Wine clubs are a great way to build repeatable, predictable revenue and brand loyalty — things all winery owners want. And the wine club movement is growing. Ninety percent of all wineries in the U.S. offer wine clubs, and club memberships are increasing year over year by an average 15 percent. Direct-to-consumer (DTC) sales channels like wine clubs are by far the most potentially profitable sources of revenue for wineries. In fact, according to a recent industry survey, DTC sales account for 60 percent of winery revenue nationally. For smaller wineries making less than 2,500 cases per year, that number jumps to 74 percent!
Are you doing everything possible to increase membership and maximize the revenue of your wine club? In our continuing series covering The Six Must-Haves in a Winery’s ERP System, we highlight five ways an integrated wine club management solution helps you better promote and manage your winery’s wine club.
A wine club management tool should be able to share data with your ERP application. And since up to 90 percent of wine club members sign up in the tasting room, you’ll want integration with your tasting room’s point of sale (POS) system as well. The systems should be capable of sharing product, price, and inventory information, as well as customer data, to deliver a complete view of your winery operation and save the efforts involved in duplicate data entry.
An integrated solution gives all employees what they need to become more productive, and it also helps avoid duplication of work. Customer service teams handle customer queries more efficiently, and sales teams can source orders faster, and meet specific shipment and delivery requirements.
2. Know the stats
Do you know your average revenue per customer? How about their overall lifetime value? What’s the average wine club membership length? Are you tracking the reasons why they leave? Are wine club members more profitable for your winery than other customers? If you are not accurately tracking this data, and able to report upon it quickly, you’re missing valuable opportunities to grow and improve your wine club’s performance.
An integrated system with robust reporting capabilities makes it easier to analyze your company’s data, bringing together disparate elements into a cohesive view that promotes better, faster decision making.
3. Make it personal
The more you know about your wine club customers, the better able you are to tailor offerings to them and provide them with the best possible service. Email marketing remains one of the most effective marketing tools, allowing you to promote your wine club to prospects actively, and regularly communicate with members by email. Personalize your communications with a birthday e-mail including a special promotion or discount, or with an announcement of a new vintage of their favorite wine.
Integration with an email marketing automation platform such as MailChimp will enable you to get your messages in front of customers easily, sign up new subscribers, and track the success of each mailing by monitoring the number of times the message was opened, forwarded, or a link was clicked. With an integrated solution, you will be able to create targeted campaigns based on customer purchase information, and leverage reliable customer data to target customers who may want your new products and offerings.
4. Streamline payment processing
To keep your wine club operating smoothly, you’ll need reliable credit card processing capabilities so that you can quickly process the credit card payments for each shipment. Because you are storing credit card data to reuse, by law you must take special care to keep this information secure by encryption, following PCI security standards.
Integrated payment processing functionality means less work for your team, and the payment data flows seamlessly into your accounting for better accuracy and more timely information.
5. Improve customer service
Wine club customers generally expect a high level of service, and with so many options available to them, if you aren’t providing high quality, personalized service and rapid resolution to queries, you are at risk of losing a subscription.
When your wine club management software is integrated with your ERP, you gain a complete view of your customer lifecycle, past purchases, notes of prior conversations, payments made, subscription details and more. It empowers your staff to provide professional, personalized service that keeps subscribers satisfied and ordering more.
Subscribe to higher revenues
Wine clubs cut out the middleman, resulting in more profit for you. Wine clubs represents the lowest-overhead revenue and deliver recurring revenue with little additional effort. They also present you with more opportunities to turn casual buyers into loyal customers and fans by better communicating your story and letting your brand’s personality shine. Loyal customers spend much more than casual buyers over time, and at a lower acquisition cost, meaning you’ve got more resources to keep on making great wine. By incorporating the management of your wine club into the rest of your operations by integrating it with your ERP, you make it easier to grow this vital revenue stream.
Caron Winery Solutions Powered by Sage delivers powerful accounting, distribution, inventory control, purchasing, financial reporting, business intelligence, point-of-sale and customer relationship management capabilities to growing wineries throughout North America. Learn more here.