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Direct Hit The value of an online relationship SOPHIE PREECE
Cloudy Bay seeks to create a long-term connection with visitors. Photo Richard Briggs
MARLBOROUGH HAS a “tremendous strategic opportunity” to benefit from direct sales to international consumers, according to nzwinehome founder Grant Rimmer. Data from nzwinemetrics shows that 87% of direct to international consumer sales of Marlborough wine are at the cellar door, with the remaining 13% in online sales. That’s compared to the national average of 71% at cellar door and 29% through e-commerce, says Grant. “If we looked at Central Otago independently, they would show 48% in e-commerce activity versus cellar door sales.” The two “benchmark” regions for online sales are Central and Waiheke, which have both been successful in implementing a “two-point sales objective”, says Grant. “Their first objective being to secure case sales directly at the point of visitation. Simultaneously, their second objective is to achieve commitment within a club, subscription or similar wine loyalty programme.” That takes time “and there is always churn”, but if producers build a sufficient depth of members and “offer
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a genuinely compelling and unique proposition”, the sales rewards can be significant, says Grant. “Wine clubs and subscription programmes are the main drivers of e-commerce for wine.” While some people will “jump on a website and randomly buy”, a commitment programme is far and away a better option, he adds. Some programmes are a casual ‘friends of’ arrangement, where a customer signs up to receive a newsletter, including updates on new releases and a link to buy. Others are structured, where a brand fan, tempted by the status of a label and the rarity of its wines, hands over credit card details and opts to buy automatically in the future. The “ultimate” situation is for producers to establish a “cult” following for their brand or a specific label, with a waiting list to join the mailing list, says Grant. Regardless of which situation a producer is in, a digital connection with international ‘direct to consumer’ reach is “a modern necessity”, he says. “In addition to the obvious profitability benefits, direct to customer sales offer a rare opportunity to learn about the
“Wine clubs and subscription programmes are the main drivers of e-commerce for wine.” Grant Rimmer consumer and understand what they are looking for.” One of the reasons Marlborough has fewer direct sales could be the perception that the region is all about Sauvignon Blanc, and that all its wines can be easily sourced overseas, Grant says. Both are erroneous assumptions, and cellar doors have perfect opportunity to correct them, by inviting customers to discover their wider offering and to connect for the
