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Revisiting the top 20%

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Page 1: Revisiting the top 20% - DTC Wine Symposiumdtcwinesymposium.com/.../2016/01/6.-DTCWS-2016_WineDirect20Percent.pdf · 2016/1/6  · How is the top 20% different? Interested in doubling

Revisiting the top 20%

Page 2: Revisiting the top 20% - DTC Wine Symposiumdtcwinesymposium.com/.../2016/01/6.-DTCWS-2016_WineDirect20Percent.pdf · 2016/1/6  · How is the top 20% different? Interested in doubling

2013-2015

Over 9 million transactions Across 1200+ winery websites $1.7 Billion in sales

Page 3: Revisiting the top 20% - DTC Wine Symposiumdtcwinesymposium.com/.../2016/01/6.-DTCWS-2016_WineDirect20Percent.pdf · 2016/1/6  · How is the top 20% different? Interested in doubling

Do they have an unfair

advantage?

Source: Pando.com

Page 4: Revisiting the top 20% - DTC Wine Symposiumdtcwinesymposium.com/.../2016/01/6.-DTCWS-2016_WineDirect20Percent.pdf · 2016/1/6  · How is the top 20% different? Interested in doubling
Page 5: Revisiting the top 20% - DTC Wine Symposiumdtcwinesymposium.com/.../2016/01/6.-DTCWS-2016_WineDirect20Percent.pdf · 2016/1/6  · How is the top 20% different? Interested in doubling

2013-2015

Over 9 million transactions Across 1200+ winery websites $1.7 Billion in sales

Page 6: Revisiting the top 20% - DTC Wine Symposiumdtcwinesymposium.com/.../2016/01/6.-DTCWS-2016_WineDirect20Percent.pdf · 2016/1/6  · How is the top 20% different? Interested in doubling

89% of all sales.

Through 2015

Page 7: Revisiting the top 20% - DTC Wine Symposiumdtcwinesymposium.com/.../2016/01/6.-DTCWS-2016_WineDirect20Percent.pdf · 2016/1/6  · How is the top 20% different? Interested in doubling

What makes the top 20% so

special?

Page 8: Revisiting the top 20% - DTC Wine Symposiumdtcwinesymposium.com/.../2016/01/6.-DTCWS-2016_WineDirect20Percent.pdf · 2016/1/6  · How is the top 20% different? Interested in doubling

Do they have an unfair

advantage?

Page 9: Revisiting the top 20% - DTC Wine Symposiumdtcwinesymposium.com/.../2016/01/6.-DTCWS-2016_WineDirect20Percent.pdf · 2016/1/6  · How is the top 20% different? Interested in doubling

Case production?

Big Scores?

High Bottle Price?

Location?

Demographic focus?

Page 10: Revisiting the top 20% - DTC Wine Symposiumdtcwinesymposium.com/.../2016/01/6.-DTCWS-2016_WineDirect20Percent.pdf · 2016/1/6  · How is the top 20% different? Interested in doubling

Source: Pando.com

Page 11: Revisiting the top 20% - DTC Wine Symposiumdtcwinesymposium.com/.../2016/01/6.-DTCWS-2016_WineDirect20Percent.pdf · 2016/1/6  · How is the top 20% different? Interested in doubling

Source: Pando.com

So what does the

data tell us?

Page 12: Revisiting the top 20% - DTC Wine Symposiumdtcwinesymposium.com/.../2016/01/6.-DTCWS-2016_WineDirect20Percent.pdf · 2016/1/6  · How is the top 20% different? Interested in doubling

Purchases on Mobile in 2015 2014 2015

top bottom

Average email list size.

4X larger

Page 13: Revisiting the top 20% - DTC Wine Symposiumdtcwinesymposium.com/.../2016/01/6.-DTCWS-2016_WineDirect20Percent.pdf · 2016/1/6  · How is the top 20% different? Interested in doubling

2013 2014 2015

bottom top

$100 more

Average Order Value.

Page 14: Revisiting the top 20% - DTC Wine Symposiumdtcwinesymposium.com/.../2016/01/6.-DTCWS-2016_WineDirect20Percent.pdf · 2016/1/6  · How is the top 20% different? Interested in doubling

75% more

0.00%

2.00%

4.00%

6.00%

8.00%

10.00%

12.00%

Top 20 Bottom 80

Shipping as a % of sales

50% less

Page 15: Revisiting the top 20% - DTC Wine Symposiumdtcwinesymposium.com/.../2016/01/6.-DTCWS-2016_WineDirect20Percent.pdf · 2016/1/6  · How is the top 20% different? Interested in doubling

Email list is 4x larger AOV is $100 more

Shipping is 50% less

How is the top 20% different?

Page 16: Revisiting the top 20% - DTC Wine Symposiumdtcwinesymposium.com/.../2016/01/6.-DTCWS-2016_WineDirect20Percent.pdf · 2016/1/6  · How is the top 20% different? Interested in doubling

What does the data show us?

Page 17: Revisiting the top 20% - DTC Wine Symposiumdtcwinesymposium.com/.../2016/01/6.-DTCWS-2016_WineDirect20Percent.pdf · 2016/1/6  · How is the top 20% different? Interested in doubling

2014

89% of all sales.

Page 18: Revisiting the top 20% - DTC Wine Symposiumdtcwinesymposium.com/.../2016/01/6.-DTCWS-2016_WineDirect20Percent.pdf · 2016/1/6  · How is the top 20% different? Interested in doubling

2014

46 wineries 2X’d ecom sales in 2015.

Page 19: Revisiting the top 20% - DTC Wine Symposiumdtcwinesymposium.com/.../2016/01/6.-DTCWS-2016_WineDirect20Percent.pdf · 2016/1/6  · How is the top 20% different? Interested in doubling

2014

..up by 130%

Page 20: Revisiting the top 20% - DTC Wine Symposiumdtcwinesymposium.com/.../2016/01/6.-DTCWS-2016_WineDirect20Percent.pdf · 2016/1/6  · How is the top 20% different? Interested in doubling

Source: Pando.com

Page 21: Revisiting the top 20% - DTC Wine Symposiumdtcwinesymposium.com/.../2016/01/6.-DTCWS-2016_WineDirect20Percent.pdf · 2016/1/6  · How is the top 20% different? Interested in doubling

How did they double?

Page 22: Revisiting the top 20% - DTC Wine Symposiumdtcwinesymposium.com/.../2016/01/6.-DTCWS-2016_WineDirect20Percent.pdf · 2016/1/6  · How is the top 20% different? Interested in doubling

1) Focused on user experience

Page 23: Revisiting the top 20% - DTC Wine Symposiumdtcwinesymposium.com/.../2016/01/6.-DTCWS-2016_WineDirect20Percent.pdf · 2016/1/6  · How is the top 20% different? Interested in doubling

Responsive Design

Page 24: Revisiting the top 20% - DTC Wine Symposiumdtcwinesymposium.com/.../2016/01/6.-DTCWS-2016_WineDirect20Percent.pdf · 2016/1/6  · How is the top 20% different? Interested in doubling

Desktop Mobile Tablet

Purchases on Mobile in 2015

33%

Page 25: Revisiting the top 20% - DTC Wine Symposiumdtcwinesymposium.com/.../2016/01/6.-DTCWS-2016_WineDirect20Percent.pdf · 2016/1/6  · How is the top 20% different? Interested in doubling

#mobilegeddon

Page 26: Revisiting the top 20% - DTC Wine Symposiumdtcwinesymposium.com/.../2016/01/6.-DTCWS-2016_WineDirect20Percent.pdf · 2016/1/6  · How is the top 20% different? Interested in doubling

Source: marketingland.com

Page 27: Revisiting the top 20% - DTC Wine Symposiumdtcwinesymposium.com/.../2016/01/6.-DTCWS-2016_WineDirect20Percent.pdf · 2016/1/6  · How is the top 20% different? Interested in doubling

1) Focus on User Experience

Page 28: Revisiting the top 20% - DTC Wine Symposiumdtcwinesymposium.com/.../2016/01/6.-DTCWS-2016_WineDirect20Percent.pdf · 2016/1/6  · How is the top 20% different? Interested in doubling

2) Offered guest checkout

Page 29: Revisiting the top 20% - DTC Wine Symposiumdtcwinesymposium.com/.../2016/01/6.-DTCWS-2016_WineDirect20Percent.pdf · 2016/1/6  · How is the top 20% different? Interested in doubling

Uh Oh!

Page 30: Revisiting the top 20% - DTC Wine Symposiumdtcwinesymposium.com/.../2016/01/6.-DTCWS-2016_WineDirect20Percent.pdf · 2016/1/6  · How is the top 20% different? Interested in doubling

Guest Checkout

Page 31: Revisiting the top 20% - DTC Wine Symposiumdtcwinesymposium.com/.../2016/01/6.-DTCWS-2016_WineDirect20Percent.pdf · 2016/1/6  · How is the top 20% different? Interested in doubling

How did they double?

Page 32: Revisiting the top 20% - DTC Wine Symposiumdtcwinesymposium.com/.../2016/01/6.-DTCWS-2016_WineDirect20Percent.pdf · 2016/1/6  · How is the top 20% different? Interested in doubling

3) Used offline to drive online sales.

Page 33: Revisiting the top 20% - DTC Wine Symposiumdtcwinesymposium.com/.../2016/01/6.-DTCWS-2016_WineDirect20Percent.pdf · 2016/1/6  · How is the top 20% different? Interested in doubling

Action Emails

Page 34: Revisiting the top 20% - DTC Wine Symposiumdtcwinesymposium.com/.../2016/01/6.-DTCWS-2016_WineDirect20Percent.pdf · 2016/1/6  · How is the top 20% different? Interested in doubling

Offline to Online, a case study

$2,500 in net new ecom sales

63% opened, 7.5% converted

89 emails captured and sent.

89 TR Transactions ($7500).

Page 35: Revisiting the top 20% - DTC Wine Symposiumdtcwinesymposium.com/.../2016/01/6.-DTCWS-2016_WineDirect20Percent.pdf · 2016/1/6  · How is the top 20% different? Interested in doubling

What’s the value of an action email… TR Transactions/ Day 50 email Capture Rate 50% Action email Sent 25 7.5% Conversion rate 1.875 AOV $318

Net New eCom Sales (day) $ 596.25

New Sales, Annualized $ 131,175.00

Page 36: Revisiting the top 20% - DTC Wine Symposiumdtcwinesymposium.com/.../2016/01/6.-DTCWS-2016_WineDirect20Percent.pdf · 2016/1/6  · How is the top 20% different? Interested in doubling

Email receipts are appealing to 41% of consumers

No Yes

41%

Page 37: Revisiting the top 20% - DTC Wine Symposiumdtcwinesymposium.com/.../2016/01/6.-DTCWS-2016_WineDirect20Percent.pdf · 2016/1/6  · How is the top 20% different? Interested in doubling

User Experience Guest Checkout Offline to Online

How did the new entrants double?

Page 38: Revisiting the top 20% - DTC Wine Symposiumdtcwinesymposium.com/.../2016/01/6.-DTCWS-2016_WineDirect20Percent.pdf · 2016/1/6  · How is the top 20% different? Interested in doubling

Email list is 4x larger AOV is $100 more

Shipping is 50% less

How is the top 20% different?

Page 39: Revisiting the top 20% - DTC Wine Symposiumdtcwinesymposium.com/.../2016/01/6.-DTCWS-2016_WineDirect20Percent.pdf · 2016/1/6  · How is the top 20% different? Interested in doubling