7 Ways to Leverage Deals & Increase Your Loyalty Program Enrollment

[ {Introduction}

Good morning everyone. Good afternoon if you're joining us from the East Coast live from our streaming. Really excited about today's webinar. We're going to be sharing seven ways to leverage your deals and increase your loyalty program enrollment. Loyalty program enrollment is questions we receive from our clients nearly every week and therefore it is a very exciting uh opportunity for us to share with our audience today some of those great practices we've seen in the market but also some of the other ones that we haven't seen deployed very often. So really excited about this. Once again, seven ways to leverage deals and increase your loyalty program enrollment. Make more sales and increase loyalty with these deals. On our agenda for today, what rewards are most popular with customers? Seven ways to craft enticing deals to encourage loyalty signup. And how to boost enrollment fast with advertising. A little bit about myself. I'm Eduardo Silva. I'll be your host for today's webinar. I have 18 years in sales and marketing experience and I'm super excited about being part of the cannabis industry, which is very much a growing industry, an exciting one. I've also attended Oaksterdam University, which is the first ever college curriculum put together for the cannabis industry outside of the San Francisco Bay area here. A little bit about Foot Traffic. Foot Traffic has been in business as a digital marketing agency for the last five years focusing solely in the cannabis industry. So, we're really, really excited to be partnering with our clients, which we treat as partners in helping them advance their client acquisition strategies as well as digital advertising practices. So, let's get ready for today's webinar. We really, really love those mobile devices. However, for today's webinar, as with previous webinars, we move quite fast with a lot of content. So, we ask you to put those cell phones facing down on your desk and or just silence them for the next 28 minutes so that you can absorb as much of the information as possible. In addition to that, do take a moment to familiarize yourself with the Zoom interface if you're joining us from this platform. There is a Q&A button in the bottom of the webinar and we do have panelists who will be addressing questions live as well. And then be sure to stick around until the end of the webinar because we do have a special offer for those attending today which is really really exciting and goes in line with your loyalty programs that we are going to be sharing.

{The Value of Loyalty}

So let's jump right in. Loyalty is an absolutely crucial tool when it comes to running a successful retail operation and that includes dispensaries. Your must your most loyal customers are your most valuable ones. Hands down. According to strategic planning consultants outfeld Inc. the probability of selling something to a prospect is approximately 5 to 20%. While the probability of selling something to an existing customer is 60 to 70%. Basically, your existing customers are going to account for much of your business. They are going to be responsible for up to 80% of your revenue. According to some estimates, you absolutely cannot ignore them or fail to nurture those relationships unless you want to jeopardize your revenue. Viewing it in this light, the equation is pretty simple. If you're not building loyalty, you will have to keep engaging a ton of new customer prospects just to keep your head above water. No one wants to keep pumping money into marketing to keep finding new customers, though. It's much more cost-effective to focus some of your marketing efforts on new customers and the rest on brand awareness and building loyalty with your existing ones. Here's another example to really dive drive in on this point. Let's say that it cost approximately $10 to capture a new customer. That's your customer acquisition cost. You can keep spending that $10 to make each sale to a new customer or you can maximize it by turning that customer into a loyal customer. If they end up spending $500 or $1,000 at your dispensary every year, that initial $10 investment is like a tiny drop in the bucket. If, however, they just buy one thing from you and never come back, well, that $10 eats up a lot of your profits for just one sale. That money that then you can spend over the course of their relationship with you is the customer lifetime value. To maximize that value, it's vital to focus on loyalty and nurturing customer relationships. That will allow you to get the most from your marketing budget. Now, a loyalty program alone won't do that. You also will want to create a shopping experience that customers enjoy. We've covered this before in previous webinars and blog posts. So, be sure to check out our website. We work hard to make it a resource for dispensaries and cannabis brands. So, be sure to take a look at foot traffic.co.

{Most Popular Rewards}

Back to loyalty programs. Everyone has one, right? You can get an extra care buck from CVS. You can save on your groceries at your local supermarket and you can get special coupons via apps for large retailers. They're pretty much everywhere now. And part of that is because people expect it. They want to get rewarded for shopping with you. If you don't have a loyalty program, you need to put one together. And to do so, you will need to decide how you are going to reward your customers. If you already have a loyalty program, stay tuned because if you're facing issues with enrollment, it may be that your rewards aren't aligning with your customers once. I'm going to share six of the most popular types of reward programs with customers. These reward programs will allow you to share deals with your loyalty customers and provide them an incentive to keep shopping with you. They can also be a great asset for increasing your loyalty program enrollment. By combining your loyalty program with a concerted marketing push, you can grow your numbers and start reaping the benefits of customer loyalty. Now, if these aren't right for your dispensary, you will need to determine what will work best with your target audience and your brand. Whatever system you have in place, you will want to track your enrollment numbers, loyalty usage, and reward redemption among many other things.

{Buy Some to Get Some}

First up, we have the punch card system. You can implement this quickly by getting cards printed up. In this type of reward system, customers are rewarded for shopping with you a certain number of times. Basically, it's something like make five purchases and get a free pre-roll or make five purchases and save 10% off your next purchase. Punch card systems are easy to launch. However, if you want to measure and track usage, you will want a digital component so you can get the most tracking out of the program, which will allow you to market to your loyalty members. If you don't have a digital component, people may cheat with their punch cards. A punch card reward system isn't always the best for cannabis industry where products can range in price. You are essentially rewarding people for how many times they shop with you and not how much they spend. So someone who who actually could be dropping $500 on a visit while someone else who is only buying the cheapest thing from your shop, they're getting the same reward. Those are a few of the pros and cons of this type of reward. So consider whether it's right for you.

{Refer a Friend}

Let's talk about referral programs. Word of mouth is still a crucial part of creating brand awareness. Having a re referral program in place can help you spread the message about your dispensary. We've seen these branded as refer a friend. These sort of loyalty programs provide a discount or some type of freebie for getting a new customer to stop by. Like a punch card, these referral programs often have a physical element like a card or a coupon that a customer must give to their friend. As long as you have a QR code on on the actual coupon itself or even a coupon code, you can track who has redeemed one in your system. However, this type of program only gets someone in through the door once. You will still need to offer additional loyalty programs to keep them coming back. Basically, this could be a good component of a customer outreach initiative, but you will want to combine it with a larger nurturing initiative to really get the lifetime value out of these referrals.

{Cashback}

Who doesn't look love getting money back or a discount? That's the premise behind our next loyalty program type. When you reward customers for every dollar they spend with you, you can better differentiate between your high spenders and your occasional shoppers. This automatically adds more value for your most loyal customers. Cashback loyalty programs or points per spend loyalty programs as they are sometimes called are very popular with customers which has helped increase their popularity in our industry. Basically, you have a points formula like one point for every dollar spent. Then once you get to a certain point threshold, your loyalty members can cash in their points for money off their next purchase or a discount off their purchase. If they are earning a point for every dollar spent and then they receive $5 off their next purchase once they hit 100 or 500 points, it makes it really simple, right? The hard part here is deciding what your points should be worth. You will need to crunch the numbers yourself to see what works best for your bottom line. In certain states where cannabis is more expensive, a higher threshold may be more appropriate. In states where cannabis is less expensive, it may be best to actually do a percentage off. However you intend to reward your loyalty members, the most crucial aspect of this program will be tracking the orders and using customer data to create better marketing campaigns and offers in the future.

{Freebies}

Just like cashback rewards, people love freebies. Some dispensaries have found it easier to offer a product in exchange for reaching a certain point or purchase threshold. Basically, a dispensary will match the present value of a purchase with a donation, typically a mid-grade strain or product. It's popular both for the customer's perception they're getting something for nothing, but also the surprise factor by which they get a to to sample a product or a brand they may not otherwise try. And of course, because not every product is a strong seller, it's a great way to shift slowm moving stock off of your dispensary shelves. Now, it's still important to have clear thresholds like get a free pre-roll once you spend $100 or score a free ETH for every $500 spent. Also like the cashback rewards, this program would be highly trackable and measurable so that you can learn more about your customers and continue to offer them what they really want. When you can do that, it is really a win-win if you think about it. You're able to provide what your customers want and give them a special deal on it. They feel catered for and keep shopping with you. It's exactly how a loyalty program should work.

{Gift Cards}

Another way to reward customers is with a gift card. This could be a fun way to highlight a new product or even a brand. Basically, it's like offering a discount on a future purchase. Get a $5 gift card when you buy a sleepbox bundle. Gift cards are physical objects representing your brand. They can be used by the customer who earned them or they can actually hand it off to a friend, thus helping you spread the word from your customers to their most trusted associates. You can track the gift cards you also hand out, though it won't be as effective as points or cashback program for giving you insight into the customer's shopping behavior. However, because it is not done as much in our cannabis industry, this kind of gift card program offers a surprise factor and may help encourage customers to make that initial purchase.

{Premium}

The last type of rewards program I'm going to share with you today is a premium rewards program. Basically, this is a type of loyalty program that you can charge for. Do you think that asking members to pay for premium status is a no no? Well, think again as marketing consultants digital commerce 360 reported an increased number of retailers are turning to annual subscription models for their premium tier services. You could offer one-time welcome gifts for their initial subscription, then unlock memberon deals over and above your daily and weekly specials. We have a client that offers a loyalty program where memberships are only $20 a year. Their members get 10% off everything in store and 15% off their store uh brand products. Plus, they get exclusive events, which I'm going to talk about in a little bit. They've also made it so certain that certain people can access the program for free, like veterans, seniors, and patients. Other people need to purchase their way in. But because the savings will easily add up over time, it's kind of a no-brainer for the customer. As long as it is tied to your POSOS system, you should easily be able to track purchases so you can continue to offer more value to those premium members. Basically, if you are offering something great, don't be afraid to charge for it. As long as the value outweighs the cost and it's easy to share with your customers, you should have a winning recipe in your hands. As we pointed out already, loyalty isn't something you can buy, but that's not to say that you can't incentivize it. As you get to work coming up with your deals to offer your customers, we want to help you streamline the process by sharing seven best practices for getting the most out of your deals and your loyalty program. And the number one is keep it simple. One major reason loyalty programs enticement fall flat is because they're too complicated. If you find yourself whipping out a calculator to tabulate a point schedule every time you try to explain point system to your customer, that's an indication that it's too complicated. Measure your point system in dollars and measure your rewards in terms of tangible goods. Also, be sure your program is compliant with all applicable laws. Giving out free cannabis to new customers for an instance is generally not the way to go. Number two, spread the word. As we've discussed previously, the vast majority of customers are more apt to trust a recommendation from a friend than traditional advertising. Loyalty programs are a huge contributor to that word of mouth buzz. And according to MIT Sloan Management Review, customers are 117% more likely to recommend your brand when you have a strong and generous loyalty program in place. And you can incentivize that kind of social sharing by re rewarding selfies posted with specific hashtags or online reviews with additional loyalty points. Just make sure that people know how to cash in and that you have specific requirements as to what is tangible for your program and what isn't. You can also offer loyalty points for individuals who get their friends to sign up for your program. For example, if they bring their friend in to sign up, they can each get 100 points when that friend makes their first purchase. Tip number three is to get more out of your deals is make sure that there is a time stamp to it. Effective deal making depends on some degree of time pressure. That's why real estate and many other contracts have set periods of due diligence and first right of refusal. Similarly, a little immediacy can go a long way towards nudging the customer to act. Maybe you have special deals for your loyalty members that does appear after four hours or a day. It's a great strategy for building the buzz and excitement, and it reminds your customers that they are ignoring your offers at their own expense. Of course, there's also a long game to think about. Most loyalty programs are constructed on the idea that a set number of purchases or sales total will earn you a reward down the line. And it's an effective strategy when done correctly. That's why we recommend you balance short-term offers like our previous example with a more traditional long-term approach. Both styles are simple enough to comprehend, but when combined will add a depth and complexity to your offering. It helps reward individuals who are checking your emails and texts while also rewarding those who occasionally shop with you.

{Sign Up Incentives}

I kind of hinted at this tip four already, which is in incentivizing signups. One of the most effective ways to get people signed up for your loyalty program is to offer them something in return. After all, they're opting into your marketing and providing you with their personal information. Some people will be hesitant to do so, but if you give them a good enough offer, they will easily submit their email or phone number to your loyalty program. Now, we've seen dispensaries who have tied tried to offer too little and fall flat thinking that this doesn't work. The problem isn't the idea, though. It was what they were offering. You have to make it worth their while. And I'll be honest, I will not hand over my email for a 10% off deal. I need a little bit more to nudge me over. Even 15% is better. I bet a lot of your potential loyalty members feel the same way. So, take a look at what you're offering and see how you can take it up a notch. Remember, your goal is to turn customer into a loyal customer so that you can reap the benefits over the lifetime value of that consumer. That starts with getting them to sign up. And it's worth a small hit for that larger reward down the road. It's an investment in the relationship.

{Get Personal}

Tip number five, let's get personal. If you have your text set up right, you can easily start customizing your offers to your loyalty members. Your members should be segmented by various demographics and behaviors, including the type of products that they buy. Because you can easily track individual customers purchases once they've opted into your loyalty program. make good use of that information by offering personalized deals based on the products, brands, and strains they love. It's an incredibly simple but powerful way to build that connection. And you've already got all of the tools you need at your fingertips. If you are unable to do this, you need to take a look at your tax stack and see where you can improve it so you can actually implement this type of initiative. Segmentation is really crucial for an effective loyalty program and for your marketing in general, which ties into our next tip.

{Use Your Data}

Use your data. Let's let's take this step beyond personalization. Yes, personalized offers are great, but data allows you to make much more effective marketing initiatives. According to a brand loyalty specialist, Bond, most consumers are happy to exchange personal data for rewards. 87% of Americans are willing to have various details of their activity tracked in exchange for more personalized rewards and brand experiences. That's huge because as a growing number of retailers are belated to this game in realizing that this data is the real prize. You can use this data for marketing efforts. This is the practice of reaching out to the customers who have already interacted with your brand. Remember that stat I shared at the beginning of the webinar. The probability of selling something to an existing customer is 60 to 70%. That's why you should be making data collection a top priority. Data doesn't just allow you to reach the customer that you know though you can also use it to reach lookalike audiences. These are potential customers who share certain characteristics and behaviors with your current customers. This is a way to reach new customers who are more likely to purchase from you. It will help you maximize your marketing dollars and will help you extract even more value for your deals and your loyalty program. And it's a cycle. You can get those lookalike audiences to sign up for your loyalty program and then use their data to craft audience lookalike audience audiences to continue to grow.

{Create a Community}

So, I've talked about how to leverage your deals in a variety of ways to get more loyalty signups and increase purchases. There's one more tip that I want to share with you that will help you use your loyalty program itself to drive signups and sales. By creating a community around your loyalty program, you can make it more valuable to your customers. That means offering deals only for loyalty members and special events for them as well. Make it obvious that you're going to do this. These special deals and events don't just help your loyalty members feel special. They serve as an advertising for your program and can help you increase your overall enrollment. You can also leverage your program to offer early access to special sales events or deals. Offer member only giveaways and roll out special bonus point campaigns to help your members earn rewards more quickly. For example, for the week of 420, you can offer double point for their loyalty program on all purchases to encourage your loyalty customers to shop at that time. Your loyalty program can help you continue to nurture your customer relationships so that your top spenders stick with you. Using our tips will help you get the maximum value from this.

{Share Your Program}

Once your program is set up, you need to share it far and wide. One great way to do this is to run a Google Ads campaign. Yes, you can totally run a Google Ads campaign for your dispensary. We have done thousands of campaigns with great results. And we've even implemented machine learning functionality into our Google Ads AI so we can analyze data faster and get our customers better returns. And to help you boost your loyalty enrollment, we're running a special campaign until April 7th. And if you schedule a call with me by going to foot traffic.mme/call, and we'll put this in the chat window here for you before April 7th, and we'll cover the actual cost of your Google Ads campaign management for your first month. That's right. We're going to actually run the campaign for you for free. All you have to do is just cover the cost of your ads. Your ads will be at the top of all of the relevant search criterias surrounding cannabis in your region as well as the loyalty programs. This offer is only available for new clients and it goes away on April 7th. So, let's get something scheduled right now at foot traffic.call. I'm going to open up for any questions our attendees have at this time. Thank you so much for sticking around. Great first question here. How long does it take to launch a Google Ads campaign? Well, in average, we want to allow a minimum of five business days to get your campaigns designed, the copy, edit, design for you, and also for you to approve the um text as well as the campaigns that we're going to launch on your behalf, as well as going through Google Ads approval. That process can take anywhere between four to five business days. So, April 7th allows you enough time to get to the top of the search criteria for 420, all of those campaigns that are going to be running at that time. So, great way for you to um one spread the word of your loyalty program, but two, capitalize on the big purchasing spree that we're going to be experiencing on 420. Great question. Thank you. Any other questions for our audience today? Once again, feel free to navigate to foot traffic. Call and I will be answering this in the chat window here for everybody. And if you have any questions, by all means, please schedule a call with us. Let's get uh let's get those questions answered. Let's make it specific to your campaigns, to your dispensary, and we're really excited to be speaking with you. Have a wonderful rest of your day and uh enjoy your weekend. Thank you so much for your time. ]