Canadian cannabis retailer ShinyBud Corp. (TSXV: SNYB) says it’s started a loyalty program to improve its brand experience, strengthen customer loyalty and drive sales.
On Monday, the retailer launched the ShinyBuddy Club at its 41 stores across Ontario.
In the club, members earn a point for every dollar spent at any ShinyBud location. Points are redeemable for dollars going toward other purchases. Members also have benefits including limited edition items, private events and giveaways.
Joining is free and gives customers extra points for referrals, as well as on birthdays or during special promotions. People who register before May 1 will receive 100 welcome bonus points.
The company will use Alpine IQ as its marketing, loyalty and data analytics software system. Data collected from customers and purchases will give ShinyBud insight into purchase decisions and potential marketing campaigns.
“Launching ShinyBud’s loyalty program is both an exciting milestone and a key business initiative for the Company,” CEO Kevin Reed says in a statement.
“The Club allows us to engage customers, reward customer loyalty, and drive customer retention,” he says. “In addition, we will be able to leverage the member purchase data to better understand our shoppers and their product preferences.”
Reed explains that loyalty programs typically drive sales as members have bigger baskets and a higher frequency of visits.
Other companies like Fire & Flower Holdings Corp. (TSX: FAF) (OTCQX: FFLWF) say they’ve had success with their loyalty programs. Fire & Flower has over 360,000 members and says they spend on average 31-per-cent more than non-members.
Read more: ShinyBud wants to be Ontario’s top cannabis retailer
Read more: Fire & Flower opens 100th store, has 360,000 loyalty members
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