Building a sustainable cannabis loyalty program | Fyllo

Cannabis loyalty programs are a dispensary's best resource for retaining customers. According to Headset, loyalty members spend on average 35% more than non-members. And the average basket size for loyalty members is $40 compared to the $30 price tag for non-members. 

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So what drives customer loyalty? The answer is simply benefits. Customers shop where their money goes further and their business gets rewarded. Different benefits like referral programs, loyalty points, member tiers, discounts and exclusive promotions drive repeat business. To structure a sustainable loyalty program, learn how these benefits create clear value for customers. 

1. Point systems

Whether you decide to reward customers per visit or dollar amount spent, points are the lifeblood of your cannabis loyalty program. Points accumulated can be redeemed for rewards and discounts. Dispensaries can get versatile with their point system. Double or triple points during a certain shopping window to create flash sales; and diversify customer purchases by offering point rewards based on product categories, brands and merchandise. 

2. Automation 

Automation gives dispensaries the power to set triggers for automatic rewards based on the customer's shopping behavior. Automated triggers help dispensaries become more efficient by cutting time doing manual tasks and decreasing opportunity costs. Set triggers around birthdays, sign-up anniversaries or when customers are close to moving up a tier. 

3. Loyalty tiers

Loyalty tiers work by creating rewards based on multiple purchases from loyal customers over time. Think of tiers like punch cards: after a certain number of visits, you get a freebie. Don’t just stop after the first either; loyalty tiers work best by driving incremental rewards that increase over time. The reward for a customer’s sixth purchase should have more value than their first. 

4. Referrals 

Dispensaries can find more loyal customers by asking current customers to refer their friends and family. This can provide an easy on-ramp for new customers to join your dispensary’s loyalty program by someone they trust. Customers acquired through referrals have a 37% higher retention rate and 81% of consumers are more likely to engage with brands that have reward programs.

5. New product notifications

Ensure your customers know and are constantly reminded of how their loyalty will be rewarded. Send 10DLC-compliant text messages when they get close to reaching another tier or reward. Inform them of the next incentive such as brand merchandise, batteries, accessories and more to keep them engaged and continue shopping. Reward their birthdays or shopping anniversaries for an added benefit.
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Drive sign-ups with clear rewards

The message for every cannabis loyalty program should be simple and direct: shop with us and you will be rewarded. Make sure customers fully understand the terms, conditions and most of all the benefits of the program. Make it as simple of a process for them as possible, because investing in loyal customers will establish long-term growth for your business. 

Interested in building loyalty with your customers? Contact sales@hellofyllo.com to schedule a demo today.



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