There are three main sales levers you can use today to increase your revenue: Visitors, Purchase Conversion, and Sales Per Purchase.   In this article we are focusing on Sales Per Purchase.

“How do I know what to focus on in my Tasting Room to increase our profitability?”

Great question!  That’s exactly where Community Benchmark comes in. When you look at your numbers in comparison to your neighbors, you can get a true sense of what’s not only possible but what is actually happening right now in your community so you know which of the three levers you need to work on for the most bang for your buck.

And now to get even more specific — how much are visitors actually spending per purchase in each region?

Below is the actual Napa Sales-Per-Purchase trend in 2018 to date as reported by our 53 participating wineries — you can see that throughout 2018 it is generally increasing to $326 in October.

Sales Per Purchase increases in 2018

Check out Wines & Vines: Case Studies On Growing DtC Wine Sales

  • Tolosa’s first step to increase in DtC sales consisted of clarifying the brand assets…secondly they looked at all the different DtC revenue channels, including on-property sales, events, wine clubs, digital and inside sales. “We wanted to turn a great hospitality experience into a great hospitality and wine-buying experience,”June McIvor said, and started by increasing staff pay and setting slightly higher yet attainable sales goals for the team. She also moved many part-time staff toward full-time, and staffed up during busier times to ensure no guest was left underserved. – June McIvor, Tolosa
  • “When you go in, it’s about interaction, learning, and discovery, with people on hand to guide the experience. There’s a sense of community and excitement…we do have a traditional bar, and we’ll pour wine and staff will educate. But as we’ve added new spaces, experiences and opportunities, the majority of our guests are gravitating to these other experiences….” – Tim Snider, Fess Parker Winery
  • “We’re looking for people who are emotionally intelligent, who are kind and gracious, who have a giving heart — giving for the sake of giving. We can teach them how to sell wine and tell our brand story….” -Maeve Pesquera, Daou Vineyards
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Check out Shopify’s 5 Effective Ways to Increase the Average Order Value of Your Online Store

Average order value (AOV) is the average amount of money each customer spends per transaction with your store. You can calculate your average order value using this simple formula: 

Total revenue / number of orders = average order value

Let’s look at a hypothetical example: If your store had a total revenue of $1,700 split between 100 orders, your average order value would be $17. This means that, on average, a customer will spend $17 for each purchase from your store.

How to increase average order value

  1. Provide product recommendations
  2. Upsell or cross-sell complementary products
  3. Set order minimums for a discount
  4. Set up a customer loyalty program
  5. Bundle products or create packages

Did you catch part one on VISITATION and part two on PURCHASE CONVERSION? As always, we welcome any feedback and thank you for being a part of our community!

– Team Community Benchmark

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