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Cannabis App Development

To Refer Or Not To Refer?

Posted by: Nikki Tabberrah

April 03, 2023


And that is the question. 

Welcome to the world of cannabis, where competition is at an all-time high. As a business in this industry, it can be tough to stand out amidst the sea of competitors. However, with a well-structured referral program that utilizes milestone-based rewards, you can achieve significant growth and success. 

In this article, we will sift through the advantages of using a milestone-based approach for your referral program as part of your marketing arsenal. 

Referral marketing has been around for a long time, and it has always been a powerful tool for businesses to attract new customers. In the cannabis industry, referral marketing has become even more important due to the restrictions on advertising and marketing. Cannabis dispensaries generally are not allowed to advertise their products on traditional media channels like TV, radio, or even mainstream social media. 

This can make it difficult for you to reach new customers and grow your business. However, referral marketing is a great way for dispensaries to get new customers without breaking any rules.

But what do we mean by Milestone Referral Programs?

The cannabis industry is one of the most rapidly growing industries in America and competition is fierce. As a result, many companies are looking for new and innovative ways to attract and retain customers. Referral programs are one way that your business can differentiate itself in the marketplace and create loyalty among your customer base.

Milestone referral marketing is a type of referral marketing that rewards customers for reaching certain milestones. The reward may be given after the new customer completes a certain amount of purchases, or it may be given after the referring customer has made a certain number of referrals. 

For example, your dispensary might offer a discount or credits to customers who refer five friends. This type of marketing is more efficient than traditional loyalty marketing programs because it incentivizes current customers to bring in new customers.

There are many advantages to using a milestone-based approach to referral programs in the competitive cannabis market. First, it helps your businesses stand out from the competition by offering an additional benefit to your customers. Second, it can help build customer loyalty and create repeat customers. Finally, it provides an incentive for your customers to promote your business to their friends and family.

Understanding The Market Landscape

An important thing to keep in mind is that the cannabis market is already quite saturated. This means that if you want to be successful, you need to differentiate your business in some way. One way to do this is by offering unique or innovative products or services. Another option is to focus on a specific niche within the broader cannabis market.

It’s important to remember that the cannabis market is still illegal at the federal level in many countries. This can create challenges when it comes to banking, taxation, and even legalities around growing and selling your product. Despite these challenges, though, the potential prize of being a part of this rapidly-growing industry is too great for many entrepreneurs to pass up.


Getting Into The Highs of a Milestone Referral Program

A milestone model for referral programs offers a number of advantages for businesses like yours in the competitive cannabis market. By setting clear goals and milestones, businesses can create a roadmap for success that will help them stay on track and reach their desired results.

The use of milestones also allows your businesses to track progress and identify areas where improvements need to be made. This data can then be used to fine-tune the program and make necessary adjustments to keep it effective. Additionally, by offering incentives at each milestone, businesses can keep participants motivated and engaged in the program.

A  milestone-based approach provides more flexibility than other types of referral programs. This is beneficial for businesses that need to make changes or adapt their program on the go. With a milestone model, businesses can easily add or remove goals as needed without having to completely overhaul their entire program. 

Goal setting is a powerful technique that can help motivate people to reach the objective that you set for them. Below are the main advantages of milestone referral marketing:

  1. Increases clarity and focus. By setting clear goals, people can better understand what they want to achieve and what steps they need to get there. This increased clarity and focus can help your customers stay on track and avoid distractions or other priorities that might hinder their progress. For example, try offering a gram of a best-selling strain at a very discounted price for every purchase with a minimum of $50. 


  1. Provides a sense of purpose. Goals can help customers feel like their actions are meaningful and purposeful, which can increase their motivation to work towards them. 


  1. Enhances self-efficacy. When customers are able to achieve goals, they also develop a sense of self-efficacy or confidence in the ability to accomplish tasks. The increased confidence-led high can motivate customers to tackle more challenging goals and persist through setbacks and obstacles. In the example above, you can increase the next level minimum purchase to $75 and double the weight of the reward, or even offer options for super low-cost smoking accessories that will complement your customer’s purchases. 
  2. Create a sense of accomplishment. As the customer achieves the goals you have set, this further motivates them to accomplish more, especially if the rewards are worthwhile. This positive feedback creates a loop that can help your customers build momentum and stay motivated to patronize your store over a longer period of time. 

And hey, these simple actionable goals will definitely get around because they will be keeping their eyes on the prize.


The “What If”

What if we told you that you do not need to do all this yourself from the ground up? 

Unlocking the potential of milestone marketing can sound pretty daunting (and a lot of hardwork). Luckily, there is a new app in the market that will do the heavy lifting for you. This new mobile application can help you dominate the cannabis market by providing the tech leveraging on the milestone referral program structure so that you can turn your one-time customers into repeat buyers that will promote your store for you. 

Streamline and grow your business exponentially with the use of their specially designed mobile application that creates a better shopping experience. The app seamlessly integrates with any new or existing e-commerce or rewards software. Then rides on these software’s basic functionalities and fully customizes the experience further to create a rewarding shopping and rewards experience for the customer from one handy app.

This means that the app can integrate your marketing goals with its rewards program software which, by the way, is fully customizable with your brand or store offerings and integrate that with an e-commerce experience to get your customers well, shopping. With a professional online store look and feel and a fun gamified shopping experience,  you will be able to race around the positive motivational loop over and over again, without having to customize your profit margins. 

So don’t wait to try milestone referral marketing. It’s just like waiting for your edibles to kick in - it’s just a waste of time. ;)

Don’t miss out on the opportunity to grow your business to new heights through the positive power of word-of-mouth advertising. So go ahead and take the leap - give milestone marketing a try - who knows it might just be the high point of your marketing strategy.

Interested to know how Digital Awesome’s Cannabis app solution can turn your dispensary into a money-making powerhouse? Unlock the secret below or book a free demo:

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