Are you curious about Dispensary Loyalty Programs? Let's have a look at the many benefits of for you and your customers of implementing dispensary rewards at your dispensary.
If you wish to be successful in the cannabis arena, it is becoming more and more critical to build and retain a loyal fan base following.
A recent study by HEADSET looked at the spending habits of cannabis customers and discovered that the average transaction of a loyal customer is $10 higher than that of a non-loyal customer.
One of the best ways to build loyal customers is with a dispensary loyalty program.
By sending special offers to your customers, you are giving them an incentive to not only return to your store but also to tell others about your program.
Customer Loyalty Programs
A 5% increase in your customer retention can increase profits by upward of 75% according to consulting firm Bain & Co.
Coming up with specials may at first seem like it's bad for the bottom line but nothing could be further from the truth.
Customers wanting to take advantage of the loyalty program sign up with their phone numbers or email addresses, giving you the opportunity to market to customers that you already know are interested in your products or services.
Even better, your brand will make more impressions on your customers and that familiar face can often be enough to make the next sale.
Nurturing the client relationship through a dispensary loyalty program builds brand loyalty.
Make Your Brand Stand Out
Cannabis marketing increases your customers' spend on cannabis products in medical marijuana stores.
Letting your customers earn points in the cannabis retail environment is a great way to increase points based loyalty in-the cannabis industry.
Cannabis retail that rewards members by letting them earn points on a visit based system is a highly effective way to increase your per-roll profits and other items as well.
A good cannabis loyalty program that rewards members is a necessary part of a comprehensive marketing program .
Your competition is stronger than ever. You need a marketing strategy that includes something that makes your brand stick out from the herd.
A Dispensary rewards program could be just the thing that gives you an advantage that keeps your clients from trying out other stores.
Analyze Customer Data
Customer data is essential to running a successful business these days.
Loyalty programs provide you with valuable feedback about your customers buying habits.
This data can be used to decide which vendors products you should carry, set sales targets, and which companies you should work with.
All in all a dispensary loyalty program is one of the best ways for a dispensary to improve its brand loyalty in its customer base.
Types of Loyalty Programs
Tablets are being used more and more in dispensaries and they are excellent ways of capturing valuable customer data.
Every customer enters their email or phone number and the dispensary technology tracks their visits.
Visitors then earn bonuses which they can redeem at the checkout or get emailed to their phones.
Referral programs are another excellent way of rewarding customers for spreading your company's name among their network of friends.
This is effective because it sends new business to your dispensary and it builds more loyalty with your clients because they are helping their friends.
Cash Back Points
With every dollar spent a customer will receive a set of points that they can redeem in store when making their purchase. This is a very common loyalty program for dispensaries and your clients will be quite used to this type of offering.
A tiered program is another excellent way to build customer loyalty. It works better over the long term as points build up over time and the customer reaches new tiers thus saving more money and building long term loyalty.
Loyalty cards work when a customer visits the store and the store records the visits on a punch card or in the computer. The more visits the customer makes the more loyalty points they get that can be used at checkout to buy products.
Communicating Your Dispensary Loyalty Program
Text messaging is more likely to be read than email and because of this fact it's the best way to communicate your loyalty program to your customer base.
By getting your customers to sign up via text opt-in you increase the chances of success in your text loyalty program. You don't want your message getting lost in the hundreds of email the customer get a day
A couple of things to be aware of before beginning your text marketing program is that according to the law a customer must physically opt-in to receive text messages from your store.
Also, be careful not to send too many texts as your customers might begin to ignore your messages or become annoyed with your constant texting. They might even block you.
One way around this is to target your messages to your customers' buying habits. This way they are getting valuable data that they will appreciate.
The most effective dispensary loyalty programs are one that keep your customers happy without and that also increase your profits.
Where do you start you might ask? If you are interested in collecting and analyzing your customer data talk to a company like Happy Cabbage Analytics.
Luckily there are companies like this that can save you tons of time and energy and steer you in the right direction so your company earns even higher profits and keeps the customers you need coming back for more.
Why do dispensary loyalty programs work?
Dispensary Loyalty Programs work because of something called the “Pareto Principle”. You might know this as the 80/20 rule.
This rule states that 20% of your customers will bring in 80% of your revenues. It also claims that acquiring a new customer can cost up to 7 times the amount that retaining a current customer does.
Dispensary Loyalty Programs work because they build loyalty in your most valuable customers.
They love being treated like VIP’ and they receive great incentives that make it worthwhile for them to come back. They tell family and friends about your stores and spread the word about your program.
Loyalty rewards program fits in seamlessly with the customer buying experience and they do not feel like they are being violated with sales jargon and ads.
They can just shop the way they always do but they get rewarded for coming to your store.
It's the same principle as when you train dogs with a reward system. The dog's brain becomes used to getting the reward after doing something right.
The same thing happens with your customers and at a subconscious level this is very effective at building customer loyalty.
Loyal customers visit your store more often, they buy a wider range of your products, and they buy more of them. These are strong reasons why you need a dispensary loyalty program.