Smoke Shop Loyalty Program for the Vape and Tobacco Industry

The vape and tobacco industry is rapidly growing from a retail perspective. According to Statista, the e-cigarette market is projected to generate a revenue of US$26.0bn in 2024. It is anticipated to experience an annual growth rate of 3.06% (CAGR 2024-2028) on a global scale. This development has contributed to very stiff competition in the market, calling out to all smoke store owners to keep up or get left behind.

You can up your game by implementing a bLoyal smoke shop loyalty program and be a step ahead of your competitors. bLoyal offers an out-of-the-box, customized loyalty program for businesses at all stages of growth. It has excellent tools and features for you as a smoke shop proprietor to maximize your customers’ lifetime value, retain your customers, and increase your brand awareness leading to an increase in revenue.

smoke shop loyalty program

Importance of Building a Smoke Shop Loyalty Program

Increases customer retention, which lowers acquisition costs and increases revenue.

bLoyal creates a personalized relationship between you and your consumers, fostering a sense of trust and loyalty. It is customized to reward your loyal customers with gift cards, birthday cards, and personalized coupons, which increase customer engagement and retention.

Satisfied customers will tend to tell their friends about the unbelievable offers and rewards they receive from your loyalty programs, lowering the cost of acquiring new customers and increasing customer referrals.

Existing customers spend more.

Customers enrolled in your loyalty programs can earn points or are enticed with amazing offers, coupons, and discounts. Depending on your program customization, reward points are awarded after purchasing frequently or products worth a certain amount. For example, you can award 10 points for every $1000 dollars spent.

As a result, customers tend to go back and purchase more from their trusted smoke store retailer to earn more rewards and discounts.

Tobacco customers are loyal longer because they have a slower churn rate.

Unlike other industry consumers, tobacco industry customers have a longer customer lifetime value, while vapers have a significantly slower churn rate. Now, with bLoyal, your smoke store can retain customers indefinitely.

With the importance of having a customer loyalty program in mind, let’s look at how to create one for your vape and tobacco smoke store.

5 Ways to Create a Smoke Shop Loyalty Program That Will Increase Your Revenue

  1. Automate sign-ups via phone number or email at the register and online

Signing loyal customers into your rewards program is crucial in building a great program. You need to have a master record of your loyal customers and convince them to sign up.

For physical vape and e-cigar stores, selling directly to customers over the cashier prompt or using a merchant scan code is an effortless way to award loyalty points in real time. Customers can use your bLoyal private label web store loyalty program site, sign up with their phone number or email address, and join your program.

  1. Automate rewards at the register

Offering giveaways to your customers after they sign up effectively incentivizes your newly registered customers, making them enthusiastic about a long-term relationship with your brand.

Interacting with first-time customers is an opportunity to invest in a lifetime consumer.

  1. Decide on your structure

Generally, there are three structures of a loyalty reward program for your vape and tobacco shop.

I) Item-based

An item-based loyalty system rewards customers with points or discounts for every purchase they make on a particular product. For example, buy ten pods or cartridges and get one free.

Manufacturers can also use this system to offer rebates to distributors on certain products.

II) Spend based

The spend-based loyalty system is the most recommended for vape and e-cigarette stores. It rewards customers with points according to how much they spend on the business.

You may choose to award customers points per dollar spent. For instance, 1 point per $10 spent.

After earning x points, the points are automatically redeemed, or the customers can redeem them at their preferred time.

III) Automated VIP billing

Unlike in other loyalty program structures, in VIP billing systems, customers sign up on an automated monthly subscription basis to enjoy perks and benefits.

This system gives your loyal customers gifts like free shipping on vape products and early access to products and industry-related events.

  1. Automate communications

Communication is vital in every marketing and loyalty program. It would be best if you legally created awareness of your vape and tobacco brand. Look at local laws to know what terms, words, and products you can market legally.

Having your customers opt-in to email and text marketing messages creates a one-on-one platform to market your brand to your consumers.

Automatic communications notify customers of upcoming product promos and discounts in their purchase history.

  1. Create a dashboard for reporting

Creating a merchant dashboard for reporting will help you understand customer frequency, preferences, and promotional usage.

Having a clear and active dashboard also helps your support team handle any consumer queries in real time.

Operating a dashboard may be tedious and time-consuming for busy tobacco and vape smoke shops. But, it’s best suited for small and independent vape shops with slow traffic to handle loyalty transactions manually. Customers sign up for the digital loyalty app and make purchases normally, and the merchant updates each customer’s loyalty account online on the dashboard.

Final Thoughts

Knowing the importance and how to create a loyalty program is only part of it… You need the best loyalty reward software to seamlessly integrate your vape and tobacco store POS.

bLoyal has the best integration options for your online store and point-of-sales, such as Shopify, Clover, Korona, Counterpoint, and WooCommerce. Its best-of-breed tools are easy to use and let you build and customize a customer loyalty or subscription program for your vape and tobacco smoke store in no time.

Email us today at [email protected] for more guidance or request a demo, and let us help you find the best solution for your tobacco and vape smoke store.