Sometimes, in order to build a loyal base of customers for your cannabis business, you need promotional offers to begin the process and build momentum. Cannabis dispensary rewards are by far the most effective means of instigating the kind of growth a dispensary needs in its early operating phase, forging the initial ties of customer loyalty essential for staying above water in an often competitive business environment.
Benefits of Cannabis Dispensary Rewards
There are many benefits to offering cannabis dispensary rewards.
Cannabis dispensary rewards have been shown to increase sales, which is a primary driver for many dispensaries to implement marijuana rewards. In addition, dispensary rewards assist in strengthening the bond between the dispensary and customer. Customers appreciate being made aware of a great deal and will note which dispensary in their area is offering them cannabis rewards that work best for them. Customers who engage in dispensary rewards may be more likely to be repeat customers, which is highly desirable in any industry.
Dispensary rewards act as a gesture of goodwill, communicating a message to the customer that they are valued and that the dispensary is worthy of trust. In an industry like cannabis, building trust and consumer relationships are essential and can establish a permanent stream of business.
Types of Cannabis Dispensary Rewards Programs
Dispensaries can choose from a variety of dispensary rewards that work best for their business model. Below are a few different styles that have proved popular.
Referral programs are perhaps the easiest form of dispensary rewards program to implement. Referrals involve customers spreading the word about your dispensary and, in return, receiving discounted or free cannabis products or merchandise. Typically with a referral program, the more friends that are referred, the greater the reward for the customer. For scaled referral programs, it may be best to offer dispensary credit on a continuum between $25 and $75.
Referral programs are effective because they invite customers to advertise your cannabis business on your behalf. Even though you give away store credit or free products, oftentimes, the outcome of a referral program is a glut of returning customers and the possibility of viral reactions where many friends are referring each other, creating a rising tide of new business for your dispensary.
Grocery stores frequently feature club cards as a component of their business, allowing their customers discounts on almost every product available on the shelves. Dispensaries can offer a similar program that offer special prices and access to promotional offers for customers who sign up.
There are typically two forms of loyalty cards: punch-cards and membership cards. Punch-cards are given to customers and include a number of perforated circles that are punched out each time the customer makes a purchase. After all of the circles have been punctured, the customer is entitled to a free product or special deal, such as a “buy one, get one free” offer.
Membership cards, on the other hand, involve sustained benefits such as discounts for every purchase, similar to the grocery store model. Both forms can be an effective means of ensuring that customers spend money at your dispensary more than once, thus increasing customer retention.
Similar to the punch-cards, donation matching involves customers building up credit over time that can then be redeemed for a free product. Often, this takes the form of dispensaries offering a free edible for every specified amount of edibles the customer purchases, or any product which is typically purchased multiple times.
Some donation matching systems are based on the total amount a customer spends. For example, if the customer spends $100, a free product will be included with that purchase. How generous a dispensary wants to be is a decision for each individual business, but a good donation matching program can be a major driver of business and positive reviews.
Text Loyalty Programs
Text loyalty programs are simple: The customer provides their phone number and the dispensary sends them various deals and promotions via text message. Text loyalty programs require an opt-in, so customers will never receive messages they don’t want. Plus, they’re an effective means of keeping in touch with a customer after they’ve left the dispensary.
While other loyalty programs may have a more cohesive structure to them, texting programs ensure that customers are constantly being reminded of the presence of your business brand in a way that a card does not. Every text sent out acts as an advertisement which can draw forgetful customers back in and give them a reason to spend their money at your dispensary.
The only caveat with texting loyalty programs is that too many texts can turn customers off to your business. Always ensure your promotions benefit the consumer as much as they benefit your dispensary, and the consumer will return the favor!
Ready to implement Cannabis Dispensary Rewards for your business? Contact us and we will be in touch with our best recommendation to get you on your way to retaining more happy customers!