Setting up a loyalty program for your cannabis dispensary can increase your average sale size and keep customers coming back to your dispensary.
At its base, loyalty programs involve collecting customer’s information to offer them rewards—discounts, cash back, specials, etc. These rewards, if done right, can increase sales and customer retention.
On that note, what are the different types of loyalty programs that cannabis dispensaries can employ? Here are four popular options:
When it comes to bringing in new customers, having a referral program is a great option. Referral programs reward customers who refer your dispensary to others they know. The reward for this can be in the form of a discount, store points, or a free product.
A cash-back loyalty program is one of the most popular with customers earning points based on how much they have spent. These points can later be redeemed in-store in future purchases. Sending periodic emails reminding customers of their redeemable store points is an effective way of keeping customers coming back for more.
A checkout Bonus works great alone or alongside other rewards. It works by collecting customer’s contact information at checkout in exchange for a reward like a percentage off their first purchase or a small gift. Customers can then receive special promotions and offers sent straight to their email or phone.
A tiered rewards program allows customers to advance to higher tiers the more they buy from your dispensary. Higher tiers unlock greater benefits which in turn incentivizes the customer to keep buying from you.
One thing that all good loyalty programs have in common is a way to track, manage, and implement customer benefits. Often, this is done by point of sale (POS) software. Toke, for example, offers a comprehensive POS system specifically designed for cannabis dispensaries.
Store owners can use Toke to create custom loyalty programs with tailored rewards and redemption requirements. The software will also allow dispensaries to track purchases and manage customers.
Loyalty programs can also be managed the old-fashioned way with punch cards and sign-up sheets, but to keep customers engaged and avoid time-consuming manual tracking, it’s best to simply use POS software with custom loyalty program options to automate the whole process and to streamline the experience for your customers.
Customer retention is the key to any business' success and loyalty programs can be a great way for cannabis dispensaries to keep their customers coming back. It is not uncommon for stores to use multiple different types of loyalty programs. Referral programs and checkout bonuses, for example, work well with other programs by helping to bring in new customers and retain new ones.
With that said, loyalty programs may fail if customers aren’t continually made aware of their benefits. So, it’s important to send follow-up emails and special promotions on a regular basis to keep customers interested.
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