Beyond Discounts: How Loyalty Points Drive Customer Retention for Wineries

For years, discounting has been the default lever wineries pull to spark sales and reward loyal customers. But in today’s crowded marketplace, deep discounts can erode brand value and condition customers to buy only when the price drops.

There’s a better way: loyalty points programs. Retention, without discounting, comes from making customers feel known, valued, and part of something special. They’ll stay not because it’s cheaper, but because it’s theirs. Instead of discounting away margin, wineries can encourage repeat visits and purchases by offering rewards that feel aspirational, personalized, and memorable. Loyalty points add up over time, giving guests a reason to come back again and again, all the while protecting your brand’s premium image.

10 Reasons Why Loyalty Points Work

Shift from price to experience. Points reward frequency and engagement, not bargain hunting. The program should reinforce experience, access, and emotional loyalty, not just transactions.
Encourage long-term relationships. Customers with points in their “bank” are more likely to return to redeem them.
Create exclusivity and surprise. Points can unlock experiences money can’t buy, deepening emotional connection.
Protect your margins. Unlike blanket discounts, points give you flexibility – you decide what’s redeemable.
Loyalty points = engagement currency. When we use points to encourage engagement, guests can earn beyond purchases, redeem for things that inspire (not discounts) and people love seeing their points add up.
Tiered programs = status, not discounts. We see examples all the time with the airline and hotel industries. It’s about recognition and privilege, so guests don’t leave because they don’t want to lose their status.
Complement, not complex. Loyalty programs that complement memberships can add flexibility and a sense of choice, but too many choices can cause analysis paralysis. Loyalty is about connection, not fine print.
On-Ramp for Non-Members. Loyalty points keep casual guests engaged, giving them a reason to come back even if they’re not ready for a club commitment.
Insights That Drive Retention. Points activity provides wineries with rich data to personalize outreach and strengthen relationships.
Tell the Brand Story. A loyalty program with winery-specific naming and experiences feels authentic, not generic, and strengthens emotional bonds. This is a time to have fun!

Technology Enables Loyalty
The good news? Technology makes loyalty programs easier than ever to manage; it makes a loyalty program seamless, sticky, and scalable. Many winery POS and CRM systems (read more here) now offer built-in tracking, reporting, and simple redemption tools. Plus, loyalty points are treated as a deferred expense (not an immediate discount, a ‘promise’ of future value owed to the customer), giving accounting teams more flexibility and protecting your bottom line. Until redeemed or expired, they usually sit on the balance sheet as a liability.

Accounting Considerations: Check with a CPA.
We consulted with Geni Whitehouse of BDCo for the ground rules of loyalty points. Of course, please consult with your own CPA before implementing. In general, when a winery issues loyalty points, it’s making a promise to the customer: “You can use these points for wine, events, or experiences later.” From an accounting standpoint, that promise creates a future obligation – similar to a gift card or store credit.

Here’s the basic flow:

When points are earned:
• Don’t treat them as an immediate discount (which lowers revenue on the spot).
• Instead, record them as a liability (a balance sheet item), because you owe the customer something in the future.
Example: A customer spends $100 and earns 10 points (worth $10 in rewards).
• Record $90 in revenue.
• Record $10 as a liability (“loyalty program liability”).
When points are redeemed:
• Reduce the liability by the value of points used
• At the same time, recognize that portion of revenue as redeemed.
• Record COGS for whatever was redeemed (wine, tasting, event).
Example: The same customer redeems their 10 points for $10 off wine.
• Reduce the liability by $10.
• Recognize $10 of deferred revenue from the balance sheet to match the redemption.
When points expire (if applicable):
• If your program has an expiration policy and points lapse, you can clear the liability and recognize it as “revenue” (essentially,
revenue you no longer owe).

Why This Matters for Wineries

Protects margins: Not all customers redeem the loyalty points.
Smoother financials and better forecasting: Recording points as a liability spreads the impact over time. This gives leadership a clearer picture of true revenue performance. You’ll know what’s “out there” in outstanding obligations, just like you would with gift cards. The data informs staffing (hospitality), production (small-lot allocations), and marketing spend. Without proper accounting, you lose the visibility that makes these insights trustworthy for planning and forecasting
Unique reason to engage: When a guest accumulates points, it becomes a perfect reason to reach out and invite them back to the winery and bring a friend to ‘spend’ their points. If you have a robust gifting program, this allows the purchaser to redeem points for wine or experiences that they can enjoy, strengthening customer relationships.

The key takeaway: Loyalty points aren’t a ‘sunk’ cost on day one. They are a deferred obligation. This means they preserve your revenue until customers actually redeem them, and often, a portion never gets redeemed at all.

Key Takeaways for Wineries

Think experiences, not discounts. Make rewards aspirational like exclusive tastings, behind-the-scenes access, or unique bottles that reinforce your brand.
Keep it simple. Easy tracking and redemption encourage adoption and keep staff/guests engaged.
Offer meaningful choice. Let customers use points for wine, experiences, or merchandise – people love options.
Tie it to your story. Rewards should reflect your winery’s unique identity.
Plan for Technology and Accounting. It is not as complicated as it may seem, but it is worth it to check with your technology and accounting professionals before implementing new programs.

In a market where consumers are tightening their wallets, loyalty points programs offer a smart, brand-protecting alternative to deep discounting. They build lasting relationships, create excitement, and give guests one more reason to choose your winery—again and again.

Winery Examples Leading the Way

Domaine Serene (Oregon): Rewards include merchandise, exclusive dinners, and overnight accommodations at their Oregon winery as well as at their Chateau in Burgundy.
Jordan Vineyard & Winery (Sonoma): Guests redeem points for private food-and-wine pairing tables, overnight stays in estate suites, or elegant dinner parties. High-value rewards that keep guests engaged.
Ruby Hill Winery (Livermore): Their “Grape Rewards” program makes it simple, points go toward wine, events, or merchandise of the member’s choosing.
Broken Earth Winery (Paso Robles): Loyalty points add an exclusivity factor with access to perks and events.
Gloria Ferrer (Sonoma): Points unlock elevated sparkling wine tastings in a private lounge. Earn experiential rewards that feel luxe.
Donelan Wines (Santa Rosa): Points create tiers: special shipping pricing that is earned after the 24th bottle purchase.

Beyond wineries, wine focused retailers show innovative programs show how widespread this strategy is:

Cooper’s Hawk Winery & Restaurants (multiple states): Points scale into trips and dinners, encouraging repeat dining.
Vino Volo (Airport wine bars): Points mean instant gratification for travelers, discounted tastings and unique gifts. We at WISE spend a lot of time in airports, and we LOVE this program!

Outside the Wine World: Proof It Works

Starbucks Rewards: Up to 50% of sales come from loyalty members, driven by stars redeemable for drinks and food. Furthermore, these members spend 2.5 to 3X MORE than non members. (Source)
Sephora’s Beauty Insider: Customers earn points toward exclusive products and experiences, driving both retention and upsell. The majority of their income comes from their tiered members, with Ulta reporting up to 95% of their revenue is from loyalty members. (Source)

These industries prove the point: customers will go out of their way to stay loyal if they see value beyond a price cut.