Looking to boost sales, separate yourself from the competition, and increase customer retention? Then rewarding your customers is essential. In rewarding your customers, you’ll want to do more than just throw them a couple of points here and there, you need to actually reward them. But what kinds of rewards should you be giving them? When should you be giving them? We’ll be talking about all of that and more in this article, so keep reading!
In a fast-paced industry like the cannabis industry, cannabis dispensaries are constantly looking for ways to stand out above the rest, and as more and more states legalize cannabis, there will be more and more competition. This is why building a base of repeat customers is essential because they are loyal to your dispensary, and loyalty is everything.
But how can you make customers loyal to your dispensary? Reward them. Cannabis dispensary loyalty reward programs are the perfect way to both stick out among the competition and boost your sales. In this, you’ll actually have to reward your customers with more than a couple points for every transaction and visit, you’ll have to get more creative than that if you want to have a successful loyalty rewards program.
So what type of rewards should you be giving your customers? And when?
While there is no secret formula to rewarding your customers and while it will ultimately come down to you and your team to decide how to reward your customers, here at springbig we took a look at how our clients were rewarding their customers, and there was a clear consensus between almost all of them: For the most part, percentage discounts and free (or almost free) pre-roll joints were by far the most popular rewards to give out to customers. Why? likely because they are desirable from the customer’s point of view, relatively cheap on the dispensary side, and easy to manage.
Among our clients, percentage discounts were especially popular. Discounts are useful because they reward the customers more and more the larger their purchase is. So, if you give your customer a voucher for 10% off a single purchase, and they purchase $100 worth of product, then they just saved $10. Not bad. But, if they were to spend $1000 on products, they would save $100. In this way, you ensure the customer is awarded proportionally for how much they spend and you can avoid putting yourself in harm’s way by giving too much away to your customers.
With discounts, pre-roll joints were also a popular reward option. In most cases, they were either given away for free, for $0.01, or for $1. With this, there was usually a minimum purchase amount attached to the reward. For example, a customer would need to spend $40 or more in order to be eligible to redeem their free (or almost free) pre-roll join voucher. Pre-rolls are great because they’re relatively cheap for the dispensary and super popular with customers.
While both of these rewards are easy for your dispensary to facilitate and rewarding for your customers, you’ll want to be cautious to not get too reward-happy. That is, you want to make sure that you’re not hurting your business’s profitability by giving out too many free pre-rolls or discounts, which is why setting a minimum purchase amount on your deals can be extremely helpful.
Now that we know what kinds of rewards are popular across the board, let’s look at when you should be rewarding your customers.
You should be rewarding your customers with more than just points, and you should be rewarding customers on more occasions than just after they make a purchase. So when should you reward your customers? You should be rewarding your customers not only based on their purchases but also based on their behavior and the occasion.
For example, if one of your loyalty members has a birthday coming up soon, then send them a special reward for their birthday! If a customer hasn’t been into your dispensary for a couple of weeks, then send them a reward to encourage them to come back in. If they just joined your loyalty program, thank them for joining and start the relationship off on the right foot with a reward. Luckily, springbig’s autoconnects can help you do all of this and more automatically, so it doesn’t have to be a headache that takes up your valuable time. Let’s take a look at some of our most popular autoconnects and how effective they are.
One of our most popular autoconnects and one that is especially useful for building a relationship with your loyalty rewards members is the birthday autoconnect. The birthday autoconnect makes a great impression on your customers and has also proven its ability to boost sales. With data from over 40 dispensaries, the average spend per customer who visited a dispensary after receiving this autoconnect was $71.91. Just imagine how big the impact of this autoconnect could be if it ran throughout the year at your dispensary… you’re talking big numbers!
The after-join autoconnect is another popular autoconnet that rewards customers for more than just a purchase, it rewards your customers for joining your loyalty program. This is a great way to jump start the customer-dispensary relationship and it has proved itself to be more than worth it. The average spend per customer who received this autoconnect and visited the diepsneary was over $93!
Similar to the after-join autoconnect, the after-visit autoconnect rewards customers not for a purchase but purely for visiting your dispensary. But, what’s interesting about this autoconnect is that a reward doesn’t necessarily have to be attached to it. Just a simple, “thank you for coming in today,” has shown to make a huge difference, with the average spend per visitor who received this autoconnect being over $110!
The spend-milestone autoconnect is great for rewarding those who make big purchases or that make consistent, average-sized purchases. Often, dispensaries used different levels of spend milestones such as bronze, silver, gold, and so on. Often milestones were set at every $500 or $1000 dollars spent, and the rewards for this autoconnect also grew as the amount spent grew. This autoconnect proved to be extremely effective, with the average spend per visitor who received this autoconnect being over $89!
Last but not least on the agenda today is the win-back autoconnect. The win-back autoconnect is especially important to utilize because it can help you keep those customers on the brink of forgetting about your dispensary. Dispensaries often set this autoconnect to be sent out either 2 weeks or a month after the customers last visit, and there is almost always a reward attached to this one as an effort to encourage the customer to come back, and they often do. The average spend per visitor who received this autoconnect was $78, which is much better than a lost customer and $0.
We analyzed the total revenue from one of the Largest MSOs in the country and they netted over $2 million in just one year? All by setting up a few autoconnects and just sitting back and watching the sales roll in!
The saying “give and you shall receive” certainly rings true for cannabis dispensaries. If your a dispensary looking to boost sales, stick out among competition and boost customer retention rates, then rewarding your customers is a must. In this, giving the right rewards, in the right amounts, and at the right time, is key.
Luckily, springbig’s autoconnects can help you automatically reward customers at the most opportune moments such as after a big purchase, after they join your loyalty program, or if they haven’t been in for a while. This way, rewarding customers is easy, effective, and hassle-free.