Medical marijuana is an ever-evolving industry that has become increasingly accessible to many Americans for both recreational and medical use. This industry is thriving and every month thousands of new marijuana dispensaries are opening their doors. Customers often choose their favorite dispensaries based on factors, including customer service, inventory, and financial incentives.
It is important for dispensaries to offer programs that reward customers for their loyalty. These programs can be point, coupon, or gift card driven systems. Customers enjoy these programs because they make them feel valued and are a fun way to save money.
The following will explore the pros and cons that must be considered before deciding which financial incentives to offer customers. Offering the most effective, low-cost, and enjoyable financial incentives is the key to achieving repeat customers.
The Importance of Financial Incentives in the Cannabis Industry
Dispensaries need to reward new customers and repeat customers with unique financial incentives to build customer loyalty. Loyal customers are the key to building a positive reputation for your business. Loyalty programs provide customers with financial incentives that improve a number of areas, including:
- Generate More Traffic
- Repeat Customers
- Boost Sales
- Improve Presence
There are several ways to implement an effective loyalty program that caters to your unique consumers. It is important to offer patrons exclusive programs to help your dispensary stand out amongst the many.
Pro: Presence and Marketing Tools for a Cannabis Business
Advertising is limited for those in the marijuana industry by strict legal regulations. This can make it difficult for marijuana dispensaries to market their products and services.
Developing a positive public image and loyal client base is crucial to stick out among the crowd of marijuana dispensaries. This can be achieved through creating a unique and personalized experience for your customers such as:
- Take Notes About Customers Favorites
- Store Their Data Legally
- Ask Questions
- Collect and Respond to Feedback
- Use Text and Email Marketing
Implementing a loyalty program using points, gift cards, or cash incentives is the most important way to develop a loyal customer base. Financial incentives make customers happy, more likely to provide positive feedback and refer their family and friends.
SMS marketing is also the most popular and successful form of marketing in the marijuana industry. You can use this platform to notify customers of inventory updates, specials, and other promotions. This makes the customer feel valued and are more likely to become repeat customers through SMS communications.
Pro: Make Customers Feel Valued
Offering customers with incentives, whether it be gift cards or loyalty program points, makes customers feel valued by your business. Customers will continue to choose your dispensary if they are treated like an important part of your business.
You can improve upon this by offering extra incentives, including:
- Incentives for Referrals (to both the new and repeat customer).
- Coupons and Sales Exclusively for Repeat Customers
- Daily Specials
- Regular Promotions for Bulk Flower
- Immediate Discount for Sign-ups
- Email or Text Notifications (inventory, specials, or other incentives).
These benefits do cost money but will benefit your dispensary by generating sales, increasing traffic, and improving your dispensary image.
Cons: Loyalty Programs and Incentive Systems Do Take Planning and Work
Creating a successful loyalty program is no small feat. An effective and efficient program will require dispensary owners to be unique, creative, and develop a program that is unique to their customers.
This can depend on several factors, including the spending habits of your customers. There are numerous products sold at the majority of dispensaries that range greatly in price. For this reason, the most successful customer loyalty programs are based on a points-per-dollar spent model.
This method rewards customers fairly for large purchases and provides them with extra incentives. You can also create a tier system within your loyalty programs as an incentive for new customers to reach VIP status.
The level of creativity and incentives is up to you but it important to provide consistent, reliable, and honest perks to your customers.
Con: Costs of the Loyalty Program in a Cannabis Industry
Loyalty programs are considered a necessary expenditure in business. These financial incentives are one of the most important parts of running a successful dispensary.
The benefits of having a loyalty program in a place far outweigh the costs. These programs encourage repeat and new customers to shop at your dispensary. Customers report that these programs are fun and enjoyable.
Choosing Which Incentives to Offer in the Cannabis Industry
There are benefits to choosing any form of loyalty program for your customers. These programs can be:
- Regular discounts
- Gift cards
- Loyalty points
- Merchandise driven
The best way to decide which loyalty program you should use is by first getting to know your customers. Figure out which incentives your customers would enjoy based on the honest feedback. You should also research local competitors in your area to learn how customers respond to their loyalty programs.
Get creative and provide your customers with a loyalty program that is unique to your dispensary. This will gain their trust, loyalty, and generate repeat sales. Keeping your customers happy, getting new customers, and providing a unique dispensary experience is the key to a successful business.
It is critical that dispensaries offer their customers an effective and enjoyable loyalty program regardless of which one you choose. Dispensaries should also provide payment options that are uniquely designed for the marijuana industry.
Reach out to the marijuana financial experts at Paybotic to learn about their full range of financial services, including debit processing or point of banking solutions.
Paybotic is proud to provide marijuana dispensary owners with all the financial tools and services needed to accept electronic payments easily and affordably.