Wine Churn and Revenue Impact
Winery in Washington State, USA

Improve retention of wine club members, increase sales, and improve marketing decisions by implementing insights-driven marketing initiatives and measuring the effectiveness of each against the business-as-usual strategy.

  • We accessed and analyzed 2 years of sales and member data to establish historical behavior.
  • The dataset analyzed includes member characteristics, such as wine preferences & historical purchasing patterns.
  • We fit a panel-based logistic regression to the data in order to measure the likelihood of churn.
  • Members were segmented into 3 groups: control, email, & phone call. Each represents how a member was contacted about the upcoming new wine allotment.

Campaign effectiveness is evaluated by several key indicators: Incremental Stop Saved, Member Saved, and Yearly Revenue Saved.

The phone call & email strategies  outperformed the business-as-usual strategy with the average stop rate being 3.16% combined. It’s estimated that the 10 members saved would result in $3,208 yearly revenue saved.

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