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4 Ways Cannabis Loyalty Programs Pay Off
Marijuana dispensaries are constantly competing to gain their share of a billion dollar industry that will continue to grow in the coming years. Reaching new customers requires creative marketing and real world incentives that benefit both your business and consumers. Building cannabis loyalty programs that are effective will yield results that really pay off.
In this article, we’ll mention a few of the benefits of establishing enticing cannabis loyalty programs that promote customer retention and boost overall sales.
Attract New Customers
Attracting new customers into your marijuana retailer based solely on your cannabis loyalty program is unlikely, however, creating a signup initiative that immediately rewards them will increase your traffic. If consumers can consistently earn cashback credits every time they shop, they are more likely to return.
You can also provide loyalty rewards for current customers who refer new business. This is a great way to gain new clientele as word of mouth is the best type of advertising. Offering referral bonus points will motivate your loyal customers to spread the word about your dispensary and the cannabis loyalty programs.
Customers enrolled in cannabis loyalty programs tend to spend more money per visit than those who are not enrolled. On average, loyalty members are spending $10 more in-store as opposed to non-loyalty members. This could be because they are attempting to earn more cashback but in any case it’s more profitable for retailers.
Many cannabis loyalty programs are based on how much is spent instead of the frequency of their visits. This is to prevent customers from trying to abuse the system by coming in often but only spending in small increments.
Buy More Items
In addition to spending more money per transaction, loyalty members also tend to buy more items. For instance, there is a slight uptick with the average customer purchasing 2 items and a loyalty member purchasing 2.2 items.
Often times this is due to them receiving more for their money but for retailers serving hundred or even thousands of customers in day, 0.2 can add up. Dispensaries can also help boost this number by training their staff to upsell products in an organic way so that it makes sense for the customer.
Variety of Products
Another advantage is that loyalty members tend to buy a larger variety of products per transaction than non-loyalty members. This is especially true of their first time shopping as a loyalty member. Typically their cart is 15% more likely to have 4-5 different products and 18% more likely to have 6+ type of products.
Knowing this can help cannabis retailer craft loyalty promotions that cater to these trends. Establishing effective cannabis loyalty programs is simple when using advanced dispensary software like IndicaOnline. Schedule a demo to learn how to setup a loyalty program that benefits your dispensary.