As the cannabis industry evolves, companies are pressured to update their business strategies or get left behind.
Individuals are waking up everyday with the ambition to jump into the cannabis industry. The California market is so flooded that businesses currently operating cannot get away with their passive guerilla style methods of operating anymore. In 1996, when medical cannabis was legalized in California, it was easy to enter the market and operate through unconventional methods without a competitive advantage.
Many companies found success this way, typically only using a First Time Patient (FTP) deal to promote business. Today, a FTP deal is still widely used but to little or no avail. So why is it still utilized?
According to Forbes, a long-term customer is less expensive to keep and has more value than a single-deal customer. Retaining current customers can prove to be rewarding but it is one of the most difficult things to do. A satisfied patient that visits a dispensary is not inclined to return unless a significant connection is made. What does this mean? It means that FTP deals, alone, are counterproductive. They attract new customers but can diminish profit-margins while the same customer goes to the next dispensary down the street offering them another first-time patient deal.
A significant connection can be made through many different ways; the ultimate goal is to make sure the customer is appreciated by validating their importance and value. With a loyalty reward program you can build stronger relationships with your customers while also staying connected.
With an effective program patients purchase products and gain points that can be spent when they return. Maybe you can have your customers enter their email in order to get alerts about any promotions or deals that might be happening in real time. A FTP deal will get patients through the door, but a loyalty reward program will leave a lasting impression and proactive employees make sure they come back.
Loyalty reward programs can be complicated but once they’re established, they are self-sustaining and flexible. These programs make your patients happy and give your business the competitive advantage it needs to find success in today’s market. The hardest part will be starting the program from scratch. Luckily, there are companies that offer loyalty reward programs already integrated into their compliance software. Los Angeles based software company, WebJoint
, offers cannabis businesses the tools to boost customer relationship management and drive sales by using loyalty reward management programs.
If you're looking to get ahead of the competition or just need a fresh idea to boost sales try implementing a loyalty reward program. Or if you have any other ideas that produced stronger customer relationships don't be afraid to comment your achievements below!