Issue link: http://read.dmtmag.com/i/197178
"Predication is the nut that everyone is trying to crack," said data scientist Michael J. Tompkins, cofounder and chief science officer for Houston-based startup VineSleuth. For Tompkins, whose typical project may involve millions of unknowns, wine has its own unique set of challenges. "It's not as if we have the answer yet," he said. "Every industry is trying to use data to predict consumer behavior and guide business decisions toward profit." THE POWER OF ANALYTICS What companies including E. & J. Gallo Winery have in common with startups such as Lot18's Tasting Room and VineSleuth's Wine4.me is, among other things, the ability to use consumers' experiential data to gauge preferences and make purchase recommendations. In addition to using point-of-sale information and retail data from IRI and Nielsen, Gallo has been gathering data across all aspects of its organization for more than a decade. But only with the advent of social media has the company made the leap to complex analytics. Gallo uses a social media listening platform to measure comments on Facebook, Twitter and its own sites, and tracks that activity against sales. To gather experiential data, Gallo surveyed customers at events and in its tasting rooms in California and Washington state. Surveys ensured the use of consistent descriptive terms so that Gallo could accurately interpret the feedback, which it then used to identify five wine-style clusters: sweet and fruity; light body and fruity; medium body and rich flavor; medium body and light oak; and full body and robust flavor. The company mapped its own and competitors' products to these clusters and then used sales and trend data to understand taste preferences and emerging trends in different markets. AT A GLANCE + Every industry is trying to use data to predict consumer behavior and guide business decisions toward profit. + The use of analytics in the wine industry is growing. + Analytics can be used to identify and predict consumer preferences and make recommendations. + Surveys are an effective way of gathering experiential and sensory data. + Compiling large amounts of data is pointless if winery or online visitors can't be converted into customers. w w w. v w m m e d i a.com N ov - D ec 2013 | V INE YA RD & W INE RY M A N A G EM EN T 89