Issue link: http://winesandvines.uberflip.com/i/1031957
October 2018 WINES&VINES 65 TASTING ROOM FOCUS members. Tracking "trade and industry comps" (3) helps us understand how much wine (and time) we spend on influencers who will help grow our brands. Guests will often will share a flight or experience, and so the "shared experience" (4) guest is still a poten- tial wine club member and still uses resources that need to be accounted for, such as glass- ware, staff time, breadsticks, etc. When a winery uses SKUs and captures them on each transaction in the POS, that information becomes actionable. Reports are easily run by any time period (day, week, month, quarter, year) to give historical perspective. Conversions Conversion rates all have the common denomi- nator of guest count. How many guests made a purchase? How many joined the wine club? What was the average order size? How many joined the mailing list? If you know the guest count and type of guest, you can start to really understand your metrics and how they com- pare to those of your neighbors. • Customer conversion rate: Number of new customers divided by total tast- ing room visitors less trade, existing customers or club members • Sales conversion rate: Number of or- ders divided by the number of tasting room visitors, website visitors or phone calls • Club conversion: Number of new club members divided by the num- ber of tasting room visitors (or unique website visitors or phone calls) after removing trade and exist- ing club members. • Data capture rate: Number of custom- ers or prospects for which contact in- formation was captured divided by total tasting room visitors. • List conversion rate: Number of new mailing list sign-ups divided by the number of tasting room visitors, minus visiting club members, trade and those already on the list. • Average order value: Total dollar sales (net of shipping and tax) divided by number of orders. Making business decisions All of that is great to understand past per- formance, but how does a WISE winery use that information to drive future results? There are three levers to pull: more visitors, more wine purchase conversions and increas- ing the AOV (average order value). It is far easier to control what is happing within the four walls of your tasting room than it is to bring in more traffic. After all, do you want to use more resources to see more guests and not sell to them, or do you want to have the guests who are already walking in spend more on each transaction? Use the trend information, and forecasting, to drive future results. Understanding the data is half the battle; with focus and training, you can change future results. WISE Academy (Wine Industry Sales Education) offers a comprehensive curriculum designed specifically for wine industry professionals, and is celebrating its 10th year in 2018. Learn more at wineindustry- saleseducation.com. When data is easy to cap- ture, staff will be more likely to consistently and accu- rately track the information. Once you have solid data, you can make decisions to drive your business efficiently. Use Code SPP100B for a $100 Discount 800-574-4852 Strategies that create and sustain relevance for consumers and value for investors are essential to success. Maximizing value is dependent on a winery's ability to increase price, demand and availability while imp improving the productivity of resources. Value is often an intangible element measured by markets and significantly affects opportunities for succession, exit, finance and investment. We will focus on identifying the sources of value creation, strategies used to create it and ho how successful companies leverage it to perpetuate further growth. Mario Zepponi Zepponi & Company Martin A. Jones Houlihan & Jones NNNNNNNN 15, 2018 NNNN, CA S WINE BUSINESS B V