Why a Dispensary Loyalty Program is Crucial for Any Marijuana Retailer
As a marijuana dispensary owner, there’s nothing better than seeing the same faces in your shop again and again. After all, repeat loyal customers are what every business strives for, and for good reason. The best way to ensure you convert your everyday customers into repeat loyal customers is by providing a marijuana dispensary loyalty program for them to join.
Dispensary loyalty programs are great at retaining customers and provide a great opportunity to build a relationship with your customers as well. Why’s this important? Simply put, loyal customers spend money with your business repeatedly, and this consistent stream of revenue is crucial to the success of every company. Not so sure? Consider these stats:
According to MarTech, the cost of bringing a new customer to the buying level of a loyal customer is 16x more
Harvard Business School found that a 5 percent increase in customer retention can boost profits by 25-95 percent
Invesp found that the probability of selling to a loyal customer is 60-70 percent, while the likelihood of selling to a new customer is 5-20 percent
Loyal customers will market for you. Satisfied repeat customers are the most likely bunch to recommend a product, service, brand or store to their family and friends. That’s free publicity, which studies show that word-of-mouth recommendations are the most credible with consumers
Introducing a new product? Loyal repeat customers are 50 percent more likely to try it out than the average customer.
why a dispensary loyalty program is crucial for any marijuana retailer
Marijuana Dispensary Loyalty Program Structure Options
So, what’s the best loyalty program for you? There are two basic dispensary loyalty programs to choose from:
Points-per-spend. This loyalty program allows you to reward your customers based on how much they spend with you: a $100 purchase equals 100 points. This is the best loyalty program, especially for marijuana dispensaries, because it allows you to really gauge how much your loyalty program is costing you and reward your customers appropriately.
Points-per-visit. While this loyalty program may seem like it makes sense (customers who visit often should get rewarded more, right?), it ends up costing a lot more and rewards your customers disproportionately. Think of it this way, if you reward a customer after visiting 4 times and two customers come in 4 times each, but one customer only spend $5 each visit, while the other spends $20 each visit, should each customer receive the same reward? Of course, all your customers are superstars, but usually, having one reward for different tier spenders ends up costing you an arm and a leg -- check out how here
Armed with the information above, marijuana dispensaries can make efforts to not only keep repeat customers happy but keep their buying potential high by converting them to loyal customers. Dispensaries that put in work to reward repeat customers can keep them around for years to come.
springbig Makes Creating a Marijuana Dispensary Loyalty Program Easy
Ready to learn more? Request a demo today to get started with springbig’s dispensary loyalty program software.