Managing Allocated Offerings w/ Peter Yeung & Byron Hoffman / Tyson Caly, Offset

Guest hosts and a host as the guest in this episode.  Byron Hoffman and Tyson Caly, co-CEOs of Offset, a leading e-commerce platform for allocated offerings, interview host Peter Yeung about his new course, Allocated Wine Offerings: Best Practices. They get into the content of the course and also a wide range of topics related to allocated offerings. Detailed Show Notes: Co-hosts: Byron Hoffman, Tyson Caly, Co-CEOs of Offset, a wine e-commerce platform and brand studioPeter’s background: helped managed wineries (Realm Cellars, Kosta Browne, CIRQ Estate) which used Offset’s e-commerce platform, including managing the allocation systems and then consulting for other wineries; McKinsey; co-author of Luxury Wine Marketing, which has high-level strategy around allocationsAllocated Wine Offering courseMore operational strategy for allocationsGoes through the entire offering processIncludes some benchmarks of key metricsAre allocations still relevant? Yes, for 1) scarcity or desired perceived scarcity and 2) large number of SKUs (hard to do a wine club)Allocated Offering definition: allocation (limit to purchase) + offering (distinct time frame to buy)One of the oldest allocated offerings - Vega SiciliaOther industries that use allocations: watches, cars, sneakersUniqueness of wine allocations: price per bottle relatively low, number of bottles relatively high compared to other luxury goods, regulation of alcohol → has made wine allocation systems more advancedTiming of offerings clustered at key times (“spring” and “fall”), alternatives tend not to work as wellBest practice examples: timing of offerings, wish setting strategySupply-demand balance makes a difference in what strategies to useAllocation methods: Offering types: first come, first serve; guaranteed allocation; order request; wine clubs; hybridsAllocation types: group based or individualNapa winery started first come, first serve and group based; winery got several 100 point scores, e-commerce system crashed, created buzz and scarcity, and customer service issues amongst old customers; system evolved to guaranteed allocation with individual allocations; led to 40% more customers buyingMost important factor in allocations: creating value in allocations (waitlist, secondary market premium, loss of value if they don’t buy)Hybrid models: e.g. - Shafer sold high production wines in online store/club, Hillside Select was allocated; adding multiple models increases operational complexityAI automation for allocations: could do targeted marketing, might be able to create allocations, likely won’t create allocation rulesSetting allocations is quick for first come first serve / group based allocations, more complex individual / guaranteed allocations take longer, but can be accelerated with templates and formulasPredicting and identifying potential good customers challenging because wine interest is not easy to determine and not correlated with wealthRFM (recency, frequency, monetary) a way to prioritize customers Leveraging unique experiences to wine buying and building community can drive performanceManaging waitlists (e.g. - Sine Qua Non sent a postcard / letter / email every offering to let people know they couldn’t buy wine; intro offerings can engage people right away; drip campaigns also work) Hosted on Acast. See acast.com/privacy for more information.