August 2018

W hether it’s shopping for groceries or can- nabis, everybody loves getting a good deal. That’s why loyalty programs – whether they come from your local grocery store or your neigh- borhood marijuana dispensary – are an effective way to get customers into the shop and keep them coming back. Many marijuana retailers offer points-based loyalty programs in which their customers accumulate a certain number of points on each visit. After reaching a milestone, they can cash in those points for discounts on flower, concentrates, edibles or whatever else the store has to offer. “People love getting discounts,” said Myles Kahn, chief executive of Renton, Washington-based Buddy’s Pot Shop. “There’s no doubt about the effective- ness of it.The person who’s buying a $60 gram of concentrate would like to get 25% off just as much as the person who’s scraping quarters together to buy a pre-roll.” Customized Pitches The Buddy’s loyalty program is offered through Baker Technologies’ customer relationship management system for the cannabis industry. Using Denver-based Baker’s platform, dispensaries can customize their loyalty programs. Buddy’s, for example, offers a 5% discount when customers sign up for the loyalty program. Customers, who check in with a phone number at a kiosk or iPad at the point of sale, are awarded 20 points each time they check into Buddy’s. They get a 20% discount after they earn 200 points or a 25% discount for 400 points.There is also a 10-point bonus EXECUTIVE SUMMARY As an increasing number of dispensaries open in states that have legalized marijuana, businesses looking to distinguish themselves from their competitors have developed creative ways to get customers into their stores. Here’s a look at some of the tactics they’re using: • Points-based loyalty programs keep customers coming back. • Sending emails to promote specials gives clients a reason to return. • Partnering with neighborhood shops and restaurants helps spread the word to people visiting your area. • Hosting special events such as concerts or artist demonstrations – as well as vendor days that give customers an opportunity to learn more about products – can turn visitors into customers. The owners of L’Eagle Services believe quality-focused customers are drawn to the retailer because it offers the only Clean Green Certified products in Denver. Photo courtesy of L'Eagle Services August 2018 • Marijuana Business Magazine • 41