of holiday emails leads to a unique open rate of 17% higher, a unique click rate of 30% higher and a transaction rate of 70% higher, bringing up revenues per email by 43%. Mobile commerce is expected to jump 38% this season.

Finally, make it easy for customers to purchase from you. Amazon has gained so much ground by making buying easy.

A tip of the glass from me to you!

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Preparing for the Future

A few weeks ago, Rob McMillan, an EVP with Silicon Valley Bank and founder of their wine division, wrote as part of his blog about his prediction for the slowdown of growth in wine sales starting around mid-2018 and into 2019. He continues to say that while sales probably won’t decline, he expects zero growth at that time.

His predictions are well researched, based on Nielsen data of wine sold through wholesale. It doesn’t include DTC sales, which is good news for the smaller wineries who sell mostly through direct to consumer channels, tasting rooms, wine clubs, etc. That means, however, that more time and effort needs to be put into marketing.

The other good thing about getting this information early is that you have time to plan for the next couple of years, to keep your sales rolling along at a fair pace, with increased sales and profit.

It also gives you the chance to start thinking about what wines are selling and what are lagging so you can focus more on the wines that your customers prefer. It doesn’t mean that you can’t make some less well-known varietals. Though before you commit to a large planning for these varietals, know how much of those wines are being sold and whether the sales are increasing year to year.

Start planning now for robust sales and marketing methods. Branch out to include things you may not have tried before or put more attention on the content, frequency and customer inclusion of your social media, emails and other ways to contact your customers and potential customers.

Preparing for less or no growth over the next couple of years works to your advantage even if the forecast turns out to be wrong. The promotion you do will not be wasted and you may find that you have the best year ever.

Thanks, for the heads up Rob… By looking at what may be coming up for 2018 and 2019, you will be in better shape to weather whatever comes your way.

A tip of the glass from me to you!

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Selling Is Easier In Person

I was sent an interesting article from my favorite periodical, Harvard Business Review. The article, entitled, “A face to face request is 34 times more successful than an email” talked about research into email vs in-person responses from customers.

According to the article,

Despite the reach of email, asking in person is the significantly more effective approach; you need to ask six people in person to equal the power of a 200-recipient email blast. Still, most people tend to think the email ask will be more effective.”

It seems that part of the difficulty is in the way those who are sending out these emails or texts view them. Let’s say you are sending out an email to people on your email list, you know that you are trustworthy, have quality products and are trying to sell them something that they will enjoy. However, do all the people you are sending this email to understand the same things of you? Do they automatically think that they can trust your company, what you are trying to sell and the value of the offering?

In order to create more effective email and text campaigns to customers, you must create and continue to nurture the in-person relationship with your customers.

When customers visit your place of business make sure that you interact with them on a personal level. Discover their wants and needs and what is important in their lives. That way you can personalize your on-line correspondence with these customers. Be sure to ask for the sale, while they are visiting. Let customers know that you believe in the products, which may make them more willing to buy again when you send them an email.

Part of your customers’ records should include how often they visit our store, whether they come to events and which ones they attend. Also keep track of how many you times you speak to them on the phone, whether they call you or you called them and the topic of the call. This enables you to know your customers’ buying habits.

Customers are the lifeblood of your business and should always be considered your most important asset.

A tip of the glass from me to you!

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Take a Step Back

The approach of summer and the good weather during this season bring more customers out of their houses and into your winery, store, restaurant or other retail business.

During the height of the busy season, it is often more of a challenge to provide the levels of customer service that encourage people to buy your products or services and to return. To accomplish your sales and service goals during the busy season it helps if, before it starts, you have a plan. So take a few minutes to create a plan for your sales and service team (if you are an owner or a manager) or for yourself (if you are on the front lines).

How are you going to ensure that each customer is treated well, appreciated and given the attention s/he needs to go away with the opinion that s/he is a valued customer?

Here are a few tips:

Put Your Assumptions on Hold

Unless the person who walks through the door is a regular customer, try not to make assumptions about who they are, what they may or may not know or whether they will buy or not.

Give the Customer a Chance to Talk

Ask the customer questions that will give you the information you need to meet their needs and expectations. When you are giving the customer the answers to their questions, you can also work in how you can fulfill their needs and expectations.

Make the Customer an Insider

What do you know about your product or service, company or owners that your customer might like to know and pass along to their friends? Most of us like to have information our friends don’t have. Also never underestimate people’s willingness to buy to impress their friends.

Let Customers Know You Like Them

  • Give your customers something they weren’t expecting.
  • Let them know you enjoyed their visit.
  • Thank them for coming.
  • If you have the opportunity walk them to the door.

These are simple tips that will make customers buy from you, return to buy more and recommend your business to their friends.

A tip of the glass from me to you!

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