Choosing the Right Wine Club Model: Seasonal Drops vs. Rolling Anniversary

As a winery owner or manager, you’re likely juggling production, sales, and customer satisfaction. Adding a wine club to the mix requires careful thought. Choosing the right offering can be instrumental in the success of this component of the DTC (Direct To Consumer) strategy.

Do you opt for the predictability of Seasonal Drops or offer the flexibility of a Rolling Anniversary? In this post, we’ll break down the pros and cons of each and share practical solutions to match customer expectations. Whether you’re a small boutique Cellar Door in the Barossa or a mid-sized operation in Margaret River, these insights will help you choose a wine club that delights members and drives revenue.

Seasonal drops operate with fixed shipment schedules. The winery determines the delivery frequency and may allow customers to select their own wine or offer curated cases by the winemaker. An example of a set case is the Maker’s Selection, which is dispatched in March and September. This model may appeal to wineries that want control over inventory and new releases. Shipments can align with each new vintage or a seasonal theme, such as a Summer Rosé Release.

Pros:

• Predictable operations: Batch processing allows you to plan fulfillment in advance. This works well with a small Membership base.
• Builds anticipation: Members look forward to “Wine Club delivery month”, fostering excitement around new releases.
• Member interaction: As the set delivery month approaches, members are notified to log in to their portal to update details.
• Cashflow stability: Regular, scheduled shipments provide a reliable income.

Cons:

• Delayed gratification: Customers who sign up mid-cycle (e.g., in April) may have to wait several months for their first delivery, leading to frustration and higher cancellation rates.
• Limited customisation: Members have limited flexibility in choosing when they want their wine, as dispatch times are set by the winery.
• Resource challenges: As winery sales grow, team pressure can also grow as whole days are devoted to wine club picking, packing and dispatch.
• Admin hurdles: In Shopify, setting up deferred payments without an immediate charge can be challenging and may need workarounds like cut-off dates (e.g., no sign-ups 15 days prior to dispatch).

This model may suit the structure of established wineries that have the capacity to allocate staff to focus on packing and dispatch. It can feel disruptive for smaller Cellar Doors, where resources are stretched.

Enabling Rolling Anniversaries allows members to join the club and have their first delivery processed immediately upon joining. This approach is gaining traction for its customer-centric focus and ease of administration.

Pros:

• Instant value: Members receive their wine immediately, capitalising on the excitement of a tasting room visit or online discovery, and reducing buyer’s remorse.
• Adapts to winery resources: Wineries can trickle feed anniversary deliveries to Cellar Door staff each week or month. Orders can be fulfilled and dispatched during quiet times of the day, rather than having a dedicated staff member spend the entire day picking and packing.
• Choose-Your-Own adds value: This model offers set cases and also allows customers to choose their own selection. There is evidence that when members can customise a personal selection, order values increase on average by around 9%.(1)
• Subscription anniversary options: Rolling subscriptions are flexible, and the anniversary date can be set to trigger either a specific number of months from the original sign-up date or from a nominated date within the anniversary month, e.g., the 1st day of the month of sign-up.
• Personal Touch: A simple, personal note can make members feel special. These touches are more achievable with rolling anniversaries because you ship a smaller number of orders each day or week.
• Better alignment with consumer expectations: Data shows 71-84% of consumers expect tailored, personalised interactions.(2)
• Millennial appeal: Research indicates that millennials prefer subscription models with flexibility and personalisation. (3)

Cons:

• Inventory demands: This option requires real-time stock management to handle the customer’s varied choices, and may potentially lead to substitutions if a vintage runs low.
• Less control for wineries: Promoting specific releases can be challenging. They may need to be highlighted as “winemaker’s picks” in the club’s selection interface.
• Marketing shifts: This model prioritises personalisation over seasonal events and may require rethinking your direct marketing strategy.
• Member administration: There is an emphasis on members running their own online accounts and making timely changes. This can cause issues for the winery if the club interface is difficult to use.
• Subscription fatigue risk: Even with flexibility, rolling anniversaries can contribute to the growing issue of subscription overwhelm.
• Operational complexity: The scattered delivery schedule makes temperature-sensitive shipping and logistics more challenging; for example, dispatching wines during the summer may require extra communication with members to prevent the wines from spoiling in the heat.

This approach can be more attractive to smaller wineries and club members, who prefer the flexibility of self-selecting their wine and delivery.

There are ways to balance the pros and cons of seasonal drops and rolling anniversaries while keeping your customers and your Admin team satisfied.  

Welcome Packs

When choosing the Seasonal club format, consider introducing Welcome Packs. This option offers customers the instant gratification of immediate wine delivery while they await their first scheduled seasonal shipment. The Welcome Pack could be a discounted mixed six-pack that may or may not count towards any minimum purchase commitments the Club has.

QR codes at Cellar Door

Using QR codes at the cellar door can simplify promoting Club options. QR codes enable seamless sign-ups on the customer’s personal device, further facilitated by the use of Apple Pay or Google Pay for frictionless payments. Staff can encourage customers to join and learn how to manage their own subscriptions.

No matter what your Club format, clear communication ensures there are no awkward surprises for your customers and no awkward conversations for the cellar door team. Training staff to understand the Club model is a priority. Then your team can be confident in the sales process and better help customers understand the subscription format and commitment.

Ensure your customers understand what’s possible and cover the occasional need for wine substitutions with the phrase “while stocks last”. For vintages, keep Club listings generic, offering “Chardonnay” rather than “2023 Chardonnay”. This minimises the admin for small wineries and avoids disappointed members. Have these details noted in the Club Terms and Conditions so that staff have the information readily available in their toolkit should they need it in tricky situations.

Once a subscription has been purchased, always confirm the transaction with an email to remind the member what they have committed to.  Consider something like:

“Welcome to the [wine-club].

We are delighted you have joined our wine family, and we look forward to getting to know you.

You have committed to a [six-month] recurring payment.  Your first payment is today, and your wine delivery will be dispatched within [three business days].  

By joining our Wine Club, you permit us to charge your stored card on your subscription anniversary [date], and your wine will be sent to your designated address.

You will receive a friendly reminder [two weeks] before your next delivery.

Please [log in to your online portal] to check that your selections and details are correct.

If you have any questions, do not hesitate to contact your Wine Club Manager.”

Cheers!

Ultimately, the choice of Wine Club model depends on your winery operations, the Winemaker and the audience you serve. If you’re a vintage-focused Estate with a team for batch fulfillment, Seasonal Drops might be a good fit. For agile, customer-driven wineries, a rolling anniversary may offer broader appeal and easier scaling.

If in doubt, test the waters: Talk to your customers. Seek feedback from your customers and use their preferences to refine your approach. Do this before setting up the Club, so you know you are on the right track from the start.

References:

1. Commerce7 – Wine Subscriptions: Prioritizing Convenience for Millennials
2. Commerce7 – Wine Subscriptions: Prioritizing Convenience for Millennials
3. GlobeNewswire

Tectalic is developing a wine club application designed to integrate with Shopify stores. The application is currently in development. Those interested in updates on the launch timeline and features can sign up for notifications.

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