Loyalty programs have been around for decades, remember the S&H Green Stamps given out at grocery stores that were consumers licked and stuck in an S&H redemption book for merchandise at the Redemption Center? Loyalty programs have always been around just like other forms of advertising, the only difference is they change with the times, technology, changes in demographics, and product marketing dictates.
To amplify other points about what impacts an impactful loyalty program, consider some of the following elements: the brewery’s overall brand image, the product(s), tap room/customer contact employee participation, is the campaign central to building long-term customer relationships, and is it hassle-free?
To illustrate the impact of a single interaction with a consumer, consider the importance of a greeting/ recognition. As an aside, remember the TV show Cheers! from the 1980s, with the lyrics:
Be glad there is one place in the world,
Where everybody knows your name,
And they are always glad you came;
You want to go where people know,
People are all the same.
You want to go where everybody knows your name.
From a loyalty perspective, the lyrics of Cheers! implies that people thrive on recognition and consumers will make repeat visits from a simple act of recognition. At a tap room do people feel appreciated for their visit? Using a person’s name or the tone of a greeting will ensure consumers will remember how they felt in a tap room. People naturally gravitate to places that make them feel good about a visit.
Creating a loyalty program for craft breweries can enhance customer retention, increase sales, and create a sense of community. Here is a comprehensive guide to designing an effective loyalty program:
- Define Your Goals from the start
- Increase Repeat Visits: Encourage customers to return more often.
- Boost Sales: Increase the average transaction value.
- Enhance Customer Engagement: Foster a community around your brewery.
- Build on a brand and keep it fresh and relatable: Identity.
- Choose a Loyalty Program Structure
- Points System:
- Customers earn points based on purchases.
- If using some form of Points system that offers a redemption value (e.g., free beers, merchandise) make sure they conform to state and city laws.
- Award Levels:
- Create levels (e.g., Bronze, Silver, Gold) based on customer spending.
- Higher levels offer better rewards and exclusive benefits.
- Decide on Rewards (Based upon state and city regulations.)
- Free Merchandise: T-shirts, hats, or glassware.
- Exclusive Access: Offer early access to new beers, or special events.
- Discounts: Percentage off future purchases or special promotions.
- Experiences: Brewery tours, tastings, or meet-the-brewer events.
- Implement Technology
- Mobile App or Website:
- Create a platform for customers to track award levels.
- POS Integration:
- Ensure your point-of-sale system can track purchases and rewards seamlessly.
- Promote Your Loyalty Program
- Tap Room Signage: Visibly promote your loyalty program/offering at the brewery.
- Social Media Campaigns: Use your social media channels to create buzz.
- Email Marketing: Inform existing customers about the new program and its benefits.
- Measure Success
- Track Participation Rates: Monitor how many customers are signing up. If a program is not meeting objectives, it is best to eliminate it and try another avenue to communicate with the customer.
- Analyze Sales Data: Compare sales before and after implementation.
- Gather Feedback: Ask customers for their opinions and suggestions. Most people appreciate it when asked for their opinion, and then recognize their feedback when received.
- Evolve the Program
- Regular Updates: Introduce new rewards and adjust the program based on customer feedback.
- Seasonal Promotions: Offer limited-time rewards to keep customers engaged.
A well-designed loyalty program can significantly enhance the customer experience at your craft brewery tap room.
The most overlooked and poorly managed loyalty tool is the “Newsletter Sign-up” feature promoted in the tap room and via the website. If properly deployed, this is a program that keeps on giving by building affinity with the customer.
Loyalty programs in the craft beer industry are a fantastic way for breweries to engage with customers and encourage repeat visits.
Loyalty programs not only reward customers but also help breweries foster a sense of community and connection with their patrons. If you are a craft beer enthusiast, consider checking out local breweries to see what loyalty programs they offer!
