Measuring ROI for Wineries: Twitter & Facebook’s Influence on Lifetime Value

Many wine industry leaders are skeptical of  the idea that social networks, Twitter and Facebook, have morphed into powerful direct sales and marketing channels like the traditional email, telephone, tasting room, eCommerce, or wine clubs. Many continue to deride the usefulness of these networks. And many continue to ask for return on investment white papers or reports without understanding the very basic features, benefits, and strategies of these networks.

Consequently, the key for full scale acceptance of Twitter and Facebook as direct sales and marketing channels for the wine industry is ROI. The first step to understanding your return on investment is measuring social media’s influence on the lifetime value of each wine consumer.

Very Basic Requirements to Measure Social Media ROI

  • Enterprise Buy-In: from the tasting room staff to the CEO, the entire winery must communicate the goals of their social media efforts and the strategies to be implemented.
  • Collect Data: at every level from tasting room to marketing department, customer sales data, contact information for multiple channels, and preferences must be collected. Information must be collected from each channel itself. From a telesales team, tasting staff, social media directors, and any other touch points.
  • Tag Consumer – Trade Lists: create identifying tags, compatible with the winery’s systems, and tag every Facebook fan and Twitter follower.
  • Timeline: identify the date of the first sale for each customer and continue to record all purchases from all the channels they utilize moving forward from that point.
  • Measure: begin to measure the lifetime sales, of exact start dates and like groups ie. club members or non members, of social media customers (Twitter and Facebook) vs. non-social media customers.

Conclusion

This is a very basic thumbnail sketch of the beginning steps to take in order to understand the social media ROI of Twitter and Facebook. The greater the detail in data collection, storing data in one central database, extrapolating the data, and then analyzing it- the greater the return on investment. The effort, time, and expertise it takes to leverage this type of strategy can be extreme but so are the benefits to the bottom line.