In the cannabis industry today, as dispensaries compete for customer visits, dispensary loyalty programs have emerged as critical pieces of any successful dispensary marketing plan.
Traditionally, loyalty programs are promoted by businesses across industries as a simple yet effective method to increase customer retention rates and reward existing customers. Since existing customers are usually your most profitable customers, combining a loyalty program and a rewards program can generate massive profit boosts at little upfront cost.
Loyalty programs are even more important in the cannabis industry than in any ordinary successful business. In this article, we explain exactly why a dispensary loyalty program is essential for your dispensary and the simple steps you can take in order to integrate one into your already existing dispensary softwares.
Put shortly, a sophisticated cannabis customer loyalty program will provide you the following:
In the rest of the article, we will touch on each of these more in-depth, as well as provide actionable steps to get your loyalty program underway.
The classic wisdom of retail sales states that your most valuable customers are your most loyal customers. Loyal customers spend more and visit more frequently. It is this wisdom which drives the conception that “brand loyalty” is something worth pursuing.
More, repeat customers require little additional incentives to bring them into your store. New potential customers are the target of the expensive marketing efforts and advertising campaigns which may account for much of your budget. Loyal customers, however, are unlikely to require these expensive nudges. Their loyalty to your brand is enough to drive them back into your dispensary.
A strong and loyal customer base is the goal. But how to get there?
Loyalty programs are optimal for dispensaries because of how intuitive they are and the easy win-win scenario they produce. From the dispensary owner’s perspective, sales see a substantial boost at little initial investment, yielding a quick and impressive ROI. From the customer’s perspective, their loyalty is being recognized and rewarded, while each dollar seems to go further.
This is why cannabis loyalty programs have exploded in popularity. There is simply no reason to pass it up.
Customer loyalty programs generally fall into one of two categories. The first category delivers loyalty rewards on a per-visit basis, whereas the second delivers on a per-dollar basis.
Traditionally, most loyalty programs operated on a per-visit basis. Think of the classic “punchcard” model. A customer walks into a store, places their order, and an employee stamps a punchcard. Once the customer reaches a certain number of visits, they can cash their punchcard in for a sweet reward.
The second option, while less common, is far more lucrative. Instead of a punchcard tracking each visit, loyalty customers receive a point for every dollar spent. Customers are thereby incentivized to spend more and higher spending customers feel fairly rewarded.
This second option – the point-per-dollar model – is further complemented when integrated into a sophisticated software stack. Points can be easily attached to a customer’s profile, accessible whenever and wherever, so there is no risk of losing the points (like we always do with a classic punchcard). Points can be cashed in for different levels of rewards, ranging from exclusive deals to early-access to certain products.
Further, the loyalty program’s integration into easy-to-use software allows you access to valuable data and insights into your customers.
Customers’ spending habits, favorite products, and more are made readily available to you. By collecting customer data, you can learn more about your company while delivering highly personalized marketing communications to your customers.
Loyal customers visit your dispensary more than non-loyalty members, and existing customers account for a major proportion of your sales. With the right loyalty program, you can boost customer retention – and, therefore, your bottom line.
Keeping customers coming back to your cannabis business will not only keep your sales thriving – but will also keep them away from the competition.
In addition to helping you retain customers, your cannabis loyalty program will increase the size of your average customers’ average purchases. Incentivized by your rewards program and reaching their next reward, customers will spend more.
Don’t just take my word on it though. Check out this article from mjbizdaily on the success of customer loyalty programs and basket size.
The fact that dispensary loyalty programs help dispensaries keep customers coming back is hardly surprising. Yet, many are surprised to learn that your dispensary loyalty program can also boost your sales and foot traffic among new customers.
This can be explained a number of ways. First, rewarding customers leads to increased brand loyalty, which leads to customers sharing your brand with their friends and family. Customer loyalty goes a long way, even as a recruiter of sorts.
Second, more and more, people seek rewards for their purchasing. When scouting out which dispensary to bring their business, a customer may be swayed upon learning of an effective dispensary loyalty program that can notch them some high quality rewards.
With springbig’s marketing suite, you can easily integrate the cannabis industry-leading dispensary loyalty program – as well as a host of other features – into your dispensary’s marketing arsenal.
With springbig’s point-per-dollar cannabis loyalty program, customers are incentivized to do more than just show up. Reward customers based on their purchases and demonstrate your appreciation for your most loyal customers.
Further understand your customer base with our loyalty program’s tiered loyalty feature. Gathering a composite of customer data, springbig will segment your customers into different tiers based on preferences and spending habits so you can personalize incentives and rewards based on the customer unique consumer identity.
Springbig will analyze customer data so you don’t have to and segment your customers accordingly. Boost customer engagement and average spend with no effort.
Easily integrated into your already existing dispensary softwares, springbig’s dispensary loyalty program can get working for you in no time.
In addition to all the other features hosted on springbig’s marketing suite, the springbig dispensary loyalty program will easily convert your initial investment into gains for your cannabis business.
More than just short-term returns, you can expect a boost in your brand recognition, building a community of loyalty customers coming back again and again for years to come. Look no further than springbig.
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