Bourbon Brand Owner Now Owns His Customers

Bourbon Brand Owner Now Owns His Customers

Spirits Marketing
Bourbon brand owner now owns his customers. Sam is that bourbon brand owner who now owns his customers. Sam thought he owned his brand's customers. He didn't. He owned a relationship with his distributors. He owned a relationship with a portion of his restaurant and retail buyers. Those business owners taking deliveries from the distributors. In fact, he was 2 to 3 degrees away from owning the relationship with the customers who actually swipe a card and pay to drink the product sold by his "resellers". Agencies have been expert at talking brands and pros like Sam into thinking social engagement, demographic reporting, analytics, and distributor data equate to customer ownership. It doesn't. Let's break it down into what's known as First Party Data, Second Party Data, and Third Party…
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Jean’s a restaurant owner. She knows what her customer is worth.

Jean’s a restaurant owner. She knows what her customer is worth.

Spirits Marketing
How does she know? There are a lot of factors and variables at play. One of the better write ups on the topic is from Toast. They happen to have considerable data at their disposal. There are numerous factors that contribute to CLV that should be considered before plugging numbers into your restaurant's CLV equation. Jean leveraged her tech to learn the following. Jean's a restaurant owner. She knows what her customer is worth. They are: Average ticket sizeAverage visits per yearAverage party sizeRestaurant profit margin The formula for calculating a restaurant customer lifetime value is as follows: Restaurant CLV = Avg. Spend Per Month / Monthly Customer Churn Rate Keep in mind, this is still a bit of an art as well as a science. Without some decent tech,…
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How Jay’s Vodka gets featured in Nashville restaurants.

How Jay’s Vodka gets featured in Nashville restaurants.

Case Studies
How Jay's vodka gets featured in Nashville restaurants. Jay was curious about the Shared Spirits approach after having been referred to SS by his marketing agency. As we learn more about Jay's brand story, his presence in three states and his distribution, we learn he's knowledgeable about how things work. He was previously a distributor in Texas. He still owns a restaurant in Texas. He knows that the distributor for his brand in a new market needs marketing support that helps his brand stand out. What will provide the distributor's on-premise team the right story to excite them enough to prioritize sharing the brand with the right operators? Let's make some safe assumptions.  The product and packaging are great.The distributor has some material and leave-behinds for operators.There is a unique promotion offer for the…
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Sampling Spirits and Wine. A Guide.

Sampling Spirits and Wine. A Guide.

Spirits Marketing
Sampling spirits and wine. A guide. I recently ask a simple question to a marketer of bourbon. "Does the brand care whether or not it has a relationship with the customer who actually drinks its product?" He immediately said yes. They had set aside a boat load of money to work the direct to consumer market. The way this is currently done is via legal shippers and delivery companies. Examples may include Drizzly or some other company that has built methods to compliantly ship. In other conversations I have been asking, how much do you spend to get someone to sample your product? I immediately follow up with, "Do you have any metric on the consumer's life time value to your company?" By this time, in most cases, the eyes…
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Marketing attribution for spirits, wine, and beer brands.

Marketing attribution for spirits, wine, and beer brands.

Spirits Marketing
Marketing attribution for spirits, wine, and beer brands is considerably far behind other businesses. I am a fan of Sudipto Ghosh's definition of marketing attribution. The following definition is found this MartechSeries.com article. "Marketing Attribution is defined as the process of attributing the source and their outcomes in terms of ROI of conversions across multiple campaigns at different customer touch-points. Before getting started with attribution, marketers need to identify these touch points. Each touch point will have its marketing attribution model. These models determine how the organization endorses leads generated from campaign touch points."https://martechseries.com/mts-insights/staff-writers/everything-you-wanted-to-know-about-marketing-attribution/ Seems fairly clear doesn't it? In most cases, the spirits, wine, and beer industries have no clue from where their end customer comes. How do we know this? The success of any significant spirits, wine, and beer brand is…
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Angel’s Share will apply to alcohol related investments not just distiller’s barrels.

Angel’s Share will apply to alcohol related investments not just distiller’s barrels.

Spirits Marketing
Angel's Share will apply to alcohol related investments not just distiller's barrels. 4% to 10% of unfinished bourbon in the barrel evaporates away. This is known as the angel's share. $1.25 billion has been invested in alcohol related startups up to October 31st, 2021. Why would I suggest that these investments may not perform as expected or hoped? Let's take a look at some details. Online alcohol sales jumped 234 percent year over year in the early weeks of the pandemic, global data analytics company Nielsen Corp. reported in 2020. Months later, many Americans said they were imbibing 14 percent more often during the pandemic—some much more than that—according to researchers from RAND Corp. and Indiana University. via https://news.crunchbase.com/news/vc-funding-online-alcohol-sales-startups-wine-craft-cocktails/ This phenom is the driver in alcohol related investments. I'm a skeptic on the midterm…
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Restaurants Lower Customer Acquisition Costs with Shared Spirits

Restaurants Lower Customer Acquisition Costs with Shared Spirits

Spirits Marketing
We thought it a great idea to share how Restaurants Lower Customer Acquisition Costs with Shared Spirits. In a post by Toast POS titled RESTAURANT CUSTOMER ACQUISITION COST: HOW TO CALCULATE (AND LOWER) IT the company shared a breakdown on how to calculate customer acquisition cost and lower it. Let's look at the core assumptions. The following is directly from the Toast blog. "Because there are so many variables in the customer acquisition cost, there's no one equation that's always used. The closest way to calculate restaurant customer acquisition cost is with this formula: CAC = Marketing Expenses / Total New Customers That may seem simple, but there's a lot to unpack. For example, how do you get granular and differentiate between new and existing customers? Without a customer database,…
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Spirits and wine sampling should deliver relationships

Spirits and wine sampling should deliver relationships

Spirits Marketing
Spirits and wine sampling should deliver relationships. If it doesn't, why not? Over the course of writing this post, we are asking ourselves, and you, some tough questions. As a spirits brand, are you building relationships that do not require distributor personnel? Are you doing anything differently from the competition to enhance relationships with your key on-premise accounts? Doing things better or leading on price is a non-starter. What are you doing that is different? When the marketing people say they know who buys your product, how do they really know? Sure they know the distributors who buy. They know the retailers and restaurant and bar accounts. Do they know who actually buys and loves your product? We ask these questions to get your thinking juiced up. We've asked people…
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Sampling as a Service ROI

Sampling as a Service ROI

Case Studies, Spirits Marketing
A wine supplier recently asked us about our Sampling as a Service ROI. We thought it an odd question given the ROI of any supplier spend is largely unmeasured. Ultimately, case counts are the only measure being considered by the spirits and wine industry. However, when you're launching a new category, in our case digital activation, you have to educate people to new language. We're using this post to layout an example of sampling as a service ROI. In the graphic below, you see a table featuring hard metrics, these are measurable metrics. Soft metrics are important and in this case, much of what is included surrounds messaging and the relationship building part of brand awareness. Sampling as a Service Technology ROI Let’s go through a tangible example.  Let’s assume…
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Marketing Your Beverage Program with Sampling as a Service Software

Marketing Your Beverage Program with Sampling as a Service Software

Spirits Marketing
Marketing your beverage program with Sampling as a Service Software is fun, easy, and nearly free! Nearly means, it costs you nothing but a little time. This isn't meant to be an all inclusive list of how to leverage our system. We know the best ideas and implementations are yet to come!  Here are some suggested ways to leverage the platform. 1) Knowing that many of your customers would "gift" cocktail, wine, and beer experiences with friends, colleagues, and consider a "Flight". Flights are terrific ways for customers to experience your environment in new and exciting ways.  If you're a cocktail forward establishment, consider and flighted cocktail series or a flight of single malts for example. Those establishments with a great wine list may consider posting up a wine sampling series that…
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