The Power of Friendship in the World of Wine

wine geek blog-01Yes, this is a wine blog.  That said, we’re going to spend some time talking about friendship.  Why?  I’m glad you asked.  Because it may shed some light into how wineries can keep visitors coming back for more.  Intrigued?

We all have friends (I hope) who’ve made a significant impact on our lives by lifting our spirits when we’re down, giving us encouragement, and leading us through the vast wilderness of interpersonal relationships (let’s be honest, it can be a jungle).  There’s nothing quite like having a BFF.

Now let’s take a moment and think about what makes up a healthy friendship between two people.

Trim away the superfluous and what you’re left with is the impression of mutual benefit between both parties (ex. Billy and Karen are friends.  Billy enjoys spending time with Karen because she is quite humorous.  Karen enjoys Billy’s company because he’s such a good sport and provides moral support when she’s in the dumps. They both benefit from a continued relationship).  We can even loosely determine the strength of the friendship by evaluating the value each party places on the benefit they derive from their association.  The higher the value, the stronger the bond.  When there is a strong bond, we can be sure that both parties will instigate unsolicited actions to the benefit of the other.  Each interaction builds trust and heightens the perceived value of the opposite party, increasing the likelihood that beneficial actions will continue to be performed.  It’s a bit of a cyclical process, really.

Now researchers are applying that same line of thinking to the analysis of the relationship between tourists and organizations which provide destination experiences… like wineries.

The International Journal of Strategic Communication published a study in 2012 entitled ‘Destination Loyalty and Communication – A Relationship-based Tourist Behavioral Model’ which states that relationship building between destinations and visitors leads to active supporting behavior on the part of the visitor towards the destination.

Of course, when I first read this I wasn’t at all surprised – isn’t this exactly what marketers and savvy business-people have been trying for since… well, since forever?  But then again, we live in an age where everything must be quantitatively proven in order for it to be believed, so the need for this study is understandable.

In this study, relationship building is approached much the same way as our earlier ideas on friendship.  In the healthy relationship visitors wish to continue their association with the destination because more benefits are expected the longer they continue the relationship.  The same goes for the destination.  Both parties expect to benefit in different ways (ex. the destination hopes to make sales) but they both value the benefits of the relationship enough to keep it up.  And the stronger the bond, the more likely visitors will be to engage in active support such as sharing the experience with friends or acquaintances.

If we think about what this means for wineries, we begin to understand the importance of relationship-building as a part of the destination experience.

I’ll be honest with you, I’ve been to a few tasting rooms where I’ve felt ignored or treated in a manner I can only express as being cold.  The wine may not have been bad, but given the lack of effort on the part of the staff to engage in interpersonal dialogue I felt no desire to return or even purchase their wine.  The quality of product wasn’t enough to get my business.  On the other hand, I’ve been to a couple of places where the wine wasn’t quite up to par but the staff treated me so well I bought the wine nonetheless – and in some cases even returned for another visit!  In the case of the former, I was unable to recognize the benefit of a continued relationship with the destination (despite having a decent product) specifically because they put no effort into relationship-building.  But in the case of the latter, I made an effort to support the destination because the interpersonal skills of the staff were of such great value to me that I felt obligated to help them out!  Maybe you’ve had a similar experiences.

The study from the International Journal of Strategic Communication provides evidence that efforts made in relationship building during the destination experience result in destination loyalty and favorable voluntary behavior taken by visitors.  Encouraging for wineries?  Yes.  Commonplace among wineries?  Maybe not so much.

I’d like to share the following suggestions to wineries in light of this:

1.  Put your best face forward.

The tasting room is where you make or break the relationship with your visitors.  Do you really want the growly minimum-wage local as your front man (or woman)?  I don’t think so.  When visitors walk in your door they should be greeted by the friendliest and most personable individual on your staff.  This person should be bursting with a passion for customer service – and it wouldn’t hurt if they knew the ins-and-outs of your operation and all about your wine (If they don’t know the answer to something, fine, but the first thing they should say is ‘I don’t know, but let me find out for you!’)  This person should understand the fine art of conversation (you don’t want a chatterbox hogging the limelight and you don’t want a timid mouse shrinking into the shadows) and they shouldn’t be as concerned with the sale as much as they are about building a healthy relationship with the visitor.  The ideal person will make it easy for the visitor to relax and trust that they are in good hands.  The ideal person will make visitors feel like they’ve made a new friend.  The ideal person may take some time to find.  This is a hard job.  It takes effort and a ton of energy.  Don’t believe that just anybody can do it.

2.  Distribute content designed to build relationships with visitors.

Social media, web content, mailings, and commercials are all potential carriers of the destination experience.  Think about ways you can make it easy for potential visitors to see the value and benefit of coming to visit you – and by value I’m not referring to monetary value.  Although this can be a good incentive to bring people in the door, it’s probably not going to be the best way to create destination loyalty.

Remember: friendship.

How do you normally make friends?  Do you offer them discounts to incentivize them to go out on the town with you?  Do you hound them with one-line announcements about special events at your house and fill their inbox with pleas to come visit?  Probably not.

Friendships begin with a dialogue.  Listen.  Respond.  Make an effort to understand the other party.  Don’t hog the conversation – It isn’t one-sided, it is a mutual experience.

Social media is, of course, a perfect platform for engaging in this type of relationship building (more traditional types of media can be creatively employed in a similar fashion with a bit of thought, however).  While it’s easy to fall into the trap of a one-sided conversation, posts and tweets and whatever else should really be designed to encourage a dialogue.  Campaigns should be responsive and agile, ready to truly engage with potential visitors.  Content such as this will encourage destination loyalty and voluntary favorable actions – and this is what wineries want, right?

Food for thought.

Until next time.  Cheers!

Economic Impact 2012

wine geek blog-01I’m a Wine Geek, I’ll admit it.  But I’m not alone, so I’ve decided to take this opportunity to write blog posts specifically for geeks like me.  Keep your eyes open and keep coming back to Iowa Decanted – unlike our regular content which is updated at the beginning of the month, this blog will be a continual work in progress and you’ll be able to find new content more often.  I’ll be talking about pretty much anything that comes to mind in regards to the wine industry of Iowa, so I hope you’ll join me in this new adventure.  First up?  An interesting study brought to my attention by Mike Vincent of Wooden Wheel Vineyards.

This study, commissioned by Iowa State University, was released in March of 2014 – and it’s a report that every true wine geek should know about (false wine geeks need not continue!) and one about which every locavore should be proud.  This report, which sports the titillating title ‘The Economic Impact of Iowa Wine and Wine Grapes – 2012’, states that the full economic impact of Iowa wine and grapes during the year 2012 was $420 Million.

Wow, huh?

We are, of course, currently living in the year 2014, so if you’re like me you’ll be wondering what this report from 2012 means for 2013 and today.

According to the report, this total economic impact increased 79% from the year 2008, which to this wine geek seems an incredible and wonderful leap in the right direction.  Winery visit estimates were up as well at a whopping 51% from the year 2008.  The total number of wineries in the state rose from 74 in 2008 to 99 in 2012.

What can we infer from this information – can we assume that this explosive growth will continue into the future?

Well, no.  I think not.

Don’t get me wrong, this is great news, but given the realities of the industry I don’t believe (and this opinion is shared among many players) that this trend in growth can or will continue.  Iowa is a difficult place to grow grapes – talk to any vineyard manager and she will confirm this.  Agriculture is a time consuming and risky venture, in general, and it’s safe to say that despite the growing popularity of native wine, vineyard managers will be hesitant to pursue rapid expansion without certain assurances.  According to this report 90% of the wineries in Iowa could be considered small producers, with only 5 wineries producing more than 5000 gallons of wine in 2012.  Small producers generally experience (and pursue) tactful expansion given their lack of access to equity.  They grow as they see fit and only as much as they feel comfortable with.

Winemakers experienced this firsthand in 2012.  According to the economic impact report planted acreage experienced only moderate growth which led wineries to look elsewhere to find grapes/juice to fulfill their demands.  These imported grapes are, of course, more costly and if this trend continues the increased cost of wine production is likely to hamper future growth and expansion.

Taking into consideration the market as a whole, we can safely say there is plenty of opportunity to grow and expand operations and capture market share.  While Iowa was listed as the 25th largest wine producer in the United States for the year 2012, California topped the list boasting 88.58% of total wine production.  Iowa produced only 0.03%.

As we can see – plenty of opportunity for the future.

So what can we expect for the future of Iowa wine?

While I don’t believe we can expect the same level of growth, I think we can safely assume we can see a steady, gentle increase in economic impact as time goes on.  Industry members are beginning to find their rhythm and consumers are beginning to pay attention, so rather than focusing on quantity I speculate we’ll see a higher concentration on the quality of Iowa wine.  Consumers are slowly learning the nuances of the wines which can be produced in this region and as their knowledge-base and palates develop they’ll begin demanding a more elevated product.  In other words, I think the future of wine in our state will increasingly depend on its acceptance by a quality-centric consumer.

We have a lot to look forward to.

Until next time, I raise my glass to all my fellow Wine Geeks.  Cheers!

PS – you can find the economic report from 2012 here.