Mystery Shoppers Program. Engaging Consumers. Brad Johnson: Mystery Shoppers: Mystery Shoppers:

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Engaging Consumers By: Paul Gospodarczyk Des Moines Area Community College www.todayswineprofessional.com Mystery Shoppers Program Brad Johnson: www.winedustry.com Mystery Shoppers: Mystery Shoppers: 20 18 16 14 12 10 8 6 4 2 0 Percentage 3 30 2 20 1 10 high school graduate some college Associates degree bachelors degree some graduate work masters degree professsional or doctorate degree 0 under 0 0-61 62-6 66+ 60% attained a Bachelors degree or higher Age range of Mystery Shoppers

0 4 40 3 30 2 20 1 10 0 Mystery Shoppers: 44 30 male female 41% 9% 2 20 1 10 0 Mystery Shoppers: 1 2 3 4 6 7 8 9 1 Novice ------------------------------------------------------------------ Expert 9 Self-reported level of wine knowledge Volunteer Shoppers Frequency What did we learn from the experience of our Mystery Shoppers? Expectations: Sought vs. Attained 7 6 4 3 2 1 Want Got taste locally made wine learn more about Iowa wine try something different tour a winery accompany a friend/loved one meet owner/winemaker tour vineyard enjoy wine outside authentic winery exp

7 6 4 3 2 1 Expectations: Sought vs. Attained Want Got 7 6 4 3 2 1 Expectations: Sought vs. Attained M-want M-got F-want F-got visit another Iowa winery enjoy the scenery good time with fam/friends learn about winemaking learn about grape var's learn about lable reading to relax gain knowledge of pairing attend special event support Iowa wine support Iowa wine visit another Iowa winery enjoy the scenery good time with fam/friends learn about winemaking learn about grape var's learn about lable reading to relax gain pairing knowledge attend special event Service Service

Fear Antagonizes Service Fear reactions defense posture Guides consumers AND wine industry 1) Millenial Sommeliers Complaints Wine snobs Tours at 2:00 ONLY Tasting room closes at 4:30 sharp What service is not 2) Don t create this perception

Offering Superior Service What Service Is Education Food Pairing/Wine and Health/Wine Labels Tasting Process Expectation Error D.A. what the wine DOESN T smell like Always have a knowledgeable server Give the servers boundaries on their duties Service Marginal Consumers Engaging the consumer: The 3 questions

Marginal Consumers Marginal Consumers Marginal Consumers Consumes 1-2 times per month 14% of population (28 million consumers) 9% women, 84% white, 8% over 40 Selling to Marginal Consumers Questions lacking substance: What can I do for you? Are you here for a tasting? Do you like wine? What sort of wines do you like? This wine is like a grape popsicle. a Pinot Noir

Core Consumers Core Consumers Core Consumers Core Consumers Drink wine several times per week 12.% of U.S. population Consumes 88% of the wine in U.S. Better educated, affluent 60% women, 8% white, 71% >40

Comparison of Consumers Selling to Core Consumers CORE Positive introduction Food orientation Socially active Appreciate elegance Travel Wine is fun See themselves as successful Variety seeking MARGINAL Negative introduction Convenience foods Wine is to impress others Wine is work Feel they don t fit in with wine drinkers Confused by wine Risk adverse Listen! and hope you ve studied Consumers are tapping into the world wine community Their experience is now applicable to you Good questions Selling to Wholesalers/Retailers Factors Affecting Purchase Fears: The wine tastes bad The wine won t sell This wine is a financial liability

Factors Affecting Purchase Factors Affecting Purchase 1. Excellent wine 2. Superior service 3. Would purchase again 4. Label attractiveness (women + 16.4%) Satisfaction = Money Expectations + Service = Satisfaction Satisfaction = Money Level of Satisfaction Low/Moderate (4- ) under $13 $13 - $24.99 Dollar Amount Spent on Wine $2 - $34.99 Greater than $3 1 (20%) 2 (40%) 2 (40%) 0 Moderate (6-7) (20%) 10 (40%) 7 (28%) 3 (12%) High (8-9) (20%) 6 (24%) 7 (28%) 7 (28%) Base: n= mystery shoppers. Note: some evaluators did not complete satisfaction portion of form.

Level of Satisfaction Satisfaction = Money under $13 $13 - $24.99 Dollar Amount Spent on Wine $2 - $34.99 Greater than $3 Incentives to Purchase My Mercedes Low/Moderate (4- ) 1 (20%) 2 (40%) 2 (40%) 0 Moderate (6-7) (20%) 10 (40%) 7 (28%) 3 (12%) High (8-9) (20%) 6 (24%) 7 (28%) 7 (28%) Base: n= mystery shoppers. Note: some evaluators did not complete satisfaction portion of form. Rule of reciprocity TX investigating role of gratitude Reasons to Purchase Unexpected guests Upcoming dinner Rough day at the office Gifts Host/Hostess gift; housewarming; birthday Questions? paul@todayswineprofessional.com