The answer to the blog title is the point of the Annual SVB Direct to Consumer Videocast, which is taking place this coming Wednesday, June 15th.
You can sign up to receive the SVB DtC Report, receive a link to the live presentation, and a post-conference link to the videocast replay ----> [HERE.]
The past two years have presented us with dislocation and change that needs unbundling. With an expert live panel (below) we will take 90 minutes to discuss the current state of the Direct to Consumer Wine Business, and offer our views on what's coming next:
- Internet sales from wineries grew by 500% when the Nation locked down in 2020. Internet sales are holding steady since the reopening. That is a permanent consumer change.
- The change to by-appointment tastings for years was resisted by many in the wine community. There was always the fear that moving away from the walk-in model would reduce sales opportunities. But regional mandates required tasting room appointments through the restricted COVID business era and that by-appointment model has now proven out. The headline slide to me says that we’ll never revert to a pure walk-in model again.
- Labor is a huge problem for everyone, but hospitality suffers more than most industries. What can be done to solve for higher salaries and reduced staff? What is that doing to consumer experiences?
- Technology is rapidly making its way deeper into this still-cottage and slow-to-evolve industry. Club memberships before COVID were exclusively gained from tasting room interactions. Yet today, as you can see in the nearby slide, an average of 17% of new memberships are now being attracted using digital means - away from the tasting room. Larger wineries are doing the best job so what can be learned from the approach of larger wineries?
- Average tasting room purchases have yet to return to pre-COVID measures but total DTC sales are now exceeding 2019 results.
- Net growth rates in clubs averaged an impressive 44% in 2021, but that was offset by attrition of almost 20%. What practices can we employ to reduce attrition and reduce acquisition costs?
- With all the hype around virtual tastings in 2020, it’s been interesting to watch the rush to the exits on that approach in 2022. Reopening the tasting rooms and drawing increased customer interaction there means there should be a move away from digital tastings, but have we gone too far in abandoning a new and successful channel?