The majority of consumers are habitual shoppers, meaning that once they find a marijuana dispensary that satisfies their needs, they will rarely shop anywhere else. When new consumers visit your dispensary it is likely that they are either new to marijuana or other circumstances have brought them to your location. Whatever the cause of their visit, it is important to impress consumers with an experience that obtains their loyalty.
The majority of business sales will be from repeat customers, also known as your loyal consumer base. It is crucial that you provide exceptional customer service, offer incentives for an extensive line of products, and provide customers with something unique to create this positive experience.
Customer retention is the key to keeping your business relevant, developing a positive brand image, and increasing revenue. The following information guide was developed to teach new and existing marijuana dispensary owners how to increase their customer retention rate.
The Importance of Impressing New Customers
The moment when a new consumer chooses to shop at your dispensary is critical. In one visit, the consumer’s experience will shape their opinion of your dispensary and have an effect on your reputation. New customers are usually at your shop for one of the following reasons:
- The customer is new to using marijuana.
- They were short on time and your location was convenient.
- They were dissatisfied with their old dispensary.
- They are new in the area or visiting.
Marijuana dispensary customers are loyal to their usual dispensary and rarely stray. Consumers also use word of mouth, social media, and other digital means to share their experiences. These reviews can have either a positive or negative effect on your business.
Respectable, Friendly, and Knowledgeable Staff
Poor customer service is one of the most damaging experiences to the reputation of your brand. Business owners must be sure to hire staff who are trainable, friendly, and respectful to dispensary patrons. This is even more important when a customer is dissatisfied.
Providing employees with regular training, meetings, and educational sessions is an important element in ensuring that staff remains knowledgeable regarding new marijuana trends. You should also perform regular evaluations of your team members to ensure that their values are in line with your business goals.
Loyalty Programs
The cost of marijuana products is one of the biggest deciding factors of where consumers choose to shop. Rewarding customers for their purchases is one of the best ways to ensure that they return with more business. Loyalty programs are an enjoyable way for consumers to feel as if they are saving money and having fun.
Develop a system, such as using dollar amounts that equivalate to points, and remain involved in the program. These programs can offer cash incentives or other discounts. A set number of points can also equivalate to VIP status.
Provide customers with a discount for simply signing up and allow them to use it on their first purchase. Customers are more likely to sign up if it will save them money immediately. Send regular customers coupons via email to reward them for their loyalty. These VIP-only coupons can be redeemable for cash, specials, or free merchandise.
You can reduce your costs by buying in bulk and offering consumers prerolls and smaller repackaged loose flower. You can also make your own edibles if you are licensed to do so.
Research Competitors
The most important thing that you should do is to regularly research your competition. You need to know how other companies are falling short and succeeding in the industry. Examine their specials and loyalty programs, product line ups, etc. You should also read reviews to see how customers feel about their experiences at other dispensaries and use this information to improve your business. Staying on top of current trends will help you gain and keep an edge over others in the area.
Personalized Communication
To keep customers coming back to your dispensary you must remind them that they are missed and appreciated. Use both SMS and email to share monthly specials, discounts, coupons, and new products.
It is wise to keep notes for each customer on your sales records. Then, when a customer’s favorite strain becomes available, you can notify them. This creates a unique and exceptional experience for the customer that you cared enough to do so.
Continuous Improvement
Once you have obtained customer loyalty, you must then practice continuous improvement in order to retain your business. Losing once-loyal customers can be detrimental to business image and sales.
The most common reasons that customers stop visiting a dispensary include:
- Rude Employees
- Price Increases
- Inventory Changes
- Poor Product Quality
- Unkept Promises
- Hidden Cost
There are applications within the majority of software applications that provide business owners with the tools to track the amount of time between customer visits. Monitoring this data allows you to notice any changes in a customer’s buying habits. This allows dispensary owners to be proactive and send initiatives to customers that they notice have not been following their normal spending routine.
Marijuana Dispensaries Choose Paybotic
Prioritizing the ever-changing needs and wants of the customer is the most important element of retaining your loyal consumer base as well as friendly staff, pricing, inventory, and variety of payment options. Payment solutions can be difficult for many dispensaries to obtain safely and legally.
Paybotic provides payment processing technology and solutions that are specifically designed for the marijuana industry. Contact Paybotic today to learn more about electronic payment solutions for your start-up or established business.
