Wine Club Member Optimization

“Our ongoing relationship with Mather has been enlightening. We were excited to see the success of our reacquisition campaigns. You put so much energy into new club sign ups, this is a way to work with the contact list you already have.”
Carol Rounsaville | General Manager
DENNER VINEYARDS

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Mather Economics is an expert in subscription pricing optimization. We are helping wineries maximize their direct-to-consumer revenue with predictive analytics and targeted communication strategies.

Wine Market Update

Many wineries are finding that direct to consumer (DTC) sales are an opportunity
to grow revenue while establishing direct relationships with their customers.
Managing customer relationships requires
tools and capabilities few wineries have today. Mather can provide these capabilities with flexible, reasonable costs. And, we are fun people to work with!

Let us help you solve these common challenges:

  • Personalization of your customer communications to
    grow engagement
  • Proactive retention campaigns to lower club churn Pricing supported by economic analysis of customer
    price elasticity and market factors
  • Allocation of marketing to channels that yield the
    highest return on investment
  • Forecasting of revenue, sales volumes, and costs

Mather Economics’ data-driven business services are helping wineries increase client revenues, reduce member churn and grow club membership.
Mather’s services and expertise across various industries will help you reach your goals.

  • Price Elasticity Estimation and Pricing Optimization DTC Member Customer Lifetime Value (CLV) & Reacquisition Modeling
  • DTC Member Churn Prediction & Retention Tactics Campaign Optimization & A/B Testing
  • Customer Data Resolution

Optimizing the Membership Lifecycle

Using Mather’s analytical modeling and services, we can
help evaluate the impact of churn mitigation applications by measuring the cancellation rates of different applications versus a control group, which receives no incremental touchpoints.Understanding the performance of these campaigns provides insight into how to optimize efforts for future marketing activities.

Applying Predictive Models to Reduce Churn

Once members are scored for their predicted churn risk, out-of- sample testing allows for validation of the model by tracking the actual cancellation rates of members by their predicted score. Members are grouped into quartiles of predicted risk. Understanding the risk profile of individual members allows for prioritization of retention efforts.Understanding the risk profile of individual members allows for prioritization of retention efforts.

CASE STUDY

Winery in Paso Robles, California
Mather combined data from a winery’s club membership history and customer purchase behavior to create a scoring system that optimized club member reacquisition campaigns.

Improving the Efficiency of Reacquisition Campaigns

Email helped drive incremental reacquisitions versus a control group in the test above. Additionally, we found that groups that received a direct mail postcard and a follow up email were reacquired at a significantly higher rate than those that received only an email or direct mail piece.

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