managing marijuana loyalty rewards
There is a ton of data out there about how instrumental a rewards program can be for successful cannabis dispensaries. Central to the concept of a loyalty program is the exclusive access to sales, discounts, and special offers to earn rewards. But some business owners don’t fully understand why these programs matter.
When it comes to exclusive offers, consumer surveys have shown:
- 68% of Americans say exclusive offers are more important than traditional coupons that are available to the general public
- 94% of Americans would take advantage of an exclusive offer provided by a brand that would not be typically offered to the general public
- 82% of Americans say being provided an exclusive offer would increase how often they shopped with a brand
- 58% of consumers say an exclusive offer would increase their likelihood to make a purchase
- 48% say an exclusive offer would speed up a purchasing decision
- 40% say it would increase how much they originally planned to spend
According to 2018 market research by public relations company Edelman, 80% of consumers say they are more likely to do business with companies that offer personalized experiences. Those people are also 10x more likely to become a brand’s most valuable customers. In the cannabis industry, this kind of loyalty is a game changer.
focusing on mobile-friendly rewards
Needless to say, offering your customers a personalized experience with exclusive rewards are best practices for a loyalty program. And for dispensaries, the best way to get those exclusive offers on cannabis products to your audience is through the leading CRM with personalized text marketing in the cannabis business.
Did you know 75% of consumers say they would engage more with loyalty programs that make rewards information mobile-friendly?
On top of that, 97% of millennials say they’d actively engage with loyalty programs if they could access their rewards information from their smartphones.
Part of what makes springbig the leading cannabis CRM and loyalty rewards platform is our seamless partnership with all major Cannabis POS systems and our innovative marijuana SMS marketing. With all the resources our software places at your fingertips, there are so many ways to reward your customers.
First, let us share some of the 7 different ways cannabis retailers can reward customers for little things that make a big difference.
1. rewards for sharing their info
Recent data shows that 90% of consumers are okay with brands knowing more about them if it helps the business deliver a more rewarding and satisfying shopping experience. With customer relationship management, it is all about providing a better experience to ultimately inspire more traffic and higher spending habits.
Don’t be afraid to get to know the people who shop at your stores. Encourage that connection by rewarding customers when they give you more info about them, including:
- Their birthday
- Email address
- Personal interests
- Product preferences
Once you know more about the people who shop with you, you can give them more to look forward to from your loyalty program.
Try running a campaign that asks for info from customers who have not given it, and include small rewards to encourage them.
2. welcoming them to loyalty program
A great way to help customers/patients feel confident and engaged in your loyalty program is to celebrate them just for signing up! After all, research shows that:
- 61% of consumers subscribe to mobile messaging because of incentives or coupons
- 55% of consumers subscribe because of loyalty rewards points
Therefore, it makes perfect sense to draw them in right away. Giving customers something to look forward to is what gives them a reason to earn points in the first place.
Try showing your gratitude for trusting you with their contact information by texting them some free points (enough to redeem the first tier of rewards), or maybe even a quick coupon for something small like a penny pre-roll or a free T-shirt. Consider this an investment in a loyal customer who has the potential to spend more and share your brand with their friends. Once they know how to earn and redeem points, they will be more engaged in their loyalty profile and more likely to spend with you.
3. celebrating milestones
Did you know that 65% of consumers would spend more than they originally planned in order to secure a discount? So by offering rewards to customers based on milestones, cannabis retailers can drive some serious traffic. The key milestones you can set up through springbig include:
- points tiers- Each time a customer reaches a new tier of points collected. For example: Offer customers who reach 1,000 points a $1 concentrate.
- total spend- When a customer crosses a specific threshold for the total amount spent with a dispensary. For example: Send the customer who has spent $1,000 dollars at your store 10% off their next purchase.
- visits- Each time the customer reaches a number of total visits to the store. For example: When someone has visited 100 times, send them an offer for double rewards points on their next visit.
- big purchase- Rewarding customers for spending a certain amount in one visit.
- by join date- When a dispensary rewards customers for how long they’ve been signed up with the loyalty program. This is an awesome strategy because cannabis retailers can overlay these rewards with each customers purchasing and visiting habits.
Keep in mind, some dispensaries will set up their points system so that the dollars spent is equal to points. Our customizable rewards software allows businesses to determine how they want their program to calculate points and rewards.
Sending your loyalty members rewards for milestones can also show them just how far they have come with your company. Remember, 80% of shoppers said they grew to love a brand over time. This is one way to leverage lifecycle marketing to keep people in the loop long enough to love your dispensary.
At the end of the day, people appreciate it when a business acknowledges how much they spend and how often they show up. So an easy way to celebrate that commitment is through these milestone rewards.
4. “just because” rewards
Let’s be real, who doesn’t enjoy free stuff?
A “just because” reward, otherwise known as “surprise” and “delight” rewards, is a great way to make someone’s day. You never know what kind of day your customers are having, or how much it might mean to them to receive a special gift just for being a loyal customer.
Not to mention, this is an excellent strategy for sparking some interest and bringing people into your dispensary. If you’re experiencing a slow period or trying to get rid of some inventory, a spontaneous sale can turn things around. In fact, with customers who rely on digital coupons:
- 82% redeem the offer within a week
- 30% will redeem less than 24 hours after receiving it
Using a well-timed “just because” offer in your text marketing campaign reminds customers why they shop with you, and with our track offer feature you can easily view:
- How many people click the offer link
- Number of people who redeem the offer in 48 hours
- The total spend on the offer
- The average spend on the offer
- How much money you’ve spent on the campaign
This way, cannabis companies can keep their eyes on their offers and make sure they are getting the most out of their random reward campaigns.
5. visiting multiple locations
Some dispensaries are fortunate enough that they have multiple retail locations to choose from. If a customer finds themselves on another side of town, there is a risk that they will just shop at a competitor that is more conveniently located than their usual store. However, if you have multiple locations you can try to increase customer retention by offering rewards to individuals who try your other retail stores.
Of course, this is easier to accomplish if the reward is already in place and your loyal customers know about it. Make it easier by telling people where other locations are and promoting a special offer for those who visit more than one location.
You can even create different tiers to this reward depending on how many retail locations your dispensary has. For example, if you have 4 or 5, you can offer a bigger reward to members who visit all your locations in 30 days! Not only will this be a fun way of inviting your customers to get to know your business on a larger scale, but it helps them feel more connected to your community.
Plus, next time they find themselves on the other side of town, they might remember you have a store close by.
6. leaving a review
Reputation management is critical nowadays. Having a bad rep online can be a serious hindrance to your brand's growth, but you can leverage your loyal customers to make sure your reputation precedes you in the best way possible.
Market research indicates that 66% of consumers rely on customer ratings and reviews when making purchase decisions. If the majority of people who find out about your dispensary are going to look for reviews, don’t you want to make sure you make a killer first impression?
Also, the after visit & delayed after visit automation in the springbig marketing software allows you to automatically hit customers with a survey or request for a review after they’ve visited the store.
Once you are able to verify a consumer has left a review, you can award them additional points or coupons. Conveniently, this concept leads into the next way of rewarding customers.
7. rewards for referrals (Budz)
Again, getting the word out on the street is essential to building your brand.
Letting people cash in on loyalty points for word of mouth referrals can pay off on ROI big time. At least 60% of customers will tell their friends and family about a brand or store that they are loyal to. So if you are offering a reward for this kind of action, you increase the odds of people telling others about your business.
Meanwhile, social media is driving a new wave of advertising through influencers. Having a digital spokesperson who uses their platform to expand your reach beyond your own audience is the next stage in online marketing. One survey showed that 59% of consumers have at least considered purchasing products after a social media influencer posted about it.
But springbig is making the process of turning customers into active influencers even easier. One of the more exciting developments is the new Budz feature that allows dispensaries to leverage their loyal customers by giving them a custom link to track referrals.
As with most things on springbig, cannabis retailers get to choose what qualifies as a referral. Depending on your business model, you may consider a referral as:
- A link click
- Making a purchase
- Signing up for rewards program
In other words, dispensaries are able to reward influencers by how many referrals their Budz link generates. And that link can be shared on social media and sent out to all their followers.
Yes, your cannabis community just got that much bigger.
What it all comes down to is finding ways to take care of the people who help make your business what it is, while driving more revenue, increasing retention and expanding your customer base. Whether you are a medical cannabis clinic or a recreational retailer, the benefits of a comprehensive loyalty rewards program are truly phenomenal.
If you are ready to start rewarding the people who make your business remarkable, contact springbig today to schedule a demo.