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by Ian Griffith

June, 2006

A Strategy to Grow the Whole Business
A question that often comes up when discussing website strategy with liquor stores is whether to launch a site with a different identity to the store, or whether to use the website to mirror the core business.

There are usually two reasons a store would want to change its identity online. The first is to target such a different demographic that an association with the physical store would undermine the credibility of the website. For example, a high volume discount store in a working class neighborhood may have enough buying power to access allocated wines that would sell well online, but this website probably needs a more sophisticated brand to win the confidence of $100 bottle wine customers.

The more common reason a store chooses to create a separate web identity has to do with the healthy margins it can command from store business. While a move online may include a willingness to operate on smaller margins, this doesn't include sacrificing the margins in the store.

A variation of this rationale applies to a chain that has different pricing throughout its locations. Some stores are more price-sensitive given local competition; whereas others can support stronger margins. If the chain's website shows the lowest prices it may risk alienating customers at the higher-margin stores. Conversely, listing the highest prices online makes the whole chain look over priced.

The underlying assumption is that price drives Internet sales and that displaying higher prices online will hurt business. Certainly promotion driven websites have performed well in this industry, but for a website to make a meaningful contribution to a strong business it should enhance the shopping experience of store customers without sacrificing margins. The challenge is to design a website that coordinates the shopping experience between the stores, the Internet and print.

Read more here about Coordinating the Shopping Experience for customers of your Website and Wine Store

Customers love the convenience of being able to browse products online before a visit to the store. Research suggests that more business can arrive in the store this way than is placed through the shopping cart on a website. A chain can offer this service while avoiding direct price comparisons by asking customers to select a store affiliation before they view prices.

If you run a loyalty program in the store, your website should be the primary tool for communicating to customers about their rewards and promotions. A loyalty program that is successful at encouraging customers to login to your site allows you to target their online experience to reflect not only their preferred store, but their preferred products.

Read more here about how to Improve the Wine Shopping Experience for Multi-Channel Shoppers

If you are able to offer value to customers online, price will usually be a secondary concern. This is an opportunity to build on consumer confidence and trust by adding services that make it easier to shop from you. As more mainstream shoppers move online they will expect a seamless integration of the website and store experience. The reward for a solid execution of this strategy will be loyalty and profitable business.

To learn more about how Beverage Media can help with a website for your store, visit BevSites.com or contact Ian Griffith at 617-864-1677 or follow us on Twitter at twitter.com/bevsites

For a complete listing of all the Talkin' Tech articles, please see our Talkin' Tech Archives section.

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