Do all the different types of marketing metrics out there confuse you? Are you frustrated and not sure what matters? Ultimately, the most important metric in marketing is revenue per customer (RPC). This will tell you which customers are your VIPs and will help define who you should target in the future.
For example, if you find that 50% of your revenue comes from wine club members, you’d focus your marketing on wine club members, and on how to build wine club retention and grow your membership to that same audience.
How do you determine RPC?
To figure out your average revenue per customer, first figure out the amount of revenue coming from different areas of your business (tasting room sales, wine club, online sales, etc.) in a given amount of time (a month or a year).
Then, divide the total revenue by the number of customers in that area.
For example, if last month you made $7,900 in revenue from your wine club, which has 100 members, your RPC from wine club members would be $79. You could compare that number to other types of revenue to make decisions about how to allocate your marketing budget.
Now that you have your RPC, how do you divvy up a digital marketing budget?
Your digital marketing strategy will depend on lots of different factors such as where your customers are spending their time and how they prefer to interact with your brand (are they visiting your tasting room weekly or following you on Instagram from a separate state?).
With all the different types of digital marketing out there, where you do start? If you have to pick one, email marketing is hands-down the most cost-effective marketing tool. Email grants you complete control over the content you share with your audience, whereas your social media reach is at the mercy of algorithms and competition for users’ attention.
An article about Kendall-Jackson explains, “As of now, Kendall-Jackson sees 60 percent of its revenue from KJ.com from its email offers, 20 percent from organic search and social posts, 10 percent from paid social posts and 10 percent from referrals from other websites, according to Maggie Curry, director of marketing of Jackson Family Wines.”
Rebecca Ritz is the owner of Bauerhaus Design and has worked with wineries across the country for over 10 years to create unforgettable brands. My gift to wineries —> Take our free 7 week wine marketing class to learn how to sell more wine with a powerful brand, email marketing, social media, online ads and more: www.bauerhaus.com/sell-more-wine/