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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I have been reading a lot of winery newsletters recently and have noticed that many of them are very similar to each other. Taking into consideration that most wineries have the same goals and are interested in the same things (primarily growing grapes, making wine and selling wine) it is hard to stand out and be different. How do you differentiate yourself from others in your industry? There are ways to differentiate your business; you might differentiate by price (at either the low or high end), or create a niche for your company through innovation (wine available in disposal, sealed, individual, plastic glasses). There is differentiation through by convenience (think of Amazon’s one-click purchase) or through service, which should be one that most companies could work on and do well.

If a consumer came up to you and asked you why s/he should choose to do business with you rather than your competitors, what would you tell her/him? I suggest this as a great question to ask each one of the employees and then listen to their answers. I would then go on and ask the same question to your customers. There are reasons that people do business with you and you may not know what they are. Another good question to ask your customers would be what they value about your company, products, and services. In short, what brings them back.

As the number of wineries continues to increase (according to the U.S. Tax and Trade Bureau there were 11,496 wineries in the United States in 2016 ­- a 7.6% increase from 2015), I believe we will see the same growth for 2017. This doesn’t take into account the wine coming into the U.S. from the rest of the world.

As Entrepreneur magazines states, The majority of businesses in crowded industries fail to stand out because they don’t do anything to differentiate their brands. They simply do what everyone else does, content with scraping by and ignoring the scary proposition of taking a risk.”

The easiest way to differentiate your business is to focus on customer service. According to an article in Entrepreneur magazine, “Long-term loyalty of a customer base is the best way to guarantee profitability for years to come.” Stand out from the crowd by focusing on what your customers want. That means, asking questions, listening to the answers and putting into play the procedures the processes that will make your customers feel important to your company.

Be daring… be different.

A tip of the glass from me to you!

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Creating A Recognizable Business Culture

With the great number of brands these days, it is getting harder and harder to differentiate your brand from those of your competitors. A lot of that has to do with the fact that many who start businesses do so because they are passionate about the product, not because they are passionate about marketing, branding or creating the culture of the company. This is very evident in the wine business. Most winery owners are passionate about growing grapes and making wine, they are not, necessarily passionate about the culture of the company.

As you are developing your business, the grapes you shall grow, the wines you shall make, also ask yourself, “What culture do I want to create for my business?” Creating the culture will give you a template for many of your other decisions. For example, what are the traits and qualifications you want in your employees, how will you create your customer service guide and your plans for advertising, marketing, and public relations?

When developing some of your cultural items, consider the things that make your business recognizable, such as your logo, the colors you use and your tagline. Think long and hard before you choose those, as they are the things that define your company in the mind of many consumers and you don’t want to change them too often. It’s fine to tweak things to keep them current but wholesale changes make it difficult for consumers to remember you. For example, look up online the portraits of Betty Crocker, a brand that has been in existence since 1921. While Betty has changed over the years, she has always been a brunette, she is always wearing a red jacket or sweater with something white underneath, mostly a blouse, one time pearls and now a tee shirt and the drawing is always just head and shoulders. If you look at all the Bettys together you can see how much they have changed, but you would recognize every one of them as Betty Crocker. That’s the point.

Try and create a culture through everything that you do from in-person communication, visuals, and written communications, to how you deal with customers on the phone. You want to stand out from your competitors. This is a way to do it.

Finally, be patient. Creating the culture is not a sprint it’s a long distance race where you keep reinforcing the same lessons and methods.

A tip of the glass from me to you!

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The Art of Public Speaking

As it is coming up to conference time again, I was reading an article about public speaking so I could remind myself of the things I should be doing. When I started thinking about it I realized that whether you talking to two people across a tasting bar or in any other retail establishment or whether you are talking to 100 people in a seminar it’s still public speaking. So here are a few tips that I always try to keep in mind when I am speaking.

People remember how they felt when someone is speaking to them. They probably won’t remember the words you used but they will remember how they felt. You can create emotions by telling stories or by putting yourself in their shoes. Let them know there was a time when you were not the expert and how you felt at that time.

Rather than giving your audience a lot of facts (unless, of course, that is what they want – in which case they will usually keep asking you questions), find out what your audience is looking for and help them to understand how you can deliver what it is they want.

Never underestimate people’s willingness to buy so they can impress their friends. What I mean by that is give them a story they can take home with them. Something in the stories they tell may encourage their friends to visit you or use your products. It doesn’t help if they are using your products when they are telling the story.

Give your audience some tips that will make their experience with your products even more special. Present the guests with information related to your topic that is of benefit to them.

Return to the main points of your presentation so that the audience will retain the important things you are telling them. If you present a lot of information it’s hard to remember so key points should be mentioned three times while you are speaking.

Relax when you are talking to strangers. If you are comfortable, they will be too.

A tip of the glass from me to you!

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Making the Most of Instagram

Instagram has been around since October 2010 and in only seven years it has increased its users to 700 million, which is more than twice the size of Twitter. They say a picture is worth a thousand words and judging from the pictures I have found on Instagram I would say that is definitely true, especially for wineries. Seeing a great bottle of wine, beautiful vineyard or a winery tasting room can increase the desire to visit. Just a quick note: when you take a picture of your tasting room, make sure there are people in it. I see many pictures of tasting rooms that are completely empty, which makes me wonder how popular the winery is.

It’s simple to add pictures to Instagram, though remember that if you can create unique or uncommon pictures and make the description of your post different from that of other companies in your industry, viewers are much more likely to pay attention to your business. There are people involved in every business and viewers are interested in the people behind the brand. Pictures of people tend to attract attention, whether they are customers or employees. A quick reminder: ask permission before using pictures of individuals.

Use different types of posts. You can go from serious to comic, depending on the situation. Use an emoji or a cartoon on occasion, if it fits in with what you want to get across to viewers. People like to laugh. It’s a serious world a lot of the time and giving people the opportunity to laugh can create a bond between them and the company.

Certainly, you can promote buying through Instagram in different ways, some subtle and some not so subtle. Continually pitching may push people away from the posts, so break up the sales pitches with interesting, personal, or funny posts.

Instagram is a great tool and used properly can be a boon to your business.

A tip of the glass from me to you!

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Creative Content Marketing

These days it is important to business to have new and interesting marketing content, telling customers and potential customers about the products and services they can expect. It’s not always easy to come up with the amount of type of content that consumers are looking for. We can easily get stuck in a rut of doing the same thing. I read many, many emails from wineries presenting their products and in most of the missives I receive there is a sameness to the content.

One of the ways you can make your content different is to have the people who buy your wine and love your brand contribute by creating some of the content for you. Consumers tend to be more interested in hearing what other consumers think about products. According to Bazaar Voice, which specializes in user-generated content marketing, “64% of millennials and 53% of boomers want more options to share their opinions about brands.” Additional studies show that consumers are more likely to believe user-generated content more than other media.

Ask for information and testimonials from your customers and display the information on your website, in emails or through social media. Let potential customers know how your customers feel by using their own words through your marketing avenues.

Sign up for a monitoring service so you know when and where your products, company or key personnel in the company are mentioned. Then respond to the consumers who mentioned you.

Be ready to answer questions or complaints and keep track of all your social media so you know what is being said.

Use more pictures in your messaging to customers. Show pictures of your customers using your products and couple that with a blurb from the customer saying why they buy and use it. Visual content encourages consumers to purchase and brings them to the buying process much faster.

It’s important, too, that you are seen through different channels. According to Bazaar Voice “Consumers increasingly are moving back and forth among mobile, PC, tablet, and in-store experiences seamlessly during their shopping process. 73% used multiple channels during their shopping journey.”

Keep current and potential customers interested in your company and your products by keeping them involved in active as well as passive ways.

A tip of the glass from me to you!

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Keeping Up With Research

Research is an important part of any business, marketing or customer relations plan. Even when a plan has been completed for a while, it doesn’t hurt to do more research to find out what has changed and how to update your plans. Marketing, for instance, has changed dramatically over the last few years with the advent of email, social media and the like. Who knows what is coming next.

Know What You Want To Know

Before you start your research into a business, marketing strategy or customer wants and needs, make a list of questions that you want to find answers to. For example:

The knowledge you gain from marketing research could be:

  • To attract more customers
  • To increase sales to Millennials (or Gen X or Boomers)
  • To present products to a broader audience
  • To discover what my customers want
  • Who are my competitors (and how are they attracting customers)
  • There are many reasons and these are just a few.

Know What You Want to Achieve

Again, make a list of how you want to use this information in your business. Will it drive:

  • The sales direction for the next year or two
  • How you go about attracting new customers
  • How it will influence your product mix
  • Whether you are focused on the right target market(s).

It’s important to focus on the market segment that would be most interested in your products. I speak to many companies who answer the question of, “Who are your customers?” with the answer, “Everyone.”  Try to be more specific by looking at the mix of customer you have now and discovering how you can increase the numbers. Focus particularly on your best customers and see if what the similarities are possibly in age, location, buying habits, etc.

Different Avenues of Research

Primary market research:

  • Observation of customers, yours and your competitors
  • Focus groups: Ask current customers why they do business with you
  • Surveys:  Keep surveys fairly short  (3-20 questions) and offer an incentive for completing and returning the survey

Secondary market research.

  • If you belong to a trade association, ask for any research they may have on the subject you are researching.
  • Trade publications can be a big help to your research.

Analyze Results

When analyzing results objectivity is key. Accept what people have to say whether you like it or not. Also, consider how the responses apply to your marketing and what you can use from the data to bring in more customers.

Research can be time-consuming but it also is well worth the time you spend.

A tip of the glass from me to you!

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