Looks Like Santa is Not So Jolly

Since my last blog post, I heard back from Santa via voicemail.  His tone told me he was not too pleased with my inquiry about pricing.  He stated that the invoice I'd received was correct -- that I'd actually been given a better deal, and he wasn't sure how that had happened.   That I could call back.

Wow.  So a customer calls to inquire about pricing, stating that the prices charged didn't align with those on the website and the promised 20% discount.  She immediately gets an email saying that the difference would be credited. Then a day goes by and there's a voicemail stating that she was in the wrong.  (No thank you for the order, nor inquiry about how the wines were tasting.) The last time I felt like this about Santa was circa 1979 when I had a healthy skepticism about not-so-jolly red men in suits with fake beards.

I really don't understand how I got a better deal than the promised 20% case offer when the $20.00 Chardonnay is marked down to $18.00 on the winery's website and I was charged $19.20 per bottle.  Even using the original higher $20 rate, this is a 4% discount -- not 20%.  (I won't bother going into details of how the other 20% discounts don't add up.)

When I receive an email offer marketing wine, a winery should know that a normal next step in the customer buying process is to check prices online.  The prices listed online are in effect the promise made to the customer.

If I was incorrect, why not politely explain my error and take the opportunity to ask about the wines I've just purchased?  This would change the tone of the brand conversation -- it is quite possible I'd want to buy more or sign up for a wine club.  This is actually an opportunity to create loyalty here by developing the relationship.  Versus assume the customer calling with a question wants to pick a fight.  (More on this in a moment.)

From a customer service lens, the reason behind a service error doesn't matter. A business might choose to briefly explain why the error occurred and what has been done to ensure it won't happen again.  The main focus should be on correcting the problem -- this is both the right thing to do given the brand promise, and provides a good return on investment when done well.  The service recovery paradox shows that when a customer's negative experience is solved successfully, her loyalty increases.

 In Harvard Business Review's  "The Profitable Art of Service Recovery", the trio of authors demonstrate how a Club Med manager turned a group's horrendous travel experience into "the most fun they'd had since college."  He went much, much farther than would be expected, especially since the airline delays were not under the resort's control.  The vacation that should have been ruined before it started became a story of delight that has no doubt been told many, many times over.

It is worth noting that the only difference between these two posts by me and another high frequency wine consumer is that my counterpart would have mentioned the winery's name.  This creates what is known as the ripple effect, where dissatisfied customer shares her negative service experiences much more frequently than the instances where she is satisfied.  Behavioral studies have shown a similar phenomenon called loss aversion theory (or prospect theory). When applied to finance and market performance, investors hate their losses 2.5 times more than they celebrate their gains.

Did I return Santa's call?  No, because it's not worth it to me to argue over the money. Especially when I'm dealing with an interaction that should be delightful.  It is worth it to me to take my wine business elsewhere -- after all, we're all in the hospitality business first; the epicurean industry second.

Here Comes Santa Claus... and He Has Vino!

On December 5, I received one of the most creative wine marketing emails I've seen in a long time.  A Washington winery offered to make my "holidays brighter this year": For a one-case-plus purchase, Santa -- one of the company's co-owners, would personally deliver wine to me in his " Sleigh."  I'd get a 20% case discount for the order.

I immediately jumped on the phone to call the winery and compliment the offer.  Compliments are of course nice, but *sales* are what we're all striving to create through wine marketing, so I asked them to create a special case for me for our annual Huey holiday party.  After all, marketers need to understand customer expectations and desires, so this was important research for me.


Since Trellis Growth Partners offers email marketing as part of our small business communications suite, we are always researching new ideas.  Some tactics that have worked well this year for clients include promotional magnums, winery credits, special gift offers, support of charitable causes and a particularly memorable sealed envelope mailing where the recipient had to present the card at the winery to open a surprise gift. (Details are purposefully not disclosed.) Each of these had a creative theme and required excellent execution from the wineries.

With email marketing, there are some best practices -- consistent and compelling communication, which is aided by having an advance plan of action including themes; using call to action in the subject line; sending the emails from a real person and at a preferred time of day for your customers; etc., etc.  A critical aspect of effective email marketing is delivering on your promise.  Going beyond simple delivery to delighting customers is what we should all strive to do, as it helps turn them from transactional buyers into loyal ambassadors.

The arrival of today's Wall Street Journal brought a related article -- "Made You Click: Dark Art of Store Emails", which describes how retailers use email marketing as a powerful sales tool.  According to the piece, "email is retailers' most important tool for cranking holiday sales" since the online shopping is "the No. 2 holiday shopping destination". The article solidifies the plans we have for our clients in 2013 -- to re-test optimal send times, subject lines, and introduce customer segmenting when possible. It also highlights the importance of using compelling imagery and layout to enhance offer appeal.

Something not mentioned in the article is aligning online marketing communication.  We're big proponents of promoting one's press, so posting your email to your Facebook site and creating a website call to action.  Our small business communications suite does just that plus includes a quarterly media pitch to present our clients' products to key gatekeepers.

The Journal also brought me a sign this morning: Santa showed up a few hours later with the case I'd ordered exactly two weeks ago.  He had been out all day delivering a lot of wine -- the promotion brought a terrific return on his investment of time and creativity.


I must admit I was surprised and relieved, because I hadn't heard anything regarding a delivery date and we're only in the office about half the time due to client engagements.  (The offer would have been much less interesting if I'd come back to an unsecured box of wine sitting in the (too) cold weather on my doorstep.) Just last night as I was driving back from a client meeting through winter weather, I was thinking the offer would be a huge let down if Santa had not gotten my wish list or had experienced a sleigh malfunction. 


In summary, I give the promotion an A+/ 10 out of 10 on creativity. I called as soon as I read the email offer. Boom - it worked!  Customer communication, delivery cheer/ presentation need some improvement. A 5/10 feels a little generous right now. 

Santa did come, but he made me wonder if it was all just a fairy tale since I didn't get a delivery confirmation.  The promised discount was inconsistently applied on the difficult to read invoice given website pricing.  (A call to the winery was promptly returned via email with the promise of a credit using the web pricing.)  And there was no real holiday cheer attached; just a case box with an invoice taped to the top.

To really put a smile on my face, a cheerful "ho ho ho", a little note or even a big red bow would have worked wonders.  It's amazing how much people appreciate the care taken on how a product is presented and what is placed inside the box -- even us jaded wine marketers.  (Think Tiffany & Co. -- a master of presentation and creation/delivery of heightened expectations with its ubiquitous little blue box.)

As a first time customer, after spending nearly $400 on a case of wine, I was hoping for a little more love -- at some wineries, this purchase would immediately propel me into the "case buyers" club with a special invitation for more.

I am looking forward to opening the wines and sharing the selection with friends.  Long after the bottles are empty, I'll remember the offer that caused me to drop what I was doing and order a lot of wine.  (This is especially significant for someone who spends over 10 hours per day promoting her clients' wines and typically receives a sizable trade discount.)  Just not so sure if I'll feel like it was a smart decision given the impulse buy, full experience and extraordinary amount of competition for my dollars out there.

The risky part about raising the bar through an especially creative promotion is that the customer's expectations are equally, or perhaps exponentially raised -- especially when you smartly tap into a cheery emotion that brings us back to one of the joys of childhood. Let's hope those wines are drool-worthy :)


Happy holidays to all, and to all a strong OND selling season!

A Creative and Integrated, yet Simple Marketing Promotion

Another wonderful Salud! auction weekend is underway.  Since moving to the Pacific Northwest almost five years ago, this event has become near and dear to me and our company.  I was honored to be asked to become a member of the procurement committee a couple years ago and have since enjoyed linking everything from Graham's and Dow's Port to Brasada Ranch and client wines to this honorable cause supporting health care for Oregon's vineyard workers.

As usual, there were some stunning Salud Cuvee Pinot Noirs at last night's tasting at Domaine Drouhin.  This annual event brings together some of Oregon's finest producers who have agreed to donate a barrel (25 cases) of a special blend, which is sold via auction. 

It is always curious to me how purveyors in the epicurean space choose to present themselves.  Most of the tables last night were void of information, which is a lost opportunity. A simple, yet smartly designed card with the winery's information and perhaps a special offer for Salud! attendees would help attendees remember their favorite wines and help convert awareness to purchase.

One supporter took a very different approach: Volcanic Mineral Refresher, a family-owned water company based in Ashland, Oregon.  In addition to rack cards, they had a unique promotion benefiting Salud! and their brand.  Attendees were encouraged to "like" Volcanic on Facebook and make a donation to Salud!.  Those who donate $20 or more gain a coupon for a bottle of water; those who donate $200 and up will receive a case.  This smart promotion helped me remember the product, gained them a "like" and increased my contribution to Salud!.  (We raised $350 for the organization during our industry sales and marketing research earlier this year; I've increased my donation amount to $370.)

Change Takes Time

In life, our personal and professional habits typically become part of a deeply ingrained routine.  When we decide that our routine is not best serving us, or it becomes readily apparent, it is time to make a change.  Whether it's starting a new fitness regimen to change your health or working with a consulting company to transform your business results, welcoming this change often the toughest part.  (By welcoming, I mean accepting that the status quo is not working and being open to operating differently, and then actually changing behavior to produce desired results.) Truly facing our challenges at hand -- whether they be on the scale or in the P&L statement, takes a lot of personal strength; it is much easier in the short-term to stay in our comfort zone.

We are well aware of the challenges of change when working with clients.  Eighteen months ago, I wrote about our phased consulting process, which inevitably creates some tension to produce positive results.  From our perspective as marketing and management consultants, the ability to work with owners and operators to effect positive change is exhilarating.  We know and trust our process, so it is easier for us to see the medium- to longer-term benefit and not be paused by the shorter-term challenges.  So we are sure to let prospective clients know that it tends to get tougher before it gets better (hopefully, much better).

This is much easier said than heard -- the longer client businesses have been operating in one pattern, the tougher it is to weave another.  I've recently been thinking a lot about change from the client perspective, and what our process experience must be like for those we serve.  The researcher in me has decided that this very topic will be our next client survey. In the meantime, I'm going to share a few thoughts from my perspective.

Our first phase is entry -- in this phase we are gathering the information necessary to write a proposal.  From our perspective, we need to identify areas of opportunity and assess fit for both parties as not every prospective client is a match.  When we determine a likely great fit, it is exciting and a little nervous because we of course want to work with 100% of great fits, even though we know it's not an achievable goal.

For clients, however, this phase must come with excitement when imagining future possibilities and challenge given our questions, which are detailed.  Even though we explain that confidentiality is critical and sign NDAs for prospective clients, for some -- especially those newer to the industry, sharing this information must also be at least a little bit uncomfortable.

In our research phase, once we are officially hired, we continue to gather information in the form of more interviewing, surveys and client data.  Then we go about analyzing everything to present an initial recommendations report.  For clients, this can be a tough phase because it involves opening up parts of their business that even they may not have examined in years.  Our intention is to prepare teams to think differently and begin to view their roles with the aid of a different perspective.  When we present that initial report, there are always strengths to celebrate and challenges to navigate.  It's the "moment of truth" and is usually a big turning point in our projects.  When I see a client come away both inflated and deflated, I know our process is working, and I respect that it is often very tough.  (I used to feel very similar when coaching first time triathletes for Leukemia and Lymphoma Society's Team in Training program.  Many of my team members had never run a 5k and therefore a triathlon must have felt like climbing a mountain.  I loved cheering them on and seeing each of the incremental results along the way; yet I knew the training could be grueling.  "Just think how amazing you're going to feel crossing the finish line" helped people swim, bike and run a little bit harder and probably gave many people a good snicker as they were rolling their eyes at me.)

Our action planning phase may just be the toughest part for clients.  We have just created that turning point, and now need to focus on the "quiet" time of the engagement, while they are usually ready to see the results.  Communicating why we need this period and how it will benefit our clients is very important.  I'm quite sure that it must feel like we have shown a path with light and then shut the door, asking them to wait a few weeks more.  I've heard that seeing our plans is the first time many clients believe the change can actually be effected.  I've also heard that it can be overwhelming.

The implementation phase for many is the fun part.  The toughest work is done and as long as we follow the plan, results will come.  Our ability to project manage and use timelines helps ensure everything is kept on track. This is typically when I hear a first "thank you so much" or "this is really working", or even, "I wasn't so sure at first but this process has been more helpful than I imagined".  It always delights me because I respect how difficult it is to bring in an outside perspective and fully open your business to change.  It is also a time when I ask clients for feedback -- not just positive, because we are continually working to improve our process.

Finally, the transition phase is either the time where we are wrapping everything up or discussing our next engagement.  By this time, the working relationship has been solidified, both parties have learned a lot, and we express our gratitude as well as desire to remain a valuable resource. My goal is for clients to feel and see a tremendous amount of value in the process and most importantly, positive change in their business -- both quantitative and qualitative.

Still Dreaming About IPNC

I was thrilled to be asked to serve on the media committee for this year's International Pinot Noir Celebration.  This is such a beautifully run event and it attracts top producers from around the world to McMinnville, Oregon for a weekend of incredible wine, food, hospitality and friendship.  It was my first time attending the full weekend and I vowed never to miss it again!

Below are some highlights from that glorious weekend:

Burgundy Seminar with Allen Meadows

This was an amazing experience and timely since my husband and I were there this past spring.  Burgundy is a place that requires much study and understanding given 1600+ climats, or specific delimited terroirs.  In this seminar, we sampled wines from Domaine Lecheneaut, Maison Louis Jadot, Domaine Henri Gouges and Maison Ambroise.  The wines that gave me most pause are as follows:

2006 Jadot Gevrey-Chambertin 1er Cru "Clos St. Jacques" - red brick color lead to aromas of stewed strawberry, slight smoke, pure rhubarb jam (is there such a thing?) with an outdoorsy quality of fresh rain and chalky soil.  There were notes of soft worn leather and earth, and so many additional subtle flavors... The tannins were dusty and the mouthfeel was downright beautiful.  The finish lingered -- it would have done so throughout the day if there weren't so many more wines to taste!

2008 Domaine Lecheneaut Chambolle-Musigny - deep red cherry color with bright aromas of fresh raspberry, clove, black cherry, moss, mocha and a hint of apricot juice.  Wow, this wine had such a pretty minerality in the mouth with bright fruit, an interesting soft chalky texture and a long, pure finish.

2008 Maison Ambroise Echezeaux Grand Cru - a wine full of flavor and complexity including smoke, pepper, oregano, wood spice, earth, fresh meadow, pepperoni and tons of fresh raspberry.  Extraordinary finish. 

The Fine Dining/Meals/Cuisine

A detailed description would take 1000s of words...  The main point here is that the culinary delights are a major highlight of this event.  From the breakfasts with fresh fruit (the biggest berries I've ever seen) to the al fresco lunches and dinners catered by top chefs and served by professional sommeliers, the cuisine is not overshadowed by the very fine wine.  Every morsel was more delicious than the next.  This is an incredible accomplishment when you consider that there are nearly 1000 attendees to serve -- all with high expectations.  The entire chorus of chefs, servers and winemakers puts on a fun grand finale for the Sunday brunch where this year's sommeliers dressed in Greek fashion -- some taking the toga party theme to a fantastic level.

Connecting with Friends Old and New

IPNC was the first major event I attended when we moved to the Portland area in 2008.  I volunteered during the lunches and was thus introduced to what has become a wonderful tradition.  In the last five years, I've had the pleasure of meeting many talented colleagues in the industry, and taking time to relax and enjoy each other's company is always a treat.

Supporting Two Great Clients

Bill Stoller, Owner of Stoller Vineyards, served as Chairman of IPNC during this event, and he did a terrific job encouraging the crowd and representing the industry.  I've had the pleasure of working with his team for the last three years.  Stoller is the largest contiguous property in the Dundee Hills AVA with nearly 200 acres under vine on its 373-acres.  The winery is a leader in pioneering environmental sustainability, and is this month celebrating a new name (Stoller Family Estate), new tasting room and winemaker, Melissa Burr's 10th vintage.

A newer client, Ghost Hill Cellars, debuted at this year's event.   Mike and Drenda Bayliss, co-owners, presented their wines alongside winemaker, Rebecca Pittock-Shouldis.  It was a thrill to see them recognized for a top accomplishment in a relatively short period of time.  Ghost Hill Cellars is located on Savannah Ridge in Yamhill-Carlton's AVA.  The property has been in the Bayliss family for over 100 years.

Role of Strategy: "Adapt or Die"

"You can't discuss changing strategy unless you are ready to discuss what makes people resist change and what part people could potentially play in creating more adaptability in an organization." 

This morning while reading the weekly HBS Digest, I paused on the above quote by Harvard Business School Professor, John Wells, who was interviewed for "Strategic Intelligence: Adapt or Die" about his book, Strategic IQ: Creating Smarter Corporations.  While he cites case studies of larger businesses, much of what he presents is relevant to small businesses, too.

Wells defines "strategic intelligence" primarily by the ability for an organization to adapt to ever changing circumstances.  He gives an excellent example of how Circuit City grew 20+% over a period of years in the 1980's to the detriment of then little known Best Buy.  When Best Buy adapted by changing its strategy to lead in pricing by reducing inventory, storage and labor costs, Circuit City ignored this competitive landscape change for a decade and ultimately filed for bankruptcy.  (I just bought a projector at Best Buy, not Circuit City, and there's a reason for that.)

Change is tough.  And when sales and profits are growing, it is perhaps easier to ignore the need to continually hone a competitive strategy.  This may be the most dangerous point, though, as it leads to the complacency that allows the competition to move in. 

Resistance to change is something we look for at Trellis Wine Consulting starting with the first phone call with a potential client.  In our primary meetings and before there is even an agreement to write a proposal, we probe for change resistance because we know that this will create an impasse.  There is a tremendous difference to being concerned about change -- yet open to it, and being resistant.  When we find the latter, we know it will not be a fit since our process is all about creating an effective and efficient path to enhanced sales and profitability. Which almost always means change.

This doesn't mean we are dictating strategy -- far from it.  Developing it is a process within our engagement.  It is worth noting that Wells recommends that consultants be involved in the strategy development process, but that companies take care not to delegate this function.  We couldn't agree more; in fact, it is critical that our clients are involved because it is their vision that leads the process.  We are in a position of asking probing questions, providing recommendations based on past experience, and challenging status quo.

Strategic intelligence is a skill that must be ever present in a company; it is a mindset.  When we work with clients, we are in a position of helping them think differently about their businesses.   We translate the common complaint, "I don't have time for planning" as "I don't value it (or understand its potential value to my business) so do not make the time" to strategize.  

The how is as important as the what.  A chosen path is not an accident; it can and often does lead to a specific outcome.  One of the most interesting things about strategy you don't have to have one to operate.  There are profitable companies without them.  The right question to ask though, is what might you be leaving on the table without one -- is there an opportunity cost to ignoring strategy?  The problem with not having one or engaging in the process is that you'll never know.

Don't Forget the People Side of Change

For some, the word "change" is invigorating -- filled with opportunity; for others it's something to be avoided at all costs.  Dictionary.com states that it's anything from "to make the form, nature... different"; "substitute"; "give and take" to"transform".*

As a management consultant, a lasting positive and profitable transformation of a client's organization is my main priority with every project.  This typically includes selling more goods and services more profitably, and should include improved experiences for the client's customers and internal team.

Planning is of course an important part of these engagements.  We must anticipate the gaps between the current state and the desired future outcome.  No matter how small or large the project, we must consider two sides of the change equation: technical and people.

It is unfortunately all too common to focus on the technical side, forgetting the human element required for successful change.  Let's use an example of building an e-commerce site for a client which has never before used an online business channel:  Simply creating a project plan, implementing it and running through the testing with a demo is not sufficient.  The technical side may work, but the people side will suffer.  So we must also understand how the team takes and processes orders, who is involved in each state, when each step must occur and and where the important information lives.  Then we compare the former process to the new in order to create a change management plan including coaching, follow up and point persons.

You can imagine how a change management plan intensifies when ours is a project covering the entire business side of the operation given the number of people and functions involved.  The scope is much broader, but our process stays the same.

* When speaking with potential clients, assessing how they view change is critical to the potential success of a project together.  Just as with any fitness regimen or new habit, we have to be ready and committed or the effort will not work.  So we only enter into client agreements when we are confident that the outcome will be a successful one.