The demand for wine has been decreasing since 2017, with the shift moving towards spirits. Wine category as a whole had high hopes for 2020 until depletion rates dropped to -1.4% in April, down 0.8% from March. Spirits on the other hand had jumped to a depletion rate of 7.2%, up an even 1%. Note that both of these figures cover both on and off premise sales.
As many can see there is both "selected" and "redeemed" rows on each monthly report. Most, exclusivly, look at just the redeemed row and move on. It is important to start utilizing BOTH of these data points in order to continue to grow your business.
Many suppliers successfully promote their products by doing in store events. They set up a table and speak with each customer about the brand and sell products right then and there. It is about capturing those customers right at the time of purchase. With changing restrictions some stores now do not allow these types of events. This is why BottleRoom 3 has created the Spotlyt deal.
Loyalty (rewards) programs seem like such a no-brainer. For any industry where the products and prices are similar, why wouldn't a consumer go to the store where their purchases earn them something?
And yet, no loyalty!
The problem is you're asking the wrong question.
My wife and daughter can happily go through a dozen stores, looking through the racks, trying things on and may or may not buy anything. In fact, if they even have something to get, they might end up coming back with something completely different. Talk about cross selling and increasing basket size.
In liquor stores, people want to try out new products - just look at the dramatic increase in breweries, distilleries and vineyards. But people typically buy their go-to products every time. Why?
Let's look at the stats...
Joe is leaving work and gets a text from his wife.
End caps are fantastic. They grab the customer's attention. Get products noticed. Get products purchased.
As long as the number of products on the end cap is managed so as not to overload the customer, it is extremely effective.
Of course there's always a downside.
It’s another sunny Thursday in Colorado. There’s just a couple of wispy white clouds in the blue sky and it’s so clear you can see a couple 14ers. Mary’s in the car running errands and thinking about the “Girl’s Afternoon Tea” tomorrow on her deck. She’s got to pick up a couple extra ingredients she forgot for the appetizers and a few bottles of wine – including a Merlot for Stella. It’s always something with Stella.
Forbes reports you can convert 70% of the consumers from their loyal product with the thrill of the deal. How is this possible with traditional coupons converting less than 2/10 of a percent (0.16%)?
We saw the problem.
Consumers want to try new products.
Stores want to provide better customer service.
Suppliers want you to try their products.
But it wasn't working.
It's celebration time - let's get social.
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