Monday, February 20, 2017

Thoughts and a question on finding DTC customers

Throughout this class, we have talked a bit about the various ways of connecting wine consumers to small, authentic wine producers. Vivino is taking this on as a third party marketing service, featuring wines in its articles, blogs, and e-commerce store online. Vino Volo is taking this on with their wine list strategy- choosing and serving wines to their customers nationwide that are a bit “off the beaten path.”
As the daughter of wine producers, this is a question constantly on my mind. As we have all learned in the class, Direct to Consumer (DtC) is where the money is at. But how do we, as Darcie Kent Vineyards, find a potential consumer in Baltimore, Dallas, or Philly who would absolutely love our wine, but do not have a chance to come to the cellar door in Livermore? There is an entire universe of potential customers out there that we don’t know how to reach.
One approach would be getting your wines in their favorite local restaurant or wine shop, and hope that once the individual picks it off of the list or shelf, they will become a lifetime customer. But does this really work? For the on premise list- how often does a consumer actually look up the producer and order a case DtC from the winery itself once they get home from the restaurant? And for the wine store- what incentives would the consumer have to order the wine (and pay for shipping) from the winery when they can purchase it at their local shop? You can also hope to have your wine written up in a major publication, although if you come from a lesser known wine region (as many smaller producers in the US do) it is more difficult to generate interest in names like the Wine Spectator or the NYT.
The newer vehicles of DtC discovery- 3P marketing/ e-commerce, and wine bar chains like Vino Volo- may have more success here. Because wine is an “experience” good, where you don’t know its quality until you open the bottle, any information prior to purchase can be helpful. Consumers can read about the wine or producer on Vivino’s friendly and informative website. Alternatively, they can try a glass of the wine at Vino Volo, and have knowledgeable staff discuss the characteristics with them. Although the economics aren’t quite as good for the winery as pure DtC (Vivino and Vino Volo would have their cut), both of these vehicles have the potential to cultivate connection between a wine lover and the product.
But will this really work? I would be curious to hear from any classmates who have (or have not) purchased wine DtC from a winery they have never visited. What helped you make the purchase decision? Do you think reading about the wine in a blog, or having a glass of it in the airport, is convincing enough for you to go DtC instead of DtTJs (Direct to Trader Joe’s) for your wine selection? 

1 comment:

  1. I have never bought a wine DtC without having visited the winery. Living in California, I find that there are too many easily-accessible wineries with wonderful wines to buy from places I haven't visited. Additionally, even if I liked a wine, the shipping cost would likely prevent me from going DtC in a lot of cases.

    All of that being said, I think there are ways to drive these DTC sales. First, I think about how you get in front of high value audiences in regions that don't have a great wine selection. For example, when I was working with the owner of the 49ers on our wine program, he shared that he has a large wine tasting group in Ohio where he lives. That group purchases huge amounts of wine and so he brings in vintners to pour at events in Ohio, where those vintners are able to build up substantial additions to their DtC customer bases. I wonder if it is possible to find these high ROI groups across the country and specifically target them.

    Additionally, how you get the winery's story out to a broader audience. We talked in class about the importance of story telling when Alder shared about the eBay goods that were able to be sold for so much more with a story. I wonder if there is a way to get restaurants or wine stores to be better "storytelling ambassadors" of the brand.

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