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Modern Methods of Communicating Directly to Your Customers: How effective is New Media in terms of recruitment and sales?

Presented by: Paul Mabray, CEO of VinTank Marc Engel, Partner and Director of Wines Practice, B/R/S Group

Flow
1) 2) 3) 4) Who We Are What is ‘New Media’? What Does It Mean for Wine? Is New Media Effective for Recruitment and Sales? 5) Lessons 6) Workshop It

WHO WE ARE

Two guys. Two Opinions. Paul Mabray
• • •

Marc Engel

17 year online wine veteran. Work for the only digital think tank in the wine industry. Wrote a tiny little report about wine and social media called “We are here” and then gave it away for FREE.

Two guys. Two Opinions. Paul Mabray Marc Engel

No, I don’t work for Paul • Marketing researcher • • Listen to the voice of the consumer (and trade) • Presented “Engaging the U.S. Wine Consumer: A New Paradigm” at Wine Evolution, January 2007

WHAT IS NEW MEDIA?

So what is new media?

WIKIPEDIA DEFINES - New media is a term meant to encompass the emergence of digital, computerized, or networked information and communication technologies in the later part of the 20th century. Most technologies described as "new media" are digital, often having characteristics of being manipulatable, networkable, dense, compressible, interactive and impartial.

So what is new media?

New media is a term meant to encompass the emergence of digital, computerized, or networked information and communication technologies in the later part of the 20th century. Most technologies described as "new media" are digital, often having characteristics of being manipulatable, networkable, dense, compressible, interactive and impartial.

Really?

Old vs New

This…

This…

This…

This…

This… Is new media.

No really

We are witnessing a fundamental shift in communication.

But don’t take our word for it…
If Facebook were a country, it would be the 4th largest country in the world.

Source: TechCrunch 2009 http://www.techcrunch.com/2009/07/15/facebooksoffical-user-count-now-250-million/

Did we say fundamental?

Never in history has humanity been as interconnected as they are today.

Welcome to the Revolution

Source: http://www.flickr.com/photos/mlemos/ 3522358252/sizes/o/in/set-72157617990467890/

Translation

This ain’t your mamma’s internet.

Evolution

Evolution

Google

Today

66% of Global Internet Population Visit Social Networks. Nielsen

Today

66% of Global Internet Population Visit Social Networks. Nielsen Social networks are the 4th most popular online activity – ahead of personal email and PORN.
Nielsen

Today
66% of Global Internet Population Visit Social Networks. Nielsen Social networks are the 4th most popular online activity – ahead of personal email. Nielsen 75% of consumers rate Word of Mouth as the #1 influencer of purchase intent. Nielsen

Today
66% of Global Internet Population Visit Social Networks. Nielsen Social networks are the 4th most popular online activity – ahead of personal email. Nielsen 75% of consumers rate Word of Mouth as the #1 influencer of purchase intent. Nielsen 71% say they share a recommendation (product, service, restaurant) online with others at least every few months. Razorfish 2009

66% of Global Internet Population Visit Social Networks.* Today Social networks are the 4th most popular online activity – ahead of personal email.* 75% of consumers rate Word of Mouth as the #1 influencer of purchase intent. Nielsen 71% say they share a recommendation (product, service, restaurant) online with others at least every few months. Razorfish 2009 75,000 new blogs created every day, updated to the tune of over 1.2 million posts per day, or over 18 updates a second. Technorati

Social networks are the 4th most popular online activity – ahead of personal email. Nielsen Today 75% of consumers rate Word of Mouth as the #1 influencer of purchase intent. Nielsen 71% say they share a recommendation (product, service, restaurant) online with others at least every few months. Razorfish 2009 75,000 new blogs created every day, updated to the tune of over 1.2 million posts per day, or over 18 updates a second. Technorati 25% of top search engine results for world’s 20 largest brands are Consumer Generated Media (‘advertising’ consumers trust). Qualman

Social networks are the 4th most popular online activity – ahead of personal email. Nielsen Today 75% of consumers rate Word of Mouth as the #1 influencer of purchase intent. Nielsen 71% say they share a recommendation (product, service, restaurant) online with others at least every few months. Razorfish 2009 75,000 new blogs created every day, updated to the tune of over 1.2 million posts per day, or over 18 updates a second. Technorati 25% of top search engine results for world’s 20 largest brands are Consumer Generated Media (‘advertising’ consumers trust). Qualman

Don’t make us estimate tomorrow.

New media is like the swine flu.

… but why?
Interactive Connected Free Fast Measurable

Because new media is

… but why?
Interactive Connected Free Fast Measurable

Because new media is

… but why?
Interactive Connected Free Fast Measurable

Because new media is

… but why?
Interactive Connected Free Fast Measurable

Because new media is

… but why?
Interactive Connected Free Fast Measurable

Because new media is

And it’s not contained

It has jumped out of computers and into our pockets.

People can connect, update, complain or praise – anytime, anywhere.

Just wait till tomorrow

Just wait till tomorrow
Tomorrow
is
TODAY

Sounds scary

“Technology is shifting the power away from the editors, the publishers, the establishment, the media elite. Now it’s people who are in control.”
Rupert Murdoch, Global Media Entrepreneur

We understand.

Most Business People

Your Competition.
86%
say
they
 have
not
used
social
 networking
sites
to
get
 business
advice
or
 informaDon.

76%
have
 not
found
social
 networking
sites
such
as
 Facebook,
Twi@er
and
 LinkedIn
to
be
helpful
in
 generaDng
business
leads
or
 for
expanding
their
 business
during
the
 last
year.

Most Business People

61%
say
they
 use
general
 search
engines
 like
Google.

Source: Citibank/GfK Roper survey of 500 small business executives across the U.S., as cited in Research Brief from the Center for New Media Research, 2 Nov. 2009

Imagine

The advantage you could have with your head out of the sand.

WHAT DOES NEW MEDIA MEAN FOR WINE?

So what’s in this for wine

Wine & New Media: A Perfect Pair
I’m
a
long
 tail
product. Wine

New
 Media

Wine & New Media: A Perfect Pair
I’m
a
long
 tail
product. Wine

New
 Media I
love
long
 tails!

Wine & New Media: A Perfect Pair

Word
of
Mouth
 is
the
biggest
 reason
why
 people
buy
me.

Wine

New
 Media

Wine & New Media: A Perfect Pair
OMG!
People
 talk
about
what
 they
like
all
the
 Dme
on
me.

Word
of
Mouth
 is
the
biggest
 reason
why
 people
buy
me.

Wine

New
 Media

Wine & New Media: A Perfect Pair

I
confuse
and
 inDmidate
 most
people.

Wine

New
 Media

Wine & New Media: A Perfect Pair

I
confuse
and
 inDmidate
 most
people.

Wine

New
 Media
I’m
not
scared.
 People
trust
 me.
Even
your
 mom
will
trust
 me.

Wine & New Media: A Perfect Pair
I’m
quite
the
 experience. Wine

New
 Media

Wine & New Media: A Perfect Pair
I’m
quite
the
 experience. Wine

New
 Media

…
and
I
seek
 mastery
and
 control.

Wine & New Media: A Perfect Pair
I’m
quite
the
 experience. Wine
…!!!

New
 Media

…
and
I
seek
 mastery
and
 control.

Look who’s talking

Source: www.cruvee.com

The Dominance of Twitter
Where they’re talking…

On
Blogs On
Forums On
Microblogs

Source: www.cruvee.com

Wine Blogs
• 250,000 products

produced annually • About 30,000 reviewed by ‘professional’ reviewers • There are over 1000 dedicated wine blogs

Wine Blogs

Collectively wine bloggers represent an audience much larger than the winespectator.com.

Wine Industry Noise

40+ 50+ 200+

Wine Industry Noise

40+ – Wine Social Networks 50+ – Wine iPhone Apps 200+ – Wine Portals

Wine, where should you play?

Wine, where should you play?

Wine, where should you play?

Wine, where should you play?

Wine, where should you play?

Wine, where should you play?

Wine Social Networks

Fishing where the fish are.

Wine Social Networks

Fishing where the fish are.

86,000+ Users 1,000,000 Tasting Notes

50,000+ Users 32,000+ Tasting Notes

Customers Recommend Brands

Change

“No longer is it enough to make and sell wine and then expect the world to beat a path to your door. (Well, unless you’re Lafite in China, that is.) Today, sellers have to reach out to their customers, and they have to do so in ways that may be unfamiliar and even uncomfortable for them.”

–Steve Heimoff, blogger and writer, Wine

Enthusiast

It’s a crazy Wine World

It’s a crazy Wine World

Insane Regulations

It’s a crazy Wine World

Insane Regulations An incredibly complex product

It’s a crazy Wine World
Distribution has all but ended as a viable sales channel for small wineries.

Rob McMillan

Insane Regulations An incredibly complex product

IS NEW MEDIA EFFECTIVE?

Is new media effective?

3,279,102 friends

620,359 friends

1,043,850 friends 1,824 videos uploaded Channel Views: 20,024,491 151,206 followers

218,172 friends 330 videos uploaded Channel Views: 2,221,268 4, 848 Followers

Is new media effective?

$360 million

$639 million

Why yes, it is.

$360 million

$639 million

Overall funds raised during the 2008 campaign.

Obama’s Online Fundraising

• $150
million
(sha@ered


previous
record
of
$65m) • 632,000
donors
(total
was
 3.1
million) • Average
donaDon
<$100
 (Plouffe)

Hyper Speed

After Palin disparaged Obama’s past work as a community organizer, he raised $10M within 24 hours, most of it online.

The Obama Network
Widgets MyBO.com facebook

Email Barack TV Outreach

Social networks

twitter Mobile

MyBO.com
• 2 million profiles created • 35,000 volunteer groups • 400,000 blog posts • 200,000 offline events

Mobile Obama

New Media is extremely effective for branding, marketing and public relations…

Why?

1) 2) 3) 4) 5)

Informative Inclusive Entertaining Engaging Democratizing

Hulu

“Consumer behavior is one of the hardest things to change.The gap between the existing and the new has to be so materially better that it shocks you into behavior change.” --Jason Killer, CEO of Hulu

Hulu

• • •

380MM videos (up 150% in 6 months). 2.6% market share of all video. Resurrecting old media properties, bring to whole new generation.

It’s powerful, ask Domino’s

Listening - Customer Service
Chris Brogan – President of New Marketing Labs

Listening - Customer Service
Chris Brogan – President of New Marketing Labs
October,
2009…
My
website
went
 down.
The
moment
I
noDced
it,
I
 tweeted
to
Rackspace,
my
host.
 (Yes,
I
pinged
Twi@er
before
 looking
anywhere
else).
I
said,
 “Dear
@rackspace
–
my
site
is
 down.
Please
help.”

Listening - Customer Service
Chris Brogan – President of New Marketing Labs

Guess
how
long
it
took
for
them
to
 respond.

Listening - Customer Service
Chris Brogan – President of New Marketing Labs

Four
Minutes.

Listening - Customer Service
Chris Brogan – President of New Marketing Labs
I’m
fully
sold
on
who
I’d
 choose
if
I
needed
 mission‐cri5cal
support
for
 a
heavy
traffic
site.
I’d
use
 Rackspace
cloud.

Zappos

Will it Blend?

A small company, no marketing budget - CEO Tom Dickson blends objects in their blender and video tapes it. • Marbles, golf balls, hockey pucks

• 3.8 million views • 5x increase in sales (home
and commercial)

#flymeto

Give away iPhones, flights for tweeting their company’s name 90x increase in Twitter followers in one week Web traffic up 600%

• •

• 100% increase in signups,
still sustaining growth • Bolstered by coverage in the media (BBC, about.com, Mashable) Cost: $13,500

IS NEW MEDIA EFFECTIVE IN THE WINE INDUSTRY?

Gary Vay-ner-chuck

• 850,000 followers on Twitter • Nearly 90,000 viewers per day of his vlog, • • •
Wine Library TV Million dollar book deal NYTimes, Amazon.com bestseller $80 million retail, half on Internet

Murphy-Goode

Pinotblogger
Josh Hermsmeyer wanted to start a winery. Participated in online forums, including eRobertParker
• But found them hierarchical

Now, nearly 5,000 Twitter followers • Up 3x since May Over 1200 mailing list names

New Media to Drive Offline Sales
Free membership in a lower-tier ‘club’ No purchase commitments Exclusive content online
• Recipes • Pairing tools • Special e-commerce offers

Purchase offline ‘Proven’ by surveys with these ‘club’ members

Marketing is not the same… As sales.
It’s about building brand awareness and connection, which should allow for the opportunity for sales.

Facebook for personal connections
Fans on FB come to the winery to buy wine Already have a direct relationship with people at the winery who blog and are on FB

Facebook for personal connections
Fans on FB come to the winery to buy wine Already have a direct relationship with people at the winery who blog and are on FB Tony the winemaker Kent, the chef Josh & Ryan, pourers in the tasting room

Old new media, more effective than new new media.
Ad on FB offering 10% discount
• Nearly 300,000 impressions (times displayed) • 90 clicks to the website • 0 sales

• Targeted email more effective
• FB-only 25% off promotion in honor of the winemaker and her husband’s 25th anniversary • 0 sales • Then emailed to mailing list…nearly $15,000 in sales

Old new media, more effective than new new media.
Ad on FB offering 10% discount
• Nearly 300,000 impressions (times displayed) • 90 clicks to the website • 0 sales

Targeted email more effective
• FB-only 25% off promotion in honor of the winemaker and her husband’s 25th anniversary • 0 sales • Then emailed to mailing list…nearly $15,000 in sales

Uncertainty about Facebook

• “But I don’t think it affects the bottom line” • “Not the driving force behind sales, but a great information tool” • “Still trying to figure out how to measure its impact”

Uncertainty About Twitter

• “Hard to track and measure” • “Not sure what to make of it yet. Is it a fad or is it a useful tool?” • “Losing its edge”

LESSONS

New Media is NOT a silver bullet
“YOU NEED TO BE ON FB, MS, Twitter, FF, etc, etc, etc.”

New Media is NOT a silver bullet
“YOU NEED TO BE ON FB, MS, Twitter, FF, etc, etc, etc.” “YOU NEED TO HAVE YOUR WINES RATED BY WINE BLOGGERS.”

New Media is NOT a silver bullet
“YOU NEED TO BE ON FB, MS, Twitter, FF, etc, etc, etc.” “YOU NEED TO HAVE YOUR WINES RATED BY WINE BLOGGERS.” “YOU

NEED to
BLOG.”

New Media is NOT a silver bullet
“YOU NEED TO BE ON FB, MS, Twitter, FF, etc, etc, etc.” “YOU NEED TO HAVE YOUR WINES RATED BY WINE BLOGGERS.” WHAT IS THE TRUTH? Your brand will benefit from a good social media strategy that is PART of your overall digital strategy. PICK the social network where YOUR type of customers are engaging. Do activities that yield the HIGHEST ROI for your efforts. “YOU

NEED to
BLOG.”

What new media will give to you
• Exposure • Likelihood to be recommended • Customer acquisition • Extended customer life time value (LTV) • Measurement • Unparalleled access

Content is King

From customer relationship management to customer-managed relationships MESSAGE MUST BE RELEVANT

Business is Personal

The Godfather was wrong

Integrate the Old & New

New media is just 1 (one, uno, eins, un, ichi, 일) communication channel.

Integrate the Old & New

New media is just 1 (one, uno, eins, un, ichi, 일) communication channel. Publicity initially gained online may eventually get reinforced by traditional media. E-marketing, website, employee relations, community release, PR.

Be Patient

Don’t expect immediate sales payoff, but you can expect uptake in discussions. Again, brand building is not the same as sales.

Set clear goals

Finding trends and tracking them back to their point of origin is the key to measuring ROI. • Number of referrers on your e-commerce site (assuming you can track this data) from your website or Twitter • Number of coupons used that were given away in a Facebook campaign to start calculating which sales stemmed from your social media campaigns • Hash tags on Twitter, redirects in links • Use bit.ly

Take aways

1) 2) 3) 4) 5)

Listen Be Authentic Be Transparent Engage Care