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Online Store | Tasting Room & Hospitality

Drive DTC Sales with a Loyalty Program

By  Jessica Foye
November 15, 2017

Loyalty programs provide immense value to retailers globally: 75 percent of US companies with loyalty programs generate a return on investment. Loyalty programs drive spending by incentivizing members to accumulate more points to get their purchases deeply discounted. These programs encourage repeat customers who are easier to sell to, spend more on their purchases, and return more often.

In the wine space, loyalty programs are relatively untapped, leaving good opportunities for wineries to drive sales with returning customers. Here are three reasons to focus on rewarding your existing customers with a loyalty program.

1. Convert More Repeat Purchases

It costs six times as much to attract a new customer than to retain an existing one. No matter what your winery does to attract new customers and retain existing customers - it pays to focus on converting a first-time buyer to a repeat customer.

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Source: Smile.io

Our new loyalty points program encourages your customers to remain loyal to your winery and spend more money, more often to earn rewards. Loyalty points for your entire customer base makes for happy customers - who buy more wine.

With our wine club software, you can even set up more favorable earning tiers for club members - further incentivizing non-club members to join the club wine club to earn points faster.

2. Increase Average Order Value

Returning customers spend 67% more than new customers. Your great customer service closed that critical first sale, but it’s also what will get customers increasing their average order value (AOV). A great way to ensure longevity for this is a recurring revenue model, in our industry known as a wine club.

As we all know, clubs are a valuable revenue source for wineries, while repeat purchases are essential for increasing sales. Loyalty Points create an incentive for club members to make more purchases to earn the points needed to redeem their rewards for wine. It provides wineries with an opportunity to further engage their customers, and is a useful marketing tool for moving inventory or selling unique experiences to customers.

3. Invest In Your Existing Customer Base

Returning customers generate 40% of a retailer’s revenue. So - if repeat customers are easier to maintain, spend more and contribute to a large portion of your revenue - a loyalty points program to reward your most loyal customers and ensure they keep purchasing with you is a win-win.

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