By Thomas Crouch

In the DTC wine world, loyalty is everything. When a club member stays for five, seven, or even ten years, they’re not just a customer — they’re part of the winery’s story.

It’s natural to wonder whether offering bigger discounts each year might encourage members to stay longer.

The short answer: You can do it — but it’s rarely the most effective or sustainable path.

Let’s look at why — and what works better.

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The Problem With Escalating Discounts

Many wineries assume increasing discounts will increase loyalty. In practice, graduated discounts often create unintended consequences:

1. Margin Erosion

Your longest-tenured members are also your highest-value buyers. Increasing their discount every year slowly eats into the revenue you rely on most.

2. Operational Complexity

Multiple discount tiers create confusion for staff, systems, and customers — especially when syncing across POS, eCommerce, and club processing platforms.

3. Misaligned Incentives

Members rarely cancel because of discount levels.
They cancel because of timing, life changes, shipping cadence, or simply having too much wine.

Discounts don’t solve those problems.

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What Actually Builds Long-Term Loyalty

The wineries with the strongest retention don’t escalate discounts.

They escalate belonging.

They focus on:

• Personal connection
• Access
• Recognition
• Experiences
• Moments of delight

These are the things members remember — and the reasons they renew year after year.

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A Simple Visual Model: Discounts vs. Experiences

Model 1: The Discount Escalator

(What wineries think drives loyalty)

What happens:

• Costs rise
• Margins shrink
• Loyalty barely moves
• The program becomes harder to manage

It’s a straight line — but it’s pointed in the wrong direction.

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Model 2: The Loyalty Ladder

(What actually works)

What happens:

• Members feel seen
• Experiences deepen connection
• Costs stay predictable
• Loyalty increases naturally

This model grows value without shrinking margin.

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A Final Note for Wineries

If you want to include a discount component, keep it symbolic:

• A small bump at year 5
• Another at year 10

Just enough to acknowledge loyalty — without turning your club into a perpetual sale.

Because the heart of retention isn’t math.

It’s meaning.

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