It’s no secret to anyone in the alcohol industry that a great product is just one part of success. If you don’t have a distribution network, your product won’t get into the hands (or glasses) of the people who will become loyal, repeat customers.

We recently partnered with Perks Professor (perksprofessor.com) to learn more about a solution that, while not directly addressing your distribution issues, could significantly increase your monthly recurring revenue. Kiff Forbush, vice president of operations and business development at YCS Group, the parent company of Perks Professor, says loyalty programs can be a game-changer for breweries and distilleries that would benefit from monthly recurring revenue (and every one of them could).

A loyalty program converts casual visitors into members and increases per-visit customer visits and sales. Forbush says that most craft breweries, wine, or spirits tasting rooms usually don’t capture customer data from occasional visits. That means that the company doesn’t learn how many times the customer has visited, what they’ve ordered, or how much they typically spend. A loyalty or points program captures demographic and other valuable information and creates incentives to return over and over again.

Forbush says that most of their tasting rooms and breweries see visits increase from one per month to three or four per month. The customer receives instant perceived value, usually at about twice the cost of the monthly fee, in coupons, discounts, and other special offers. Being a member makes the tasting room top of mind for date nights, special occasions, and even business meetings.

How a loyalty or membership program reinforces your brand. Perks Professor’s program is white-labeled, so your customers don’t have to visit a third-party site to interact with your brand. Members open up the membership page to find your products, locations, and offers front and center. They’ll connect with your origin story and become excited about new products and recipes.

Members develop a sense of community that naturally turns them into brand ambassadors. Because they like your products and are familiar with the menu, they enjoy connecting friends and associates to them. Loyal members become part of your marketing team, essentially paying you each month to increase your business.

Forbush says, “In the end, great beer brings people in, but a great experience brings them back.”

If you’re looking to increase revenue and expand your product’s sales, building a membership program might be the right next step. The recurring revenue will help your cash flow and make the business more attractive to buyers when you’re ready to sell. Your growing membership may even lead to interest from a distributor.

If I can help you understand the value of your distillery or brewing business, let’s start a conversation here.