Club Update - April, 2008 - Securing & Growing Your Wine Club in Challenging Economic Times

How much will the recession impact club revenues? Wineries will create their own results driven in part by their expectations. If the winery team decides the economy will impact their business and result in a decline in revenues, then I am confident that their expectations will be met. One the other hand the winery teams that decide they will grow during these challenging times, I believe, will grow.

Each individual winery will make this decision for themselves. If a winery has made the decision to allow the news of world economy be the excuse as to why sales and club membership decline, then it will. It is all too often that an excuse will drive behavior. Staff members stop asking for the sale. They stop introducing and offering the club programs and start to expect that people won't want to participate in events. When expectations are low so too will be the results.

A winery which looks for the opportunity will adjust and find it. Since 1968 there have been six recessions recorded however the slump in wine sales has not followed the same trends. People continue to consume wine/beer/spirits for celebrations, social gatherings, celebrations and leisure. Additionally, despite the faltering economy in 2007 we saw the US wine market generate an estimated $30bn and sales of premium wine continued to grow. The challenge will be for a business to make sure they are the chosen winery or store selling the wine.

When purse strings are tightened people respond by being more savvy shoppers. Value becomes the focus of many consumers. People will continue to spend money if they feel they are getting a good value. The value is not determined solely by the price of the product. It is determined by the "Experience."

The "Experience" and "Value" are more important now than ever before: Consumers value a quality product at a fair price but the courtesy with which customers are treated is the greater determining factor that can make or break a sale. This experience includes a website, a phone call asking for directions and hours of service, the appearance and convenience of a parking lot, front doors, environment, and more. The courtesy and attitude of the staff, the product presentation, the process of selecting and purchasing the wine as well as the customer support and service provided post-sale will drive results.

Customer Shift: Businesses I believe will see a shift in customers. This may appear as a loss in club membership however, as existing customers leave there are new customers who are shifting as well. Unless you are selling only the highest priced products in your industry you will see a shift that will generate new customers. People and businesses which may have otherwise purchased from higher-end venders may also be reducing their budgets and may come through your doors because of the better value (and experience). People who may have otherwise taken vacations to far-off lands may remain local for "Stay-cations". These are both sources GROWING sources of revenue.
Take Action To Maximize Your Success:

• Prepare your staff for high expectations.
• Prepare your team members to know how they impact the "customer experience" and respective success.
• Prepare for the Value Seekers (and not bargain shoppers).
• Provide a Superior Customer Experience that offers more than the customer expects.
• Contact your club members and other high-value clients to ask how you can best meet their needs.
• Proactively thank your club members for their continued support.