Did you know that getting a new customer can cost five times more than retaining an existing one?
Yep. Increasing customer retention by 5% can increase profits from 25 – 95%.
So it makes sense to hold on to a good thing. (Of course, this is true in many aspects of life.)
Retaining cannabis customers can be tough though – given the vast amount of competition.
You’ve got to keep them engaged and make them feel like a valuable part of your business – which they are.
So how do you do that?
-
Offer a Welcome Bonus
Powerful cannabis marketing will get customers to your establishment. Add a loyalty program, and you’ll keep them coming back.
When a new customer makes a purchase, encourage them to join the loyalty program by offering them a bonus that they’re able to use the next time they visit.
In other words, get them back into your establishment.
For instance, say it takes 100 points to redeem a free bag of gummies. After that first-time buyer makes his or her purchase, send a message saying that they’ve earned that 100 points as a first-time buyer.
It’s likely that the customer will return to claim his or her gummies. And while they’re there, they’ll probably purchase another product as well.
-
Keep the Rewards Coming
That welcoming bonus is just the beginning.
You’ve probably heard the old adage, “You have to spend money to make money.” Well, it’s true.
So be prepared to keep thanking your loyal customers by giving them something in return. It could be sample-sized products or coupons for every 100 points. Maybe 150 points gives them access to new products before they hit the shelves.
Once a customer reaches a certain tier – and if your budget allows – you may even be able to give out tickets to local concerts or events. They don’t even need to be cannabis-related.
No matter what the reward, the customer is going to remember your generosity and more than likely reciprocate with loyalty.
Just remember to make your point system relatively simple so customers don’t feel it’s impossible to achieve certain tiers.
It’s also a good idea to set up your sales system to track which rewards are generating the highest rate of engagement from loyal customers.
-
Have Prominent Signage
Your loyalty program isn’t going to take off if nobody knows about it.
And the program certainly won’t thrive if your loyal customers keep forgetting about it.
So invest in eye-catching signage about your loyalty program. Feature it in your store and on your website.
Make it clear what customers receive at every different tier level by actually having a case that displays this. You can even include a button on your website or sign at checkout that says for example, “Join and get a free bag of gummies.”
Bottom line – ensure that you’re using every opportunity available to remind customers to join the program, as well as keep those who have already joined the program using it.
-
Make Customer Service a Priority
Every person you employ should be trained to provide positive experiences for your customers. Especially for your loyal customers.
This includes interactions at your store/establishment, on the phone, and even online.
When a customer feels ignored or, even worse, treated poorly, they’re likely to leave and never come back.
And if a customer goes out of his or her way to complain about the issue – particularly online – view this as a blessing. It’s an opportunity to make things right. In the vast majority of cases, the customer will return after a successful resolution.
Plus, your willingness to work with the customer will be observed by other visitors to your website. This will reflect positively on you.
-
Set up Automatic Text Messaging
Communicating with your loyal customers after every purchase keeps you connected. It’s a way for you to say thank you and show your appreciation while keeping your business at the top of their minds.
So offer the option of text messaging to your loyal customers.
Let them know that by signing up for texting, they’ll be staying up-to-date on their earned points, as well as receiving special coupons for red-letter days.
And if they’re not interested, honor their decision.
Retaining Cannabis Customers Takes Work
The success of your business relies on retaining cannabis customers. But setting up a loyalty program isn’t a simple endeavor.
You’ll need to keeping testing rewards, giveaways, and coupons to ensure they are incentive enough for your customers. Because if they’re not, those loyal customers may start drifting elsewhere.
And if you’re finding it difficult to even attract customers in the first place, contact us.
We know exactly how to position you and get you noticed in this saturated market.