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Online Store | Wine Club

Incentivize Without Discounting: Loyalty Points for Wineries

By  Brandon Harvie
July 6, 2022

With inflation disrupting economies worldwide, many of us feel the burden of rising prices of goods across the board, leading to less spending in all areas. This can be especially tough for wineries as wine is a luxury purchase, travel costs remain high with increasing gas prices, while recreation & entertainment spending is decreasing. It’s difficult not to hear someone talk about the possibility of a ‘looming recession.’

The lessons of the pandemic are fresh on our minds, so now is the time to adapt and adjust your strategies to successfully navigate through changing landscapes. Many DTC brands are learning that a loyalty program is essential to keep customers comfortable through times of uncertainty. In this post, we will dive deeper into what a loyalty program is, how it can help during economic uncertainty, and highlight WineDirect’s powerful Loyalty Program.

What is a Loyalty Program?

Loyalty programs offer rewards, discounts, and other special incentives to attract and retain customers. These programs are designed to encourage repeat business, offering people a reward for brand loyalty. Typically, the more often a customer shops - and the more they spend – the greater the reward. You can think of something like Starbucks Stars or Amazon Prime. These widely known programs offer incentives for customers to keep coming back and using them.

Let’s dive into the data:

Wine DTC WineDirect Loyalty
Source: Yotpo


No matter where a customer interacts with a winery's reward program, whether through an email, text or at the tasting room, wineries can deliver an experience tailored to that shopper, making them feel valued and increasing the chance of repeat purchases. Here are some of the significant benefits of running a well-thought-out loyalty program:

1. Increase Customer Engagement

  • The ability to connect with customers on a deeper level
  • Customers invested enough will want to join your loyalty program; create appealing content and offers to keep them engaged
  • It’s reported that 79% of consumers say loyalty programs are the reason they continue doing business with the brand

2. Increase Average Order Value (AOV) and Repeat Purchases

  • Increasing Average Order Value is a fantastic way to increase revenue without acquiring new customers
  • Using points or unique offers, loyalty programs encourage customers to return or add more items to their orders to “level up"

3. Combat Market Competition

  • An easy and effective way to differentiate yourself from competitors
  • According to Bond research, 71% of consumers say loyalty programs are a meaningful part of their brand relationships
  • Build mutually beneficial relationships with each customer who signs up

4. Boost Retention and Lifetime Value (LTV)

  • When you can give customers reasons to keep coming back – and give them a wonderful experience when they get there – you are increasing retention and thus increasing LTV
  • You are not just making sales; you are forging connections

How a Loyalty Program can help during Economic Uncertainty

Acquiring a new customer is expensive and difficult, especially during times of economic uncertainty. A well-designed and valuable loyalty program is a powerful tool for customer retention. Acquiring new customers can cost five times more than retaining an existing customer. And when you can increase customer retention by as little as 5%, you can see an increase in profits from 25-95%. Retention is key to keeping your wineries with constant sales all year round and having a loyalty program is a fantastic way to keep customers coming back.

The world is changing again, and just like all businesses, wineries need to be able to adapt to the changing times, or risk being left behind.

WineDirect's Loyalty Points Program

Did you know WineDirect offers a built-in Loyalty Points Program for free? Check out this video to learn more:

WineDirect has created a built-in loyalty program to help you build a bond with your customers and entice them to keep coming back. This free feature is available for all wineries using WineDirect and is connected between ecommerce, POS and Wine Clubs. Reward Club Members at different rates or make points earnable across your entire customer base. Loyalty Points are configurable to meet your needs and can apply to any products in WineDirect to create a memorable brand experience for your customers. Learn more about WineDirect's Loyalty Program and how you can set it up here.

As the Winery’s Champion, WineDirect is always here for you, especially during times of economic uncertainty and we are committed to creating educational resources to support DTC sales & growth.

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