You already know your cannabis dispensary needs a customer loyalty program. After all, who doesn’t want to encourage customers to come back to your store, get them to visit more often, and have them spend more money when they do? It’s a fact of retail: customer loyalty programs work, and a cannabis dispensary loyalty program is the best and most cost-effective way to turn occasional, price-driven customers into repeat, loyal customers. There are a variety of platforms that will work for your dispensary, but our cannabis dispensary software experts would recommend Springbig. (If you’re wondering why let’s talk.) Regardless, there are a few things you can do to make your customer retention program work even better.
- Gamification. People are attracted to games, especially when there are rewards for achievements made in the game. In the case of a cannabis dispensary loyalty program, you can have a “gamification” impact by creating levels. This tactic is a common sales and marketing tactic you might have seen before in the travel industry. United Airlines, for example, features four tiers to their Mileage Plus program: Silver, Gold, Platinum, and 1K. Each level unlocks more significant benefits and more exclusive rewards. Consider doing the same with your customer loyalty program! The difference between somebody choosing your dispensary and going to a competitor could be as simple as their desire to make it to the next level in your customer retention program.
- Treat your biggest spenders the best. The stats vary from industry to industry, but the numbers are always stark: The top 20% of your customers may be worth as much as 80% of your revenue! That’s why it’s so critical to keep your biggest spenders happy by treating them like the VIPs that they are. Consider offering special discounts and deals to your biggest spenders, and if you have a customer loyalty program with levels (as discussed previously) you could even offer contests, promotions, or special events that are exclusive to customers at your loyalty program’s top-tier (which would, of course, be populated by your biggest spenders). Also important: these are the folks that are the most likely to be advocates for your business by referring friends, and leaving positive reviews on sites like Yelp or Weedmaps. Don’t worry too much about losing money on giveaways and promos to this segment. The better you treat your VIP customers, the longer they’ll reward you with their continued loyalty!
- Segment your customers by category interests. We get it, everyone is sensitive to the amount of data that is collected about them, and that is especially true in the cannabis world. While we understand the concern, it’s beneficial for both you AND your customers to segment them by category interest. This is most easily done by collecting purchase data tied to their loyalty program credentials, but if that’s not an option, then it can be as simple as an additional question or two when somebody signs up. One thing that is a sure-fire way to drive disengagement from your program and resentment of your business is to barrage customers with promotions that aren’t relevant to them. For example, if somebody only purchases dried flower, then blasting them with promos on extracts will be seen as spam. By only driving promotions and content that are relevant to your customer, you’re far more likely to keep them happy, and returning to your store.
Attracting new customers is much more expensive than winning repeat customers with a retention program. So, if you don’t have a customer loyalty program in place for your cannabis dispensary, you’re leaving revenue on the table! Not sure where to start to get a loyalty program in place for your cannabis dispensary? Not a problem. Our cannabis software experts here at CUE Cannabis are ready to help. Get in touch today and let’s can get you on the path to turning occasional customers into loyal, repeat business!