Articles
The 2019 Trends in Wine Direct-to-Consumer Sales
by Andreas Mueller WSI Next Gen MarketingWhether
you currently have a Direct-to-Consumer (DTC) strategy in place already for
your winery, or you’re still deliberating the trends and benefits, here’s some
valuable information. WineDirect recently released their direct-to-Consumer
sales report, and the key data below indicate future trends. This is where
your wine marketing strategy should be focused on:
Ecommerce is the Largest Opportunity in DTC Sales
Wine
club sales currently comprise the largest share.
However,
the opportunity exists within the online digital shopping
space. With a high average order value ($282), low penetration (10% of total
sales), high average bottles per order (7) and lowest barrier to entry (your
website can sell wine 24/7 with no action needed from your team), online sales
represent the biggest opportunity for wineries selling direct to consumer
today. This is where a digital marketing agency comes in.
“As
markets mature, Point of Sale orders decrease in importance, while Wine Club
Website and Other orders increase. This is especially true for Napa, Sonoma and
the Central Coast and suggests that as regions develop, they begin to rely more on heavily on repeat sales from club members and mailing list subscribers.”
Average Order Value — Which Channel is the Strongest?
Since
2015, Wine Club Average Order Value (AOV) has increased by 54%, from $153 to
$237.
Wine Club Success
The majority is dominated by smaller clubs, with a handful of larger ones.
California leads the way with the highest average member count and the highest
median. In the US, the average wine club has 1,630 members. 31 months is the
average membership length.
Mobile Commerce is Coming to Wine
In
2019, mobile traffic to winery websites is poised to exceed 50% for the first
time. And in 2018, mobile orders on winery websites were up more than
30%. Are your winery web and mobile friendly? Ask our digital marketing
agency today!
Between
2017 and 2018, mobile orders among WineDirect clients grew more than 30% from
144,000 orders to 190,000 orders.
Start with the Tasting Room, Move On to Wine Club &
Website
Overall,
the point of sale revenue accounts for just over ⅓ of the total DTC sales. In emerging
regions such as Texas, Virginia and New York, however, they make up close to
60%. In more established regions, wine club, website, telesales and other
orders all increase in importance, illustrating that as wineries mature, they
come to rely more heavily on repeat sales from loyal customers. Your wine
marketing strategy should encompass every aspect fo the buyer’s journey.
The Real Value of the Tasting Room is Customer
Acquisition
Tasting
room average order value is not only the lowest of any channel ($110), it
varies the least across price points and regions, and has in fact decreased
since 2015. Given the high cost of staffing and operations, these factors make
the tasting room the least leveraged of all DTC sales channels. The real value
of providing in-person hospitality and excellent wine marketing, therefore,
is acquiring loyal customers who will join the club or purchase online
in the future.
Wine Clubs are Small and Plentiful
Nearly
60% of clubs globally have fewer than 1,000 members. This is most pronounced in
Australia, where that number is 80%. Even in California, the most mature wine
club region, more than half of the clubs are smaller than 1,000. This suggests
that wine clubs have significant room to grow, even on their already robust
base.
Up
your digital game and maximize your DTC potential for your winery. Talk
to digital marketing agency WSI today to see what you can do
to meet or exceed these trends in wine marketing.
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About Andreas Mueller 
WSI Next Gen Marketing
1 connections, 0 recommendations, 9 honor points.Joined APSense since, November 27th, 2019, From Napa, United States.
Created on Nov 27th 2019 05:45. Viewed 573 times.
