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5 Dos and Don’ts for Dispensary Loyalty Programs

by Hasum | | | 0 Comments

Do: Use Customer Loyalty Software

There are many effective methods to introduce rewards for loyal customers. One of the most traditional and easiest ways is to simply offer a stamp card to customers. Customers collect a stamp for each purchase and, once they reach a certain amount (usually 5 to 10), they get some kind of reward.

However, nowadays you can implement reward programs that are much more exciting for customers by using customer loyalty software. Platforms like Open Loyalty and Talon One make it easy to offer incentives and rewards to your loyal customers. Not only do they make it easier to introduce a loyalty program, but they also offer extra tools such as analytics collection.

Alternatively, you might want to work with programmers or developers to create a unique loyalty program for your dispensary. Either way, offering a modern loyalty program where customers can gain points for each purchase and exchange them for rewards is the best approach. That way, they’re encouraged to buy from your dispensary more often and make larger purchases.

Do: Offer Enticing Customer Rewards

Introducing a program where customers can gain points for every dollar they spend is an excellent way to increase your sales. However, a customer loyalty program is a two-way street, and you need to make sure it’s just as beneficial for your customers as it is for your business. As such, you need to offer enticing rewards for your loyal customers if you want them to take your loyalty program seriously.

That doesn’t mean you need to give them expensive products for practically nothing. Most loyalty programs offer various tiers of rewards that give customers something to strive for. For instance, if you give customers 1 point for every dollar they spend, you could introduce rewards for every 50 points, 100 points, 250 points, 500 points, and so on.

As long as you make the rewards suitable for their tiers, you won’t lose out on any profit, either. For example, branded cannabis products like lightersgrinders, and rolling papers are perfect low-tier rewards. They’re affordable and cannabis customers always need them. Plus, they’re great for promoting your brand. For higher tiers, you can offer more exciting rewards such as pre-rolls and vape carts. This encourages your customers to spend more.

Use Email Marketing To Promote Your Loyalty Program

Do: Use Email Marketing To Promote Your Loyalty Program

Email marketing is one of the most effective marijuana marketing methods you can use for your dispensary. By encouraging your customers to register for your email list, you can keep them informed on your latest product launches, promotions, and all kinds of other exciting offers. You can also use your email marketing to promote your loyalty program.

If customers have already signed up for your email list, the chances are they’re fairly loyal to your dispensary. You can use this knowledge to encourage them to sign up for your reward program. Let them know what kind of rewards they can gain and make it easy for them to sign up. That way, your program will take off quickly.

You can also use email marketing to keep your loyal customers coming back for more. Send personalized emails with recommended products and let them know what kind of rewards they’re close to getting. This will encourage them to visit your dispensary again and buy more from you. It’s one of the smartest ways to improve customer retention and enhance your sales at the same time.

Do: Offer Points For Customer Referrals

Many cannabis dispensaries use referral programs to gain new customers. These usually work by offering rewards for those who refer new customers. It also helps to offer a small discount to the newly referred customers – that way, they’re much more likely to visit your dispensary and buy something.

Referral programs often go hand-in-hand with dispensary loyalty programs. If your customers are already racking up points for buying from your dispensary regularly, you can offer them extra rewards for referring new customers to your dispensary. This can be in the form of discount coupons or reward points.

Not only will this attract new customers to your dispensary, but it’ll also attract more people to your rewards program. They’ll then refer more of their friends and, as time goes on, you’ll notice your customer acquisition rates rising steadily. It’ll also help improve your customer retention rates, especially as members of your loyalty program will be happy to gain greater rewards.

Do: Use Analytics To Enhance Your Rewards Program

One of the best things about using customer loyalty software for your cannabis business is that it can help you collect valuable data on your customers. You’ll find out all kinds of helpful information, from what products your customers are buying the most to how often they visit your dispensary.

You can use the analytics you collect to enhance your rewards program. For example, many customer loyalty platforms let you deliver personalized recommendations to members. If one of your loyal customers buys edibles more than anything else, you can send them emails promoting your latest range of gummies and let them know how many points they’ll gain for buying them.

Your analytics might even help you improve your sales. For example, if you find out that your customers aren’t buying topicals from your dispensary often, you could launch a temporary double-points promotion for every topical they buy. You can also enhance the rewards you offer to customers by using analytics on your most popular products.

Give Customers Lackluster Rewards

Don’t: Give Customers Lackluster Rewards

One of the biggest mistakes you can make with your dispensary loyalty program is offering disappointing or lackluster rewards to customers. For example, let’s say a customer is considering registering for your loyalty program but the only rewards they can get are keyrings or stickers. They’re much less likely to sign up as your rewards aren’t enticing enough.

It’s also important to make your rewards achievable. If you offer 1 point for every dollar a customer spends, then make sure your rewards start at an achievable amount such as 50 points or even less. If customers need to spend 100 dollars or more to get their first reward, many won’t be interested in your rewards program whatsoever.

In contrast, if you offer exciting, achievable rewards, customers will rush to sign up. Many will see that they’ll get much more value for their money, and it’ll even encourage them to spend more on each purchase they make. It helps your dispensary, helps your customers, and avoids you from losing buyers to competing dispensaries.

Don’t: Make It Hard To Register For Your Loyalty Program

If you’re introducing a loyalty program to your dispensary customers, you need to make it as easy as possible for them. Even if you offer attractive rewards and a range of other benefits, many consumers will be too lazy to sign up if it’s too complicated. The simpler it is to join your loyalty program, the better.

Many major companies allow customers to join their loyalty program simply by making an online account. All they need to do is provide their name, email, and password and they can start gaining rewards for their purchases. You can also use this to attract new people to your email list.

You should also make it as easy as possible for customers to gain rewards. Many businesses do this by giving customers a scannable QR code to collect their points. You can even offer points for pre-ordering products online. Customer loyalty software platforms make it easy to handle these matters.

Don’t: Take Points Away From Customers

Another major mistake that many businesses make with their loyalty programs is offering points or rewards that expire too quickly. Not only will this discourage some customers from joining your dispensary loyalty program, but it’ll even ensure that you lose some of your most loyal customers once they find out that they’ve lost their loyalty points.

For example, if you offer reward points for loyal customers but make them expire after 6 months, many customers won’t want to deal with your program at all. Some customers only shop for cannabis products every few months, so you need to make sure that their rewards aren’t taken away before they can use them.

The best reward programs allow customers to keep their points until they decide to use them. That way, they can spend more time accumulating as many points as they want. They’ll feel more comfortable buying from your dispensary regularly and they’re also much more likely to spend more that way.

Offer A Huge Sign-Up Discount

Don’t: Offer A Huge Sign-Up Discount

Offering a discount for customers who join your reward program is a good way to encourage more customers to join. With that said, you don’t want to go overboard with the discounts you offer. Giving customers a sign-up bonus that’s too enticing can have many disadvantages.

For example, if you offer a 50% discount for new members, they might buy from your dispensary once and never again. Although you’ll still make sales, you might lose out on profits due to the heavy discounts. Plus, the point of a loyalty program is to keep customers coming back for more, so it’s best to avoid one-time customers.

That doesn’t mean that you can’t offer an exciting sign-up bonus. A small discount coupon is a good way to get customers involved. You could also offer an alternative reward, such as a branded rolling tray for every new member. That way, they still get something worthwhile and you get to promote your brand.

Don’t: Forget To Promote Your Loyalty Program

One of the biggest reasons that some loyalty programs fail is that businesses simply don’t promote them well enough. If customers don’t understand the benefits of signing up for your loyalty program, they probably won’t bother. Even worse, you won’t get any members if your customers don’t even know about your loyalty program.

Many businesses encourage customers to join their loyalty program via social media, email marketing, and promoting it via their website. A quick list of the benefits and rewards they’ll receive is sure to get some people interested. Of course, you should also make it as quick and easy as possible for customers to sign up.

Face-to-face promotion is also incredibly helpful. Every time one of your cashiers makes a sale, make sure they ask customers if they’re a member of your loyalty program. If they haven’t already registered, letting them know that they can gain points and rewards might encourage them to sign up on the spot.

Conclusion

Dispensary loyalty programs can help you enhance customer retention, increase sales, and significantly enhance your brand reputation. These dos and don’ts can help you launch a successful reward program for your dispensary so that you and your customers can start reaping the rewards.

If you’re looking for enticing yet affordable rewards to offer to customers, custom-branded cannabis products work exceptionally well. You could even offer a branded accessory to new program members as a sign-up bonus. You can get all kinds of high-quality custom cannabis products for your brand from Cannabis Promotions.

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