After all, it’s easier to retain people while they are in your wine club than it is to gain new ones.
Going back to basics with guest author Geoffrey Moss MW, principal at Lithica Wine Marketing.
There’s a story behind every purchase. That’s not clear when you look at a single transaction, though. You see an order total, a list of products, and maybe a discount. There’s a lot missing. But taken together, transactional data can be illuminating. Especially when it comes to your wine club.
For my Master of Wine research paper, I analyzed the transactional data for nine anonymized California wineries to see if there were common factors that affected wine club attrition. The goal was not necessarily to predict whether a club member will terminate their membership. If that was the case, we could use a simple model centered around a customer’s membership length.
Eventually, members will quit. And we already have a rough idea of when that will happen based on the average tenure of our wine club. Of course, we don’t just accept that as fact. We work hard to retain members, especially as they approach the expected tenure of their membership. After all, it’s easier to retain members than it is to gain new ones.
Instead, the goal was to identify whether there are club-level or member-level variables that affect member termination. Let’s start with the former. The structure and design of your wine club matters. But not necessarily in the ways that you intuitively expect.