tag:blogger.com,1999:blog-941731830705031230.post7098389432295772466..comments2024-03-25T02:53:48.654-07:00Comments on SVB on Wine: The Tough Questions Wine Clubs FaceRob McMillan rmcmillan@svb.comhttp://www.blogger.com/profile/12396624790174552807noreply@blogger.comBlogger55125tag:blogger.com,1999:blog-941731830705031230.post-43361000754374609492017-05-03T12:28:31.084-07:002017-05-03T12:28:31.084-07:00Oh! And feel free to delete my "too long"...Oh! And feel free to delete my "too long" comment if it's not helpful. Just trying to share a consumer's perspective. Louisa Mnoreply@blogger.comtag:blogger.com,1999:blog-941731830705031230.post-44362086782796169192017-05-03T12:26:51.383-07:002017-05-03T12:26:51.383-07:00I have some very strong opinions on this topic, LO...I have some very strong opinions on this topic, LOL! Louisa Mnoreply@blogger.comtag:blogger.com,1999:blog-941731830705031230.post-22011060664374386062017-04-26T12:26:14.115-07:002017-04-26T12:26:14.115-07:00As Mark Twain quipped:
"I didn't have ti...As Mark Twain quipped:<br /><br />"I didn't have time to write a short letter, so I wrote a long one instead."Bob Henryhttps://www.blogger.com/profile/02089688073031173053noreply@blogger.comtag:blogger.com,1999:blog-941731830705031230.post-53815075897517797352017-04-26T11:19:43.623-07:002017-04-26T11:19:43.623-07:00It's not the contest I'd vote for Bob! Bre...It's not the contest I'd vote for Bob! Brevity has a place still. Ask any Millennial how long a post should be.Rob McMillan rmcmillan@svb.comhttps://www.blogger.com/profile/12396624790174552807noreply@blogger.comtag:blogger.com,1999:blog-941731830705031230.post-36932645351084571662017-04-25T23:24:37.039-07:002017-04-25T23:24:37.039-07:00Rob,
Should I take your observation as a tacit ch...Rob,<br /><br />Should I take your observation as a tacit challenge?<br /><br />Bob ("Paid by the Word") HenryBob Henryhttps://www.blogger.com/profile/02089688073031173053noreply@blogger.comtag:blogger.com,1999:blog-941731830705031230.post-13684225164640214672017-04-25T22:51:36.102-07:002017-04-25T22:51:36.102-07:00That's quite a lengthy POV. Might be a record ...That's quite a lengthy POV. Might be a record on the blog. Thanks.Rob McMillan rmcmillan@svb.comhttps://www.blogger.com/profile/12396624790174552807noreply@blogger.comtag:blogger.com,1999:blog-941731830705031230.post-76248819477062255042017-04-25T17:33:31.790-07:002017-04-25T17:33:31.790-07:00So what made us sign up for all of these clubs? So...So what made us sign up for all of these clubs? Some places were no-brainers as soon as we tried the wine and fell in love. I like the convenience of having wine shipped directly to my office. I like knowing that I have a long list of wineries where we can go taste for free whenever we are in town. I like that there are sometimes events where I can have an excuse to hop on a plane and go out to Napa for a weekend. Most clubs are just a bonus because it's wine I would've ended up purchasing at the winery anyway, but why not enjoy the added benefits that come along with membership? Joining wine clubs is great for us because our everyday bottles happen to be very nice wines; we never drink wine from the supermarket or a mass market wine shop anymore. We want those special bottles because life's too short to drink mediocre wine. <br /><br />As you can tell, I'm happy to share my opinions with anyone in the industry. If you have a question for me, ask away! I'll be happy to give an honest answer from a consumer's point of view. Louisa Mhttp://www.thegrapegeeks.comnoreply@blogger.comtag:blogger.com,1999:blog-941731830705031230.post-51166570445208147942017-04-25T17:32:20.308-07:002017-04-25T17:32:20.308-07:004. Preferred Treatment
I'm a long time club m...4. Preferred Treatment<br /><br />I'm a long time club member at another very popular and swanky winery along Highway 29 and they have the best customer service ever. Club members truly get the VIP treatment, there's a special picnic area for members only, they send me a complimentary "anniversary bottle" of wine every year to celebrate my club membership, I'm often called by name, and the host knows my preferences the second I am seated. I know not all wineries are capable of this type of service, and I don't expect you to remember my name or my occupation or the type of pets I have, but it's pretty easy to make notes so you can at least pretend that you remembered all of those details about my husband and me. Excellent hosting when I visit is really critical: one club lost my business when they gave my party subpar treatment (I had brought along two friends and they did not put their best foot forward). Always put your best hosts on when a club member visits, it truly makes a difference!<br /><br />5. Shipping Deals<br /><br />I live out of state and this is a big deal for me. Whenever there's a special shipping deal on a case or especially a half case, I usually take the bait and buy. Discounts on individual bottles of wine are also nice, but it sometimes feels like you're cheapening your brand by giving HUGE discounts to club members. When I see a 30% savings for club members, I feel like a chump if I'm not in the club because I will be overpaying for your bottles. (I am not a member of any club that extends a greater than 15% discount). Also weather holds are a huge deal for me too, as I live in a very hot desert climate.<br /><br />6. Overzealous Sales<br /><br />Nothing turns me off from a brand more than a tasting room host that immediately and forcefully pushes the wine club. It's offensive. I'm tasting wine to learn, relax, and hopefully enjoy. I have been to more wineries than I can count where the person behind the bar starts yapping about the club before they have even poured me ONE TASTE OF WINE. I'm not shy to name these wineries either, if anyone is interested. It's salesmanship 101. If I pick up the brochure it also doesn't automatically mean I'm interested in joining, I just want to read a bit more information about it. If I want more info, I'll ask. The most offensive sales pitch ever happened earlier this year at a Valentine's Day wine club event at one of the big boys in St. Helena. We paid $200 per person to attend this dinner, and the entire time all the staff did was try to sell us wine. At the pre-dinner cocktail reception, staff made at least half a dozen announcements about buying wine. When we were seated at the table for dinner, there was a price sheet on top of the menu, and staff walked around to physically hand us pens and order forms, hovering behind us asking if we wanted to order anything. I left fuming, and I am considering dropping that club very soon (after nearly 5 years of loyal membership). Don't be pushy. Don't shove the wine club down our throats. <br /><br />CONTINUED BELOW Louisa Mhttp://www.thegrapegeeks.comnoreply@blogger.comtag:blogger.com,1999:blog-941731830705031230.post-83831123326787897552017-04-25T17:30:58.240-07:002017-04-25T17:30:58.240-07:00I am a Gen X-er and I have a serious wine hobby an...I am a Gen X-er and I have a serious wine hobby and habit. We only drink the "good stuff" and rarely are able to find wines we like at our local stores. This is why we are members of about a dozen direct-with-the-winery wine clubs. I've signed up for clubs that have a 6 bottle per year requirement and others that have a 4 case per year requirement, and others that are basically allocation clubs. I'm even a member at a certain club which CHARGES me a $250 annual fee just to be a member, but I have no issue with that because of the personal attention and service I always receive.<br /><br />It's really interesting to read the comments from the other side (re: people in the industry) versus strictly a consumer like me. I've joined and dropped clubs over the years, but there are several things that are VERY important to me when deciding which clubs to join and which clubs to eventually drop. <br /><br />1. Special Events<br /><br />I live out of state so having lots of special events, pick up parties, and other social activities doesn't matter much at all to me. If the club has an annual big deal release party, I will sometimes fly out to Napa to attend, but this is very rare.<br /><br />2. Customization<br /><br />This is the single most important factor for me. I must be able to pick and choose which wines I want to have shipped to me. This means I will never get any junk (I've dropped more than a dozen clubs that wouldn't customize and sent me so much inferior wine or varietals I don't like -- obviously bottles they couldn't sell otherwise and had to dump them on their loyal club members -- that I would literally dread when the box would arrive). Needless to say, those clubs were out quickly and I was always so upset that I haven't purchased any of their wines in the future. Pay attention, wine club managers: don't send junk (or wine that's not ready to be released; we recently got a shipment from another well known, big name Oakville winery and their cabernet was absolutely HORRIBLE. We'll be dropping them shortly). <br /><br />3. Complimentary Tastings<br /><br />Discounts aren't as important as complimentary tastings whenever I am in town and drop by the tasting room. Even better is if I can bring guests (at least 3 is best), I can gift a tasting to someone else traveling to the area, and if I can stop by without restrictions (I really hate the new trend of allowing only one complimentary tasting visit per year, quarter, or month). If I'm one of your best customers and spend several thousands of dollars on your wine every year, the LEAST you can do is roll out the red carpet whenever I visit your winery in person. I'm lucky enough to fly out to Napa about 6 times a year, and I want to be able to stop by, taste whatever's new, and take home some bottles. <br /><br />CONTINUED BELOWLouisa Mhttp://www.thegrapegeeks.comnoreply@blogger.comtag:blogger.com,1999:blog-941731830705031230.post-9162375690203716892017-04-24T10:00:44.059-07:002017-04-24T10:00:44.059-07:00I'm a consumer and enthusiast just getting sta...I'm a consumer and enthusiast just getting started as a collector. Having lived the majority of my adult life in CA, I acquired several wine club memberships, some of which I've maintained since moving away and some of which I have let go by the wayside.<br /><br />For me, quality and quality for price are the key factor for retention; however, the engagement factor does play a role. When I lived in CA, I put a high premium on the "experience" factor. It was much easier to join a wine club that included some wine release parties, restaurant events, and other social occasions combined with some bottles to take home. As a cusp GenX/Millenial I think you will find that the "experience" aspect will play an outsized role in acquisition and retention for people may age and younger.<br /><br />As an example, one winery I have stuck with is Tablas Creek (Paso Robles) who produce a monthly newsletter that's actually interesting to read (a rarity), have featured bottles each month (with a discount), run several specials throughout the year, and participate in events across the nation. I'm a member because I love their wine; however they have also done a very good job of cultivating a relationship where they are always top of mind when I think about my wine clubs.<br /><br />One last point I would like to make, along the line of the "experience": there is a unique value proposition to a wine club when you are in proximity to a winery/tasting room. Having a good tasting room/member culture can create a lot of stickiness in customer relationships because your customers come back not just for the wine but for the social experience of your tasting room/events. To that end, I sometimes feel a little consternation at paying the same price for membership while not incurring any of the costs of participation. For those wineries unwilling or unable to "export their experience" to their customers in other regions, some sort of discount could be a strategy for retention. For example, another wine club of which I'm a member offers free shipping nationwide to members on all orders. Not only does this make me feel a little better about missing the annual wine club party, but it also guarantees that I will make at least one extra order per year.Jared Earleshttps://www.blogger.com/profile/14576400585746853937noreply@blogger.comtag:blogger.com,1999:blog-941731830705031230.post-3117775043710958682017-03-28T14:41:25.483-07:002017-03-28T14:41:25.483-07:00Thanks for this great article, Rob. Lots of useful...Thanks for this great article, Rob. Lots of useful data and insight!<br /><br />In response to your post, I wrote one developing 7 tactics for family-owned wineries to increase their membership numbers: <a href="http://newtimermarketing.com/selling-outside-tasting-room/" rel="nofollow">Selling Outside The Tasting Room</a>. Hoping that helps, please feel free to share your feedback. Thanks!<br /><br />Martial Chaput,<br />Newtimer MarketingMartial Chaput (Newtimer Marketing)https://www.blogger.com/profile/00584258145017769363noreply@blogger.comtag:blogger.com,1999:blog-941731830705031230.post-29924839606678452112017-03-21T15:21:22.467-07:002017-03-21T15:21:22.467-07:00Great comments Kevin. Many of your behaviors are b...Great comments Kevin. Many of your behaviors are borne out in prior work we've done. 2a is a big one that we started talking about 6 years ago with a lot of pushback from logistics ("how can we pick and pack individual bottles"). Most clubs today offer some choice and we continue to evolve to that model.<br />Rob McMillan rmcmillan@svb.comhttps://www.blogger.com/profile/12396624790174552807noreply@blogger.comtag:blogger.com,1999:blog-941731830705031230.post-23857657005961729382017-03-21T10:06:17.728-07:002017-03-21T10:06:17.728-07:00Like Paco, I buy a significant amount of wine ever...Like Paco, I buy a significant amount of wine every year and have a large cellar. I'm on the east coast and I'm a member of many CA wine clubs and I've worked in the industry for some years. I'll share my views/thoughts on staying/leaving clubs.<br /><br />1. We joined a few clubs while visiting in CA, but for us - that's the exception.<br /><br />2. We often find a new wine we like at a restaurant or via local retail, then try additional wines by the same vineyard/winemaker to get a feel for the product. If we find multiple varietals/vintages that we really like, we will visit the website and explore the wine club. There are several factors we consider when deciding to join;<br /><br />2a. Does the club have flexibility? Whites only or reds only or a mix? 2 bottle up to 12 bottle shipments? Is shipping discounted or free on 6+ bottle orders?<br /><br />2b. Are there wines that are ONLY available to club members? This is a huge deal for folks on the east coast as only higher production wines make it out here. If we like a cab sauv and a merlot from a winery, chances are we would also like the Petite Sirah and Cab Franc that may be club only. That's a plus to sign up for us.<br /><br />2c. The service on the phone. Is the rep accommodating and flexible? There are a few wineries where I'm on a first name basis with the club rep. They will send me bottles that are not on the website, tiny production and most of the public doesn't even know exists from that producer. They let me know that I can get large format bottles, one off's and numerous other "insider perks" - and holding for weather is automatic as they are sensitive to the cross country trip. This is the way club memberships should be run from a service perspective.<br /><br />Another big trend I'm seeing is the "allocation only" model. You get on an email list and you get a window to purchase and that's it. These are hit or miss and (for me) tend to be less personal and have less loyalty. For those that release very early (during bottle shock), it's hard to really evaluate what you are getting.<br /><br /><br /><br /><br /> Kevinnoreply@blogger.comtag:blogger.com,1999:blog-941731830705031230.post-28028815696664342912017-03-21T10:05:05.110-07:002017-03-21T10:05:05.110-07:00You're welcome Rob. The reason we did the stud...You're welcome Rob. The reason we did the study was to help wineries grow their businesses. The e-book can be thought of as a playbook, not a bunch of stats. Because the notion of cognitive economics is new to many, and probably sounds imposing, I'd like to suggest that anyone interested view Malcolm Gladwell's TED talk about it and his profile of my collaborator and co-author Howard Moskowitz. It's called "Choice, happiness, and spaghetti sauce," available here: http://goo.gl/rzYE8F. Malcolm explains it all as only he can.stephenhttps://www.blogger.com/profile/07301208320876653579noreply@blogger.comtag:blogger.com,1999:blog-941731830705031230.post-10148324521295140972017-03-20T22:19:53.396-07:002017-03-20T22:19:53.396-07:00Thanks for the follow up for the benefit of the co...Thanks for the follow up for the benefit of the community Stehpen. Much appreciated!Rob McMillan rmcmillan@svb.comhttps://www.blogger.com/profile/12396624790174552807noreply@blogger.comtag:blogger.com,1999:blog-941731830705031230.post-13910446091747517202017-03-20T12:25:05.284-07:002017-03-20T12:25:05.284-07:00Rob – thank you for your comment and question. Yes...Rob – thank you for your comment and question. Yes, the report provides tactical suggestions that wineries can implement today. Before I explain that I’d like to stress that the report acknowledges that winery e-commerce is a long-game, but one worth playing for the reason you cited – it’s likely to develop over time. The report does not promote ecommerce as a magic bullet or replacement. Winery e-commerce complements the existing sales and distribution channels and relationships wineries have in place today. Winery e-commerce offers the potential advantage of strengthening a winery's financial position while improving its chances for longer-term survival or accomplishing a business goal, such as a gaining physical distribution, market expansion, or outright sale. <br /><br />Although base sales are small, if wineries can increase their ecommerce sales from 2% to 3%, that’s a gain of 50% revenue from the channel. Gross margins may be higher on those sales because wineries do not have to give up margin to third-parties.<br /><br />Tactically, the report offers three strategies, one for each of three segments the research identified. Each strategy includes a target market. For each target market we identify: a combination of specific messages that raise consumer interest in winery e-commerce; the emotions that motivate consumers to be interested in winery e-commerce; and a financial model showing the impact of the strategies on the number of buyers and sales, taking into account factors like sales conversion rates, marketing expense, ROI, and payback period. For those interested, the report provides links to the research’s data set, financial model, and customer typing tool that identifies the segment to which a consumer belongs. <br /><br />As a side note, I’d like to mention that the research is not a traditional survey or conventional segmentation study. The approach used comes from a different tradition, that of cognitive economics. In this case the research was concerned with understanding the ideas that people have towards winery e-commerce, quantifying the “pulling power” of marketing messages by computing how much they increase or decrease consumer interest in buying wine online, how much they value each marketing message, and creating segments based on groups of ideas that “hang together.” Findings show that trade-offs that people make between what interests them and what they’re willing to pay.<br /><br />Last, we have streamlined our research process into an app called Big Mind. The app allows any winery to study any aspect of their business. The app is in beta, available for Android devices, with an iOS app available later this year. It is free to use. Anyone interested in working with it should contact me: info@sdrconsultingllc.com, and we will make the proper arrangements.<br />stephenhttps://www.blogger.com/profile/07301208320876653579noreply@blogger.comtag:blogger.com,1999:blog-941731830705031230.post-55787861049475814722017-03-19T23:08:16.715-07:002017-03-19T23:08:16.715-07:00Let’s turn our attention to Xers and Boomers to se...Let’s turn our attention to Xers and Boomers to see if they are similar to or different from Millennials.<br /> <br />"GenX and Boomer Interest in Buying Wine Online Directly from a Winery"<br /> <br />Q. How about the older generations, Xers and Boomers? How interested are they?<br /> <br />A. Hardly at all.<br /> <br />Xers are like Millennials overall, about one in four have a natural interest level in buying wine online from wineries.<br /> <br />Boomers are less interested, about one in five. In both generations, no element [i.e., the researchers’ term for “ideas or messages” in the short story vignettes about the online wine buying experience read by respondents] simulates a person to respond, in effect, “yeah, I ought to be thinking of trying this out.”<br /> <br />None reaches . . . the threshold for ideas that make a difference. (For this reason we refrained from showing the data).<br /> <br />"Generational Targeting Appears to be an Unproductive Approach"<br /> <br />Despite the appeal of demographic targeting, its familiarity, and widespread use, we just saw that Millennials as a generation are not different from Gen Xers and Boomers regarding online wine buying from wineries.<br /> <br />Odd as this might appear, our research agrees with newer Millennial studies which show little difference among generations.<br /> <br />The interest is just not there by generation. Even when we carved out a slice of Younger Millennials we recognized that the group probably offers limited potential at best. Our data strongly suggest that generational strategies and targeting will neither be productive nor business-building.<br /> <br />"How About Targeting by Other Demographics or Wine Attitudes, Behavior and Usage?"<br /> <br />Besides age, we captured the typical demographics of our respondents, such as gender, income, region, and education, and a variety of wine attitudes, behavior, and usage, such as their level of interest in wine, their drinking frequency, and the price they typically pay for a bottle. A complete list is provided in Appendix 5. If you are interested, you can review the complete dataset by downloading it from this link: www.bitly.com/WineDataNomaRapp.<br /> <br />We discovered similar patterns of the natural level of interest to the generations. . . . Let’s take some examples for illustration.<br /> <br />Among men and women, no elements [i.e., the researchers’ term for “ideas or messages” in the short story vignettes about the online wine buying experience read by respondents] reached [a value of] 10 [representing a “big impact on a person’s interest”].<br /> <br />Same for people with household incomes of $50,000 or above.<br /> <br />People who drink wine daily are interested in buying wine online when there’s no minimum purchase required and shipping is thrown in.<br /> <br />Weekly drinkers want a great wine at a great price.<br /> <br />After looking at all the data, there’s nothing in these, or any, patterns that recommend them as the basis for a meaningful segmentation and targeting strategy for wineries looking to sell their wines online.<br /> <br />We have to look elsewhere. To Mindsets.<br /> <br />[Bob’s aside: I leave it to you to delve into the research study to learn more about Mindsets beginning on page 12.]Bob Henryhttps://www.blogger.com/profile/02089688073031173053noreply@blogger.comtag:blogger.com,1999:blog-941731830705031230.post-37277954021324081822017-03-19T23:07:19.261-07:002017-03-19T23:07:19.261-07:00"Millennials’ Interest in Buying Wine Online ..."Millennials’ Interest in Buying Wine Online Directly from a Winery"<br /> <br />Do demographics, wine attitudes, or wine behaviors drive Millennial interest in buying wine directly from a winery? The answer may surprise you: NO they do not. We repeat NO. And with that, let’s dive into the results.<br /> <br />Before going deeply into researching the consumer mind towards buying wine directly online from a winery, we start by doing due diligence. We look at factors like age, income, gender, and wine drinking frequency to discover, if possible, meaningful differences among groups in terms of interest in ideas about online wine buying. It would be ideal if one of these easy-to-measure factors was connected to a ‘magic bullet,’ a group that that can be easily identified, and is very prone to buying a lot of wine online. . . .<br /> <br />So what did we find? When you casually ask a Millennial wine buyer on the street, “How interested are you in buying wine online from a winery?” our results suggest that only about one in four would nod their head and say they were interested. . . .<br /> <br />The Millennial generation, though treated as one group in much research and trade articles -- “Millennials do this, Millennials do that,” -- should not be. Carefully done Millennial studies recognize older and younger Millennials span life stages -- a 34-year old Millennial is at a different place in life than a 21-year old.<br /> <br />[Bob’s interjection: Older Millennials are closer in life stage to Gen X-ers than they are to Young Millennials. Just as Gen X-ers are closer in life stage to Baby Boomers than they are to Millennials.]<br /> <br />We divided our Millennial respondents into Younger (21-26) and Older (27-34) groups to be able to make intra-generational comparisons. We learned that Younger and Older Millenials indeed differ from one another.<br /> <br />Older Millennials have a higher natural interest in buying wine online. . . . a bit more than double the Younger group. But, even with their greater ingoing interest, not one single element [i.e., the researchers’ term for “ideas or messages” in the short story vignettes about the online wine buying experience read by respondents] offers any magic. Winery stories, wine quality, discounts, the online experience, fall on deaf ears.<br /> <br />In contrast, Younger Millennials are all about wanting a well-reviewed bottle at a rock bottom price. Free shipping, rewards, high reviews, and no commitment or minimum purchase interested them.<br /><br />"Should Wineries Target Millennials?"<br /> <br />Although we spotted a few differences between Older and Younger Millennials, each winery must consider whether those differences are sufficiently crucial to develop and invest in a marketing program targeting Younger Millennials. Some marketers might consider the Younger Millennials a segment: They have size and a few ideas that raise their interest in online wine buying directly from a winery.<br /> <br />We think targeting Younger Millennials is not a good idea for four reasons:<br /><br />1. targeting such a narrowly defined age range of 21-26 year-olds is not practical: it is too granular for most wineries, <br /><br />2. the four elements which raise interest among Younger Millennials are met with yawns from the Older Millennial (and for Gen Xers and Boomers which we will soon see), <br /><br />3. promoting the one message that works for all Millennials means emphasizing shipping and a price-based image to them, and <br /><br />4. the price sensitivity of Younger Millennials suggests low margins. There may be a better way of interesting them in buying wine online and realizing their marketing potential. <br /><br />Bob Henryhttps://www.blogger.com/profile/02089688073031173053noreply@blogger.comtag:blogger.com,1999:blog-941731830705031230.post-35006328345055047482017-03-19T23:02:09.071-07:002017-03-19T23:02:09.071-07:00I don't want readers of this blog to overlook ...I don't want readers of this blog to overlook the generous offer that commentor Stephen D. Rappaport made to provide a copy of his co-authored research study titled "Millennials, Mindsets, & Money ... and Selling Wine Online".<br /><br />Send him a request via e-mail to info@sdrconsultingllc.com.<br /><br />With Rob's indulgence, I am going to summarize through excerpts the findings of the first part of the study.<br /><br />(And if I run out of allocated characters, I will make this a two-part comment.)<br /><br />Readers who are sufficiently intrigued can read the second part of the study on "Mindsets."Bob Henryhttps://www.blogger.com/profile/02089688073031173053noreply@blogger.comtag:blogger.com,1999:blog-941731830705031230.post-72314082124889867222017-03-19T20:28:55.398-07:002017-03-19T20:28:55.398-07:00Thanks for joining the conversation Kim. We apprec...Thanks for joining the conversation Kim. We appreciate your view and I am glad you are finding success in this nutty and awesome business. Rob McMillan rmcmillan@svb.comhttps://www.blogger.com/profile/12396624790174552807noreply@blogger.comtag:blogger.com,1999:blog-941731830705031230.post-82105043845133932982017-03-19T17:37:32.312-07:002017-03-19T17:37:32.312-07:00As the owner/winemaker of a small (I mean SMALL) w...As the owner/winemaker of a small (I mean SMALL) winery, getting our name out there is extremely difficult, especially when it's just a husband/wife team with 2 full time jobs. We have been fortunate to work with Cellar Angels to get our name out there. (Piggy-backing on Martin's contribution above.) While we were skeptical at first, their monthly offerings coupled with their in-person private tastings and events for their customers (club house gatherings and the like) have helped us tremendously! But, to couple the sentiment of many of the previous comments, customer service is key! For each new customer, I send a personal note or email letting them know how much we appreciates their support. I have received great feedback (and often shock!) from this personal touch. And, as a club member at other wineries myself, I know this is critical to getting and keeping members. <br />Thanks for this though-provoking article. I've enjoyed the comments and tips from others.<br />Kim Vance - Zoetic WinesKim Vancehttp://www.zoeticwines.comnoreply@blogger.comtag:blogger.com,1999:blog-941731830705031230.post-77085289367824460062017-03-17T17:08:23.385-07:002017-03-17T17:08:23.385-07:00Great question David. We'll have several of th...Great question David. We'll have several of those answers when the survey closes Sunday.<br /><br />I asked this year what percentage of club members were within driving distance. I got a really surprising answer, but it's totally dependent on the AVA. As a teaser, I expected Napa to have clubs that were 50+% or so from the Bay Area. It turns out they actually average right around 20%.Rob McMillan rmcmillan@svb.comhttps://www.blogger.com/profile/12396624790174552807noreply@blogger.comtag:blogger.com,1999:blog-941731830705031230.post-75236005462821908632017-03-17T17:03:03.440-07:002017-03-17T17:03:03.440-07:00Thanks Martin Cody from Cellar Angels.
Agreed - ...Thanks Martin Cody from Cellar Angels.<br /><br />Agreed - building a brand is one interaction at a time. It's positive or negative but when negative, it takes multiple positives to overcome. And even negative experience is an opportunity to change a clients mind and make them an advocate. It's the basics but we all need to remind ourselves.Rob McMillan rmcmillan@svb.comhttps://www.blogger.com/profile/12396624790174552807noreply@blogger.comtag:blogger.com,1999:blog-941731830705031230.post-2118346626218664852017-03-17T16:59:57.490-07:002017-03-17T16:59:57.490-07:00Those same urban center apartment dwellers whose l...Those same urban center apartment dwellers whose landlords are imposing restricted or eliminated online shopping deliveries to their residences may also be public transport users.<br /><br />Redirecting their wine club parcels to their work addresses means ultimately having to schlep those boxes home on the bus or subway or train. Not an appealing prospect (given that a case of wine weighs 40 lbs.)Bob Henryhttps://www.blogger.com/profile/02089688073031173053noreply@blogger.comtag:blogger.com,1999:blog-941731830705031230.post-66227108834518321372017-03-17T16:05:52.058-07:002017-03-17T16:05:52.058-07:00If the average club member sticks around 28 months...If the average club member sticks around 28 months, was it 28 shipments or 8 shipments before cancellation? I know some wine clubs ship monthly. Was the club member within driving distance or out of state? What’s the average retention of an out-of-state versus in state or 100 mile radius? How many club shipments were picked up personally or sent in the mail? I think a greater definition of type of club and geographic proximity would lend some additional data points for discussion.<br /><br />A wine club to an out-of-state or long distance customer may not provide any benefits, except a discount on wines, shipping, or both. What “experience” did the customer sign on for?<br /><br />If the discount is the sole experience, than that is easily commoditized. The breadth and depth of flash retailers, wine clubs without the winery, can easily beat any winery wine club on price every day of the week and offer free shipping without being captive to a single winery. There are dozens of “tailored” wine clubs out there, offering a wide variety of wines from around the world. A wine club at a winery that emphasizes wine discounts as part of their club benefits seems to be commoditizing itself in the long run, the long run may be defined as 28 months before an alternative is found simply on discounts and low prices. Not a good formula for winery wine club growth.Anonymoushttps://www.blogger.com/profile/16021406652270203430noreply@blogger.com