Sell More Wine Online - ShipCompliant DIRECT 2016 - Jim Agger

SELL MORE WINE ONLINE

Single men typically

change their bed sheets 4 times/ year.

Source: Guardian UK

2010 2011 2012 2013 2014 2015

2.66million

2.93 million

3.17million

3.5million

3.9million

4.19million

DTC Wine Is Growing

2010 2011 2012 2013 2014 2015 2016

167.3billion

194.3 billion

224.2billion

256billion

289.8billion

325.2billion

261.9billion

Ecommerce is Growing

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

1400+ Ecommerce Sites on Vin65

2013 2014 2015

308million

528million

772million

Vin65 Platform DTC

2016

One billion dollars

2013-2015

Over 9 million transactions

Across 1,200+ winery websites

$1.79 Billion in sales

89% of all sales.

Through 2015

Source: Warner Bros. Picture

What makes the top 20% so special?

Do they have an unfair

advantage?

Source: Hasbro

Case production?

Big Scores?

High Bottle Price?

Location?

Demographic focus?

Source: Pando.com

So what does the data tell

us?

top 20% bottom 80%

9%

24%

41%

26%

Admin Club POS Web

13%

23%

57%

7%

Admin Club POS Web

3x more ecom!

Purchases on Mobile in 20152014 2015

top bottom

Average email list size.

4X larger

2013 2014 2015

bottom top

$100 more

Average Order Value.

75% more

Top 20 Bottom 800.00%

2.00%

4.00%

6.00%

8.00%

10.00%

12.00%

Shipping as a % of sales

50% less

Email list is 4x largerAOV is $100 more

Shipping is 50% less

How is the top 20% different?

What does the data show us?

Ecommerce Isn’t Easy

46 wineries 2X’decom sales in 2015.

..up by 130%

How did they

double?

1) Used offline to drive online sales.

Action emails

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).

What’s the value of an action email…TR transactions/ day 50Email capture rate 50%Action email sent 257.5% conversion rate 1.875AOV $318

Net new ecom sales (day) $ 596.25

New sales, annualized $ 131,175.00

Email receipts are appealing to 41% of consumers

No Yes

41%

How Do You Capture Emails?

Pay Your Staff $1 Per Email

Use Kiosks

Email Is The Most EffectiveDigital Marketing Tactic

What Makes A Great Email?

Single Focus

Simple Is Better

Personalize

Transaction Email

Two Other Things About Email

Time To Send

Sunday Monday Tuesday Wednesday Thursday Friday

26.5%

29.4%32%

30.1%

26.5%28.1% 27.4%

Saturday

Vin65 Platform Email Open Rates

100%

90%

80%

70%

60%

50%

40%

30%

20%

10%

0%

Average 26% Open Rate

How did they double?

2) Focused on user experience

What Makes A Great User Experience?

Seamless Responsive Design

Desktop Mobile Tablet

Traffic is Mobile in 2015

35%

#mobilegeddon

Source: marketingland.com

Mobile Friendly email is essential

General Retail Stats

Almost 1/3 of sales are mobile

Make it easy to buy on mobile

Simplify The Page

Simplify Forms

Secure

Faster

Shop Your Own Site

The Experience Doesn’t EndWhen The Checkout Happens

Order Confirmation

Order Has Shipped

Order Delivery Date

Delivery Exception

Real-time Shipment Redirect

SMS Messaging

3) Loyalty Programs

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

Carrot Engine

SHIPPING INCLUDED ON SIX OR MORE BOTTLES

Yes, you can do it.

Loyalty Programs

Does it work? Yup.

+108%Consumers spend 108%

more after joining 46Brix.

Offline to OnlineUser Experience

Loyalty Programs

How did new entrants double?

1. Use offline to drive online sales

• Get action emails setup

• More more paper receipts

• Pay $1 per email

• Killer subject line

• Mobile Ready

• Single focused

• Personalized

2. Send great emails

• 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

Thank you!

Interested in doubling this year?

sales@vin65.com

jim.agger@winedirect.com