The Impact of Loyalty Programs on Your Cannabis Business

Comprehending Loyalty Programs

A loyalty program is a term used to refer to a program created by a company that bestows consumers incentives for repeatedly selecting their business versus competitors. These programs typically come in the style of individual membership or program IDs. 

As far as inducements, loyalty programs gift consumers discounts, exclusive and even free merchandise. 

For instance, a loyalty program is the Extracare program implemented by CVS Pharmacy (Caremark corp.) By signing up for the loyalty program at no expense to the consumer, they are automatically qualified for promotions, discounts, coupons, and in-store credit. CVS even gives the store credit a unique name: Extracare bucks. Superficially, it appears that the customer is raking in all of the benefits. Despite this, the company is liable for executing an appealing loyalty program that can witness an impressive return. These deals and discounts are certainly transmissible to cannabis dispensaries and retailers.

How Your Company Benefits from Loyalty Programs

When installing a useful and appealing loyalty program, businesses gain a litany of benefits. Patrons who have enrolled in a business loyalty framework have been magnetized. Magnetization is the process of snagging valuable and reusable patron data like names, zones, and direct contact information through an appealing medium like a loyalty program.

Additionally, a returning or loyal customer disburses nearly 70% more than a normal customer over a three-year span. Loyal customers are ten times more likely to purchase after their first purchase or sign up for a loyalty program. This information can be helpful in the short term and the long term.

Building a Loyalty Program for your Bud Business

Assessment

Before a bud business creates a loyalty program, they must ask themselves a question: “Do we need a loyalty program?” Consider the state of your enterprise and determine if establishing a loyalty program for your weed business will yield the results the business demands.

Learn your clients

Once a company determines the importance of implementing a loyalty program, it must confirm its client base. For a business to be successful, it needs to be at the vanguard of understanding who they serve. For example, if a loyalty program is to be created, it must be outlined to the niche that a company directly caters to.

Atmosphere is Everything

Another central concept of a loyalty program is the aesthetic; The experience. When businesses provide an understanding in collaboration with their loyalty programs, patrons feel connected to them. Engaged customers are returning customers.

Frequency

Did you know what goes together with experiences? Reproduction. Repetition. By providing a frequency rate in connection with your business’ loyalty program, likely customers will be frequent. If you give patrons more opportunities to engage, then the rate of expectancy will advance. This can transfer into regular traffic as well as increase profitability.

Make the Program Worthwhile

Loyalty programs also provide patrons with warm and inviting ‘thank-you’s.’ Enterprises who have constructed successful loyalty programs often give back to their loyal customers. By providing a ‘buy # grams, get your next pre-roll for $1’ style promotion to all engaged patrons, chances of these patrons being magnetized are significantly high (pun intended.)

Marketability

The age of specialized promotions and social media marketing has seen businesses grow to heights that were once unfathomable. Cannabis is no longer a niche topic; it is a primary topic that naturally gains its organic engagement virtually every second on social media. Make your business’ loyalty program worth tweeting about. Consider implementing a unique hashtag for your loyalty program to help fortify the program’s appeal. Mastering word of mouth and shares, and retweets can help solidify engagement and the longevity of your loyalty program.

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s