Outsourcing Direct to Consumer Is it Right for You?

Transcription

1 2016

2 Outsourcing Direct to Consumer Is it Right for You? Moderator: Rob Lorenz - Director of Business Development VinoPRO Charlotte Rawa - Luxury Sales Manager Treasury Wine Estates Tiffany Stetson - General Manager, Direct to Consumer Goose Ridge Vineyards Sonyia Grabski Vice President, Sales and Marketing Cornerstone Cellars

3 What is Inbound Customer Service? Reservations Response Online Chat Social Media Response Wine Club Account Updates Order Management, Delivery Questions, Order Status Complaints and Compliments New Orders / Sales Facilitation General Inquiries

4 Assessing Whether to Outsource Corporate Objectives What leads customers to outsource? Service Delivery Standards Overhead Management Staffing Objectives Considerations Size of your business Portfolio of wines you offer/price Number of club members/consumers Volume of contacts in the various channels Business Impacts

5 Steps of Implementation Get Leadership Alignment Plan Budget Transition Staffing Data sharing/it needs Training Testing Timing

6 Measuring Success & Best Practices Building a Good Contract Service Level Agreements Regular Reporting & Metrics Customer Feedback Staff Training Outcomes Data Security Ongoing Training and Management

7 Goose Ridge Four wine brands Separate DTC-only tier for club Cider bottle and growler program Wine-in-a-can program On WineDirect since ,000 in database, 2,800 club Four tasting rooms 462 skus across four separate POS set ups Frequent events and high club pick up attendance Primary marketing objectives: 33% new traffic, 33% converting s to sales and 33% retaining club members 30 DTC staff

8 In-House vs. Outsourced Marketing Tasks In House Growing Mailing list Selling wine via POS and phone orders Setting up merchandise in POS and monitoring inventory Wine Club signups, as well as all Member service on phone and Concepts, marketing and management of events Overall marketing objectives and goals Social media posting Outsourced Project management of approved calendar Taking concept and wines and offer from winery and creating Targeting and sending s, including club Setting up and running clubs (send follow up list back to winery to follow up) Social media advertising, for either integrated campaigns or awareness/lead gen goals Monthly dashboard

9 Hypothetical Breakdown of Outsourced Tasks Project management of approved calendar Taking concept and wines and offer from winery and creating Targeting and sending s, including club Monthly dashboard Social media advertising, for either integrated campaigns or awareness/lead gen Setting up and running clubs (send follow up list back to winery to follow up) 20% of a marketing manager 30% of a marketing manager with HTML and Photoshop experience 5% of marketing manager 5% of a marketing manager with Excel and Analytics experience 20% of a marketing manager 25% of a wine club manager with some tech/computer experience

10 Staff Needed if These Tasks Were Executed Internally Marketing Manager 80% With HTML, Photoshop and Excel or Analytics experience Wine Club Manager With tech or computer experience 25% 10

11 Assume Average Salary (Not including benefits (healthcare, insurance, vacation, sick, paid holidays)

12 The Internal Staffing Cost Marketing Manager With HTML, Photoshop and Excel or Analytics experience 80% $41,703 $33,362 Wine Club Manager 12 With tech or computer experience 25% $56,660 $14,165

13 The Math Comparison $47,527 Salary Cost (Not including benefits (healthcare, insurance, vacation, sick, paid holidays) $61,785 Total Cost* $5, per Month Vs $2,850/month *According to an MIT study: The costs to this point (basic salary, employment taxes and benefits) are typically in the 1.25 to 1.4 times base salary range

14 Intangible Benefits Flexibility A full service agency can handle a routine scope of deliverables, but also pinch hit when additional needs arise, or staff is out, or new employees need to get up to speed. High Quality Staffing Smart direct marketing tactics require a high comfort with computers, systems like Google Adwords or Facebook targeting and analytics. Skilled computer workers are hard to find for tactical jobs such as Wine Club Coordinator or Social Media. Reliability Typically these DTC positions have the highest turnover. It is beneficial to have an outside source with knowledge of your database, passwords and process that never quits or needs to be trained or takes a sick day.

15 Things to Look For When Choosing to Outsource Can you meet the staff that is working on your business? Do they outsource? Are you important to them, or are you a small client of a big city firm? How responsive are they, and do they set and meet expectations? Are your invoices clear and are they willing to discuss them? Are they skilled in the tactics, as well as strategies? Can they talk the talk and walk the walk? Can they give you references?

16 WHY TELEMARKETING? Connect With Customers Build Brand Awareness Increase Sales Increase Visitation Identify Opportunities & Issues

17 TELEMARKETING OPTIONS In-House Part Time = GOOD Dedicated In House = BETTER Outsourced = BEST

18 WHY OUTSOURCE? Compliance Staffing & Resources Expertise

19 KEYS TO SUCCESS Company Buy-In Employee Buy-In Communication Programming KPI s & Meetings

20 Rob Lorenz Director of Business Development Charlotte Rawa Tiffany Stetson Sonyia Grabski