Wine Retailing

BuyersVine started as a way for wine retailers to provide information to wine shoppers thereby improving service and driving sales.  Buyers simply use the in-store kiosk to help find the perfect bottle for the occasion.

Over the last few years, shoppers have begun using their smartphones for information.  Scanning a barcode gets them information right in front of the product – they do not need to walk over to the kiosk.

The problem for the retailer (at least for retailers who do not use BuyersVine) however, is the lack of control over what information is being presented to the shoppers.  Most often, the information is simply where to buy the product at the cheapest price – information that may be driving customers OUT of your store.

Well now you can take control of the information shoppers see on the smart phones.  BuyersVine now has the ability to generate a QR code for each of the wines in your BuyersVine system. You can print the QR codes on stickers and put the stickers on shelf-talkers.

When a shopper scans the QR code with their smartphone, they see YOUR information – your logo and the description of the wine which we create for you.  You control what they see in your store.

This function further improves the service you offer to your wines shoppers and further drives wine sales for you.

The new category of tablet computers, like the iPad, can be leveraged to sell wine. What do I mean about category? How can it sell wine?

Some people view the iPad as an enlarged iPod or an oversized smartphone. I see it differently. I see it as a reduced-size computer. It represents a category of computers that are light, small, but usable. HP will be coming out with a similar offering, as will Dell.

What does this mean for wine sellers? It opens up selling and customer service opportunities. Consider the possibilities:

A zero footprint kiosk. We have spoken with many retailers who would love to put a wine selector kiosk into their store, but are concerned about the space it would occupy. Faced with a decision of using space for a kiosk or for more product, many retailers will choose more product. What if you can have the benefits of a wine selector kiosk without using any space?

This computer category enables that. The dimensions of even modern kiosks on a floor stand are about 18 inches by 6 inches by 48inches high. That’s about 3 cubic feet – enough space for about 50 bottles of wine. The iPad measure 10 x 8 inches and is about 3/8 inches thick. That’s about 1/50th of a cubic foot – virtually zero footprint. So the iPad category enables the benefits of a kiosk without taking space. Also, consider where you could put these types of kiosks:

• Mount one or several on a wall. It would be like putting a sign on a wall, but with the benefits of an interactive kiosk.
• Fasten them in shopping carts. Wouldn’t it be nice for your customers to be able to use a shopping assistance tool right at the cart?
• For higher end wine shops, let your customer use one while they are in the store.
• Put one in your cheese section, so a customer can barcode scan a cheese and receive complementary wine recommendations.

These devices open a new world of opportunities.

With all due respect to Spam the product, Spam the marketing technique of sending emails with insufficient consideration of the recipient, is not well-received.  I have received many email messages from wine retailers that are a variation of:

“Exciting news! We have just received a limited supply Wine ABC.  We believe you will like it! Drop by and buy it before it is all gone!”

On what basis do they think I will like it? Just because they have it?  I have bought wine at the sender’s store, but they have not analyzed my purchases to see if the wines I purchased have similar taste characteristics?  Nor have they determined that the wine they are suggesting to me has those taste characteristics?  They have simply sent the identical email to everyone on their list.

Imagine if Amazon sent an identical email to all its customers saying “We have just received a limited supply of The Principals of Cloud Computing (replace with any book title), and we recommend it to you.” The book will appeal to some, but not most.  Amazon would not consider recommending a book to you with no knowledge of what you like to read.  Rather, they make recommendations that are based on your past purchase history.

Here’s the good news: Wine retailers can do the same thing. Technology exists to track the taste characteristics of every wine in your store.  If you are tracking your wine club members’ purchases, you can determine common taste characteristics in their purchase patterns.  You can determine which wines in your store they are likely to enjoy – based on their specific tastes.  When you send emails then, you can personalize each one to each customer. It sounds like a lot of work, but with current technology, it is not really.

Imagine how much more effective the following email could be:

“Mr. Jones, we have just received a limited supply of Tikal Patriota, a Malbec/Bonarda blend from Argentina. It is full-bodied and dry and features tastes of red berries and crème brulee.  Drop by and take a look.”

If Mr. Jones’ purchase history shows that he tends to buy full-bodied, dry wine with tastes of red berries, the email will be powerful.  If the same email were sent to Ms. Smith, who tends to buy light, off-dry whites with tastes of citrus, the email would be useless. Of course, you would have a different email for her.

Here’s more good news: wine buyers like receiving recommendations. Store after store tell me how effective email marketing is.  As customers are now receiving more emails from wine stores, the intelligent emails or online recommendations will be the ones generating walk-ins, clicks-ons and purchases.

The National Grocers Association has just released its 2010 Consumer Survey Report, which was completed in association with ConAgra Foods and SupermarketGuru. It is a good report identifying what is most important to American food shoppers.

There are a few interesting finds in the report surrounding social media and the internet generally. First, shoppers do not care much about online buying. Only 14% stated that an online buying service available from their grocery store was important. It does not factor into their choice of a food store. Only 38% said that self-checkout was important to them.

99% stated that a clean, neat store is important. 96% said low prices are important. 97% said accurate shelf tags are important.  No surprises here, but it is a good reminder that the basics are important, and that shoppers are unforgiving when it comes to neatness and accuracy of information.

82% of shoppers said they use social networking to gather or exchange information about foods including new products, nutrition and recipes. This applies to older as well as younger shoppers. This is another reminder of the importance of retailers being present in the social media sites.

The most common source of nutritional information is the internet, with 75% of consumers using it for information. What surprised me was where the internet ranked in terms of trustworthiness.  While no source of information enjoyed a high level of trust, the internet ranked the highest.  30% of consumers considered the internet to be the most truthful.  This figure is twice as high as the next most trusted source of nutritional information – doctors!

What does all this mean for wine retailers? Well, these food shoppers are also wine shoppers.  The survey results remind us that the basics – clean stores, accurate information are critical, but are table stakes. Wine retailers who provide accurate information online and who are active in social media will get the attention (and the dollars) from today’s consumers.

Author: Louis Lamoureux – CEO, BuyersVine. louis@buyersvine.com

Nielsen has recently reported that American adults spend an average of 66 hours per month on the web.  This figure has approximately doubled since 2006, and continues to climb rapidly. It is interesting that this additional time has not taken time away from television – which continues to rise slowly and currently stands at approximately 144 hours per month.  In the same manner that TV did not impact radio, it looks like the internet is not impacting television.

Even though time spent on internet is still significantly less than time spent watching TV, businesses spend more money advertising on Google than on the entire amount spent on television. Clearly, an internet presence is of value.

Nielsen also reports that the fastest growing segment of internet usage is on social media sites like Facebook or Twitter. Time spent on social media sites is up 210% in 2009 over 2008. In December, 142 million adults in the US spent an average of 6 hours on such sites.  This figure has risen from approximately 2 hours just two years ago in 2007.

What does this mean for sellers of wine? Be there. If you do not have a significant presence online, that growing population will not find you online.  Also, the cost of the internet is incredible low. In fact, you can establish a presence on the social media sites at no cost.  In his book “Crush It”, Gary Vaynerchuk describes how he helped grow his family’s wine store from four to fifty million dollars in eight years – but at a cost of millions of dollars of advertising in traditional media. He compares that to the $15,000 he has spent to-date on his video blog – which has generated even greater value for himself and the store.

Bottom line: The internet usage is still growing rapidly. Being there is effective and inexpensive.  Are you there yet?

Author: Louis Lamoureux – CEO, BuyersVine. louis@buyersvine.com

80% of wine buyers are women. A recent article published by Emerald Group (Women wine consumers: information search and retailing implications) examined the differences in how men and women select wine.

It turns out that both men and women view wine as a high risk purchase. They want to avoid being embarrassed in front of business associates or friends. Both men and women manage the risk by getting information at the point of purchase—which is where 70% of the purchase decisions are made.

The sources of information tend to differ, however, for men and women. Men have a stronger tendency to read reviews and even books. Whereas women will look more closely at the labels and shelf tags. Both will rely on country of origin in the absence of other information. Men are more likely to walk away without making a purchase.

What does this mean for retailers? Have the information available for both men and women at the point of purchase, and make it easy to find.

Author: Louis Lamoureux – CEO, BuyersVine. louis@buyersvine.com

When Jane Shopper walks in, do you think to yourself, “There she is, my next best customer!” In this challenging market, you should. Your leadership is the key to seizing each opportunity to create a loyal customer. Loyalty driven shopping environments generate long term, relational business.

Customer Perception: Your store must be clean, warm and well organized. Warmly lit stores with rich colors create a comfortable hominess. Comfortable people linger and buy more wine!

Rock Stars One and All: Never underestimate the power of knowing your customers by name and preference. Retail shoppers are starved for people who care about them more than the phone, the computer, the visiting salesman and most certainly more than the other employees.

Wine is So Confusing: Contrary to popular myth, shelves lined with wine are not friendly! Sub-divide by some logical grouping like grape type, organize the wines by price, create effective signage, break up the shelving, pair up wines with take home meals and do not offer selection overkill.

Create Confidence: The “easy” factor is accurate, easily accessed information. An educated, sales oriented wine professional is a nice touch, but might not be an option. What your customers are craving is “self-propelled” information that makes them look smart and feel confident.

Author: Ron Edwards is a Master Sommelier who partners with restaurants, hotels and retailers to create consumer focused beverage programs. Improve your business by contacting him at 231-675-1312 or www.ronedwardsms.com

A recent study by BMG Online First found that wine buyers are typically higher income, have higher education levels and tend to buy healthier foods than other shoppers. Most important, wine buyers typically fill their carts more than other shoppers.

Often, they are buying wine for a specific occasion. And they need everything else for the occasion: cheese, meats, sauces, the list goes on. Supermarkets who can keep wine buyers coming back will enjoy higher sales not just of wines but other products as well.

Further, retailers who can let shoppers know which products such as cheeses, meats or sauces, match their wines will drive sales of complementary products.

Author: Louis Lamoureux – CEO, BuyersVine. louis@buyersvine.com

We have seen that for most consumers, the average time from purchase to consumption of a wine is measured in hours, not days, months or years.

The purchase is often made for an occasion – a near-term dinner or a party, usually not to add to the shopper’s wine cellar. Therefore, retailers who can help shopper buy the wine that is right for the occasion will enjoy repeat business.

Shoppers will consider price , quality and value important. But getting the right wine for the immediate occasion is paramount.

Author: Louis Lamoureux – CEO, BuyersVine. louis@buyersvine.com

When consumers find a toothpaste or a soda they like, they stick with it. The same is not true for wine.

With thousands of wines to choose from and with wine being more of an adventure than other products, consumers are willing to try different brands much more frequently. In fact, with so many brands, it is often difficult for the consumer to remember the name of the brand they liked.

Consumers will, however, stick with a retailer that helps them get the right wine for the occasion. While consumers have lower loyalty to the wines themselves, they have strong loyalty to their wine retailer.

Author: Louis Lamoureux – CEO, BuyersVine. louis@buyersvine.com