Is Naked Wines The “Netflix Of Wine”? Nope.

 

In Today’s news:

“Is Naked Wines The “Netflix Of Wine”? Why Light Street Capital Expects 1,000% Return”

Wrong.

 

Just all wrong for the same reasons that Winc isn’t the Netflix of wine either as it asserts. Claims to that are simply meaningless, misleading marketing hype with absolutely no data to underpin a fantasy claim.

 

Just because you have a subscription wine club (dime a dozen these days) doesn’t make you like Netflix which has a customer retention rate of more than 90% — and THAT is the key metric for comparison with Netflix.

 

There is no indication that Naked Wines has an accurate recommendation engine or a retention rate comparable to Netflix.

 

Two of the developers of Netflix’s “Billion-dollar-recommendation algorithm point out, that accurate recommendations and its corollary ability to ease “the paradox of choice” — are the key parameters to retaining its customers.

 

In addition, as we pointed out last week — Wine Club Winc postpones $75 million IPO. A look at one number might be the key — those are the key. There is also no customer retention data on Naked Wines

 

For what it is worth, I was one of the first “Angels” when Naked Wines first launched. I left when I could no longer find wines that were enjoyable. I’ve also tried — and quickly dropped — memberships at numerous other prominent non-winery clubs. For tht same reason.

Previous Wine Industry Insight Coverage

Here’s why Winc isn’t the Netflix of wine

• Winc’s not-so-Netflixy customer retention rate — here’s how the math works
• Winc falls way short of being “The Netflix of Wine” when it comes to customer retention
• Ohio State Attorney General Has Commanding Lead In Direct Shipping Litigation Tournament 4-2-1
• Winc raises $3+ million in latest offering, but fails to disclose federal court case brought against it by state of Ohio
• Winc the Netflix of wine? (Nope)

Here’s why NOBODY is the Netflix of wine (Yet)

• The Path To Netflix-Quality Wine Recommendations Leads Through The Doors of Perception
• A “Netflix of wine” is impossible with current recommendation methods because Sight & Sound dominate Smell & Taste
• Netflix Amped Up Recommendations with its own Big Data. What that means for wine.
• Netflix Generates Big Data for To Amp Up Recommendations — Wine Needs To, Too.
• Wine profile matching fails because genes determine that no two people taste the same wine the same way.
• Reviews and 5-Star ratings are so useless for recommendations that Netflix tossed its prized $1-million algorithm. They’re even worse for wine
• Why solving the “Paradox of Choice” is a major reason Netflix’s recommender is worth $1 Bil/yr. And why wine fails at that.
• How A Netflix-Style Recommender Is Vital to Reversing Wine’s Market Marginalization