Member Value as a Retention Tool

A Member's Value

Purpose of a Member's Value

Why does a member's value matter?

When it comes to retention, we need to focus on saving members and fixing any issues they've encountered along the way. However, we also want to make sure that we retain members who are the right fit for Winc membership. We need to look at a member's account in 1425 and evaluate how good of a fit our membership is for the member. The following section focuses on looking at accounts in 1425 with some context the member may have mentioned in their initial interaction with us. 

Accounts with One Order

Both members below have only received 1 order and each has been given 13 SG credits. If you could only save one of these members, who would it be?

High Revenue Account

The member below has a fairly high amount of revenue, however she also has a total of 7 returns. How would you try to save this member?


  • Would simply cancel it out due to the 7 returns
  • Would cancel account if no alternative address is provided
  • Would try to save by offering Skip A Month

Satisfaction Guarantee: When a customer mainly drinks a specific varietal

The following member contacts us to cancel his account. He mentions that he only liked 2 of the bottles he received (he doesn't mention which 2 bottles), doesn't drink wine often and mainly only drinks sparkling wine. Using this information along with the image below answer the following true or false section. 

  • This member has received at least a minimum of 6 bottles
  • You would try and save him by offering Skip A Month
  • You would explain to him that Winc always has sparkling wines available, but they just need to be manually selected
  • You would try to save him by offering 13 SG credits

Save Attempt Process

If the following member contacts us to cancel due to cost, what are the steps we should take in order to save him? Below, place the steps in order from first to last. 

  • Look at the account and see his total orders and if he's ever skipped
  • Educate him about our Skip a Month feature
  • Educate him about our member perks, such as Rate 10 Get 10
  • Confirm if the account remains active or has been canceled

Select All that Apply

Using the account below, select all of the statements that are true. 

  • They have only received 2 orders in 2016
  • We should inform them about Skip a Month as a save attempt
  • They are a high-revenue member
  • They are a long-term member

Long Term Member vs. High Revenue Member

How can we tell if a member is not a high revenue member? 

Using the account on the previous question, when we think of a high revenue member we typically use the revenue number in 1425 and if it's fairly high let's say above $600 or so we consider them to be a high revenue member. In reality, although this number is high, we must also look at how long they've been a member. For this particular example, the member has been with us for over 3 years and has received 21 orders. Those are very significant numbers, but let's put into perspective that they've had a membership for 3 years. That means they've had to skip about the same amount of orders they've received. For that reason, this member should be considered a long term member. They have had their membership for a really long time, but for the past year and a half they have only received 3 orders, so they aren't a high revenue member.

  • Membership length: 40 months 
  • Orders: 21 orders 
  • Skipped: 19 months

Long Term Member & High Revenue Member

Long Term Member & High Revenue Member can Overlap

In the previous account example, the member was considered solely a long term member because of the infrequency of their orders, but that does not mean that the categories long term and high revenue cannot overlap. Members who are both long term and high revenue members are some of our most engaged members. The account below is an example of an account that belongs to a long term and high revenue member. By simply looking at the their account, we can tell that this customer places significantly large Ship Now orders on a regular basis and is also enrolled into Winc Select. They've been members with us since February 2015 (which is over 2 years now) and they have a total of 42 orders with us. This means that they are actually placing about 1.4 orders per month so they are constantly getting wine from us. Membership length: 29 months Orders: 42 orders. Below, on the account image select the 3 key pieces of information that are important when determining if an account is considered high revenue. 


  • Long Term Member
    A member who has been with us for over a year and maintains an active account
  • One time Order Member
    A member who places an order with the intentions of not continuing the membership beyond the initial order
  • High Value Member
    A member who, based on their membership length, revenue and number of orders has spent a significant amount of money with Winc

What type of Member is this?

Based on the account below please select what type of member this is.

  • Long Term Member
  • High Value Member
  • Long Term AND High Value Member

Importance of knowing  the type of member you're speaking with

Why it's important to know what type of member someone is

We need to know the type of member we're speaking with so that we can better assist them. Save attempts that may work on a one time order member might not work on a long term member. Getting familiar with the account and understanding a member's value is essential to saving them. It also helps to understand which customers the membership works best for and who to try extra hard on when saving versus customer who we just aren't a good fit for. 

To Save or Not to Save?

This member has had 7 support tickets and called in the past to cancel their account and was saved. They now call a second time to cancel their account because they did not want their June order and refused it, what should we do? 

  • Cancel the member out
  • Try and save them a second time

Part 1: Understanding Member Revenue

Previous 1425 Revenue

Previous Revenue

In 1425, we previously displayed the total revenue spent on orders, but this did not include member credit purchases. We saw the need for this to be more clear and explain a member's value correctly, which is why we have changed the way that 1425 displays a member's revenue. 

New 1425 Revenue

Updated Revenue

This is how revenue is now displayed in 1425. This works differently than the previous figure because it is NOT total order revenue. This new figure is the revenue a member spends per month based on the length of their membership. Throughout this lesson we will go further into how this works and how it will give you an advantage when you are assisting members. 

What is this new revenue based on?

New Revenue Formula 

Since we wanted a more accurate depiction of our member's revenue, we came up with the following formula. 

  • (Total experience revenue  + Total member credits revenue - tax) divided by (number of months since activation date) = revenue per month 

This new revenue shows us how much a member spends with us per month based on the length of their membership. So instead of seeing total revenue for orders only, we are now seeing more information that is valuable to us especially during a retention interaction. 

Can you give me an example of how the new revenue is calculated?

New Revenue Calculation Example

Lets take a look at a familiar account. We went over this account in our Member's Value lesson. Brynn has the following information: 

  • Start Date: 3/11/14 (40 months) 
  • Revenue: $951 

If we're thinking about Brynn's total revenue of $951 and dividing that by the length of her membership (which is 40 months), we would see that on average she spends $23 per month. 

With this new calculation how would her account look?

Brynn's Updated Revenue

Based on the calculation we did on the previous page, Brynn's revenue per month was $23, which we now clearly see in 1425. 

  • This does not mean that every month she is spending only $23, but instead that when we divide her total revenue it breaks down to $23 a month. 
  • We clearly see that she's only received 1 order this year, so to clarify: $23 is just her total revenue divided by her membership length. 
  • She's had 21 orders and she has skipped 19, so the money she has spent in 21 orders is being divided by the 40 months total of her membership. 

Why is Brynn's revenue $23 per month?

  • because she has spent $23 every month since she became a member
  • because she has only spent $23 with us since becoming a member
  • because when we calculate her total revenue by her membership length it breaks down to $23 per month
  • because when we calculate her gift order revenue by her membership length it gives us $23 per month

What does cancel, low, medium & high stand for?


Customers whose accounts display their revenue followed by "cancel" in red means that if and when they call to cancel, we should follow through with the action right away or attempt 1 save based on their cancellation reason. 

  • $10 or less revenue per month 
  • 1 save attempt (if applicable)


Customers whose accounts display their revenue followed by "low" in yellow means that if and when they call to cancel, we should always be attempting to save them. 

  • $10-$20 revenue per month
  • 2 save attempts 
    • 1 mandatory 
    • 1 if applicable


Customers whose accounts display their revenue followed by "medium" in orange means that if and when they call to cancel, we should try our best to save them as they bring in significant revenue.

  • $20-$40 revenue per month
  • 2 save attempts mandatory 


Customers whose accounts display their revenue followed by high in "green" means that if and when they call to cancel we should do EVERYTHING we can to save them as they bring in the most revenue. 

  • $40+ revenue per month
  • 2 save attempts mandatory

Match the Member Value to it's Definition

  • Cancel
    If a customer labeled this seeks to cancel we should follow through with the action right away or attempt to 1 save based on their cancellation reason.
  • Low
    If a customer labeled this seeks to cancel we should offer 2 save attempts (if applicable)
  • Medium
    If a customer labeled this seeks to cancel we should try our best and offer 2 save attempts
  • High
    If a customer labeled this seeks to cancel we should do EVERYTHING we can do to save them and offer 2 save attempts

Match the Member Value to it's Revenue Bucket

  • Cancel
    $0-10 per month
  • Low
    $10-$20 per month
  • Medium
    $20-$40 per month
  • High
    $40 + per month

Knowing that I should try to save most of our members, based on Member Value which should I pull all the strings to keep on board?

  • Medium
  • Low
  • High

What is the purpose of seeing a member's value?

Member Value's Purpose

Displaying a member's value front, center and color coded allows us to immediately gauge a member's level of activity and engagement. At a glance, we can see how active a member really is and this helps us more thoughtfully approach each retention interaction we have. 

How to proceed with a cancellation request from a "cancel" value member?

Do we simply cancel all members in "cancel" value when they request to cancel?

The answer is no. We have all types of members seeking to cancel for all different reasons. Although members in "cancel" value have spent the least amount of revenue with us, we still want to assist them if possible. 

  • We want to offer 1 save attempt (ONLY if applicable) and we are limited to offering skip a month, shipping solutions and/or recommendations
  • We will not be offering satisfaction guarantee or any sort of credit compensation to these customers
  • The only time a save attempt is not necessary is if they fall into the following: 
    • If they've been skipping for 6 consecutive months
    •  Have consecutive returned orders 
    • Have consecutive canceled orders
    • Cancellation Reason falls under: GAB Abuse, Fraud, Multiple Accounts, Too Dry, Health 

What save attempts can be used for "cancel" value members?

  • Skip A Month
  • Shipping Solution
  • Satisfaction Guarantee
  • Value
  • Recommendations

What does the [New Member] next to the member value stand for?

[ New Member ]

This label of "New Member" next to a member's value means that this member has been with us for less than 2 months and has spent less than $75 collectively in their first 2 months. 

  • Member less than 2 months 
  • Revenue is less than $75 
  • Member Value is pushed to "Low" because we do not have enough data accumulated yet to push them into a different value