An emotional connection between a customer and a brand is often referred to as customer loyalty. Retailers and dispensaries that can build a following of repeat consumers see increased sales, thus it counts to them. According to studies, almost 50% of consumers spend more money on brands they trust.
Any marketer with a basic understanding of the customer-acquisition process will tell you that keeping an existing customer is significantly less expensive than finding a new one. All marketing expenses incurred to spread the word about your company and its competitive advantage, as well as any discounts or promotions, are incurred when you bring in new clients. Due to this, acquisition costs are around five times as high as retention costs.
New customers vs. retaining customers
Finding new customers can typically be more expensive because they are new to your product and may not choose to buy immediately. You must repeatedly deliver your message, educate them, and then, ideally, they will remember the advertisement they saw just as they are about to make a purchase, whether in a physical store or online.
On the other hand, keeping current clients is less expensive and more profitable. Raising client retention rates by only 5% can boost profitability by as much as 25% (Research by Bain & Co.) There is logic in this. If a current client is appropriately cared for, they will grow to associate themselves with your brand, spend more, recommend it to others, and may even grab for your goods out of pure instinct rather than giving your rivals any thought at all.
The effectiveness of retention strategies between the two customer-facing entities—retailers and brands—looks extremely different in the cannabis industry. Retailers did much better than brands in the early phases of the legalized sector when it came to client retention. However, the picture of retention and brand loyalty is shifting due to rising retail competition and the long-overdue development of businesses that compel genuine devotion from their client base.
In the cannabis market, retaining customers requires a deliberate strategy that emphasizes great experiences, trust-building, and community-building. Apart from rewarding the customers regularly, and providing extraordinary customer experience, here are some practical methods for increasing client loyalty in the cannabis sector:
Ensure that your cannabis products are always of a high caliber. This is essential for building trust and fulfilling client demands. Make extensive quality control inspections, use reliable suppliers, and aim for superior product development.
Educate and Inform
Inform and educate your clients about the advantages, effects, and safe application of various cannabis products. Give comprehensive product information, dose recommendations, and usage advice. Building trust and loyalty can be aided by providing educational resources and conducting workshops or seminars.
Personalize the Experience
Try to comprehend the preferences and requirements of your clients. Gather information about their buying habits and preferences to make tailored suggestions. To track client interactions and adjust your services, use customer relationship management (CRM) solutions.
Create a loyalty program to honor patrons who do business with you repeatedly. Offer enticements like rebates, gifts, exclusive access to upcoming releases or early sales access. Loyalty can be effectively increased by using a points-based system where consumers can earn points and exchange them for prizes.
Outstanding Customer Service
Improve the customer service skills of your personnel. Customer questions should be answered quickly, and problems or complaints should be handled effectively. Offering a satisfying and tailored experience can help you win the loyalty of clients who will.
Engage on Social Media
Make use of social media channels to interact with your audience and create a brand-centered community. Share pertinent information, respond to inquiries, and support user-generated material. Online interaction with clients fosters a sense of community and loyalty.
Involve the Community
Participate in neighborhood activities, fund regional projects, and provide support to organizations that share your brand’s values. Being active in the community promotes consumer loyalty and helps businesses establish goodwill.
Surveys and Reactions
To better understand your clients’ wants and preferences, often request input from them. To acquire information and adjust based on user suggestions, conduct surveys or use feedback forms. Customers are more loyal when they feel that their thoughts are respected.
By holding events, product tastings, or instructional sessions, you may give your clients truly distinctive experiences. These interactions can create an emotional bond between your brand and your customers, increasing brand loyalty.
Keep abreast of market developments and consumer tastes. Maintain the freshness and excitement of your offers by introducing new goods, tastes, or delivery techniques. You can maintain the interest and loyalty of your customers by consistently innovating.
Keep in mind that developing consumer loyalty requires time and effort. You can build a devoted customer base in the cannabis sector by continually providing outstanding goods and services, interacting with your clients, and giving attention to their requirements.