Study Research Objectives and Questions

Written By peter yeung

As a business model most commonly used in fine wine, allocated offerings have received little attention from the business world, both within and outside of the wine industry. This study aims to understand the core drivers of the allocated offering model and how wine business can become more effective using this business model. The approach tackles the basics - how much do people buy and how long do they stay on the mailing list - to more challenging topics, such as the most effective way to attract new customers, how to grow sales from existing customers, and how loyalty can be improved.

The project consists of four buckets: 

  1. Overview of the allocation world through basic descriptive statistics. 

  2. An analysis of customer acquisition. 

  3. Analysis of maximizing revenues from current customers. 

  4. Analysis of customer retention. 

2 through 4 might be addressed in a single customer-lifetime-value model or we could consider each of the three questions separately.

Research Questions for Wine Allocations: How Firms Acquire, Satisfy, and Retain Customers

The Allocation World

  • How do allocated offerings compare to wine clubs?

  • What are the different types of allocated offering models?

  • What is the range of size (in terms of cases, revenue, active customers) of wineries using an allocation model?

  • How many customers purchase wine through allocation? How regular are the purchases?

  • What are the key buying pattern differences among market segments, such as price points and geography?

Acquiring Customers

  • What are the means through which wineries attract customers?

  • Which means are most effective? Which are most efficient?

  • How important is word of mouth to customer acquisition?

  • How does the customer value vary across the acquisition channels?

Satisfying Customers

  • How sensitive are customers to different appeals or different strategies for allocating wines

  • What actions increase purchasing and the value of the brand?

Retaining Customers

  • What are the key drivers of customer retention/churn?

  • How important is storytelling to a winery’s performance?

  • How important is brand reputation to a winery’s performance?

  • How important is age in customer performance?

  • What is the elasticity of demand to price, promotions, and exclusive offerings?

  • What approaches are effective to recover departed customers?

peter yeung