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DTC Marketing
Presented by: Ron Scharman
Bus-810W: Direct to Consumer Marketing
March 4th, 2016Sonoma State University – Wine Business InstituteNapa Valley Vintners
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Presentation Available in Digital Format
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• Currently Chief Operating Officer of Chatterbox Wine Marketing Services and VinoVisit.com
• Instructor, SSU Wine Business Institute• Previously 7 years as President of eWinery Solutions• Previously 2 years as COO of New Vine Logistics• Previously 4 years as CEO of Morrell Wine Group• 15 years as a specialty retailer• MBA Cornell University Johnson School of Management• Lover of all things food & wine• Passionate about direct to consumer wine marketing
Who am I and Why am I here?
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TIME TO LEARN ABOUT YOU
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Where are We Headed Today?• Past, present, future overview of direct to consumer channel• Analyze the DTC channel ecosystem• Learn about Omni-Channel marketing• Explore the D-E-A-L model of customer progression to
Connect/Collect/Convert customers and prospects• Discuss web, mobile, social, email and other marketing strategies and
execution• Break out customer retention, loyalty and engagement strategies• Dive in to customer relationship management (CRM)• Learn how to build an effective digital marketing plan and budget
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QUESTION FOR THE DAY:
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QUESTION FOR THE DAY:
How do we sell a 3-dimensional story in a 2-dimensional world?
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THE TRUTH IS, ITS HARD. VERY HARD.
It is hard to capture the essence of your brand online. This is everyone’s challenge.
Visitors are exposed to a number of stimuli that help frame their experience at
your winery. They breathe fresh warm air that blows across the valley floor as
they enjoy expansive views, marvel at architectural details, and soak in the
overall ambiance of your tasting room during their visit. All of these things help
engage and interest them.
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Tell your story + tell it well (the magic 15%)
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It’s Not Only Me…….
“Marketing is no longer about the stuff you make, but the stories you tell.”
Seth Godin Best Selling Author, Entrepreneur and Marketer
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The Past, Present, and Future of Wine DTC
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GROWTH STATS
The consumer direct channel of the wine industry is the fastest growing and most
profitable channel.
Do you have all the tools necessary to be successful and ride the wave?
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GROWTH STATS
• The U.S. has been the largest wine consuming nation in the world since 2010.
• Direct to Consumer (DTC) shipments by US wineries grew at an 8% in 2015, hitting a record $1.97BB (vs +15% growth in 2014). Total volume was 4.3 million cases, up 8.8% over the prior year. This represents 23 consecutive years of volume growth.
*Data from Wine Institute, Wines&Vines, & ShipCompliant
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EFFECTS OF 2005 SUPREME COURT RULING
Supreme Court decision on May 16, 2005 changed forever the wine landscape for the direct-to-consumer wine market.
The Court’s majority opinion stated, "If a state chooses to allow direct shipments of wine, it must do so on evenhanded terms."
The Court ruling: Regulate, But Do Not Discriminate The States response: Regulate, Don’t Discriminate, But Do Complicate
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OPPORTUNITY OF THE DIRECT TO CONSUMER MARKET
Domestic / Intl Wine Producer
Wholesalers Retailers / On Premise
ConsumersDirect to consumer 10% of sales ($3.8BB)
Wholesaler distribution 90.0% of sales ($37.6BB)
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WINE INSTITUTE LATEST UPDATE
44 States out of 50 have some provision for winery direct shipping to consumers (95% of consumer markets)Importers and internet retailers are restricted to fewer states, depending on method of shipment and licenses held.
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How Important is the
DTC Channel to the Majority of the
9,300+ Wineries and Wine Brands?
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...VERY!! SMALL WINERIES DOMINATE DTC
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...VERY!! SMALL WINERIES DOMINATE DTC
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The evolution from early 2000’s to present day, personal computing has changed 10 fold.
What’s changed? Bigger, More Complex Sites
2003
2015
2003 2003
2007
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Looked at Another Way
The faithful gather in 2005 near St. Peter's to witness Pope John Paul II's body being carried into the Basilica for public viewing.
St. Peter's Basilica at the Vatican, on March 13, 2013
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THE WEB HAS BEEN GROWING FASTER THAN STORES….
2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014-5%
0%
5%
10%
15%
20%
25%
30% 27% 25% 24%20%
3% 2%
16% 15% 16% 17%15%
6% 5% 5%3%
0%
-3%
2%4% 4% 4% 4%
Annual growth rate 2004-2014* eCommerce versus retail spending
Growth in e-commerce Growth in non-e-commerce retail
*Source: U.S. Commerce Dept., Internet Retailer
Note: All other retail sales excludes auto dealers, gasoline stations and fuel dealers, and restaurants and bars.
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MORE PC’S GATHER DUST
*Source: U.S. Commerce Dept., Internet Retailer
44%
11%
45%
Percentage of time on retail web sites
SmartphoneTabletPC
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MOBILE COMMERCE SOARS
Source: *IBM
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MY PHONE IS MY LIFENOT MOBILE-ONLY, BUT MOBILE-FIRST
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THINGS TO WATCH: MILLENNIALS
The crowd is here
Comfort level with mobile transactions
Ease of purchasing
Millennials
Growing FAST!
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THINGS TO WATCH PERIOD
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People have transformed how they live, work, shop, and buy.
Businesses need to adapt…….
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It’s All About the Customer: Omni-Channel Marketing
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OMNI-CHANNEL RETAIL
Today’s shoppers expect a single shopping cart that follows them on
their customer journey
THAT MEANS through multiple touchpoints – instore, online or on
the move – so that customers have a seamless experience.
Omni-Channel
Retail
Direct to Consumer
Retailers
Direct Sales
MarketingWine Club
Events
eCommerce
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Omni-Channel Marketing
Transforming the customer
journey across all channels
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DTC Best Practice: 360 Degree Customer View eCommerce
Wine Club
Allocations
Tasting Room
Recipe Engine
Social Media (Social
Commerce)
Mobile
Telesales (inbound & outbound)
SMS (Text)
Email Marketing
Visitor Reservations
Newsletter
Mobile POSSearch Engine Optimization
(SEO)
FaxWinery DTC
Ecosystem
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Let’s Clear Something Up First…….
“Just as you cannot not communicate, you cannot not market
- Every time you answer the phone, it’s marketing. - Every time you send an email, it’s marketing. - Every word on your website is marketing. - If you build software, your error messages are marketing. - If you’re in the restaurant business, the after-dinner mint is marketing.” Rework by 37signals
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Wine eCommerce
vs
Wine Commerce
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The DTC Winery e-cosystem
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WINERY COMMERCE ECOSYSTEM
Mobile Commerce
Wine Apps
SMS Text
Commerce Anywhere
Pop Up
Virtual Commerce
Social Commerce
Facebook/Pinterest/Twitter
Crowdsource
In Home
POS
Mobile POS
Kiosk
Tasting Room
Wine Club
Allocation/Mailing List
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WHAT IS ONLINE DTC TODAY?
Growing Number of Wine
CommerceBusiness Models
Winery Retailer – 9,300+ wineries in North America
Internet Retailer – www.wine.com, www.elanvineyards.com(17/20)
Discount Internet Retailer – www.wineaccess.com
Crowdsourced Production – www.nakedwines.com
Marketplace – www.amazon.com
Community Member Site – www.winecommune.com
Flash Sale/Daily Deal Site – www.winestillsoldout.com
Affiliate Marketing Site – www.bottlenotes.com
Wine Auction Site – www.winebid.com
Cause Marketing Wine Site - www.onehopewine.com
Mileage Redemption – www-lh-worldshop-gourmet.com
Loyalty Programs - www.foleyfoodandwinesociety.com/About-Us/Membership-Benefits
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eCommerce Basics
The digital footprint is increasingly important for small-to-medium-size wineries that are shut out of the three-tier distribution channel.
It starts with a great website…………
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How is Your Customer Experience At Your
Winery?
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How is Your Customer Experience When Finding
Your Winery Online?
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Where Do We Go From Here?
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Why Wineries Fail at eCommerce
Merchants at heart, who won’t play the part
Read my Blog at http://bit.ly/1FyqPS0
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Top 5 Reasons• Magic: Wine is approximately 85% water, and 15% magic.
• Stories worth reading: There may be stories worth telling in the winery DNA, but they are rarely found on winery websites.
• Differentiators : Why do so many winery websites look alike? Most winery websites look like cookie cutters of most other winery websites on a gallery wall.
• What’s in it for me: As a consumer, there is no compelling reason I should care about the brand, the user experience, or why I should stay browsing on the site. It’s all about “them”.
• Mobility: Recent national all industry data shows that only 45% of website traffic now occurs on a desktop computer. Yet most winery sites give a poor mobile user experience.
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This Time It’s Me
“The bottom line is that making great wine has nothing to
do with creating a great visual palate and making me care
about the brand online. It needs to be relevant to my life,
not just the vintner’s.”
Ron Scharman Wine Consumer Advocate
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USING YOUR WEBSITE TO TELL YOUR STORY
Strong branding is key Include rich contentUse the tools built into your
website to improve your SEO Gather data and market smartGo Mobile!
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So how do I build a
great website?
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Understanding Where I Have Been and Where I am Going.
What am I Trying to Achieve With My Online Presence?
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Answer the Important 3 Questions:
1) Why do I exist? (My Brand)2) Why should you care? (The Consumer)3) How do I measure success? ($$, Visitors)
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What’s the Difference Between Good and Bad?
GREAT AD TERRIBLE WEBSITE
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Building Blocks for Websites
Factors to Consider• Software platform• Compliance Solution• Design/Project
Management• Features• Why websites fail to
perform
Software/Compliance• CMS/Cart Options• Cost• Training/Ease of use• Integrations -ShipCompliant,
CRM, Marketing options• Designer considerations, data• User experience, SEO
Why Winery Websites Fail• Design by committee, boring• Hard to navigate, hard to buy• Not engaging brand story or user
experience• Bad Q/C, stuff doesn’t work• Browser incompatibility• Content/Data not updated
Features• Ease of shopping – “1 Click”• Ease of navigation• Compliance made easy• Rich, relevant content –SEO• Multiple data capture opportunities• Promotional marketing tools
Design• Designer/template• Site Map/Navigation • Wire frames/sketches• Functionality testing• Brand relevance• User Experience
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“Mobile is the glue that holds omni-channel shopping experiences together, enabling marketers to continuously engage with consumers as they move through an increasingly non-linear sales funnel.”
And Don’t Forget Mobile
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Consumers are on-the-go and want quick and easy access to basic information.
99% of the time, they want to do one of five things:
Call Winery Find Tasting Room Locate Wine Buy Wine Join Wine Club
Go Mobile!
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The Self-Fulfilling Prophesy of Fear Marketing:
Please Cancel Me From Your Ecosystem
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D-E-A-L Model of Customer Progression
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MODEL OF CUSTOMER PROGRESSION
DISCOVERY• Search engine• Word of mouth• Advertisement• Social Media
ENGAGEMENT
• Visits website• Visits tasting
room• Social Media• Mobile
ACQUISITION• Purchases wine
online• Buys wine in
tasting room• Joins wine club
LOYALTY/LOVE• Email
communication• Facebook shares• Special events• Ratings
D E A L
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The Science of Discovery
DISCOVERY• Events/Restaurant/Retail
•Search engine•Word of mouth
•Advertisement• Social Media
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MAYBE………
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Attracting Visitors
• Videos• Blogs• Social media• Newsletters• Articles on other
websites• Events• Reviews
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How do you attract visitors and grow your customer base?
Inbound Marketing is a system that allows interested buyers to actually FIND YOU via a combination of:
Content Marketing
Search Engine Optimization
Social Media
Lead Generation & Nurturing
Discovery: Getting Found
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Discovery: Content Marketing1. Create useful, usable content that adds value
to the customer experience with your brand.
2. Perform outreach, and determine the best outlets to publish (high-profile guest blogging, social networks, your own website).
3. Identify influencers who will share your content and further discussion.
4. Pay attention to the responses, and engage your audience.
5. Analyze the results, measure the impact (new links to your website, new visitors, increased social media activity, more sales).
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Wine, food, travel forums Existing customers Referrals from local
businesses Social media channels Friends and family Special events Wine publications and blogs
Search Engine Optimization Search Engine Marketing Ratings and Reviews
Getting Found
Building Advocates
Discovery: Socializing Bricks & Mortar
Source: www.tripadvisor.com, Ram’s Gate Winery
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Wine, food, travel forums Existing customers Referrals from local
businesses Social media channels Friends and family Special events Wine publications and
blogs?
Search Engine Optimization Search Engine Marketing Ratings and Reviews
Getting Found
Building Advocates
Discovery: Socializing Bricks & Mortar
Source: www.tripadvisor.com, Ram’s Gate Winery
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Ratings and Discovery
Why Should I Care?
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People To People
• People are already writing reviews
• Opportunities to connect directly with customers
• Helps search engines find you and increases ranking
• 90% of local searches = purchase or visit
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The Players
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Heavy Traffic• More than 178 million visitors to the Yelp website each month.
• 53% of the visits are on a mobile device
• 42% of users are in the 18 -34 age group and 20% over 55.
• 34% have household income less than $59k and 39% over $100K.
Comscore 2015
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The Players
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Heavy Traffic
• TripAdvisor has more than 84 million members, and more than 250 million reviews
• More than 375 million travelers visit TripAdvisor each month
• TripAdvisor offers a wide range of marketing opportunities, advertising and content solutions
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Heaviest Traffic – It’s Google
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Heavy Traffic
• Google has 52,613 searches per second worldwide
• Put another way, it’s at 100 Billion per month, 1.17 Billion unique users per month
• 75.2% of all searches in U.S. on Google
• 89.2% of all mobile search in U.S. on Google
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Advertising Options
• Targeted local advertising
• Premium placement on search and competitor business pages
• Displays on mobile devices too
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Specialized Wine Discovery Tools
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Apps for the consumer
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Specialized Wine Discovery Tools
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Specialized Wine Discovery Tools
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Specialized Wine Discovery Tools
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Specialized Wine Discovery Tools
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And More……….
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Specialized Winery Discovery Tools
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Apps for the consumer
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VinoVisit.Com
Discover Me Now
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VinoVisit.Com
Discover Me Now
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VinoVisit.Com
Discover Me Now
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CANVAS App
CANVAS and VinoVisit join two great winery resources. The Concierge Alliance offers the hospitality industry a clear and easy way to book their customers at wineries in Napa and Sonoma.
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Visiting Media
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Social Media Marketing - Discovery
IT’S A BIG TOPIC!
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Wine, food, travel forums Existing customers Referrals from local
businesses Social media channels Friends and family Special events Wine publications and
blogs?
Search Engine Optimization Search Engine Marketing Ratings and Reviews
Getting Found
Building Advocates
Discovery: Socializing Bricks & Mortar
Source: www.tripadvisor.com, Ram’s Gate Winery
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Remember That the Journey is Non-Linear
Transforming the customer
journey across all channels
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The Science of Social Discovery
+ The Art of Engagement
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Ryan NeergaardBusiness Development and Social Media Manager
Chatterbox Wine Marketing Services and VinoVisit.com
LinkedIn Profile:https://www.linkedin.com/in/ryan-neergaard-57519456?trk=hp-identity-name
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ABOUT ME• 7 Years in Wine Tourism Media Communications
• Domaine Chandon• No Occasion is Started Properly Unless With Bubbles!
• Napa Valley Wine Train• 100% Foamer!
• VinoVisit.com• Chatterbox Wine Marketing Services
• Currently lead a team responsible for customer acquisition, engagement, and conversion on website, social media, and blog platforms
• Develop and Manage Synergistic Partnerships with companies such as:• Warner Brothers• BottleRock• BayArea.com• And More
• Buffalo Bills Fan
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SOCIAL MEDIAVS
SOCIAL MARKETING
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SOCIAL MEDIA
Websites and applications that enable users to create and share content or to participate in social networking.
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SOCIAL MARKETING
Social marketing is an approach used to develop activities aimed at changing or maintaining people's behavior for the benefit of individuals and society as a whole.
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Remember That the Journey is Non-Linear
Find the customer where they want to be found…
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Or They May Feel Like This…
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BUILD TRUST, THEN THEY WILL BUYsocial is the best discovery engine, but there are 2 steps
1. Trust
2.Need
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Lead Your Consumer Down The Path of:
1. Discover2. Trust3. Buy
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DISCOVER, TRUST, BUY
FB ad
friend
hotel referral
I discover you
1I trust you
2I buy when
in need
3
FB post
tweet
emailFB post
winery visit
Social helps each step
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CONTENTDISTRIBUTION
BASICS
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STEP 1
Identify Social Media PlatformsIt is critical to know your audience. Do they want to see pictures? Use Instagram. Do they want behind the scenes video? Use YouTube. Do they want to read about the day to day operations of the winery? Use LinkedIn.
Each social platform continues to become more and more content specific. Understanding what your audience wants to consume will lead you down the right path to selecting the right social platform for your content.
*Mistakes Wineries Make – Taking on too many platforms before they are ready. Content takes time to generate. It is much better to master 1-2 platforms than to be mediocre on 5-6.
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WHAT ARE THE VEHICLES RELEVANT IN THE WINE INDUSTRY?
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7TH ANNUAL SOCIAL MEDIA MARKETING REPORT
- Surveyed 3,720 Marketers, Solopreneurs, and Small to Medium Sized Businesses
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WHAT IS THE MOST RELEVANT?
Marketers want to learn most about Facebook: While 93% of marketers are using Facebook, 68% want to learn more about it and 62% plan on increasing Facebook activities.
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STEP 2
Define The Content MixA strategy is only effective if the content is compelling. The content may be the same but should be delivered differently depending on the platform.
(Ex - #WineWendnesday) Relevant on Twitter and Instagram, but almost considered a nuisance on Facebook.
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STEP 3
Organize and Plan Your ContentTake the necessary time to organize and plan content. Many businesses start well but fail to remain consistent. If the content delivery slows, becomes sporadic or stops, your social media strategy becomes stale and your audience will too. Stay consistent by planning content ahead of time. I recommend two tools to assist in this:1. A Simple Content Posting Calendar2. Automated Posting/Monitoring Services
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STEP 4
Use High Quality PhotosThe difference between an average picture and a great one can sometimes boil down to two words, “Crop” and “Enhance”.
So you don’t have a full time graphic designer at your fingertips. No problem! Most smart phones have the ability to take average photos and make them great. Take the time to know how to perform those two simple functions on your phone and make your pictures more impactful when you post.
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THE GOOD THE BAD
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STEP 5
Promote Your Content
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If You Do Not Pay to Advertise on Facebook, It Is Estimated That You Only Reach 3-5% of
Your Fan BaseForbes.com
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STEP 6
Test and Track Your StatsSocial media platforms and automated services are not always perfect. Follow up posts by double-checking that the message(s) intended for that day on the platform it was intended for. Verify that the links contained actually work. Take note of the amount of time it takes to load images and videos. Also, record any comments that are generated by a particular post. This will give you immediate feedback as to what might be working.
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WHAT ARE YOUR ROAD SIGNS
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SOCIAL MARKETING METRICS
*Monitoring your reach allows you to understand the average Performance of a post and clearly see when a post goes viral.
*Brand Handle – The name your company or business is referred to on social media
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SOCIAL MARKETING METRICS
*Engagement Rate derived by taking total interactions and dividing by total users. This is used as a baseline to compare companies side by side.
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SOCIAL MARKETING METRICS
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RECAP1. Identify Social Media Platforms
2. Define The Content Mix
3. Organize and Plan Your Content
4. Use High Quality Photos
5. Promote Your Content
6. Test and Track Your Stats
7. Know Your Road Signs
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DISCOVERY
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Think “making a difference in people’s lives”!
Videos Blogs Recipes Special offers Invitations to special events Charitable causes Downloadable relevant content Gamification Sharable experiences
Online Discovery Tools
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7TH ANNUAL SOCIAL MEDIA MARKETING REPORT
- Surveyed 3,720 Marketers, Solopreneurs, and Small to Medium Sized Businesses
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The Blogosphere
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Suggested Reading
How to Know if Your Winery Should Blog
Read Larry Chandler’s Blog at http://bit.ly/1SUJIV5
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DISCOVERY+
ENGAGEMENT
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Engagement is about “What’s in it for me”?
ie. The consumer
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Organic Social Posting
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Trust
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Respond to Comments and Interact with Fans!
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Blog – Social Paid Promotion
Targeted audience
Paid promotion
Organic promotion thanks to people’s shares
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Discover
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Discover&
Engage
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DISCOVERY+
ENGAGEMENT=
CONVERSIONS
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CHATTERBOXCASE
STUDIES
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WHAT WERE THE TOP 3 QUESTIONS MARKETERS WANTED ANSWERED?
• What social tactics are most effective?
• What are the best ways to engage my audience on social media?
• How do I measure return on my social marketing?
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DIFFERENT APPLICATIONSOF SOCIAL MARKETING
• Developing Lists Using Contests• Converting Lists Into Purchasers• Creation of Website Traffic
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COMMON THREAD IN ALL OUR WORK
• Goal Setting• Timeline For Execution• Call to Action• Recording of Stats
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CASE #1 BRETT DENNEN
• Goal – Convert Facebook Followers• Timeline – 2 Weeks• Call to Action – Art Give Away
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CASE #1 BRETT DENNEN
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CASE #1 BRETT DENNEN
Stats:• 2,500 Emails Generated • 15 Cases of Wine Sold• Engaged 68% of Fan Base
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CASE #2 BOTTLEROCK
• Goal – Gain New Email List Members and Drive Traffic to BottleRock Site
• (Cost Per Click)• Timeline – 3 Weeks• Call to Action – Ticket Give Away
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CASE #2 BOTTLEROCK
Stats:• 2,000 Emails Generated • 15,000 Clicks To BottleRock Site• (27,000 Clicks in Total)
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EXTERNAL CASE #3 CONTEST GIVEAWAY
• Goals – Capture Emails for Marketing and Drive Traffic to VinoVisit.com
• Total Time Lapsed– 10 weeks
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Case #3 Contest Giveaway
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Contest –Social Paid Promotion
Targeted audience Paid promotion Organic promotion thanks to people’s shares (bonus
entries) Encourage people to like your page
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CASE #3 CONTEST GIVEAWAY
Stats:• 126,000 Clicks on Contest• 76,000 Entries Into Contest
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Remember That the Journey is Non-Linear
Find the customer where they want to be found…
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FINAL THOUGHT
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MAKE ME FEEL SPECIAL!
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Lead Your Consumer Down The Path of:
1. Discover2. Trust3. Buy
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Then Do It Again And Again And Again…..
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QUESTIONS?
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Wine, food, travel forums Existing customers Referrals from local
businesses Social media channels Friends and family Special events Wine publications and
blogs?
Search Engine Optimization Search Engine Marketing Ratings and Reviews
Getting Found
Building Advocates
Discovery: Socializing Brick & Mortar
Source: www.tripadvisor.com, Ram’s Gate Winery
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SEO BREAK
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Remember That the Journey is Non-Linear
Transforming the customer
journey across all channels
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• The User's Search or Query - This is the thing a searcher types in. In the example above, someone is looking for information or products relating to Apple computers.
• Organic SERP Listings - These are the "natural" listings. To produce these results, Google uses a series of metrics to ensure that your site is relevant. To have your site show here, you have to effectively "score well" on that algorithmic test.
• Paid SERP Listings - These are advertisements, or "sponsored links." You can have your ad displayed here by launching a pay-per-click search campaign, and by ensuring that your maximum CPC bids and Quality Score allow you to secure a high enough ad position for the keyword you're targeting.
SERP Basics – 3 Key Components
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Why Do SERPs Matter to Me?Because ranking your site in the proper SERP position will be the difference between success and failure in your search marketing campaigns. Consider the following insights provided by recent Google published stats:
• 68% of searchers select a result on the first page of search results.
• There is a disproportionate number of clicks (approximately 40%) on the number one listing.
• Reaching the first page in paid search is equally important.
• In other words, most people click on the first page, and most of those people click on earlier results. The higher your search engine results page ranking, the more traffic you'll get.
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How to Improve Your SERP Positions
• Research Key words• Organize (group) the keywords• Manage your SEO workflow• Manage your PPC workflow• Act on the analytics• Observe the results• Repeat!
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Got Wine?
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Your Website is a Marketing Tool
3 Traffic Sources you must cultivate: Organic search engines. Referral sites, especially from local
regional sites. Local maps search results.
Varietals
• Cabernet, Rose, Muscat
Regional
• Carneros, Willamette, Rutherford
Others• Wine tasting/tours• Weddings• Boutique
Build a relevant list of keywords
• Your website should be a flytrap for tourists looking to plan their vacation, or visit that special winery with a picnic area, great view, or wedding venue.
• Create a list of keywords that you can associate that go beyond your brand name. Branded search traffic accounts for about 95% of most winery websites traffic.
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Focus on Local SEO T0 Attract More Visitors
When you do a search for "your region" + "winery" does your website appear in the maps area? This is the "Places" results, and these search results differ from regular organic search results in that they appear for people located very close to your business. They want to find you, but are you listed high enough?
In order to rank well in the local search results, you need a two things. A verified Google+ Local page for your business. www.Google.com/places. Multiple NAP (name, address, phone) listings on site like citysearch.com, yp.com, hotfrog.com and others. For a more complete list of sources to get business citations, visit Getlisted.
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Discovery: The Customer Funnel
Unaware •Purpose: Create awareness, brand discovery•Blog posts, web page, customer stories, advertising, industry trends
Interested •Purpose: Provide usefulness, education, create interest•Regional travel guides, events, independent articles, demonstrated values, email newsletters
Desire •Purpose: Incentivize, stir emotion, demonstrate values•Demonstrate charity contributions, connect with lifestyles, build community of social sharing
Purchase •Purpose: Secure customer, provide good experience, build loyalty •Reviews & ratings, customer service, upsells and promos, personalized content, streamlined checkout
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Discovery To Do List – Top 5 Things
1. Expand company profiles on both local and national travel and tourism sites like Fodors, Wine Travel Guides, Virtual Tourist, and Lonely Planet.
2. Encourage visitors and fans to leave reviews at Trip Advisor, Zagat, Google+, Facebook.
3. Create useful and usable website content that includes resources, things to do, local knowledge, and popular destinations near your winery.
4. Claim your Google+ Local page.
5. Contribute guest blog posts on travel blogs and websites to increase exposure from new audiences.
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Engagement?
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Tell your story + tell it well (the magic 15%)
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MODEL OF CUSTOMER PROGRESSION
DISCOVERY
• Search engine
• Word of mouth
• Advertisement
• Social Media
ENGAGEMENT
• Visits website
• Visits tasting room
• Social Media• Mobile
ACQUISITION
• Purchases wine online
• Buys wine in tasting room
• Joins wine club
LOYALTY/LOVE• Email
communication• Facebook
shares• Special events• Ratings
D E A L
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The Art of Engagement
ENGAGEMENT• Visits website
•Visits tasting room•Calls winery
•Social Media•Mobile
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What’s the Difference Between Good and Bad?
GREAT AD TERRIBLE WEBSITE
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Engagement is about “what’s in it for me”?
ie. The consumer
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Engagement: Online Shopping Experiences
Sources: KJ.com, LaCrema.com, Lindemans.com and UnderdogWine.com
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Lifestyle
Source: www.kj.com
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Classic
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Aspirational
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Contemporary
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Inspirational
Kosta Browne
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Every tasting room visitor is a potential customer
Collect email addresses Personally invite to Tasting Room Events and
Winemaker Dinners Welcome “Check ins” via FourSquare, Facebook Promote reviews of your business (Yelp,
TripAdvisor) and wines (Cellartracker) Communicate Club benefits and incentives Convey your winery’s story Don’t be afraid to ask for the sale
Engagement: Build Relationships
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Think “making a difference in people’s lives”!
Videos Blogs Recipes Special offers Invitations to special events Charitable causes Downloadable relevant content Gamification Sharable experiences
Online Engagement Tools
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Final Words on Engagement…….“Don’t just focus on your product. Think about who your customers are, what they care about, and where they hang out. Embracing and engaging with your customers means understanding them, their needs and desires.
The goal is to become part of your customers’ everyday lives, not just a company at the other end of a financial transaction.”
Jacek Blout, Blogger
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What’s Next? Experiential Retail
Coming to a Winery Near You
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WATCH: http://www.youtube.com/watch?v=E1rUdTITGCg
Things to Watch: Engagement ExperiencesMacy’s Magic Fitting Room
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MODEL OF CUSTOMER PROGRESSION
DISCOVERY
• Search engine
• Word of mouth
• Advertisement
• Social Media
ENGAGEMENT
• Visits website
• Visits tasting room
• Social Media• Mobile
ACQUISITION
• Purchases wine online
• Buys wine in tasting room
• Joins wine club
LOYALTY/LOVE• Email
communication• Facebook
shares• Special events• Ratings
D E A L
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The Results Speak for Themselves
ACQUISITION
• Signs up for Newsletter/Blog• Purchases wine online• Buys wine in tasting room• Joins wine club• Signs up for wine event• Purchases from catalog or
telephone driven by email
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Web Analytics: Customer Preferences
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Converting visitors• Wine club signup
– Most traditional tasting room business model – Let’s discuss• Newsletter signup form
– Critical best practices – Let’s discuss• Email Campaigns
– Critical best practices – Let’s discuss• Telesales
– With click-to-call email digital campaign • Direct Mail, Catalog
– Can still be effective; can drive ecommerce conversions• Social media, events, other
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Converting visitors• Wine club signup
– Most traditional tasting room business model – Let’s discuss• Newsletter signup form
– Critical best practices – Let’s discuss• Email Campaigns
– Critical best practices – Let’s discuss• Telesales
– With click-to-call email digital campaign – Let’s discuss• Direct Mail, Catalog
– Can still be effective; can drive ecommerce conversions• Social media, events, other
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Don’t Forget About Wine Clubs
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Please read my blog from January 2015
http://bit.ly/1iMI6yJ
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The Winery Determines
Selection and Spend
Traditional
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Traditional Wine Club Member Options:
• 3 shipments per year
• Winery selects the wine to be shipped (6 bottles per shipment)
• No annual commitment
• 20% Discount on purchases
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Let the Consumer
Decide
The Future
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Transitional
Fully customizable
from whatever is available at the
winery
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The Future Wine Club Member Options:
• Minimum 6 bottles per year
• You choose the wines you wish to receive (increments of 3 bottles)
• 1 year commitment
• Additional orders do not count toward your annual allocation
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“In today’s world, the concept of winery wine clubs must change and evolve, but the importance of continuity programs and relationship annuities lives on.”
Ron Scharman Blog
The Future
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Converting visitors• Wine club signup
– Most traditional tasting room business model • Newsletter signup form
– Critical best practices – Let’s discuss• Email Campaigns
– Critical best practices – Let’s discuss• Telesales
– With click-to-call email digital campaign • Direct Mail, Catalog
– Can still be effective; can drive ecommerce conversions• Social media, events, other
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Newsletter Best Practices – Make It Easy!1 - 5
1. Your registration form should request the user’s email and as little else as possible.
2. Present the opportunity to sign up on every page on your site, and in the same spot.
3. Try to show an actual sign-up form on each page instead of just a link.
4. A one-time pop-up requesting visitors to sign up is okay.5. Include a link to your Privacy Policy as close to the form as possible.
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Newsletter Best Practices – Make It Easy!6 - 10
6. Include an example of what your customers are signing up for.
7. Present a clear confirmation after your customer signs up.
8. Wait until AFTER the initial sign-up to ask more detailed questions.
9. Send an email confirming the user’s registration.10. Consider a discount code for a future purchase in the Confirmation Email.
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Newsletter Signups - Good
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Acknowledge and Reward
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Newsletter Signup – Or Make It HardIf you want someone to sign up for your newsletter, make it easy.
Do not:
1. Hide your newsletter link
2. Ask for huge amounts of information
3. Demand more information after the user submitted what was asked for.4. Force customers to enter all their information all over again if they make a mistake in one particular field
5. Forget about thanking them for subscribing
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Newsletter Signups - Not So Good
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Converting visitors• Wine club signup
– Most traditional tasting room business model• Newsletter signup form
– Critical best practices • Email Campaigns
– Critical best practices – Let’s discuss• Telesales
– With click-to-call email digital campaign • Direct Mail, Catalog
– Can still be effective; can drive ecommerce conversions• Social media, events, other
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Email Marketing for Success
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Email Still Rules
• Based on recent consumer marketing data by ExactTarget (a Salesforce company), most large companies outside the wine industry still view email marketing as a better return on investment.
• Better than SEM, content marketing, social media, offline direct marketing, affiliate marketing, online display advertising, and mobile marketing.
• Success in this channel starts with higher deliverability and conversion rates that lead to greater profitable wine sales.
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How Money is Spent vs. ROI
*Source: Direct Marketing Association 2015
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*Source: Etail and Critio, Trends in Digital Retail Report 2015
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Please read my blog from September 2015
http://bit.ly/1K9dpZY
THE COST/BENEFIT ANALYSIS OF BUILDING YOUR EMAIL SUBSCRIBER LIST
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Sent
Delivered
Opened
Clicked
Product Views
Cart Additions
Checkouts
OrdersRevenueUnits
The power of browse
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Volume versus conversion
Wine Club
RedWhite
Cart Abandonment• Low volume• High conversion
Browse & Process Abandonment• High volume• Lower conversion
{
{
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Managing the Output – SilverPop Stats
Program Open Rate Conversion Rate
Broadcast 18.1% 1.6%
Purchase Confirm -- 2.4%
Welcome 34.4% 1.4%
Browse Remarket 41.8% 2.2%
Cart Abandon 27.9% 23.1%
SKU Notify -- 23.9%
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Email Marketing 1 - 5
"Think of how you can make the user love your mails rather than how to land in the Inbox."• Know your audience• Find Out What Subscribers Want and Honor and Deliver on That• Mitigate Deliverability Risks by Delivering Value Not Just Email• Have a clear value proposition for subscribers and customers• Don’t just batch and blast – segment your list and use preference
based marketing data
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Email Marketing6 - 10
"Think of how you can make the user love your mails rather than how to land in the Inbox."• Test different types of content and promos to see what generates the best
engagement rates, and look beyond opens and clicks to measure success – spam complaints, unsubscribes, etc.
• Think responsibly, and responsively – make sure your emails are mobile optimized
• Test your promos carefully before blasting away• Use designated landing pages or guide customers to product pages that are
relevant• Use an email marketing platform that guarantees high deliverability rates
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Ideas to Consider
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A-B Testing
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Please read the blog from September 2015 by Graham Clark
http://bit.ly/1NHLGam
A/B TESTING: THE SUBJECT LINE PARADOX
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Browser Compatibility
Does your email look beautiful everywhere?
Litmus software lets you preview your campaigns across 40+ real
email clientsand devices in minutes. It’s make
email testing easy.
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Hedge your bets – Add “View in Browser option”
“View This Email In Your Browser”
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• Make each email personalized to address the winery customer.
• Examples– Use first name in greeting/offer– Reference customer state in shipping offer– Reference customer purchase history – Birthday or other special occasion emails
Personalization
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Create a Path to Purchase - Landing pages
It’s critical that your customer arrives at a specific landing page that is responsive in design, and that streamlines their path to purchase. And regardless of device or operating system.
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+ Social Media Marketing
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+ Social Media Marketing
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+Social Media Marketing
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+ Social Media Marketing
ReachMail 2015
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Click – To – Call Email
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Click – To – Call
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Click – To – Call
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The Changing of the Guard and What It Means for You
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*Source: Etail and Critio, Trends in Digital Retail Report 2015
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• Largest Web-based email service in the world• Has become the standard bearer for ad supported,
consumer email services.• Currently has more than 600 Million users worldwide.*• Adding more than 1 Million new users per week.*• 66% of Gmail users open their email on a mobile device. **• One Billion people have downloaded the Gmail Android App as of 2014.***
* Quora 2015**Mashable 2014***Digital Trends 2014
Gmail Achieves World Domination
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*Source: Strategy Analytics 2015
And Android Too
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The New World of Gmail
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• Clean your data• Send out test emails first to an email address at major ISP’s• Use “Content Dialysis” software to check your content for
spam inducing results. Ex. Content Detective• Stop using the word “Free”, all caps, colored fonts, etc.• Try sending text format emails vs. HTML.• Go light on imagery, links, and heavy content.• Drip your emails, and break down your large lists• Provide a clear unsubscribe list
So What Do I Do Now?
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How Money is Spent vs. ROI
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Suggested Reading
Winery Email Marketing: How to Shoot for the Stars
Read Steven Smith’s Jan 2015 Blog at http://bit.ly/1SUJIV5
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Data Security Message
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What Not to Do
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What to Do
Response from Winery Owner:
“Hi Ron: I appreciate you bringing this issue to my attention. Apparently, our team is not aware of the compliance infraction nor the potential downside. I will discuss it with everyone and moving forward avoid doing this again in the future.”
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Remember:You are Responsible for Your
Customer Data
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Cart Abandonment Pit Stop
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It’s All About Retargeting
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What is Cart Abandonment?
“Shopping cart abandonment — when shoppers put items in their online shopping carts, but then leave before completing the purchase — is the bane of the online retail industry, and that includes the wine industry.”
BusinessInsider.com
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Why Should I Care?
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Here’s Why
• Approximately $4 Trillion worth of merchandise will be abandoned in online shopping carts this year = approximately 68% of all shopping cart transactions
• 63% of these are potentially recoverable, according to BI Intelligence.
• Shopping cart abandonment will continue to increase as more consumers shift to online and mobile shopping.
BusinessInsider.com
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And Really Why
• An abandoned cart does not automatically translate to a “lost sale”.
• Three-fourths of shoppers who abandon shopping carts say they plan to return to the retailer’s website or store to make a purchase.
• Initial emails, sent 3 hours after a consumer abandons a cart, average a 40% open rate, and 20% click through, according to Listrak.
• You can expect up to a 20% recovery rate on abandoned carts with a well executed retargeting program
BusinessInsider.com
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VWO Ecommerce Survey 2014
Reasons for Cart Abandonment
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What Should I Do About It?
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Talk to Your eCommerce Provider
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Shopping Cart Recovery Tips
• Strike fast – 50% of carts are typically recovered in the first few hours after abandonment.
• Produce a series – typically 3 emails over a 7 day period.
• Stage your incentives for returning – increase the discount or other incentives through the series of emails.
• Segment and test different creative, subject lines, offers, calls to action, and messaging to see what works best.
• Appreciate the value of an email address – no recovery possible without it.
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Questions?
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MODEL OF CUSTOMER PROGRESSION
DISCOVERY
• Search engine
• Word of mouth
• Advertisement
• Social Media
ENGAGEMENT
• Visits website
• Visits tasting room
• Social Media• Mobile
ACQUISITION
• Purchases wine online
• Buys wine in tasting room
• Joins wine club
LOYALTY/LOVE• Email
communication• Facebook
shares• Special events• Ratings
D E A L
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Tell Me You Love Me
LOYALTY/LOVE• Email communication
• Join Wine Club
• Newsletter/Blog
• Facebook shares
• Special events
• Ratings
• Imagination
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Remember That the Journey is Non-Linear
Transforming the customer
journey across all channels
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WHY IS UNDERSTANDING THE JOURNEY VITAL?
A return customer is….10-15x
more likely to buy in the future after the 1st purchase
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Retention: The Heart of the Matter
AT THE CORE OF DIGITAL RETENTION:
USERS CAN LEAVE YOUR BRAND FOR SOMEONE ELSE.
ALWAYS REMIND CUSTOMERS WHY THEY FELL IN LOVE WITH YOU
IN THE FIRST PLACE
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Retention Defined
Actions a company takes so that their existing customers continue buying the services and products offered by that company in the future.
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Retention vs. Loyalty
Loyalty is About Growth
Loyalty and loyalty marketing programs work to transform a customer’s positive interactions with a winery into positive outcomes for the customer on an ongoing basis.
They recognize the right behaviors and result in a higher value customer for the winery and higher value experience for the customer.
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Retention vs. Loyalty
Retention is About Decline
Retention is about the preservation, rather than growth of a customer. Retention campaigns are focused on a positive indication that this customer is on their way out the door.
It’s no longer about growth or what could be, it’s about knowing what is about to happen to your customer and doing something about it.
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Retention vs. Loyalty
You Should Do Both
Retention and Loyalty are two different types of marketing campaigns. You need both campaigns working in tandem as part of the on-going customer conversations.
Without these campaigns, businesses miss critical communication points that could result in bigger returns and long lasting relationships.
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Remember Reciprocity?
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So Where Does Loyalty Begin?
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Hopefully It Starts With:
“You had me at hello…….”
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And Delighting Customers
Make Me Feel Special
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The DNA of Customer Loyalty
• Loyalty programs are employed to drive customers to shop with a retailer.
• Many schemes are purely “transactional” where the customer enjoys the experience but would switch to another brand at the drop of a hat if the alternative offered a slightly better deal.
• Many wineries and online wine retailers are striving to get their customers to have an “emotional bond” with them, because high retention rates translate into significant business profits.
• Achieving this requires a whole new approach to loyalty.
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The DNA of Customer Loyalty
The three results that reflect the general components of customer “emotional” loyalty programs are:
• Retention – keeping customers
• Advocacy – getting new customers through recommendation
• Life Time Value – increasing spend and frequency from existing customers
Emotional loyalty demands consistency across channels, relevant and timely promotions, customer intimacy and a real excite and delight element built on top of a standard “I’ve got great wine to sell at a good price” story.
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Loyalty and Love
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Delight customers
• Wine club discounts• Wine club special
offerings• Club member events• Loyalty bonuses• Special access• The Unexpected
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Reinventing the Delivery Experience
“The luxury experience we are so very carefully cultivating stops at delivery. We don’t need to accept that. I think we can extend that luxury experience and fill the gap.”
Jason Eckenroth Founder/CEO ShipCompliant
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Reinventing the Delivery Experience
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Reinventing the Delivery Experience
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Reinventing the Delivery Experience
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Delivery Experience Tools
• Use concierge services or Doorman.co• Customized winery email on shipment status, and alternative options• Text customers when “Elvis has left the building”• Delivery Experience tools now automatically analyze the destination
temperature of each package prior to shipping• Ship to “hold at FEDEX”• Multiple winery fulfillment warehousing locations• Not allowing FEDEX and UPS to dilute customer luxury brand
experience. Maniacally focus on first-time delivery
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And Keep Delighting Customers
Make Me Feel Special
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Love is Sharing with Others
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Get Social - Build Your Brand Advocacy
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Whether a customer buys wine in your tasting room, or on your website, their information flows to one central location.
Tangible benefits: Full purchase history in one system Segmenting customers for marketing Customer can access their profile online Access customer information from anywhere One central customer record shared across
multiple systems
Tastingroom
Wine club
Website
CustomerRelationship
Loyalty: One Customer, One Database
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CRMCustomer Relationship Management
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CRM – Customer Relationship Management
Simply put, CRM is putting customers at the heart of a business. Today it is more important than ever to build better relationships with customers as, in this day and age of social media, they now talk to ???? people at a time.
With the support of technology, the goal of CRM is to have a 360-degree view of the customer which will enable you to improve the quality and satisfaction of each customer interaction and maximize the profitability of customer relationships.
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CRM Requirements for Success1. Strategy. Your customer strategy identifies the customers the organization intends
to serve and articulates the desired customer experience to be delivered.
2. Process. Business processes are comprised of the practices associated with major customer facing business functions in the organization. For example, marketing, eCommerce, wine club, hospitality, customer service, and field service.
3. Technology. Your technology environment plays an important role in enabling the CRM business processes and is comprised of customer analytics, customer data management, and technology infrastructure.
4. People. How people are organized and led has a large role in determining success with CRM. You must pay attention to the organization’s corporate culture, leadership practices, collaboration methods, training programs, and performance measurement approaches.
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Know Thy Customer
What kind of relationship do you want to build with your target audience?
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Know Thy Customer1. How do you define your target audience (age-group, gender, education, income, likings, ethnicity, lifestyle etc) and where majority of them live?
2. Who are your best customer types in terms of revenue generation and why?
3. What kind of relationship you want to build with your target audience?
4. What are the desires and expectations of your target audience?
5. What is the level of product use? Are your customers loyal to you?
6. What are the most common objections raised by your customers?
7. Who are the actual decision makers (who has the final say)?
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360 Degree View of Your Customer Information about your members collected at each touch point outside your website should be attached to the member profile record, creating a complete
view of your customer.
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Preference Based Marketing
• Your member data should not be limited to just online sales and wine club members.
• As the direct to consumer sales channel
grows customers are finding more and more touch points to interact with wineries or wine brands.
• Information about your members that is collected at these touch points outside your website is easily fed into the member profile creating a complete detailed profile of each of your customers preferences.
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Filter and Segment Data
• CRM tools filter and segment data.
• The first step to understanding how to market and sell to your customers and prospects is to first build custom fields to segment by preferences, buying habits and behaviors.
• Filtering tools are used to create custom marketing lists so that the right message is delivered to the right customer at the right time.
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Email List Segmentation• Content is Primary• Segmentation comes next
– Varietal preferences (Special offer on Reds)
– Locals (Come to our next event)
– Order history (We’ve missed you)
– Club join date (One year anniversary together)
– Credit card set to expire (Update your profile)
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Dynamic List Building• The benefit of building a robust database
is being able to comb through and segment that data so that you can market to your customers in the most personal way possible.
• Website tools help you filter your customers into groupings based on things they share in common.
• Lists are then created which with a 'profile' for a particular type of member, which can be based on things like their buying preferences in the past.
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Manage Member Data• The integrity of your member data is
the key to successful CRM.
• Member maintenance tools allow you to consolidate duplicate member records, keeping your data clean and accurate.
• Match your potentially duplicated member records, then merge the suggested matches, consolidating address, payment and order history.
• Clean data is useful data. Find
duplicate data and merge records.
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Business Intelligence
Listen, Learn, Act
• Tap into real-time critical business data to increase your ROI on sales and marketing initiatives.
• Business intelligence reporting
delivers key point-of-sale, ecommerce, club member, inventory, CRM, and telesales information on-demand, with responsive mobile ready reporting capabilities.
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Google Analytics• Google Analytics is a powerful tool
for evaluating the effectiveness of your website in getting and keeping user traffic.
• Implementing Google Analytics tracking codes on your website helps you gauge the amount of traffic to your site and how consumers behave while visiting your website.
• This information from your website appears in your Google Analytics dashboard where you can view this data and use it to optimize your site.
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What’s New? Social CRM
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Next Generation: Listening and Engagement
Combined
Web Analytics
CRMSocial
Metrics
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Big Data in Action
The rise of the Datarati. “Big data” is one of the most over-used and over-hyped words in 2016. While much of it is hype, what is not are companies’ continued focus on data analysis.
Companies continue to invest in measuring social media, understanding customer value and modeling customer behavior. If you do not use your data to talk to your customers, others will.
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THE DIGITAL MARKETING PLANNING CHECKLIST & THOUGHT PROCESS
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HOW TO KICKSTART
YOUR PLANNING
PROCESS
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NOW WHAT.
LET’S TALK ABOUT THE ACTUAL COMPONENTS OF A DIGITAL MARKETING PLAN
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WHAT MAKES UP A DIGITAL MARKETING PLAN
1. OBJECTIVE 2. STRATEGY 3. TACTICS 4. SCHEDULE
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WHAT MAKES UP A DIGITAL MARKETING PLAN (4 CORE THINGS)
1. OBJECTIVE
2. STRATEGY
3. TACTICS
4. SCHEDULE
(*Why*) The over-arching business problem you were tasked with solving
(*What*) Your approach, the layer between the business problem, and how exactly you did it.
(*How*) The means you took to satisfy your strategy, the actual details of how you executed
(*How Much*) Which partners, for how much, and how long.
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WHAT MAKES UP A DIGITAL MARKETING PLAN
1. OBJECTIVE
2. STRATEGY 3. TACTICS 4.
SCHEDULE
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WHAT MAKES UP A DIGITAL MARKETING PLAN
• Your objective should come from:• A company-wide KPI (drive new customers or more visitors)• Ownership/Senior marketing lead/DTC manager (CMO)• The closest senior member of your team
1. OBJECTIVE
(*Why*) The over-arching business problem you were tasked with solving
• Your objective should be:• Clear• Actionable• Map directly to a company-wide KPI
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WHAT MAKES UP A DIGITAL MARKETING PLAN
EXAMPLES OF OBJECTIVES:
1. OBJECTIVE
(*Why*) The over-arching business problem you were tasked with solving
Increase the number of website visitors and/or conversions Increase the # of email addresses we have in our databaseIncrease visitor traffic/wine club signups at the winery tasting room
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WHAT MAKES UP A DIGITAL MARKETING PLAN
• Your strategies should come from:• You.• Should always answer how you plan to take action before you know
anything about executing
2. STRATEGY
• Your strategies should be:• Clear• Actionable• Map directly to your objective (how are they solving your biz problem?)• The hardest part of a digital media plan.
(*What*) Your approach, the layer between the business problem, and how exactly you did it.
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LETS MARRY THEM TOGETHER
Target your demographic audience on the social networks they visit most with best selling wines, or other special offers Encourage new site visitors to redeem an introductory offer in exchange for their email addressDrive traffic by promoting off-site tasting events and community-oriented events, focusing on Bay Area residents
1. OBJECTIVE 2. STRATEGY
Increase the number of website visitors/conversions Increase the # of email addresses we have in our database
Increase visitor traffic to the winery tasting room
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5. PRICING 6. COSTING7. PARTNER SELECTION
WHAT MAKES UP A DIGITAL MARKETING PLAN
1. OBJECTIVE
2. STRATEGY 3. TACTICS 4.
SCHEDULE
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PRICING THEORY
IN PRACTICE
WHAT MAKES UP A DIGITAL MARKETING PLAN
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BUDGETING FOR YOUR TACTICS ANSWERS 2 QUESTIONS:
If I had one dollar, where would I spend it.
If I had a 2nd dollar, where would I spend it.
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HOWEVER YOU ANSWERED THE LAST QUESTION:
AD DOLLARS GENERALLY ARE RESPONSIBLE FOR DOING 1 THING…
(BESIDES INCREASING AWARENESS OF YOUR BRAND)
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WHAT DOES $1 DO FOR THE DIGITAL MARKETER
TRAFFIC
WEBSITE TASTING ROOM APP 3-Tier PRINT/
WEB
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ONCE TRAFFIC IS IN THE DOOR IT CAN DO MANY THINGS (DIGITALLY-FOCUSED)
BOOK A TASTING
BUY WINE
JOIN A WINE CLUB
POST A REVIEWDOWNLOAD
RECIPES
RE-ENGAGEMENT
SHARESBROWSE - TIME ON
SITEVIDEO PLAYS
ENTRIES/VOTES
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5. PRICING 6. COSTING7. PARTNER SELECTION
WHAT MAKES UP A DIGITAL MARKETING PLAN
1. OBJECTIVE
2. STRATEGY 3. TACTICS 4.
SCHEDULE
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WHAT MAKES UP A DIGITAL MARKETING PLAN
HOW MUCH DO THINGS
COST?
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BACKGROUND ON HOW AD PRICING WORKS
CPM(cost per thousand)
CPC(cost per click)
Publisher charges you every time:
CPL(cost per lead)
MOST COMMON (EARLIEST FORM OF PRICING,LEAST RISKY FOR PUBLISHER)
INCREASINGLY COMMON(MORE RISK TAKEN ON BY PUBLISHER)
RAREST(MOST RISKY FOR PUBLISHER, GENERALLY WILL OWN THE SIGNUP EXPERIENCE)
Display/Websites
Paid SearchPaid Social
Lead Gen companies (Lead Genius)
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DIGITAL AD PRICING FORMULAS
CPMCOST PER THOUSAND(COST/IMPRESSIONS) *
1000
CPC
COST PER CLICKCOST/CLICK
Ad Buying Pricing Units (how all online ads are bought and sold)
PRO TIPS:CPM: Better for brand advertisers. CPC: best for Direct Response advertisers; most of you should be buying on a CPC. CPL: Best for B2B
CPL
COST PER LEADCOST/LEADS
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WHAT DOES THE AD PRICING MARKET LOOK LIKEInexpensive Average Expensive
CPM$1.25 $3.50 $5-$15+
CPC$0.25 $0.50-$0.75 $1.50+
CPL$25 $50 $100+
All these prices completely depend on your site, pricing,
and business
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AVERAGE CPC GUIDELINES (ACTUAL MAY DIFFER)
Base Additions (each is an incremental cost)Avg. Untargeted
CPC Gender Age Interest Occupation Education Geo $0.35 +$0.25 +$0.25 +$0.30 +$0.25 +$0.15 +$0.45
But a fully loaded CPC would be $2.00
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AVERAGE CPC GUIDELINES + OBJECTIVES
Base Additions (each is an incremental cost)
Avg. Untargeted CPC Gender Age Interest Occupation Education Geo
$0.35 +$0.25 +$0.25 +$0.30 +$0.25 +$0.15 +$0.45
In other words, a fully loaded CPC would be $2.00
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5. PRICING 6. COSTING7. PARTNER SELECTION
WHAT MAKES UP A DIGITAL MARKETING PLAN
1. OBJECTIVE
2. STRATEGY 3. TACTICS 4.
SCHEDULE
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BUDGETING:
HOW MUCH SHOULD I SPEND ON ADVERTISING?
WHAT MAKES UP A DIGITAL MARKETING PLAN
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KNOWING HOW MUCH YOU ARE WILLINGTO SPEND (WITH WHO)
HAS TO DO WITH YOUR RISK TOLERANCE.
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?: HOW RISKY ARE
WE?
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CHECK YOUR SPEEDOMETER:
AGGRESSIVE OR CONSERVATIVE DRIVER?
IDENTIFYING YOUR APPETITE FOR RISK
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AGGRESSIVE
WHEN AN AGGRESSIVE STRATEGY IS RIGHT FOR YOU
ROI
VOLUME
• You are looking to acquire as many new customers as possible in an effort to gain traction and grow wine brand awareness.
• Or you are have fewer metric constraints (spending our budget is more important than measuring it!)
• This strategy means being comfortable with a higher cost per acquisition in exchange.
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AGGRESSIVE OR CONSERVATIVE?
CONSERVATIVE
ROI
VOLUME
• Looking to maintain the best profit margin possible,
• You are much more metrics-driven, or potentially cash-strapped.
• This strategy comfortable with simply acquiring less new customers.
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Are you comfortable acquiring new users at a loss? (spend $10, make $5)
Are comfortable acquiring new users & breaking even? (spend $10, make $10)
If we break even or lose money now, can we monetize these users in 3, 6, 12 months?
How good were we this month at getting our existing customers to come back and spend time on our site?
How many new users do you want to acquire, and in what time frame? HINT: “As many as possible ASAP” is not good enough. Be specific.
YOUR CHECKLIST FOR RISK & COSTING
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5. PRICING 6. COSTING7. PARTNER SELECTION
WHAT MAKES UP A DIGITAL MARKETING PLAN
1. OBJECTIVE
2. STRATEGY 3. TACTICS 4.
SCHEDULE
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BEFORE COMPLETING A DIGITAL MARKETING PLAN YOU HAVE
TO PROJECT WHAT YOUR EFFORTS WILL DELIVER
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LET’S SAY YOU RUN A WINERY THAT HAS THE FOLLOWING CRITERIA:
EXAMPLE
WORLD’S GREATEST WINESPrice $100Goal ROI 200%Goal New Customers 1,000Average Conversion Rate
2.00%
Expected Cost Per Click
$1.00
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IF WE WANT 1000 NEW CUSTOMERSAND OUR SITE HAS A 2.0% CONVERSION RATE…
HOW MUCH TRAFFIC DO WE NEED TO DRIVE?*
EXAMPLE
*Yes, we’re assuming this new traffic would convert at the same rate as our current traffic, which may or may not happen. This is modeling, though – it’s not perfect, but it’s useful for
our purposes here.
VISITS = NEW USERS/CONVERSION RATE
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WE NEED 50,000 VISITS FOR 1,000 NEW CUSTOMERS.
SO HOW MUCH COULD 50K VISITS COST US?
>> TRAFFIC COST: 50,000 VISITS * $1.00/CLICK = $50,000 AD SPEND
EXAMPLE
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HOW MUCH WOULD I NEED TO SPEND TO HIT MY TARGET ROI OF 200%?
>> TRAFFIC COST: 50,000 VISITS * $1.00/CLICK = $50,000 AD SPEND
>> CONVERSION: 50,000 VISITS * 2.00% CR = 1,000 CUSTOMERS
>> REVENUE: 1,000 CUSTOMERS * $100 PRICE = $100,000 REVENUE
>> $100,000 REVENUE/$50,000 SPEND = 200% ROI
EXAMPLE
So under these circumstances, we could hit our ROI Goal & New Customer Goal, with a $50,000 marketing budget.
Don’t have $50k? Adjust goals accordingly, this is important!
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FINAL WORD ON SOCIAL
MARKETING
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WHAT ARE THE VEHICLES RELEVANT IN THE WINE INDUSTRY?
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If You Do Not Pay to Advertise on Facebook, It Is Estimated That You Only Reach 3-5% of
Your Fan BaseForbes.com
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LAST BUT NOT LEAST,BEFORE DOING ANY ADVERTISING THINK:
HOW GOOD ARE WE DOING THINGS NOW BEFORE WE PAY FOR TRAFFIC?
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What is the Conversion Rate, Average Order Value, and Time Spent for:Our best traffic source Our worst traffic source (with the most visits) Our highest traffic source
Do we have appropriate landing pages to make our desired action as simple & easy as possible
Are we confident that paid traffic is going to help us do more of the desired action we want
Are we maximizing what we are getting out of our organic/free traffic (existing partnerships, search, etc.)
YOUR CHECKLIST FOR HOW GOOD WE ARE
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Final Thoughts
Things to consider in your DTC marketing strategy:
• What makes you different or your story compelling?
• How do you deliver the message to visitors in person or digital?
• Why should they care?
• What is your plan for building and maintaining customer loyalty?
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Tell your story + tell it well (the magic 15%)
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And Delighting Customers
Make Me Feel Special
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Addendum
The Future is Now
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Constellation Customer Segmentation Study
“The Genome Project”
Constellation Brands released in 2014 the results of a comprehensive study identifying six segments of wine drinkers based on their purchase behavior, motivations and preferences. The study follows up on a similar study conducted ten years ago.
Please read the article on the study in Wine Business Daily:http://www.winebusiness.com/news/?go=getArticle&dataid=134683
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Constellation Segmentation Study Outlines Motivations, Behaviors of Today's Wine Consumers
Consumer Segment - Consumer Profiles
Price Driven (21% of consumers)
• I believe you can buy good wine without spending a lot
• So price is a top consideration
Everyday Loyals (20% of consumers)
• Wine drinking is part of my regular routine • When I find a brand I like, I stick with it
Overwhelmed (19% of consumers)
• I drink wine, but it does not play an important role in my life
• I don’t enjoy shopping for wine, and find it complex and overwhelming
Image Seekers (18% of consumers)
• How others perceive me is important • I want to live a life that impresses others • I want to make sure the wine I choose says
the right thing about me
Engaged Newcomers (12% of consumers)
• I'm young and new to an intimidating category • Wine is a big part of the socializing I do• I’m interested in learning more
Enthusiasts (10% of consumers)
• I love everything about the wine experience • I love researching purchases, reading reviews,
shipping, discussing, drinking, sharing with others
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Contact Info
Ron ScharmanChatterbox/[email protected] Me on LinkedIn at http://bit.ly/1WyFHpA