As is the case in many other industries, cannabis retailers often use loyalty programs to attract and retain customers. If your dispensary marketing strategy has such a program in place, there are various ways to market to your customers to incentivize their spending. One approach is to create campaigns around customer spending averages to encourage even higher spending.
According to Headset, dispensary loyalty program customers spend about 35% more than non-loyalty consumers. Their baskets average $39.17 compared to an average basket of $29.41 for non-loyalty customers. Knowing your customers’ average spend – both within and outside of a loyalty program – is a crucial first step to creating a successful dispensary marketing strategy.
One of the best ways to increase spending is by creating rewards that are just within reach of customers’ usual spending habits. Reward customers who spend more than average with free points, samples or discounts. This can help attract new dispensary loyalty program members in addition to retaining existing members. For example, if you notice that the average spend at your dispensary is $25 per basket, incentivize more spending by offering promotions for, say, 50 free reward points, a 10% discount on a premium cannabis brand that you know your customers love. You can also tier your reward program by offering 60 reward points, a higher15% discount, or larger samples for baskets over $50 and include all three perks for baskets over $100.
Another approach to promote spending is to ‘gamify’ your rewards program by asking customers to unlock rewards at certain levels. For instance, advertise a limited-time offer of double points for spending a higher-than-average amount or let customers redeem a gift by spending over a certain amount.
You should also consider offering customers product suggestions based on their purchase history or product interests to get them to spend past their average amount or get them to the next spending tier. For example, if your dispensary loyalty program uses reward or tier levels and a customer who often purchases pre-rolls is $20 away from reaching the next rewards level, send a loyalty program reminder such as “Don’t miss out on even more perks! You’re just $20 from reaching the next reward level!” Coupling that message with some pre-roll or flower product recommendations that cost $30 or less can help increase spend levels.
Don’t forget that clear and frequent communication is key – both so that customers can understand exactly how to earn and redeem reward points, making it more likely that they participate, and also so they are hearing about your loyalty program regularly, keeping your dispensary top of mind the next time they want to buy cannabis.
All of these dispensary marketing strategies can help you push loyalty program spending way over average. Regardless of the details, it’s crucial that your rewards program is easy to use and has real value.