Loyalty programs, long a staple of consumer marketing strategies, have found a place among regulated cannabis retailers in the United States and Canada. By offering perks such as discounts, points, special offers and new-product notifications, retail operators say loyalty programs can be a useful tool for:
Boosting basket sizes.Increasing the frequency of customer visits.Offering targeted marketing opportunities to age-verified shoppers, even when government regulations restrict marijuana promotions.Offering those perks isn’t free, but loyalty-program operators say the benefits can easily outweigh the costs.
Data shows loyalty advantage
Recent figures provided by Seattle-based marijuana analytics firm Headset illustrate how loyalty programs can drive shopping habits. Roughly 50 percent of cannabis stores in Washington state appear to use a loyalty program, according to Headset data analyst Cooper Ashley.
Over a 90-day period, the average basket spend among retailers with loyalty programs was $37.18 – 13 percent larger than the average spend at retailers without such a scheme. Loyalty-program baskets also had more items per basket and slightly higher item prices.
“That’s a pretty significant advantage to having a loyalty program right there,” Ashley said. “Your customers tend to have larger transactions.”