Brewery Community Connections and Generating Revenue

GoTab recently hosted a webinar featuring Taylor Smith and Doug Cleary, Account Executives at GoTab, who discussed the hottest topics from the Craft Brewers Conference (CBC). The webinar covered cash discounting and strategies to boost customer lifetime value. Louren Horler , a successful General Manager at Napa Smith Brewery, also shared valuable insights on building strong community connections and generating revenue through effective activations. Key topics included cash discounting, hybrid service models, and QR code ordering.

Cash Discounting

During the webinar, cash discounting emerged as a prominent topic. This practice involves imposing a surcharge on credit card payments instead of absorbing the merchant service fees. As a result, customers using credit cards pay more, while those using cash receive a discount. Doug and Taylor expressed their concerns about this approach, emphasizing that it essentially overcharges customers and benefits third-party entities without providing any value to businesses or customers.

Despite the potential cost savings for businesses, both Doug and Taylor voiced their dislike for intentional overcharging and the associated inconvenience. This led to questioning whether promoting cash payments is the right approach, given that most transactions nowadays are conducted using credit cards. Moreover, handling cash can slow down service and necessitate additional resources.

‍Hybrid Service Models

The discussion then turned towards hybrid service models, which involve striking a balance between self-service, counter service, and full service. In the brewing industry, where fostering customer relationships is vital, hybridizing service entails combining aspects of self-service and counter service to enhance efficiency and the customer experience. Doug and Taylor  highlighted the advantages of line busting and staff interaction with customers, particularly when delivering drinks to tables. However, they also recognized the importance of streamlined operations, where customers can independently place orders using QR codes or shared tabs.

QR code ordering was specifically addressed within the hybrid service model. Although some attendees expressed concerns about outdated menus and scanning difficulties, it was acknowledged that when implemented effectively, QR code ordering can offer customers a positive experience. The key lies in ensuring that menus are kept up to date and the technology functions smoothly.

Customer Activation

The discussion highlighted the significance of preserving a traditional neighborhood brewery as a community gathering place, even amidst technological advancements. Louren Horler from Napa Smith Brewing shared experiences in organizing engaging events to attract customers and drive sales.

One notable event discussed was the cornhole tournament hosted by Napa Smith Brewing. Despite its location with limited foot traffic, the brewery partnered with the North Bay Elite Cornhole League, hosting league nights on Thursdays. This initiative brought in 20 to 50 additional customers who would not have otherwise visited the brewery. The success led to expanding the tournament to Mondays, previously a closed day, attracting an average of 45 extra guests and establishing the brewery as the official beer sponsor of the cornhole league.

The popularity of these cornhole events grew, transforming Napa Smith Brewing into a preferred destination for cornhole enthusiasts. The brewery went on to host regional tournaments and even welcomed participants who had been featured on ESPN. This creative activation attracted individuals from various towns and cities, cultivating their passion for cornhole and transforming them into regular customers. The brewery allocated its warehouse space for the tournaments, ensuring a positive experience with designated lanes and the cornhole league handling the setup and cleanup.

By seizing the opportunity and providing the necessary space, Napa Smith Brewing witnessed increased sales, garnered free advertising through social media coverage, and crafted a unique customer experience that translated into additional beer sales. The conversation stressed the importance of preserving community and customer interaction, emphasizing that while technology and data analytics have their place, they should complement rather than replace these fundamental elements.

Overall, these insights shed light on the importance of community connections, revenue generation, and effective activations in the brewing industry. By considering the customer experience, leveraging technology, and finding the right balance in service models, breweries can enhance their operations and strengthen their relationships with customers.

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