The Vino Volo Challenge

Like any true consultant, I've spent my fair share of time at a Vino Volo. One of my old managers has a favorite (self-created) airport game, which he calls the "Vino Volo Challenge." The rules of the game are simple:

1. Arrive and sit down at a Vino Volo
2. When you hear the first boarding announcement for your flight, order your first glass of wine
3. When you hear the next boarding announcement for your flight, order your second glass of wine
4. And only when you hear the final boarding announcement for your flight, pay your bill
5. Leave and board your flight

While that's one type of Vino Volo challenge, during class yesterday I was struck by another. I think that while the Vino Volo loyalty program is an interesting play, it will be difficult for them use the program to create value. When designing a loyalty program, there are usually two primary ways to directly generate incremental value: the first is to get an additional visit from a customer (which could be by encouraging them to switch to you from a competitor or by incentivizing them to come back when they otherwise might not have), and the second is to get a higher total ticket (either by higher priced items or add-on items). 

One difficulty for Vino Volo is that, since they're currently only operating in airports, there isn't a clear path to driving an incremental visit, which is a big source of value for other loyalty programs such as Starbucks Rewards. And since they're often the only option for travelers looking for an airport wine bar, they're not necessarily encouraging customers to switch from a different wine bar to a Vino Volo, which is the game for airline or hotel loyalty programs. Therefore, the natural play for Vino Volo seems like it should be driving higher total ticket (likely through up-selling to more premium wine or adding on food), but offering members a $2 wine taste on each visit seems like it's likely cannibalizing otherwise full-price sales. Even a simple change to offering a $2 taste after five visits or a $2 taste with the purchase of an appetizer seems like a more logical way to design the program. 

Beyond just the in-restaurant benefits the program could provide, I was surprised that Doug didn't have much to say about how they planned to use the program to learn about and build deeper relationships with their customers. I spent a few minutes brainstorming ways that Vino Volo could leverage their loyalty program, and here were some initial ideas:

• Track customer wine purchases to then offer them personalized recommendations
• Partner with airlines to give discounts to frequent travelers (could be a good sell for lay-overs or flight delays)
• Use the app as a platform to teach consumers about different wines, and sell wine flights alongside with tasting notes
• Track customer travel to determine next airports in which to open new locations
• Partner with wineries to encourage customers who've tried their wine at Vino Volo to buy in-store or visit the winery

I'd be curious to hear of other ideas for how they could take advantage of the customer relationships they're building (and data they're collecting). Any thoughts?

Also if you're feeling ambitious, I'd encourage you to try out the Vino Volo Challenge on your next trip. It's certainly a fun (and not at all stressful) experience :)