Opt-In / Opt-Out Club Models
One way to increase wine club revenue is to have special offers built into the wine club. If you have reserve, special, or large format bottles that are released every year and would be appreciated by your club members, that would be an excellent choice for this kind of offer.
There are two main ways to offer an optional club shipment – Opt-In and Opt-Out. An Opt-In offer means the customer receives the offer and must notify you if they want the wine. For an Opt-Out offer, they must notify you if they do not want the wine. An Opt-In offer is easier to manage but has fewer respondents, so is less effective. An Opt-Out offer takes more effort but has a higher return on the effort.
For an Opt-In offer, you can create your communication and send it out, then wait for responses. One benefit of the Opt-In offer is you can send it to your regular mailing list (which should include your former club members) and should also include an appeal for them to join (or rejoin) the wine club.
When the customer responds to an Opt-In offer, it is easiest to create and ship the order right away. This reduces the work of chasing declined credit cards and allows the customer to receive their wine quickly. Also, when customers call to order, this is an excellent opportunity to up sell and confirm their information. Give them a deal if they double their shipment or if they want to send gifts to someone else.
The Opt-Out club offer is usually more popular, and more people take the shipment in this model. When club members Opt-Out of their offer, try to get feedback about why they are not taking the offer. Have two or three options for them to see if another offer might be more to their liking. This would allow you to still convert them for the sale and make them happy. Also, let them know they can be switched to the Opt-In option if that is more their style.
Be sure the tasting room staff covers all the options during the sign-up conversation, as well as having a specific “Welcome to The Club” communication that covers it and send notifications a month or so before the offer to make sure they know it is coming.
By adding Opt-In and Opt-Out shipment options to your club members, you can really increase member satisfaction by getting something they wouldn’t otherwise get and, of course, your bottom line does well, too.
By Lloyd Vance, Napa, California