How to Sell Wine to a Millennial

Leveraging millennial psychographics to customize subscription models

Subscription-based business models have long served the wine industry, but Millennials demand more options, requiring vintners to uncork some new ideas.

When the novel coronavirus became a pandemic, consumers around the globe made the conscious choice to buy online and forego their brick-and-mortar store trips. Especially younger demographics—like Millennials and Gen Z. Suddenly, the need to automate recurring purchases reached an all-time peak. It seemed as if one economic sector after another rushed to adapt their goods and services to a subscription-based model. 

For wine producers, this presents a challenge. The millennial generation has resisted the traditional allocation model more than their parents and grandparents. And the in-person tasting experience has changed, making it more difficult for a business to connect with would-be buyers. 

Leveraging technology to identify specific customer profiles and generate a targeted marketing campaign is a refined science, but it tends to elicit a shudder among winemakers. It doesn’t need to be that hard.

By shunning sophisticated subscription-marketing campaigns, the industry ignores a fundamental principle of millennial behavior: they subscribe to different products for different reasons. The idea behind marketing to these different customer profiles is simple but far-reaching. For many wine producers, it’s time for a crash course in what market researchers call “psychographics.”

Alcohol easily fits each of the psychographic categories. Not every producer will have all three types of products to offer in a club, but most will:

Curated

In this model, consumers rely on the producer’s expertise to customize the delivery of products to their liking. Think of the virtual DJ on Pandora radio, tailoring playlists to your musical tastes. Curate an engaging playlist and an avid audiophile will gladly pay for the service. 

Fans of this model trust they don’t know their own tastes as well as an expert in the field. They’re willing to have their handheld while discovering new goods that fit their style. Think about the impact of subscription “crates” on fashion. Trunk Club, Stitch Fix, and Bombfell are just a few of the curated models that have helped men and women refine their tastes in recent years. For wine producers, a curated model is ideal for selling the perfect combination of your medium-high priced wines to the busiest clientele. 

So, who fits this customer profile? Imagine a Millennial tech entrepreneur, short on time but not disposable income. Facebook and Instagram marketers might target users who follow entrepreneurial groups and magazines. Better yet, focus on LinkedIn advertising to attract potential customers to a curated subscription model. 

Firstleaf claims its “industry-leading, patent-pending technology”―an algorithm based on more than 1,000,000 customer ratings―will help club members shape their custom tasting profile. When new customers try a wine for the first time, they can add to the ratings themselves.

Access

The idea of “access” subscriptions appeals to consumers who identify as connoisseurs. Millennials want to feel a sense of pride or ownership in an exclusive product. Nothing “basic” will do. 

Collectors looking for rare examples of abundant products, such as sports cards or vinyl records, might buy into an access-based subscription by the manufacturer. This model dominates ultra-high-end products like luxury cars and designer fashion. For wine producers, the access model is ideal for selling your most exclusive products to clients who thrive on being the first among their peers to discover the next big thing.

Facebook/Instagram marketers can target millennials following rare auction groups, rare music collectors, or self-identified coffee snobs. More than a sign of disposable income, these memberships indicate the user values exclusivity and individuality. Naked Wines captures this idea well by touting small, independent wine makers from around the world. Many of the winemakers are proudly “undiscovered.” 

Replenishment

Some goods are consumed so frequently that they resist the notion of “access” or “curation.” Once you run out, you need more. Think razor blades, vitamins, or pet food. Subscribers to these products are likely to make purchases based on a cost/benefit analysis. 

Other practical concerns reign supreme in the replenishment model—consumers don’t want to think about the recurring purchase; they want to outsource selection, payment processing, and (when possible) shipping to the vendor. 

Offering a discount to the recurring subscriber is an excellent way to ensure long-term loyalty. For wine producers, the replenishment model is ideal for selling your low-medium-priced wines to your frugal clients.

One Hope Wine puts social causes ahead of prestige in marketing its wines. Purchasing bottles by the dozen comes with a discount. Limited-time promotions sometimes include a free year in the One Hope wine club.

What Millennials are most likely to apply cost/benefit analyses to everyday decisions? Engineers! Market to engineers with a bent toward the arts. Target Facebook/Instagram ads to individuals following, for example, Javascript and the San Francisco Museum of Modern Art. 

Replenishment has never been seen as a possibility for wine because of the high shipping cost compared to the cost of the wine, but I think it can be. You can either require higher-quantity purchases, or require the customer to pick up a purchase in person. Imagine a screaming deal on a monthly pickup replenishment offering that gets them into the tasting room, where they end up buying other items.

The challenge for every winery is figuring out how to reach different audiences, especially the millennial generation. Doesn’t it make more sense to stop lumping them into their own category and start marketing to them as the individuals they are? 

Identify one or more target psychographics, create the perfect subscription for them, and then spend your marketing dollars showing them you have an offering that aligns with how they are already wired. It beats the alternative. Convincing them to like your pre-existing offerings is inefficient, ineffective, and so non-millennial. 

Kent Nowlin is the Vice President of Management and Operations for VineSpring. A veteran leader in the wine business technology space, Kent joined VineSpring in 2019 to oversee the business. Kent spent nearly a decade at ShipCompliant, the primary technology company in beverage alcohol compliance, where he managed the company’s finance, operations, and sales teams until eventually becoming the General Manager. During his tenure, he not only participated in the successful vertical growth of ShipCompliant’s wine channel, but also its horizontal expansion in the beer, spirits, and general online retail channels.