Introduction
A wine club is a group of customers who agree to receive periodic shipments of wine with select benefits and privileges. With bottle prices increasing and consumers staying wine clubs longer, the average lifetime value of a wine club member is on the rise (Penn, 2017). After all, it is less costly to maintain an existing wine club member than to get a new one. The role a wine club plays in overall sales efforts of wineries in the United States is integral to consumer marketing as well as the tasting room and special events (EBSCO). Money is a strong incentive to implement a wine club, and when successfully done, profit margins can be up to 50% more than wholesalers (Teaff, 2005).
Wine club strategy is characteristically unique to each brand. But for the smaller family owned winery there should be an exploration with a push towards social media and the awareness of the sales from producer to the consumer versus supermarket to the consumer (Stoddard, 2015). A wine club provides better customer service, exclusive wines, and more thrill than buying at a supermarket. With up to date technology, wineries can reach out to the virtual customer, while adhering to all laws, and expand without incurring too many additional costs.
Wine club sales can help the winery keep on track and finances in control. Winery
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A wine club member is a devoted ambassador that has volunteered to speak positively about the wines (Teaff, 2005). As important as the first sale is, the second sale and the need to keep pleasure as high as on the first shipment is what can lead to increased time in membership and increased sales. “Survey shows the average length in a wine club is 30 months” (Penn, Pg. 70). Customer relationship management programs can determine the monetary value of a customer and allow the winery to implement specific marketing strategies to appeal to its most valuable customers’ needs and wants (Teaff,