The last year has been interesting for the wine industry. On one hand, it has continued to increase overall revenue throughout 2020. Unfortunately, this was only by a fraction of a percent. But compared to other industries that plummeted, even a small amount of growth is worth celebrating. On the other hand, many wineries were unable to accept the number of visitors that they typically receive in a season. This shift caused a decrease in overall revenue and customer loyalty. For cities that are centered around tourism, these shifts have a drastic impact on the ability that wineries have to be launched, grown, and maintained. Fortunately, there are a few ways that wineries can become increasingly lean while optimizing opportunities throughout the upcoming year. In this article, we will share how wineries can survive and thrive in 2021.
1. Invest In Marketing
Many wineries are not well-known throughout the country, with only a small percentage of brands being recognized by the average household. For small and local wineries, marketing is a critical part of growth. Nowadays, there are many interesting ways that wine brands can advertise their products and services. In addition, there is a winery suppliers guide when choosing marketing companies. In many cases, these small businesses are not able to employ in-house marketing specialists. Therefore, they never learn the ways their business can grow through advanced marketing techniques.
By working with a qualified firm, wineries can invest in their marketing endeavors without having to undertake expensive overhead costs. These firms know how to develop social media channels, websites, and digital collateral pieces that have a high return on investment.
2. Partner With a Wine Delivery Service
Brands that have invested in wine delivery options have seen extreme growth over the last year. Not only do people not want to go in the public vicinity, they are looking for new hobbies. For many people, wine tasting and education has become a hobby over the last year. Whether you work with a wine retailer that has delivery options or a subscription, this line of your business will grow exponentially. Many delivery services have preferred brands that they allow to partake in their subscriptions and deliveries. Even if it requires a financial investment, this line of service will change the operations of your winery in a positive way. What retail partnerships have you had over the last year? Have you partnered with local restaurants or wine subscription services? Continue the conversation with these entities to see how you can be a part of their at-home deliveries.
3. Cut Excess Costs
Without thinking, many businesses get caught up in programs that cost them a lot of money. Even a CRM, benefit provider, or accounting platform may be costing an incredible amount of money. Rather than just paying the monthly bills, take the time to actually determine if you are utilizing the right providers. By getting quotes from other carriers, you may be able to save hundreds or thousands of dollars per month. When you operate a lean business, you are able to have more money on reserve to invest in product development and emergency situations. Work to minimize the costs that are being spent towards facilities and products that are not being used in the present time.
4. Offer Loyalty Programs
You likely have a fan base of loyal customers who are committed to supporting your business. If you don’t already have this fan base, it’s time to create one. Many people develop loyalty to brands that offer incentives for frequent buyers. In addition, loyal customers are more likely to spread the word about your brand. Word of mouth is the most effective form of marketing. Incentivizing programs not only develop recurring revenue, they raise overall awareness about your brand. Loyalty programs can function in a variety of different ways.
5. Add New Services
Although your tasting room may not be able to operate at full capacity, think of creative ways that you can still monetize your facilities. For starters, you can rent out your space for small and private events. Although it takes a lot of these events to equal the revenue that was previously being accrued, it is a way to serve the community while making money. In addition, you could consider offering wine education courses or classes that can be attended by small groups of people. These events create revenue while raising awareness about the wine you provide.
6. Invest In Influencer Marketing
Influencer marketing is actually a type of word-of-mouth marketing. Prominent and popular individuals in communities spread the word about some of their favorite brands and services through newsletters and social media campaigns. 80% of companies believe that influencer marketing is effective; 70% of companies believe that influencer marketing is more effective than other strategies. Find an influencer that reaches the audience that you are trying to speak to. If you are primarily focused on gaining older followers, find an individual that reaches channels that speak to the older population. If you are looking to reach young adults, find an influencer who has a large following of young professionals and families. Although it may be costly to utilize influencers, your investment will go a long way.
Wineries have the chance to survive and thrive in 2021 by opening the doors to new opportunities. Unfortunately, the wine industry has shifted dramatically over the last year. With these new changes, it is important that small brands invest in innovative initiatives that will increase their revenue and expedite their growth for years in the future.
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