Some early results from the SVB DTC survey

 

Today, we are about 50 responses short of what we need to produce the Annual Direct to Consumer Report, so please participate. To help us reach the finish line, we are leaving the survey open over the weekend and closing it on 3/24.

Here are the questions if you want to prepare [link], as well as the [link] to the survey.

Let me give you some examples of important and interesting information from the survey so far.

Several sources have reported that tasting room visitation was down last year. Some have speculated that it's due to high tasting room fees. The headline slide is a chart from the interim survey data that puts a different spin on that conclusion. 

Breaking the top chart into quartiles, the upper quartile seems expensive, especially considering people seldom taste alone. Life and wine tasting are a team sport—maybe someone can use that in a marketing pitch. Anyway, the lower two quartiles, representing half of the winery respondents so far, are about $23 or less.

Another fact you can pull from that same information set is the practice of using standard and reserve tasting fees. Surprisingly, 26.2% of responses thus far only use standard tasting fees. For those wineries that have both reserve and standard fees, the average reserve fee is 1.9 times larger than the reserve fee, with a maximum of 5 times the standard fee, down to 1.2 times the standard tasting fee.

Here is some more interesting information on tasting room reimbursement policies. From this chart below, you can see how you compare to other wineries on tasting fee reimbursement policies. If you participate in the survey and get the full anonymous data set, you can also sort this information out by region.

There is one other thing that might be of interest. Seven percent of the wineries do something besides the other choices offered. Aren't you curious about their policies? Only participants who complete the survey get this added data that you might use to generate ideas. 

Without giving away all of the "other" responses, here are some:

•    We comp tastings if you join the club or purchase 3 bottles.

•    We do flights, not tastings. No reimbursement.

•    Free tastings for people who rent venue (we do weddings)

•    10% off 12 bottles.

•    We will waive two tasting fees for a minimum $1,000 purchase.

•    Club Members get a limited number of free tastings; otherwise, we do not reimburse them.

•    Tasting fees waived for wine industry partners only

•    Club members only 4x per year

•    We don't charge our top buyers for their tasting fees

•    We only waive fees for people who have McMillan for a last name.

•    we don't offer tastings. We offer 5 oz glass for $3.75

•    Our state law doesn't allow "free" tastings, so we charge $1 per taste

•    We allow wine club members and up to three of their guests to taste for free. We do not reimburse tasting fees otherwise.

•    We waive tasting fees if the customer pays with cash.

Some of those ideas are certainly worth considering. Here are the questions if you want to prepare [link]

Should SVB continue to produce the Annual DTC report?

This is my annual attempt to plead for your help, without which we can't produce the 13th Annual Direct-to-Consumer Report. 

If there was ever a time when actionable information and insights were needed, this is it. But we are close to a crisis point because we are unable to get sufficient survey responses. 

The SVB Annual Direct-to-Consumer Survey has been open for two weeks and is scheduled to close this Friday, March 22nd. As of this writing, we have 165 responses with just a few days remaining. That's far from the 500 we need to produce good results. (Click the top chart to see your region's performance thus far.)

The survey has just 29 questions. It should take 10 to 15 minutes to complete, even less if you are prepared. Many complete the survey in under five minutes. If you want to see the questions in advance, you can download and print them here.

In May, all survey participants will receive high-level analysis, benchmarks, and complete sanitized respondent data, anonymized of all personal and business-identifying information. Nobody else gets this data, and it can't be purchased.

Silicon Valley Bank goes to great lengths and costs to provide this report to the industry gratis. Still, it's a partnership with you: Without survey responses, we can't produce this industry resource.

So please spread the word on your social channels and make this a personal goal. Your choice to participate or not is a vote for us to continue with this initiative or phase it out.

 

What are you doing to improve club signups away from the tasting room?

The Target is Moving Again

Some of the questions we've answered over the years through the SVB annual direct-to-consumer survey have been critical to the industry's success, such as whether standing or seated tastings are more effective, or going back over a decade ago, what the lifetime value of a direct-to-consumer customer is. 

The latter question was asked at a time when we were moving from an over-dependence on three-tier sales and evolving with the freedoms extended with the Granholm decision. Today, we find ourselves at a new point of evolution, so answers are critical to success.

With two consecutive years of lower tasting room visitation impacting club memberships, wouldn't you be interested in knowing what your neighbors are doing to improve club signups that don't come through the tasting room? That's one of the questions we are posing this year.

Please do your part and contribute to this annual industry partnership with me. Without your participation, I can't produce the information that can help the industry. 

The 2024 DtC survey is now open and will close on March 22nd.

In May, all respondents who complete the survey will receive high-level analysis, benchmarks, and the complete sanitized respondent data, anonymized of all personal and business identifying information. Nobody else gets this data, and it can't be purchased. At the end of May, we will release a videocast to the industry and, along with other industry experts, discuss the findings. 

This year, the survey should take you fifteen to twenty minutes to complete and even less if you are a little prepared. If you would like to see the questions in advance, you can download and print them here.

Are you ready to participate in the survey this year?