final ssu direct to consumer seminar spring 2016 v7

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DTC Marketing

Presented by: Ron Scharman

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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.

http://wineinstitute.shipcompliant.com/StateDetail.aspx?StateId=16




























































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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

Email

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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

http://www.wine.com/

http://www.elanvineyards.com/

http://www.winebid.com/

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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!

Ron Scharman

Move Obama to AppendixBullet should read: How Big Data and CRM elected a U.S. President

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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

Ron Scharman

I would like to add:Socializing Bricks and Mortar - Customer Discovery

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businesses Social media channels Friends and family Special events Wine publications and

blogs?


Getting Found

Building Advocates



Ron Scharman


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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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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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blogs?


Getting Found

Building Advocates



Ron Scharman


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Remember That the Journey is Non-Linear



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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

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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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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*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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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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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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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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blogs?


Getting Found

Building Advocates

Discovery: Socializing Brick & Mortar


Ron Scharman


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SEO BREAK

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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

http://www.wordstream.com/google-adwords

http://www.wordstream.com/benefits

http://www.wordstream.com/paid-search

http://www.wordstream.com/sponsored-links-google

http://www.wordstream.com/pay-per-click

http://www.wordstream.com/maximum-bid

http://www.wordstream.com/quality-score

http://www.wordstream.com/ad-position

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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.

http://www.google.com/places

http://www.getlisted.org/

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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.

https://plus.google.com/local

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Engagement?

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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


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

http://www.youtube.com/watch?v=E1rUdTITGCg

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DISCOVERY

• Search engine

• Word of mouth

• Advertisement

• Social Media

ENGAGEMENT

• Visits website



ACQUISITION



• Joins wine club




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

Ron Scharman

I would like this slide to be moved back to come right after "Things to Watch" Slide.

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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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– Most traditional tasting room business model – Let’s discuss• Newsletter signup form



– With click-to-call email digital campaign – Let’s discuss• Direct Mail, Catalog


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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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– Most traditional tasting room business model • Newsletter signup form





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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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– Most traditional tasting room business model• Newsletter signup form

– Critical best practices • Email Campaigns




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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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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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DISCOVERY

• Search engine

• Word of mouth

• Advertisement

• Social Media

ENGAGEMENT

• Visits website



ACQUISITION



• Joins wine club




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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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 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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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

http://blog.jimdo.com/downloads/create-an-online-store.png

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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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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


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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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1. OBJECTIVE

2. STRATEGY 3. TACTICS 4.

SCHEDULE

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• 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


• Your objective should be:• Clear• Actionable• Map directly to a company-wide KPI

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EXAMPLES OF OBJECTIVES:

1. OBJECTIVE


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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• 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


1. OBJECTIVE


SCHEDULE

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PRICING THEORY

IN PRACTICE


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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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1. OBJECTIVE


SCHEDULE

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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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1. OBJECTIVE


SCHEDULE

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BUDGETING:

HOW MUCH SHOULD I SPEND ON ADVERTISING?


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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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1. OBJECTIVE


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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And Delighting Customers


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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

mailto:[email protected]