A Winery Without A Wine Club

In February 2021, I attended a wine industry conference. Once of the sections was about wine clubs and I was eager for some new ideas. The speaker began the conference by saying the wine club model was dead. While that wasn’t the hope or burst of innovation I was \seeking, I found relief in the speaker’s permission to stop saving a failing program.

The winery I worked with had a seemingly great wine club. It touted a membership of about 2,000, but behind the scenes, the membership retention was low and constantly declining. The labor to manage the club, its turn-over, and its policy enforcement had eaten away at the profit margin, leaving ROI negative in some quarters. We were allowing nostalgia and industry norms to inhibit innovation. Something had to be done, but what?

After leaving the conference I was motivated for immediate change and dove into market and competitor research. It was in this phase of exploration I was reminded of one of the most important factors of alcohol marketing: constant change. The nature of human evolution creates a need for constant reevaluation. Every day, people turn 21; no matter what your age, time ticks on.

By this standard, the alcohol industry has had a very real shift in its customer base every year. This is a larger change than most industries see and it is constant! The clearer this became, the more I knew we needed a new system, one that allowed for constant customization and recalibration.

When I analyzed customization, the newer forms of subscription models came up frequently. I was not opposed to subscription, nor did I think it wouldn’t work, but I did not have the budget for new or updated client management systems and needed to find a way to use the tools at hand for this new concept.

I eventually presented and started a “Loyalty Program.” As it stands, the program offers a 25% off discount each quarter (instead of a club shipment). There are no restrictions on the quantity purchased for this discount coupon. It provides additional specials and offerings throughout the year and one complimentary tasting for 2 per month. The loyalty program only requires an email, physical address, and date of birth. It uses our existing client management software to track membership, and purchase data.

Each coupon and special are sent by email to those who have signed-up. My company is also able to send specific emails and promotions to customers based on their purchase history. We do this with only the data provided by customers and through purchases made in our store or website, without data mining or outside data collection.

Does it work? In the first 6 months, the average spend per member purchase has increased by 200% from previous club member purchases. The retention has dramatically increased and new sign-ups are rolling in at an increased rate. Like any change, some long-term members are not embracing the new, but overall, the feedback has been incredibly positive and the patterns promising.

Taking this risk was frightening, but the data was there and the need for change was as glaring as a neon sign at night. To be clear, I don’t promise that this program will work for everyone. I am sharing my story in hopes that it creates an awareness of opportunity for change when a program isn’t working and inspires innovation with appreciation of tradition.