Loyalty Program for CBD Shops: The Do’s and Don’ts 

by
Liraz Postan
February 22, 2021
6 min read
Loyalty program for CBD shops Do and Donts

Acquiring new customers springs every business into action. However, the driving force for businesses today is retaining their existing clients instead of constantly searching for new ones – a much more cost-effective and rewarding business method. 

The same stands for cannabis and CBD-related shops. Nurtured customer relationships will provide more ongoing value, bring in priceless word-of-mouth marketing, and most importantly, turn users into your finest brand advocates. 

In fact, CBD loyalty programs have proved themselves as one of the best strategies for inspiring customer loyalty. If done right, they will help your shop escape from the sea of sameness, while encouraging repeat purchases from top customers.

If left unattended, however, your existing customers won’t hesitate to abandon your products or services and transcend onto another more actively promising provider. 

In this article, we have elaborated the do’s and don’ts of running a successful CBD loyalty program – Let’s get started:

Personalization Is the New Loyalty

In today’s increasingly competitive market, it is clear that customer expectations are on the rise – which urges business owners to learn new ways to meet their clients’ needs.

Start this journey by acknowledging the obvious truth that customers are people, not just numbers. They interact with each other, tell stories, want their voices heard, and love to complain when given the chance.

So, why trust personalization?

Well, by building personalized CBD loyalty programs, the focus is primarily shifted towards consumer data, thus building a steady and lasting consumer relationship.  

Mobile App

Extremely convenient and always in customers’ pockets, mobile apps make a suited solution to your client interaction.

Take Glue’s Loyalty App for instance.

The app allows customers to get personalized offers, collect points to redeem rewards, and receive updates on any recent changes. Through enabling customers to earn points with every single purchase, the app collects crucial consumer data including the customer’s location, age, and spending habits.

As soon as you have customers’ information at hand, you move a step closer to building a mutually-rewarding CBD loyalty program. This will allow you to easily tap into your customers’ emotions and enrich their experience by providing discounts on products they’ve purchased before. 

For instance, a senior who has repeatedly used CBD oil might purchase it again this week – especially if there is a 20% discount waiting for him!

First Sign-Up, First CBD Discount

First impressions matter!

So, how about rewarding your customers with some points when they sign up for their account. For instance, you could offer a $2 discount on their first order. Once awarded, you have now engaged the customer in your CBD loyalty program, so the next step is to simply keep them around!

Spending-Based Points 

User behavior is driven by a strong desire for external rewards.

That said, your CBD loyalty program needs to be designed in such a way that people always strive to spend more, in order to enjoy more discounts, points, and promotions. A great example of this design is graded rewards – reward points that are based on how much money is spent rather than the number of products purchased.

For example, a customer buying CBD creams and lotions worth $100 can’t receive the same rewards as another customer who’s regular items reach nowhere near $100. What you should do here is reward a number of points to both customers based on the amount of money they spent in your shop, instead of the number of purchases they made – it’s that simple.  

Get Creative!

From tinctures to gummies, chances are, free CBD gifts will make your customers feel far more special. 

However, your CBD loyalty program doesn’t have to revolve around cannabis products only. Instead, you can come up with a different idea that is related to your products, like printed T-shirts, pens, caps – anything fun and branded. 

Treat your loyal customers to these products and trust them to spread the word on the street –  giving your brand a great name while attracting potential buyers. 

Insert Tiered CBD Loyalty Program 

It’s no news that people want to feel valued and rewarded based on their contribution to your business.

For this reason, you should always make them feel special for spending more money, by elevating their status on your tiered CBD loyalty program. As tier programs focus on increasing levels, customers will gladly climb the ladder up to better rewards! 

Even more, consumers will often willingly make more purchases for the sole purpose of leveling up. 

Referral Programs 

Referral programs are another excellent method for rewarding customers who advertise for your CBD shop. These programs will reduce your marketing expenses while allowing you to focus on current customers only. 

However, keep in mind that not all customers are referral candidates.

Because of this, you’ll have to find your true-blue customers – at least 20% – and ask them for referrals. Providing gifts and tending to clients will work wonders for your CBD brand’s reputation and drastically expand your customer network. 

Freedom of Choice is Key 

Imagine this – a buyer enters your shop to claim his reward, courtesy of his already gathered points.

What is he set to win this time? 

Surely not CBD chewing gums yet again

To avoid this, consider giving rewards based on what customers need at the moment and their loyalty to your brand.

For instance, if someone has been buying CBD oil for a longer period – their twentieth purchase could easily be a reward – and your buyer will love it!

Moreover, you can even ask customers what they consider to be a valuable reward, thus ensuring them that your dynamic program is worth both their time and money. 

CBD Loyalty & Social Media

Yes, influencer marketing is among the greatest strategies for organic business growth. 

However, within the cannabis industry, the tricky part is properly handling groups of people who disapprove of your business venture and therefore, expose your business to potential losses. 

On the other hand, promising brand ambassadors will spread your business information with less effort than marketing, and they’ll attract a wider audience of interest through their friends, family, and colleagues.

For example, you might want to treat your ambassadors with a free bath bomb in return for a shared Instagram video. This visual will spark up interest among other potential buyers, and if the product is good – the word will spread like wildfire!

No Major Sign Up Discounts

Discounting products is a heck of a way to incentivize customers during their first CBD loyalty program sign-up. However, if done wrong, this tool might be unprofitable for your business. 

The stats say that over 30% of consumers never return to their programs after sign-up. So, how do you make these people stay, and how do you filter which customers are most suited for that first discount?

Ideally, you’d want to begin by offering symbolic signup discounts, and once a solid relationship is established – increase it. 

Don’t Ask for Irrelevant Information

Throughout the enrollment process, it’s essential for you to know the most relevant questions to ask customers. 

If, for example, you plan to message or email them, don’t bother asking for their address, as they might see it as time-consuming. Instead, ask customers for their most relevant information that you can use to send them offers and rewards – like their phone number or email. 

Without too many demands or requirements, your customers will gladly provide their details in order to earn those fabulous rewards!  

Don’t Let Your Employees Misinform Clients 

Make sure your employees are well informed on your CBD loyalty program, its benefits, and the rewards that come with it. That said, organize contests and reward lotteries for them too, and always, always put them in your customers’ shoes! 

Thinking like a customer will help your team produce more efficient strategies in attracting customers – proving that you know your brand and know how to sell it!

Don’t Neglect Product Quality

Nowadays, so many suppliers are cutting corners when it comes to selling CBD products – and this is an aspect that should never be neglected. No matter how good your CBD loyalty program is, if you don’t sell what you’re promoting, your business won’t budge. Give people time to witness the quality of your products and spread the good news elsewhere. For what it’s worth, a seal of approval from a reliable brand is essential for countless CBD users these days, and with good reason. One key move to make in favor of your business is getting certified by the US Hemp Authority and reaping the benefits of it later on. 

Why Glue?

Glue’s platform helps all-sized-businesses succeed while winning them an array of loyal customers who are along for the ride and drive most of their business revenue.

For your CBD shop, Glue will make you realize the importance of tending to your existing customers by engaging them even deeper into your CBD loyalty program. If you care for your customers, business, and reputation, Glue is the go-to provider for boosting your CBD business to undisputed fame. 

Why?

Because Glue Loyalty changes the way customers perceive your CBD business!

Conclusion

No matter if you’re starting a new CBD loyalty program or improving an old one, pay close attention when implementing all the aforementioned steps. Follow them and without a doubt, your business revenue will increase over the years – with the help of strategy and patience.

Last but not least, ensure that all health requirements and safety provisions are met when selling CBD products, thus making your brand more goal-oriented, reputable, and trustworthy.  

Ready? Let’s give your CBD brand a new, fabulous direction!

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