Customer Loyalty Program for Wineries and Craft Breweries

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					                            Building profitability through greater customer loyalty            Issue Number 5

                            Customer Loyalty                                                 15 September 2008

                            Program for Wineries
                            and Craft Breweries
                                                                                           Inside this issue:

Why wine regions appeal—                                                                   Does your tasting
                                                                                           room have

looking beyond great wines                                                                 PERSONALITY?

 A new report into food       many of the offerings                                        Drafting your        2
 and wine tourism in          that visitors are seeking                                    contact plan
 Australia has identified     including providing a
 that the artisan skills      significant wine experi-                                     Happy anniver-       3
 and traditional values       ence (the Muscat Trail),                                     sary! Celebrating
 associated with Ruther-      the appeal of its location                                   member loyalty
 glen’s wine industry         in North East Victoria,
 remain important             attractions and activi-
 assets.                      ties and strong heritage                                     US consumer          3
                              values.                                                      direct sales
 It also highlights the                                                                    continue to grow
 positive move towards        The report goes on to
 redefining the region to     identify the top six                                         What makes us        4
 attract a younger visitor    attractions to a wine                                        say ‘yes’?
 market.                      region:

 The Food and Wine            • Scenery and natural
 Tourism in Australia           beauty – 45%                  rants – 15%                  Points of interest:
 report combines five
                              • Great wines and                                             The Pinot Noir category
 tourism research                                           • Number of wineries in
                                wineries – 31%                                              continues to show very
 reports on Australian                                        close proximity – 14%.
 wine and food. It reveals                                                                  strong interest from
                              • Accessibility and           The report’s value is in
 an increasing attraction                                                                   both consumers and
                                distance from home –        highlighting the variety
 towards food and wine          30%                                                         trade and is the fastest
                                                            of reasons why wine
 tourism as visitors seek                                                                   growing red category
                              • Friendly knowledge-         regions are appealing to
 out more experience                                        visitors. It is a reminder      growing at 29% MAT at
 oriented getaways.             able staff and good                                         the end of April 08
                                service – 16%               that great wines and ap-
                                                            pealing cellar doors are        (Nielsen April 08).
 The report finds that        • Food, including local       not enough to sustain           North East Victoria has
 Rutherglen exemplifies         produce and restau-         (cont’d page 2)                 the highest concentra-
                                                                                            tion of boutique brew-
                                                                                            eries of any region in
Making email communications work for you                                                    Australia—six, with a
Email offers a convenient     when the results do not       many followed particular        seventh brewery
and rapid means for us        meet expectations.            links. Analysing this in-       planned to open at Mt
to communicate with our                                     formation can help you to       Beauty.
customers. A well-             So what can you expect,      dramatically improve the
planned and targeted          and how do you do it well?    response rates that you
email newsletter or cam-                                    get to your future email
                               There are many systems
paign can provide a real
                              out there that allow you to
                                                            messages.                      Contact us:
boost to your business
                              send nicely formatted          The first surprise that        We’re from marketing
and can improve the rela-
                              emails to your client base.   most people get when            and we’re here to help!
tionship that you have
                              They allow emails to be       they start monitoring
with your customers. But
                              personally addressed, to      their email response rates      Email or phone us:
getting it wrong can do
                              include links to content on   is just how few people          info@quercusmarketing
untold harm, and having
                              your website and to track     even open the email in the
unrealistic expectations
                              how many people actually      first place. (cont’d page 4)
about likely outcomes                                                                       Ph: 02 6033 2115
                              opened the email and how
can be discouraging
Why wine regions appeal—looking beyond great wines (cont’d)
(cont’d from page 1) a viable cellar   the various “pull” factors specific
door business.                         to their region, whether that be the
                                       scenery and natural beauty, the
                                       accessibility of the region, the
                                       standard of the wine, the people
     “... recent analysis of           and/or the food.
  tourism strategies across
                                       This is often best achieved on a
         the country has
                                       regional basis through regional
   highlighted the need for            associations taking the lead in
  greater focus on a variety           developing strong brand attributes
   of visitor experiences at           linked to the region’s underlying
                                       A full copy of the report is avail-
                                       able in PDF format by emailing
Wineries—and breweries—need to
extend their appeal by tapping into

Does your tasting room have PERSONALITY? Contact plan—drafting
When looking at the daunting task      evident within five seconds of step-       At the time of this newsletter
of merchandising your tasting          ping inside the tasting room?              going to print the next round of
room some of you have asked,                                                      visits will be well underway.
“Where do I begin?”
                                           “Display is an avenue to               A major focus of the visits is the
The answer to that question is to        express the “personality” of             contact plan—the annual road
ask another question, “What is                 your business. ”                   map of member contacts via all
your brand’s personality?”                                                        communication methods, includ-
                                                                                  ing despatch of the continuity
Display is an avenue to express        Many of the tasting rooms I have           packs.
the “personality” of your business.    visited in North East Victoria are
It can build and support your          interchangeable. By this I mean I          A quick way of building the
brand and instantly transmit in-       could take the brand name off one          contact plan is to take a piece of
formation about your brand to the      tasting room and put it onto               paper and mark the months
customer. How you layout and           another. They have no distinct             down the left hand side of the
merchandise your tasting room          “personalities” and mostly this is         page, leaving enough space for
can create a unique visual state-      driven by how the tasting room is          notes under each month. Then
ment that will give you a distinct     merchandised. The actual wine              add the known activities for every
advantage over hundreds of tast-       brands DO have distinct identities         month where something hap-
ing rooms around the country.          but this is not being communi-             pens, such as when packs are
                                       cated visually in the tasting rooms.       despatched and newsletters
If you truly understand your                                                      emailed. This provides the plan
brand’s personality then beginning     So my advice would be to step              framework.
the process of looking at your tast-   back and reflect and critically
ing room’s layout and design will      review on your tasting room’s per-         Now add more contacts
be a simple one. If you have a clear   sonality and ensure it aligns with         (administrative, loyalty and sales)
message to convey with a strong        the brand aspirations you have for         using the spreadsheet provided
brand focus then you are half way      business. After all the tasting            at the first seminar as a memory
there.                                 room is the physical and spiritual         jogger. Finally the plan can be
                                       home of your business and the              polished by adding specific dates
If your brand is about family and                                                 or weeks by which the activities
history does your tasting room re-     impact here on will be instrumen-
                                       tal in creating both the immediate         will be completed.
flect that? If it is has a stylish,
modern approach to wine is this        and long term impression in the            Remember to keep the plan
reflected? What about proud Ital-      minds of your visitors.                    manageable for yourself and con-
ian heritage or an undisputed skill    Kristy Taylor, Cirko V.                    tact frequency acceptable to your
with fortified wines, are these                                                   members.

Page 2                                                           Customer Loyalty Program for Wineries and Craft Breweries
Happy anniversary! Celebrating member loyalty
There are three great reasons to
recognise your members on the
anniversary of the day they joined                                               birthdays sail by sans fanfare.
your club:
                                                                                 And as for Christmas, we don’t
1. Loyalty longevity and recon-                                                  want to upstage the man in red
nection                                                                          and bottles are much better arriv-
                                                                                 ing in dozens, than finding a single
A surprise gift or advice of an extra                                            bottle in one’s stocking after all . . .
membership benefit (such as
access to older wines or a higher                                                 3. Big impact
membership tier) received by a
member on a key anniversary date                                                 So stand out from the crowd. Your
is recognition of loyalty and a                                                  members’ nearest and dearest are
strong driver of the all-important                                               going to remember birthdays, wed-
‘perception of value’. Planning                                                  ding anniversaries and Christmas,
                                         2. Low risk                             well assuming they are married to
these annual loyalty drivers (what
is the message or gift, when does it                                             someone less forgetful than my
                                         With the best intentions in the         nearest and dearest . . . So make
get sent and to whom) needs to           world, recognising a member
occur as part of your ongoing                                                    a bigger splash and create a new
                                         couple’s wedding anniversary with       important date in your member’s
loyalty contact program.                 a congratulatory bottle of wine can     personal calendar, “my wine club
                                         misfire. With so many marriages         anniversary”.
                                         hitting the rocks your well-
                                         intentioned gift of wine may end        Susannah Doyle, Marketing Write.
                                         up drowning some sorrows rather
“For those of us of a certain age        than aiding in a celebration.
 birthdays are more a time for
  putting one’s fingers in one’s         For those of us of a certain age
  ears, closing one’s eyes and           birthdays are more a time for put-
   reciting loudly “la la la”. ”         ting one’s fingers in one’s ears,
                                         closing one’s eyes and reciting
                                         loudly “la la la”. So perhaps we
                                         should let some member’s

 US consumer direct sales continue to grow
A recent report on direct-to-            more than 10 million bottles direct-    e-commerce 10% and 3% each for
consumer (DTC) programs in the US        to-consumer each year.                  events and all other DTC programs.
has revealed that sales in all three     The report concluded that winery        Within technology, some wineries
major DTC channels (tasting room,        size does not determine DTC             complain that their consumer-direct
wine club and e-commerce)                success. With DTC dedication and        efforts are hindered by a lack of a
increased significantly during 2007      expertise even small wineries can       single, integrated database that
compared with 2006. The increases        effectively compete alongside large     contains all customers and their
were experienced across the board        wineries. Unlike any other aspect,      purchase histories. However, among
for small, medium and large              the consumer direct sales channel is    the 66% of wineries that do have an
wineries.                                the great equaliser in the wine         integrated database, just over one-
The survey also found that wineries      industry.                               third feel they are getting “good value”
of all sizes are planning to increase                                            out of it while 29% feel they aren’t
                                         Regardless of size—big or small—        getting real benefits.
the percentage of wine they sell         wineries that are most successful at
through DTC channels, building on        direct sales have some key things in    It is apparent there are common
the success they are already enjoy-      common: planning, execution and         database issues on both sides of the
ing in the direct sales market. On       tracking consumer-direct sales          Pacific. The next newsletter will
average wineries that were selling       programs.                               present more results from this report,
more than a third of their cases                                                 especially relating to club options,
through DTC channels last year           “DTC Heroes” also have a strong         average club sizes and price points.
expect to increase this to almost half   foundation based on tasting room
of all case sales within five years.     sales. Tasting room sales account for   Source: 2008 Consumer Direct Sales
                                         55% of their DTC case sales while       Survey Report, US Wine Business
Collectively survey respondents ship     wine clubs account for 29%,             Monthly, August 2008.

Issue Number 5                                                                                                     Page 3
                                   Making email communications work for you
                                   (Cont’d from page 1)
                                   This applies even when your mailing list consists of people who have
                                   specifically requested that you send them emails. There are many reasons
                                   for this, including spam filtering (at the ISP level, at the workplace level for
       P: 02 6033 2115             business email addresses, or at the local computer level). In most cases
       M: 0407 176 919             the email simply never reaches the subscriber, and neither you as the     sender nor the recipient will know this. With most of us getting many
        in association with        emails each day now, it is also easy to accidentally delete such an email
    Marketing Write & WangNET      without opening it.

                                   In other cases if you send an email in HTML format (ie with nice pictures
                                   and formatting in it) but the recipient is using an email program that
                                   cannot display HTML (or has that ability turned off as a safety measure)
                                   then the email itself will come through as just gibberish and so be deleted
                                   without being read. This means it is important to use email software that
                                   actually creates two versions of your email – one the nice glossy HTML
                                   version, and the other a simple plain text version. The correct version will
                                   then be shown to the recipient according to the capacity and preferences of
                                   the recipient’s email program.

                                   Of course, there is also a lot of bogus email out there. Some of this is just
                                   spam but sometimes it contains malicious software such as viruses or
                                   keystroke-logging Trojans and it can be difficult at times for the average
                                   person to distinguish between genuine emails and bogus ones. Including
                                   personalisation such as the first name of the recipient goes a long way
                                   toward addressing this. Also, complying with the Spam Act 2003 by
                                   including full details of the sender plus a method of unsubscribing not
 Program auspiced by Alp           only keeps you on the right side of the law but helps to show that the
Valleys Agribusiness Forum         email is genuine.

                                   All good mailing systems allow personalisation and comply with the
                                   requirements of the Spam Act.
Getting to ‘yes’
                                   So let’s assume that you have been successful in getting the email through
                                   and the recipient has opened it. What then?
“What makes a person say yes        You need people to actually do something once they have opened your
is the value – WIFM: ‘What’s       email. So you need to make it interesting, and most importantly you need
in it for me?’                     to include a “call to action” or a request that they click on a link or check
“For ‘traditionalists’, it’s all   out an offer. Failure to include such calls to action is a common cause of a
about the price, a deal, a         poor response to an emailing.
discount, function, feature
and urgency. It doesn’t            Once the customer has actually responded to your invitation and has
matter if the salesperson is on    clicked on a link to an offer, you need to have some method of follow up
the phone, at the front door or    such as a thank you or an indication of when they can expect to receive
behind a counter, those            their goods etc. Fortunately a lot of this can be automated too, including
things will drive the sale for 8   through the using of the emailing software or through email
million Australians.               autoresponders.
“The ‘neo-consumer’ [on the        Some popular email systems include Vision 6, Constant Contact and
other hand] is more con-           iContact, but there are many others. All offer a free trial period so that
cerned with how it feels and       you can evaluate if the system is right for you. Some Content
whether the item has a sense       Management System websites also offer the ability to include this
of investment or will become       capability directly integrated with your website, allowing you to include
more expensive or valuable         extracts of website content and direct links to more details in the email
later on.                          that you send.
“They are two entirely differ-     If you have been sending out bulk emails from your own computer,
ent sales cases.”                  chances are that most of your emails are not getting through, and you are
From Ross Honeywill, con-          probably getting frustrated with the amount of effort that is involved in
sumer behaviourist and sales       doing it. It’s time to check out the better alternatives.
trainer, the Centre for
Customer Strategy.                 Geoff Turnbull, WangNET.

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