Measuring Our Progress

We still have a couple of months left of our busiest season. This is our happy and hectic time. Are we making the most of our opportunities, or are we just anxious for everyone to go home? Have we been able to take advantage of the traffic we are getting during this crucial time and convert them to wine buyers, wine club members and email list members? We count on our summer traffic to help us build our business for the rest of the year. So how are we doing so far this summer?

Here are the Key Performance Indicators (KPIs) that most tasting rooms need to track, how they are calculated, and what they mean to our business.

Visitor Traffic
Best practice is to count each and every visitor over 21 years old, and track wine club, trade and consumer visitors separately. This is important because we use these counts to calculate our conversion rates. Our method of tracking these visitors – by glasses used, POS system codes, clicker, etc – is less important than the importance of being consistent with what we’ve been doing and continuing to track all visitors. Every person who comes, whether they taste or share, is wear and tear on our property, time and resources.

Source of Visitors
Who referred these new guests to us? We need to know because we don’t have unlimited marketing budgets, so this will help us measure which outreach programs are the most effective. It also shows us who deserves our thanks and rewards for sending us great new, qualified customers, and gives us the chance to reciprocate.

Order Conversion Rate
This is the number of orders divided by the total visitors. If we offer both bar and seated tastings, we should be tracking these conversions separately to measure our success. We’ll want to make sure we are getting better performance for the individual attention we give to the seated experiences. As a side note, this metric should prompt us to thank these buyers for their orders. Just by saying thank you, we will set our wineries apart from everyone else who doesn’t do this – which is most wineries!

Wine Club Conversion Rate
This is the number of new club members divided by consumer traffic, excluding club & trade visitors. We take out trade since we don’t expect them to join a club, and current club members are already converted. Again here, we want to measure bar tasting performance separately from seated tastings, as conversion rates will be/should be higher for seated experiences.

Data Conversion Rate
This is the number of new email list sign-ups members divided by consumer traffic, excluding club, prior customer, prior mailing list and trade visitors. Not everyone will join our wine club on the first visit, so this is a way to ensure that we can reach out to these customers again with sales promotions and invitations to join the club. As our mailing list is an important marketing asset, it’s important that all team members know and understand the bigger picture by asking for contact data from every guest.

We want to track total sales per day in both dollars and cases, and wine sales separate from tasting fees, sales tax and shipping fees. By tracking wine sales separately, we will know if we are selling wine in addition to our great tasting experiences.

Average Order Value
This is our total sales dollars divided by the number of orders. We can take this one step further and also track number of bottles per order. This will help us highlight the opportunities to increase our AOV by up-selling and cross-selling our wine.

A WISE winery will track these metrics daily, weekly, monthly, quarterly, and annually. Each of these metrics should be tracked in total and also by individual team member. This type of reporting will reveal which of our team members is best at each of the key Conversion Rates – order, club, and data capture, and who has the highest Average Order Value. Peer-led training is extremely effective. When we know that Susie is our star at getting new wine club members, we can have Susie share her tips and tricks with the rest of the team. When we find that John is our star in getting the highest average order value, he can lead a training on how to build a sale by adding on additional bottles.

A self-motivated tasting room professional will track these metrics for their own performance, even if their winery doesn’t monitor them.

So, how is the summer going for you so far? There’s still time to add these Key Performance Indicators to what you currently monitor, and make a real and measurable difference in your business before busy season is over.

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