Running a successful smoke shop means understanding where your strongest assets lie — your returning customers.
On average, 65% of a company’s business comes from repeat shoppers. But what if you could make their choices even easier, their visits even more rewarding?
A tobacco loyalty program does just that. With tangible benefits and product promotions, you can incentivize repeat visits and encourage greater spending. Let’s explore the ins and outs of implementing a loyalty program in your store.
4 Benefits of a Tobacco Loyalty Program
You’re likely familiar with the concept of a loyalty program – essentially, it’s a system that rewards customers for their repeat business.
So, what’s in it for you? These benefits translate into real growth for your smoke shop by keeping customers coming back and spending more. Let's dive into four benefits a tobacco loyalty program can deliver to your store.
1. Generate Repeat Business
Loyalty programs increase the chances of repeat visits by 60%, so when done right, a tobacco loyalty program can significantly influence the likelihood of shoppers returning to your store for more.
By offering points, discounts, or unique benefits they can redeem on future visits, you create a built-in incentive for them to return. This continuous cycle of earning and redeeming keeps your customers engaged and consistently choosing your shop over the competition, leading to sustained and predictable business.
Think about how to communicate these rewards in store and through your marketing materials, whether it’s a QR code on receipts, a sign-up link in emails, or a dedicated section on your website. Train your staff to mention the loyalty program during checkout, and make sure the enrollment process is simple enough that nonmembers feel like it’s worth their time to register.
Related Read: The Best Tobacco Store Customer Loyalty Program (+ How To Implement)
2. Increase Sales
A tobacco loyalty program is mutually beneficial — customers feel they gain more with each dollar spent at your store, encouraging them to spend more during each visit.
The anticipation of earning points and redeeming rewards provides a compelling reason for shoppers to choose your store and to add more to their basket. It’s basically a positive feedback loop that contributes to higher sales figures for your business.
Consider how your point of sale (POS) system can support different loyalty structures tailored to your clientele. A simple earn-and-redeem point system is a solid foundation, or you might try a tiered membership approach where greater spending unlocks new benefits, like bonus points, product bundles, or other exclusive offerings.
Ultimately, your tobacco loyalty program serves as a vehicle to increase the average value of each customer interaction in your smoke shop.
3. Engage With Customers
Beyond just rewards, a tobacco loyalty program opens a direct line of communication with your most valued customers.
When someone joins, you'll typically gather contact details like their email or phone number. Think of this as your chance to keep them informed on new product drops, special promotions tailored just for them, and events happening at your smoke shop.
To make the most out of your efforts, select a POS system that supports your preferred loyalty program structure. Helpful features include adding points or discounts to registered shoppers, tracking what they buy, identifying noteworthy shopping patterns over time, and sending updates via email or SMS for a direct line to your loyal customers.
4. Stay Ahead of the Competition
It’s hard to stand out in the tobacco industry, but an effective loyalty program can create an enticing value proposition that draws customers to your store over others.
First, take a look at the local competition and ask yourself:
- What are the other shops doing to bring in new business?
- Do they have a rewards program? If so, how is it structured?
- Where are they dropping the ball?
That last question is your sweet spot, your chance to offer something the competition can’t provide. Maybe other businesses just do basic discounts, so you can go deeper with exclusive access to new products or members-only buy one, get one (BOGO) deals.
Related Read: How To Advertise a Smoke Shop: 4 Regulations, Tips, & Tools
Little touches can also make a big difference. Branded loyalty cards or keychain tags act as a small, everyday reminder of your shop. When customers grab their keys or open their wallets, your store’s name is there.
And who better to ask what’s working than the folks already walking through your door? Send out surveys for a percentage off their next purchase or directly ask shoppers at checkout what would make them more likely to return to your store, and get creative when testing out new ideas.
Personalized marketing is another way to stay at the top of your target audience’s mind. Sending tailored offers or promotions (e.g. birthday deals or seasonal promos) straight to their inbox makes your target audience feel seen and appreciated, something a generic shop down the street probably isn’t doing.
How To Start a Tobacco Loyalty Program
The benefits of a loyalty program are clear, but the execution may still be a little foggy. How do you start implementing a new program like this today?
Let’s break each step down:
- Review purchase data: Start by seeing what your customers actually buy. If you’ve run deals in the past, review their performance. Use your POS system’s data to see what shoppers purchase most often and what’s sitting stale on the shelf for a clearer picture of their wants.
- Decide your reward structure: For a point-based system, decide point thresholds for dollars off, product bundles, or deals on certain brands. For tiers, determine which products or rewards will coincide with each tier, saving enticing, higher-level products for your most loyal customers. Your POS can help you set reward levels, assign point values, and manage redemptions.
- Spread the word: With your program in place, it’s time to let your customers know about it. Place clear signage in your shop, mention it at checkout, and share it on social media and email newsletters. Note that the tobacco industry has specific advertising regulations, so make sure any marketing efforts follow these guidelines.
- Track, analyze, and adjust: Once your program is live, review your POS data to see which rewards are most popular and whether or not the program is increasing your average basket value (ABV). Use these trends to refine your program over time.
Remember: These programs take time to reap the benefits. Consistent effort and experimentation are the keys to long-lasting customer relationships and sustained business growth.
Start Your Tobacco Loyalty Program Today
Building a loyal customer base is a marathon, not a sprint. By prioritizing customer appreciation and fully leveraging your POS system’s capabilities, you can create a rewarding experience that keeps your favorite patrons coming back.
Don’t let outdated systems hold you back from building valuable relationships! Designed for tobacco stores just like yours, a specialized POS system like Cigars POS includes features to manage loyalty points, implement gift cards, offer custom customer pricing, and more.
Schedule a free Cigars POS demo to see how our all-in-one solution can help you implement and manage an effective loyalty program.
