Winery eCommerce Data Reveals Keys to Growing Sales. “The number one thing wineries need to do in 2021 to grow their eCommerce sales is utilize personalization,” says Zach Kamphuis, General Manager of Commerce7 Modern Commerce for Wineries. “Change the engagement with the consumer, based on what you know about them. This is not a new concept.” But it is an evolving one, and Kamphuis says that while only about 15% of people take advantage of their personalization tools, they are among the top performers.
The data collected from consumer behavior on the website, past purchases, and club membership tell you when they last purchased, visited, where they live, and what their lifetime value is; all of which can be used to personalize offers for them.
Clubs today are based around member benefits, but they are very localized. If a customer joins a wine club in California, but lives in New York, then sometimes those benefits are not very applicable. Making member benefits and club options more flexible and convenient is what will cause a new client to join the club. Using software to allow users to personalize their club, with things like which products, the quantity, the package frequency, shipment date, and delivery date all can have a huge impact on not only sales, but on customer retention as well.
From roughly 420 wineries clients aggregated data from, it was noted that on average 28% of club members will change the wine club package if given the option. This in turn will drive more revenue and also drive higher member retention. The data shows that allowing a club member to change the club shipment will increase the order value by 20% on average. Additionally, the attrition rate for members who edit the package drops.
On average 17.4% of wine club members leave in the first year. Of those who edited their club shipments, that number drops to 12.3%. A significant reduction in attrition, especially in times of in-person tasting being closed down making it harder to replenishment club members. It was noted that If you give a greater [online] shopping experience, they’ll purchase again. Of those wineries using wine club personalization features 74% are offering user choice (personalization) of clubs.
A potential issue of allowing customers to be able to personalize clubs would be the impact upon inventory and the issues that it could create, especially for a small winery. The suggestion being that if you are a large winery with 30,000 club members, or a small one, you should be able to use your ecommerce platform to assess what inventory you will need, and act on that. If you have a winery with 30,000 wine club members, you can let people personalize so it’s [club shipments] not going out all at once. Fulfillment is actually easier that way. For a smaller winery, one can look at it like an ecommerce source, instead of a traditional-style once-per quarter wine club run.
The argument we are trying to make is that we’ve got to do what’s in the consumer’s interest. Otherwise, someone else will. For consumers shopping online, you need to customize and personalize the content they see on your site based on their unique relationship with your brand.
Ecommerce personalization can be intimidating for wineries, so you can take a slow approach to these kinds of things, and elaborates, if you are just getting started and dabbling with customer engagement, change the content on your home page. Try to make an offering on your homepage to engage the anonymous visitor, something for the first time buyer, and an opportunity that is interesting to repeat buyers. And, of course, one option exclusively for wine club members.
SwiftERM extend this mindfulness into your email marketing, running alongside any existing email marketing software used, it takes all the data from buying history and each individual consumer’s impressions to calculate preferences and influences on product choice on an individual basis and captures that additional purchases as a consequence. Case-studies are provided.
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