The wine industry is facing supply chain issues, rising prices and inflation, changing consumer expectations, and an unpredictable economy. Technology has addressed many of the challenges of wineries over the past several decades. The use of technology became even more critical during the pandemic when wineries were forced to shift channels.
One proposed solution for the current challenges is to streamline the flow of information better between wine production and distribution. That was the topic of discussion at one of the sessions at last week’s WIN Expo Trade Show and Conference. The panel session “Boosting Profits with Technology: How to Connect the Dots” was facilitated by Josh McKinney, CEO of Ekos.
Here are some of the benefits discussed by the panelists of more integrated technology and data systems:
Single Point of Data Entry
Maria Pearman, Principal at GHJ Advisors talked about how connected systems create a single source of entry. A single point of entry creates less confusion and is less prone to human error. A more interconnected system results in more efficiency for employees. It also allows wineries to be more proactive, instead of reactive, to issues such as pricing decisions, allocating resources, and managing information.
Improved Inventory Management
“Inventory is the heart of any wine business and it needs to be managed and connected to other systems in the winery,” said Maria. Tracking inventory at a winery is important for better allocation and pricing decisions, especially with multiple channels. According to Connor Clarkes, Account Executive at Commerce7, the integration of accounting with inventory management and point-of-sale/ecommerce is 25% more efficient than using Direct-to-Consumer (DTC) software by itself.
Personalized Customer Experience
Connor also talked about how “fast, easy, and personalized” services are important to the customer, especially with DTC purchases. Data have shown there are six times higher conversion rates for wineries using personalization. A personalized experience is also important in the tasting room. Staff should know if the customer is a club member or not. Also, knowing their wine preference can be valuable information in enhancing the customer experience.
Wine Clubs and Subscriptions
The session provided some additional takeaways related to wine clubs and subscriptions. These included the importance of reviewing the winery’s inventory every week. The panel also said wineries need a full-time employee dedicated to reviewing data and information. Connor also talked about the impact of technology on wine clubs. According to Commerce7 data, almost 20% of wine clubs and 50% of subscription sign-ups today occur online. He also mentioned that the ability for people to cancel or edit their allocations has become important.
