DOT Project Collects, Leverages Behavior Data for Revenue Growth
Total Wine & More is on pace to reach well over $2 billion revenue this year, and executives there are quite happy with the growth they’ve received since launching its self-named "digital omnichannel transformation" (DOT) project after selecting Hybris a couple years ago - as told to press/analysts at SAP Hybris Summit this week.
While e-commerce accounts for only two percent of sales (the other 98 percent attributed to its 143 brick-and-mortar locations), Total Wine & More’s website is contributing to its growth in other ways many digital business can relate to or be motivated by.
For one, Total Wine & More can identify when customers are spending time on their site, visiting a store and buying products there. Its loyalty system is enabling this attribution of website visits to in-store sales (as they are likely signed in to check points or past in-store or online purchases as well as then using their customer number in-store).
Secondly, website visitors aren’t just adding to cart but they are also adding to shopping list. The latter, a digital wish list, not only empowers customers to save the items they are interested in, but it also allows Total Wine & More to build out robust profiles, which are currently being used to segment audiences (e.g., vodka drinkers, red wine enthusiasts, etc.) and market in relevant ways. In the near future, Total Wine & More plans to put more product and customer data in employees’ hands.
By empowering in-store sales associates with purchase data, for instance, they can provide a personalized experience based on the price point a customer may be interested in (e.g., helpful for wine suggestions) or whether they enjoyed their last purchase or not (e.g., in-person recomendations, "if you liked this, then you'll like that).
With loyalty program growth and high mobile traffic volumes, Total Wine & More doesn’t expect its two percent figure to last for long – anticipating high growth, of course particularly around mobile. Currently, its site is “mostly optimized” for mobile and improving that property is a big priority in 2017. Fully realizing its idea for a branded app will also take priority in 2017. The company plans to centralize its loyalty program, coupon delivery and even user-generated content (UGC) within the app while making it "stickier" so it is not just downloaded but also kept on valuable device space.