Lessons in Loyalty from Craft Beer

You don’t have to be an aficionado of double-hopped IPA’s to know that the craft beer industry has taken the United States by storm in the past decade. In fact, over 4,200 breweries have opened in the past five years with at least 2,500 more in the planning stages and consumers aren’t the only ones who have taken notice. Since 2013, craft brewers have sold more barrels of beer in the United States than Budweiser, the once mighty – and self-proclaimed – King of Beers.

In a landscape that was once dominated by a wasteland of bland brews marketed using catch phrases like, “great taste, less filling,” the craft beer explosion has made the traditional beer barons take notice. This seemingly small band of brewers has not only pushed Budweiser to change its advertising strategy, but they are also cashing in on Budweiser money as the beer giant has been acquiring craft labels at a record pace. Since 2011, renowned craft brands such as Goose Island, Kona, Karbach, and Wicked Weed have all become part of AB InBev, the parent company of Budweiser.

What lessons can be gleaned from the way craft beer has completely disrupted an industry? Here are three tactics that can be applied to any business looking to not only compete, but succeed, against the so-called “industry giants.”

1. Don’t Compete. Collaborate – Craft brewers often find their greatest successes by working with their competitors, not by fighting against them. They share secrets, find ways to collaborate, and encourage up-and-comping breweries. Craft brewers help other craft brewers because they know that a strong industry makes all better. This “rising tide lifts all boats” philosophy not only results in higher-quality products, but stronger relationships with customers that create fervent loyalty.

2. Employee Evangelism – The most successful craft brewers start their branding efforts with their own employees. Instead of focusing on mission statements or trying to convince people how “great it is” to work for the brewery, they concentrate on transparency through storytelling. By leveraging content marketing, they show both their customers and the community at large what it’s like to work in their breweries: videos of the brewing process, fun clips of staff for use on social media, or even naming a beer after a beloved employee. By being genuine, honest, and unique in employee branding efforts, they attract a like-minded audience who shares their passion.

3. Customer Inclusion – Craft brewers learned very early on that including customers in product development was a key driver of loyalty. At many tap rooms, patrons have the opportunity to sample one-off brewing experiments. If the consensus is positive, the company will increase production and launch it as a new beverage. By including the customer into the development process, loyalty increases because they take pride in being part of the decision.

After decades of being forced to consume flavorless domestic beer, skunky European suds, and lagers that needed lime to be ingested, there has been a clear shift in consumer preference to craft beer. The small, nimble, and creative promotional products professionals can use the same tactics to beat the competition – regardless of size.

Jim Koch, founder of the Boston Beer Company and generally regarded as the leader of the craft beer movement once boldly stated, “the status quo sucks. It’s only the status quo because we haven’t figured out how to make it better. Every successful entrepreneur or business owner, regardless of the industry, must have a similar mind-set with whatever they do. Without it, you get lazy and the competition will pass you by.”

The fact is that the vast majority your competitors – especially the larger ones – do things the way they’ve always done them because it’s easier than doing something different. It’s also much easier for them to presume client loyalty than to work for it.

Loyalty is earned, not assumed.

Let your competition be lazy while you create loyalty by collaborating with like-minded “competitors,” allowing your employees to participate in branding and marketing efforts, and including customers in the development of products and services.