The Impact of Referrals on Wine Sales & How to Utilize it

The Wine Press

by | February 2021 | Wine Businesses

February 2021 | Wine Businesses

One of the problems commonly found among wineries is the ability to reach new customers that have never heard of the winery and improving wine sales.

There has been a major focus on retaining customers and pushing all our resources to ensure they stay remain active buyers. This has proven wildly successful through the use of wine clubs and loyalty programs. However, there will always be a continuous need to add more loyal customers to your network.

While modern technology has helped us leaps and bounds to reach new customers, there is still a major struggle to make more potential customers aware of brands and push wine sales.

Today, one of the most successful strategies has been the use of paid social media advertising. Statistics show that in 2021, it is expected that paid social media advertising will surpass $40 billion. This is in the form of ads on Facebook, Instagram, LinkedIn, and Google.

The problem is, more consumers have become aware of advertisers and their abilities to lure customers. This is especially true if they have never heard of the particular brand or winery before. And we know how difficult it is to sell wine to individuals who have never tried it.

But let’s look at some interesting statistics about the influence of peers.

Stats: The Influence of Peers

92% of consumers read reviews before making a purchase. And 40% of consumers form an opinion from a couple of reviews.

More importantly, 51% of consumers will select a business if the reviews are positive. In comparison, 81% of consumers said their purchasing decision was influenced by their friends’ social media post.

Interestingly, 71% of people say that they are more likely to make a decision to purchase based on a friend’s referral.

The evidence is abundantly clear. Recommendations from peers are invaluable. Individuals trust the recommendations from their friends, coworkers, and even acquaintances. So good reviews, recommendations, or comments on a specific winery or wine will spark some interest in these individuals and potentially increase wine sales.

But how do we utilize that for wine sales?

The power of word of mouth has never been more obvious. This is especially true with social media posts. Essentially we want our customers to talk about our wine. We want them to give honest reviews that highlight how incredible our wines are.

We absolutely could ask our customers to do that, but it will only work to a certain degree. The best way to get our customers raving about our wine is with incentive. If they share your product on social media, Incentivize that by offering them a certain discount or free bottle of wine.

Essentially, they will receive a small fee (in a form of a discount or wine) for promoting your business and increasing wine sales. It is one of the leading ways to promote products in any business. It is a win-win situation, where the customer gets rewarded for promoting your business, while you essentially get exposed to a large market at a small cost.

This incentive or referral feature is one of the many features that Troly offers. It is a feature that has significantly helped wineries reach more people, without spending absurd amounts of money on advertising. Try out the Troly free trial, and move your sales in the right direction.

Original creation of our GOLD Partner Patricia
Fascinated by the many facets of wine and wine businesses, Patricia has spent years learning about wine, educating consumers about the product, as well as wineries about their business. She strives to bridge the gap between producers and consumers and help everyone to a better wine life.

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Written by Patricia at Troly
Fascinated by the many facets of wine and wine businesses, Patricia has spent years learning about wine, educating consumers about the product, as well as wineries about their business. She strives to bridge the gap between producers and consumers and help everyone to a better wine life.