Here at WithWine, we’re firm believers in using data to guide our business decisions. From the success of a marketing campaign to website visitors and demo conversion rates, these metrics help us keep track of everything that's happening within the business.
It’s exactly the same for wineries, but it’s one area that many people seem to be struggling with. Most wineries will be able to name their best sellers and the busiest days in their cellar door, but particularly when it comes to DtC wine sales and e-Commerce, there seems to be confusion about what metrics are the best.
The good news is, it's actually pretty simple. To focus on growing your DtC wine sales, these are the five most important things to know.
Email Capture Rate
Wineries need to create ongoing relationships with their customers, but how can you start a relationship with someone if you don’t have a way to contact them?
When people visit your cellar door, getting their email should be one of your top priorities. Setting yourself a challenge of getting even one extra email a day means that by the end of the year, you'll have nearly 400 extra people on your database. That's nearly 400 extra people to sell to and that could have a significant impact on your DtC wine sales.
Percentage of Online Orders
Note: You can either calculate this either by the dollar value or number of orders to start with,. You will receive slightly different results, but both will give you an idea.
Many wineries we speak to are unhappy with their online sales and some have even decided that focusing on e-Commerce is a waste of time.
But the reality is that e-Commerce is growing and studies have also found that online sales of alcohol are up. So, in turn, your orders should also be increasing. if you find that your online sales are stagnant or worse falling, this is an area to consider in your business.
Email Conversion Rate
One of the most effective ways to drive online sales is email marketing, but in order to measure how your campaigns are really performing, you need to know how many sales they’re actually driving.
While many wineries do keep track of things like open rates and click through rates, knowing your actual conversion rate is far more meaningful. It allows you to measure the actual return each of your emails brings and can help you decide what promotions work best for your winery.
Average Order Size
Another important measure to understand is your average order size. Imagine if half the customers in your cellar door who purchased wine ordered a cheese plate that made you just $5 in profit. Across the week, how much does that add up to? What about if half your visitors ordered it?
The smallest change in your order size can have a significant impact on your profits. Once you have this measure, you can begin to plan ways to increase your average order both in your cellar door and online.
Wine Club Conversion & Attrition
You can measure the success of your wine club in a number of ways, but these two are the simplest and can instantly give you a picture of how you're performing.
Consider how many cellar door visitors you are signing up to your wine club in the average month. In comparison, also look at the number of people who are leaving your wine club in the month. Ideally, the number of new wine club members should vastly exceed the lost members to ensure growth. However, improving either measure can have a positive effect on every wine club run.