More concretely, you are giving the Engaged Newcomer a wine that represents the next step in their wine journey. This is one of the primary reasons Engaged Newcomers taste, is to expand their understanding of wine. That they are expanding their wine knowledge will add to their enjoyment of the wine.
You have paired them with #EveryDayWineGems that they’ll consume soon. This increases their enjoyment of the wine too. The payment trigger will be fresh in their minds, and so it will help them feel they are getting their money’s worth.
The discount will be combined with these other incentives. It is the final push to get the transaction from this new customer.
Discounts will be less of an incentive for Enthusiasts. They are already buying wine and will continue to do so. But payment timing and enjoyment still matter for these tasters. You want your loyalty program for Enthusiasts to involve a transaction as frequently as possible.
To increase the enjoyment of Enthusiasts, provide them a way to access novel wines. As an example, you could hold “members’ only” tastings of your more unique wines that only loyalty program members can attend. This can even be tiered, wherein the more you buy, the better wines you get to taste.
So far, we discussed two buyer segments: Engaged Newcomers and Enthusiasts. We have covered how purchase frequency affects customer loyalty. And, we discussed potential discounts and rewards that would be effective for these buyers. Let’s bring all of these pieces together and see what some programs might look like.
The New Customer Program
This program would be for Newly Engaged wine drinkers that haven’t purchased with you before. These customers would benefit from a program to get them into your purchase cycle. Entice them with #EverydayWineGems that can help them expand their wine knowledge and that fit their palate type. Offer moderate discounts on these wines if they purchase them from you frequently, ideally at weekly or monthly intervals.
The Customer Loyalty Program
This program would be for Wine Enthusiasts that have purchased with you before. These customers would benefit from a program to help develop the habit of purchasing from you regularly and frequently. Entice them with #EverydayWineGems that fit their palate type. These everyday wines will supplement the novel wines you will offer at exclusive members’ only tastings. Only offer the program if they purchase from you frequently, ideally at weekly or monthly intervals.
Getting and keeping existing buyers in your consumption cycle is very similar to a subscription business model. You want them to buy from you at a prescribed interval, whether it’s at your tastings or via a wine club. Many subscription businesses have attrition rates north of 60%. These tips will help you create programs that will acquire and keep tasters and reduce your attrition rate.
There are really only two ways to build your business. Get more people into your tastings. Or, you can increase ticket price from your current customers. In this article, we discussed increasing ticket price per customer. This article focuses on the first way to build your business, getting more people through the door by getting new customers into the consumption cycle and by keeping existing ones in that cycle. We provide a sample loyalty plan for established customers and a new customer plan as a way to get first-time customers to buy and the fight customer attrition with existing customers. These are just two incentive program ideas that will help you build your business.
Looking for an incentive plan specific to your business? Reach out to us. We’re happy to help.