The era of “big cannabis” is upon us. Multi-state operators (MSOs) and experienced entrepreneurs from other industries have aggressively entered the market, focusing on building differentiated brands and gaining market share. The historic mom-and-pop dispensary represents an ever-shrinking portion of the retail marketplace.
As the cannabis retail experience becomes more mainstream and competition becomes stiffer, one thing is clear – it is no longer just about dispensing weed. Retailers big and small have to distinguish themselves from their competition. Why should potential customers choose you over the dispensary down the street? One way to do that is with a dispensary loyalty program.
Here are just a few of the ways a dispensary loyalty program can benefit your cannabis business.
Customer Retention
In today’s cannabis retail environment, customers are making purchase decisions based on more than just the best price. They’re making decisions based on shared values, engagement, and emotional connections with a brand. Customer loyalty programs are a great way to reach your customers, allowing them to keep up to date with store promotions, and communicate with staff – even when they are not in-store. Not to mention, it’s also more cost-effective for your dispensary to retain existing customers than it is to acquire and educate new customers.
Lead Generation
While a dispensary loyalty program is sure to keep your existing customers coming back for more, it will also help attract new customers. Satisfied, loyal customers are more likely to sing your praises and refer their friends and family — bringing in new customers, free of charge. When new customers sign up for your loyalty program with their email or phone number, you’ll have their contact information for remarketing purposes.
Valuable Customer Data
Your customer loyalty program is a great way to show appreciation for your customers. As an added benefit, it is also a great way to collect customer data. The data you collect from your loyalty program can help shape the overall customer experience. Customer data provides you with a deep understanding of customer preferences by age, gender, and geographical location. This allows you to stock and staff appropriately.
Start Your Dispensary Loyalty Program
Customer loyalty can help your dispensary prosper in the best of times and survive during the worst of times. Cannabis retailers with dispensary loyalty programs see an immediate lift in customer traffic, repeat visits, and sales.
