Loyalty was a crucial aspect of brand success for breweries before the digital era. The business flourished due to the patrons being loyal to their local breweries and seldom switching brands. But with the onset of technology, a wave of digital transformation is taking over the brewery Industry. Not just marketing but customer-brand interactions have increased in the digital world.
While this has introduced many new business opportunities, it has also made it easier for patrons to switch to a better option. In such a competitive market, breweries need to find ways to differentiate themselves and create a loyal customer base. One of the most effective ways to do this is by implementing a robust and engaging customer loyalty program for breweries.
By offering rewards, exclusive perks, and personalized experiences to loyal customers, breweries can build long-term relationships with customers that drive repeat business and help to establish their brand in the minds of consumers. In this blog, we will explore some of the top brewery loyalty programs in the industry and delve into the strategies that have made them successful.
Beer Industry Market Share: Brewery Distribution Across Regions
Data Source: WMStrategy
The global brewery market was valued at USD 660.2 billion in 2023 and is estimated to register a CAGR of 4.76% over the next five years. This growth is attributed to factors such as the popularity of diverse formulations and flavors, especially among millennials and Gen Z.
The United States, China, and Germany are currently the largest beer producers in the world, with the US craft beer market alone expected to grow at a CAGR of 7.02% from 2020 to 2025. Meanwhile, the United Kingdom, Belgium, and the Czech Republic are known for their rich brewing traditions. Craft beer has become increasingly popular, particularly in the US and Canada, where the number of craft breweries has steadily risen over the past decade.
On the other hand, the UK has a long beer brewing history, while Australia has a thriving craft beer scene. In the UK, a survey by YouGov found that 68% of beer drinkers would be more likely to visit a pub or brewery if they had a loyalty program. In Canada, breweries have embraced loyalty programs, while traditional breweries in Germany and Belgium have also implemented loyalty programs to incentivize customer loyalty, foster relationships, and increase sales and revenue.
Top Loyalty Programs in the Brewery Industry
1. Founders Brewing Co. – Mug Club
Founders Mug Club is a loyalty program that offers exclusive access to rare beers, discounts on merchandise, and member-only pricing at every brewery.
Benefits of the loyalty program:
- 20% discounts on all to-go drinks every day.
- Access to exclusive merchandise and apparel sales.
- Daily discounts on select drinks.
- Members get access to exclusive Mug-club bottle releases.
What’s Unique:
With the rising inflation, Founders Brewing Co. leverages transactional rewards such as daily discounts, member-only pricing, & personalized rewards, such as customized mugs, to retain loyal customers. It works as a helping hand in crises, attracting further program members.
2. Red Rhino Club
Red Rhino Club was launched to increase customer lifetime value(CLV) and make the loyal ‘Rhino Tribe’ (Red Rhino Community) more strongly connected with the brand. The brand also offers a prepaid loyalty card to make transactions quick and cashless, making it “easy to use” for customers.
Benefits of the loyalty program:
- Early access to New Product Launches / Special events / Food specials / Special Brunch
- Members-only events every quarter with premium food and beverages
- 10% cash back on every visit and 25% cash back on every transaction with the Prepay card.
What’s Unique:
Red Rhino leverages experiences, exclusivity, special privileges, and community building to boost customer retention, brand interactions, and engagement. The brand collects data at every level, creating more personalized offers and better customer value propositions, such as —Priority Seating and reserved seats for members at the gazebo and rooftop.
3. Dogfish Head Craft Brewery – Off-Centered Society
The Off-Centered Society is Dogfish Head’s loyalty program that rewards members for shopping at Dogfish Head properties. Members can earn and redeem points at Milton Tasting Room & Kitchen, Brewings & Eats, Chesapeake & Maine, Off-Centered EmPOURium, Dogfish Head Miami, and the Dogfish Inn.
Benefits of the loyalty program:
- Members get exclusive access to the Dogfish Head newsletter
- Members can participate in ‘double point’ events to win extra points.
- The program offers 25 points for referring to friends and family.
What’s Unique:
On becoming an Off-centered Society member, customers can earn and redeem points at Milton Tasting Room & Kitchen, Brewings & Eats, Chesapeake & Maine, Off-Centered EmPOURium, Dogfish Head Miami, and the Dogfish Inn! This gives customers access to many rewards and redemption opportunities, making the program appealing to a varied customer base. In addition, the Off-centered Society uses gamification in the form of ‘double point’ events to increase program engagement.
4. Foothills Brewing
Foothills Brewing offers customers a free loyalty program and a premium Mug Club membership at $49 for a lifetime. Both programs offer unique benefits to customers and a chance to create their groups or clubs.
Benefits of the loyalty program:
- Loyalty program members get bonus points on signing up and birthdays.
- Members can join groups or clubs to enjoy extra benefits.
- Mug Club members get 20% discounts on food every Monday.
What’s Unique:
Foothills Brewing uses exclusive and personalized rewards to boost program engagement. Mug Club members get a personalized Foothills t-shirt and a 20 oz. mug for ordering specific drinks. The availability of both free and paid programs helps it attract customers from different segments.
5. StillFire Brewing
‘Insider’ is StillFire Brewing’s free-to-join loyalty program. The Insider loyalty program was revamped at the end of 2022 to include new and better rewards and incorporate gamification.
Benefits of the loyalty program:
- Members can redeem a buy one get one offer every Tuesday.
- Every Wednesday, members can get $5 off packaged drinks and seltzer.
- The top 5 Insider members earning the most points get gift cards at the end of every month.
What’s Unique:
StillFire is leveraging gamification through competitions and milestones to boost engagement. Members can also participate in the year-long competition to win exciting rewards, including the Stillfire Yeti cooler, 2024 Falcons ticket, StillFire swag pack, etc. The excitement and “want to win” approach encourages customers to earn points, leading to higher engagement and increased purchases for StillFire Brewing.
Conclusion
The brewery industry is a rapidly growing and competitive market. As it continues to evolve, the number of brewery loyalty programs are steadily increasing. This surge in the popularity of brewery loyalty programs can be attributed to 3 key factors—
- Growing market share — With an expanded reach due to digitization, breweries have the golden opportunity to increase their loyal customer base. And this can be done through a data-driven and personalized loyalty program.
- Risk of losing local patrons — With breweries stepping in the e-commerce world, the risk of losing local patrons to global brands has become significantly high. Loyalty programs allow breweries to reward local patrons and nurture long-term relationships.
- Differentiation in the Market— Customer Loyalty programs can help breweries differentiate themselves from their competitors by offering unique rewards and incentives that stand out in the market. This can include offering access to exclusive events or limited edition releases, creating a sense of exclusivity that can help build brand loyalty.
By leveraging the latest technology and industry best practices, breweries can create customized, data-driven loyalty programs that reward customers for their patronage and provide valuable insights into customer behavior and preferences.
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