We are witnessing the consolidation of the cannabis space via mergers and acquisitions. As the legalized market continues to rapidly grow and competition between Multi-State Operators (MSOs) becomes stiffer, it’s essential for cannabis businesses to acquire and retain loyal customers.
Studies stemming from New Frontier Data’s 2021 study on the Evolution of the Cannabis Consumer show cannabis businesses can use strong loyalty programs to incentivize their customers to repeat shop by offering promotions, deals, and discounts. Additionally, through data collection of their consumers’ preferences, cannabis businesses can market better to their customers through tailored product promotions.
As the licensed cannabis market rapidly develops, consumers will continue to establish loyalties within the space. Of consumers who purchase product from the licensed market, 54% regularly shop at the same businesses.
Consistency is the difference between good and great. Customers in any industry expect consistency in their experiences, loyalty programs included. Ensure your loyalty program aligns with your brand. If there are changes to the structure of your loyalty program, keep the significant changes sparse and your customers informed.
Having a simple loyalty program will keep customers happy. Are your employees able to provide customers a simple explanation to generate interest and understanding of your rewards program?
Creating a loyalty program that’s easy to earn, understand, and redeem will incentivize customers to shop at your establishments.
Through an automated loyalty program, your loyal customers are easily rewarded. If your cannabis company collects consumer data, you can analyze how close a customer is to their next reward and inform them via an automated messaging campaign (email or SMS). Additionally, dispensaries who collect product level data are able to provide unique deals and offers tailored to their customers’ personal preferences.
Based on the 80/20 Rule of Sales, about 20% of your customers make up 80% of your sales. Taking good care of your frequent and high spenders is crucial to consumer retention.
Tying your loyalty program to customer spend is an effective way to make this happen. With AeroPay, you’re able to customize a rewards program that gives your customers a percentage back on every purchase they make. This not only incentivizes customers to shop at your cannabis businesses, but also converts them to a digital form of payment that removes the burden of managing high volumes of cash.
In order to continue to grow in the ever-changing cannabis space, acquiring and retaining loyal customers will always be a top priority. An effective way to show appreciation to your customers is through a strong dispensary loyalty program.
Keeping the program simple, consistent, automated, and tied to spend will earn the appreciation of your customers.
To learn more about how AeroPay can play a part in your greater loyalty strategy, click here.
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