Direct To Consumer: Unveiling The Future Of Alcohol Sales
Learn the keys to DTC alcohol ecommerce success with Accelpay, from selecting the right platform to implementing effective customer engagement strategies
As the holidays approach, expect an influx of gift purchases across the next few months — an annual event that’ll only be heightened by the post-COVID e-commerce shopping boom.
Even more so, broader delays in global supply chains are trickling down to affect availability and shipping for e-commerce brands across all segments. Our recommendation? Beat this year’s slowdown by getting a head start on your seasonal campaigns, promotions, and more.
We’ve laid out four steps below that every alcohol brand should take to beat the annual gift rush, while also maximizing the profitability and potential of this concentrated shopping period.
Step One: Time Blocking
First, you can start building out a major messaging campaign by looking ahead on your calendar and selecting key dates to lay out a time frame from early November up until Christmas.
Specifically, we recommend blocking out three primary phases for your campaign delivery.
Pre-Black Friday
By pushing messaging campaigns out as early as mid-November, you’re gearing folks up for the holiday season around the corner, as well as letting potential buyers know to keep an eye out for a promotion in the works.
More importantly, you’re setting your brand up to start the season on a strong note — and to not get caught unprepared by the sudden arrival of Thanksgiving crunchtime.
Thanksgiving & Late November
From Thanksgiving onward, particularly that first weekend including Black Friday, you’ll want to host and advertise some kind of actionable event, i.e. a special release or promotional discount, to jumpstart customers into their seasonal shopping cycles.
Cutoffs for Christmas
Finally, you’ll want to round out the season by selecting a cutoff date for placing new orders.
Seven to 10 days before December 25th is a safe bet for buyers to receive a bottle at their door by Christmas Day, and reminders should be sent out in the days leading up to this cutoff.
In terms of the broader time crunch that’s anticipated due to global supply chain slowdowns, you should emphasize the convenience of purchasing from a domestic brand paired with the reliability that you offer for a timely, safe delivery of your product.
Step Two: Spice Up Your Specials
Once you’ve laid the initial groundwork, it’s time to elevate your campaign by crafting it into something creative and exciting for the spirit of the season.
In other words, your buyer’s inbox may be flooded by holiday deals, but you can capture their attention and help them recognize the thoughtfulness through your core brand messaging.
For instance, Far North Spirits is offering a holiday two-pack for drinks that’ll warm you up in the colder months. Imagine a whiskey, rye, or bourbon for your spicy cocktail or mulled wine.
Ultimately, you’re working with the inventory you have and considering which themed products can play into people’s holiday spirit — even better if it’s in a bundle to boost your AOV.
On the other hand, this period offers a practical opportunity to look back at the year’s releases and offload any remaining inventory through a unique discount or exclusive holiday promo.
Step Three: Ramp Up Your Promotion Game
Next, consider the tactical logistics of your promotions. After all, it can be tricky to time promo launches, depending on whether your customer pool skews toward early or late gift grabbers.
There are two general approaches you can take: 1) offering enticing deals early on to preempt other sales or 2) holding off until late in the buyer’s window to pull the trigger on your promo.
The former can snag early shoppers, or at least convince late shoppers to try an early purchase, but could also lose its appeal by mid-December when fresher deals are dropping every day.
The latter can appeal to buyers who play the long game and wait it out for the most optimal deal, but can still ultimately result in you losing out on early or average shoppers.
Ultimately, there’s no gold-standard method and you’ll need to use your judgement depending on what aligns with your brand’s target demographic, metric goalposts, and even inventory.
For instance, returning to your campaign calendar, you can skew discounts away from marking down products and toward offering cheaper, faster shipping as Christmas creeps closer.
Step Four: Email Marketing On Deck
As we pointed out in our advice for email marketing, setting up your email flow so your comms can run seamlessly is a simple yet essential step of the process that’s easily overlooked.
We recommend starting with a quick info sweep: pull last year’s seasonal purchase data and make sure that customer cohort is consistently re-engaged early on.
In turn, your team won’t be stressed out and frantically attempt to piece together the perfect layout in MailChimp just a few days before Thanksgiving — which circles back to our larger point: the holidays are a time of year with promise of high ROI for your alcohol brand.
You can utilize this opportunity to the max by planning thoroughly and creatively, not stressfully executing a last minute, makeshift campaign.
If your brand has these moving parts staged within the first weeks of November, you should be ready to hook the earliest seasonal shoppers and take full advantage of the holiday rush.
Sit Back and Enjoy the Holidays!
Once you’ve got these steps locked in — a killer campaign calendar, creative promos, and ready-to-launch email marketing — you’ll be the one leading the holiday rush, not falling behind.
Whether your user base is composed of individuals shopping for friends and family or corporate customers with high-volume needs, Accelpay is the platform of choice for your alcohol brand.
To get access to our instant storefront setup and stress-free bulk ordering, get started here.
Direct to Consumer (DTC) is a burgeoning model that's reshaping how alcohol is sold and consumed globally. The DTC alcohol ecommerce model allows brands to interact directly with consumers, bypassing traditional retail setups. This model is gaining traction due to its potential to provide a personalized shopping experience while also creating an avenue for brands to build a loyal customer base.
The rising trend of DTC in alcohol sales is a reflection of broader shifts in consumer behavior and technological advancements. The convenience, personalized services, and sometimes, better pricing, are driving more consumers towards DTC liquor ecommerce platforms. The significance of this trend cannot be overstated as it opens up new avenues of growth and customer engagement for alcohol brands.
The Regulatory Framework
Understanding the Legal Landscape
The legal terrain of selling alcoholic beverages online is complex with a myriad of age restrictions and verifications that need to be adhered to. Different states and even countries have their own set of laws governing direct to consumer spirits sales. The intricacies of state and federal laws can present challenges but also opportunities for brands willing to navigate through these legal mazes.
The requirement for age verification is paramount in the online sale of alcoholic beverages. Ensuring that only individuals of legal drinking age can purchase alcohol is not just about compliance, but also about building trust and ensuring responsible selling practices.
Compliance and Licensing
Acquiring the necessary permits and licenses is a crucial step in setting up a DTC alcohol ecommerce platform. Each region has its own set of requirements and processes for licensing which need to be meticulously followed to avoid any legal complications.
Continuous compliance is not a one-time task but an ongoing responsibility. Ensuring that the DTC platform remains compliant with the evolving laws and regulations is crucial for the sustained success of direct to consumer wine sales, beer sales, and sales of other alcoholic beverages.
Building A DTC Platform
Selecting the Right Ecommerce Platform
Choosing the right ecommerce platform is foundational to the success of DTC beer online sales, wine, and other alcoholic beverages. The platform should have features specific to alcohol sales like robust age verification systems, compliance monitoring, and easy-to-manage product listings.
Comparison of popular platforms can provide insights into what functionalities are crucial for managing online DTC alcohol retail effectively. Platforms vary in their ease of use, scalability, and the support they offer for compliance management, making it essential to choose one that aligns with the brand’s objectives and the legal landscape in which it operates.
Customer Verification Systems
As previously said, implementing robust age verification systems is a non-negotiable aspect of setting up a DTC liquor e-commerce platform. These systems need to be foolproof to ensure that no sales are made to underage individuals.
Ensuring data privacy is another critical aspect of customer verification. With the increasing amount of data breaches, having solid data protection measures in place is crucial to build trust and ensure the safety of customer data.
Marketing and Branding Strategies
Creating a Unique Brand Identity
In the crowded digital marketplace, carving out a unique brand identity is imperative for standing out and attracting customers. Telling your brand’s story in a compelling and authentic manner can resonate with customers and build a loyal following.
Engaging product packaging and descriptions are also vital in enticing customers. The visual appeal and the narrative around the product can significantly influence the purchase decision in the direct sales alcohol platforms.
Digital Marketing Tactics
Leveraging digital marketing tactics like social media advertising and email marketing can significantly boost brand visibility and customer engagement. Social media platforms provide an excellent arena to showcase the brand’s personality and engage with customers on a personal level.
Email marketing, on the other hand, is a powerful tool for personalized communication. It's a channel to update customers about new product releases, special discounts, and other brand-related news, keeping the engagement alive and personal.
Customer Engagement and Retention
Utilizing CRM Software
The essence of the DTC model lies in building long-term relationships with customers. Utilizing CRM (Customer Relationship Management) software is a smart way to manage interactions with customers. CRM systems provide a centralized platform to collect and analyze customer data for insights, aiding in personalization and better service delivery which are vital for DTC alcoholic beverages market.
Subscription Models and Loyalty Programs
Offering subscription services can transform one-time buyers into repeat customers. Subscription models offer convenience and value, ensuring a steady stream of revenue. Simultaneously, creating a loyalty program can encourage customers to keep coming back, fostering a sense of belonging and rewarding them for their loyalty in the competitive market of direct to consumer booze sales.
Logistics and Supply Chain Management
Efficient Distribution Models
Efficient distribution is crucial for the success of online DTC alcohol retail. Fulfillment strategies need to be devised keeping in mind the unique challenges associated with shipping alcoholic beverages. The management of shipping and delivery is not only about logistics but also about ensuring a delightful unboxing experience for customers.
Inventory Management
Real-time inventory tracking is vital to prevent stockouts or overstock situations. A well-managed inventory ensures that popular products are always available, enhancing customer satisfaction. Demand forecasting, on the other hand, helps in planning for the inventory needs accurately, ensuring that the direct to consumer alcohol platforms are well-stocked, especially during peak sales periods.
Measuring Success and Optimization
Analyzing Sales Data
Understanding sales trends is crucial for making informed decisions. Analyzing sales data can provide insights into what products are performing well, customer preferences, and areas that might need improvement. Customer feedback and reviews are invaluable sources of direct feedback on product quality and overall customer satisfaction, enabling brands to make data-driven decisions.
Continuous Improvement and Adaptation
The digital marketplace is constantly evolving, and so should the DTC platforms. Adopting new technologies and responding to market changes promptly can keep the platform updated and competitive. Continuous improvement through feedback analysis and market trend observation is key to ensuring that the DTC model remains effective and profitable over time.
Case Studies of Successful DTC Alcohol Brands
Exploring success stories of brands that have thrived in the DTC alcohol ecommerce space can provide actionable insights. Highlighting the strategies adopted by leading DTC alcohol brands, and the lessons learned from their experiences can offer a roadmap for others aspiring to succeed in the direct to consumer spirits sales arena.
The potential of DTC for alcohol brands is immense, offering a direct line of communication and sales to consumers. It's a model that fosters a closer relationship between brands and their customers, which is invaluable in today's competitive market. As we've explored, understanding the regulatory framework, building an efficient platform, engaging customers, and continuously optimizing operations are critical steps towards leveraging the DTC model for future growth. The journey towards establishing a successful DTC platform is intricate but with the right strategies, the rewards can be substantial. Through embracing the DTC model, alcohol brands can not only unveil a new realm of sales opportunities but also forge lasting relationships with their customers.
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Braxton Freeman
Grolsch
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