Potential analysis of wine clubs as a customer loyalty tool in direct sales

A Study Based on the Case of a Palatinate Winegrowers’ Cooperative

This bachelor’s thesis examines the potential of a wine club as a customer retention tool based on a customer survey conducted among customers of Weinland Königbach. To avoid a restructuring of direct sales, customers must be retained by the company over the long term.

A loyal customer base is extremely important for a company to achieve economic success. Competition is particularly fierce in the luxury goods sector, which includes wine-producing businesses. Therefore, winemakers must strive to retain their customers.

Providers have a wide variety of options available for building customer loyalty. The best-known are loyalty cards and customer clubs. With a loyalty card, users are not as strongly tied to the company. If they do not make a purchase from the provider, they suffer no disadvantage in the form of financial loss or the like. Nevertheless, they are enticed by special offers and savings available with the card. Another option is a customer club—in this case, a wine club. For a monthly fee, members receive a certain amount of wine from the winery or winegrowers’ cooperative throughout the year. In addition, customers can take advantage of the club’s benefits.

Wine clubs are of interest to the wine industry because they are not yet very widespread. They offer wineries the opportunity to attract new customers in this way. However, very few customers are willing to pay a monthly fee, even if it provides them with added value. That’s why free loyalty cards offer a better way to attract customers’ attention and build loyalty to the company.