How to Build a Loyalty Program for a Vape & Smoke Shop

Introduction

Keeping customers loyal is one of the most effective ways to maintain a successful business.

Among many other retail businesses, vape and e-cigarette stores face the stiffest competition. Not to mention online retailers also join in the tug-of-war to get their fair share.

Amid such fierce competition, what can managers, owners, and stakeholders do to survive, and more optimistically, thrive in the business?

A well-designed loyalty program can make a significant difference, with a strong focus on customer satisfaction and retention.

In this blog, we’ll walk you through how to build a loyalty program for your vape or e-cigarette store that not only keeps customers coming back but also helps grow your business. From setting clear goals to integrating advanced technology, we’ve got you covered!

Why Do Loyalty Programs Matter in the Vape Industry?

The vaping industry, unlike many others, thrives on recurring purchases. E-cigarette users typically need to buy vape juice, replacement pods, coils, and batteries regularly.

E-cigarette users, also known as vapers, actively seek out stores that carry their preferred brands and flavors. This distinguishes them from traditional cigarette smokers who often remain loyal to the same brand for years.

Currently, “Elux Legend Prime 5000” and “Taylor Vanilla Crunch vape juice” are highly popular flavors. Some customers may exclusively purchase these flavors, potentially bypassing stores that do not carry them and seeking alternatives elsewhere.

This creates a prime opportunity for vape stores to implement a loyalty program that keeps customers returning for their next vape-related purchase.

Although, increased competition, changing regulations, and shifting consumer preferences are all factors that make it essential to cultivate customer loyalty.

Loyal customers are worth up to 10 times (or more) their first purchase value over their lifetime with a brand. A solid loyalty program not only boosts customer retention but can also encourage higher purchase frequency and larger orders, ultimately driving revenue growth for your vape or e-cigarette store.

Define Your Loyalty Program’s Goals

Before you dive into the nitty-gritty of creating your loyalty program for vape shop, it’s important to define goals clearly. A loyalty program is not just about giving discounts; it’s about providing long-term value to both your customers and your business. By setting specific, measurable goals, you can shape your program to meet your unique needs.

Tips for Setting Effective Goals:

Increasing Customer Retention

One of the most important goals of a loyalty program is to boost customer retention rates. It’s no secret that it costs more to acquire a new customer than it does to retain an existing one. By keeping customers engaged, you increase the chances that they will continue to make purchases.

Encouraging Bigger Purchases

Loyalty programs can also drive customers to spend more. By offering rewards or incentives for higher spending thresholds, you create an opportunity for your customers to indulge in more expensive products or larger quantities of their preferred items.

Suggest a Similar Vape Juice Brand that Gives You Better Profit Margins

When a customer expresses interest in a lower-margin brand, leverage your loyalty program to suggest a comparable option from a higher-margin brand. This approach respects customer preferences while optimizing your profitability and incentivizes them to explore new, potentially more profitable options.”

Enhancing Customer Experience

A loyalty program for e-cigarette stores can improve the overall shopping experience by making customers feel valued and appreciated. Personalizing rewards or offering surprise bonuses helps create positive associations with your brand, keeping customers coming back for more.

Collecting Customer Data

An often-overlooked benefit of loyalty programs is the data they collect. By tracking customer behavior, purchase history, and preferences, you can gain valuable insights that allow you to tailor future marketing efforts, product offerings, and more.

Choose the Right Loyalty Program Model

There is no one-size-fits-all approach to loyalty programs. Depending on the size of your vape store, the type of products you sell, and your target market, different models may work better for your business. Below are some of the most popular loyalty program models:

Point-Based Systems

In a point-based loyalty program, customers accumulate points for every purchase, which can be redeemed for rewards such as discounts, free products, or special offers. This model is simple and easy to understand for customers, making it a great option for vape stores.

Example:

For every $1 spent, a customer earns 1 point. After collecting 500 points, they can redeem a discount on their next purchase. This model encourages frequent, smaller purchases.

Wish to explore more? Take a quick peek into, “Tips For Running a Point-based Loyalty Program”

Tiered Programs

A tiered loyalty program offers different levels of rewards based on the customer’s spending or engagement. As customers move up in tiers, they unlock greater benefits.

Example:

Bronze Level: 0-200 points – 5% discount

Silver Level: 201-500 points – 10% discount, early access to new products

Gold Level: 501+ points – 15% discount, exclusive gifts, VIP customer service

Referral Programs

Referral programs incentivize your existing customers to bring in new ones. Offering rewards for both the referrer and the new customer is a win-win strategy that can drive organic growth.

Example:

Offer a discount or free product to customers who refer friends to your store. The referred customer also receives a discount on their first purchase, encouraging them to try your products.

VIP Memberships

VIP memberships create a sense of exclusivity and can encourage your best customers to remain loyal. Offering a paid membership program with added perks like special discounts, early product releases, or even personalized services is a great way to increase revenue.

Example:

Customers pay an annual fee to become a VIP member and enjoy ongoing benefits such as 20% off all purchases, birthday gifts, or exclusive access to new vape flavors.

Develop Rewards That Appeal to Your Customers

The rewards you offer are the heart of your loyalty program. Understanding your customers’ preferences and aligning your rewards with their interests can help ensure high engagement.

Consider offering the following rewards:

Discounts

Discounts are the most popular form of reward. Offering a percentage off or a dollar discount can motivate customers to return to your store.

Exclusive Products

Vape customers love to try new flavors and devices. Offering exclusive, limited-edition products that are only available to loyalty members can make your customers feel special.

Early Access

Customers love being the first to know about new products or promotions. Offering early access to sales or new product launches is a great way to keep customers engaged.

Gift Cards & Store Credits

Gift cards are versatile and allow customers to choose their rewards. Store credits can also incentivize customers to return to your store to spend their credits on future purchases.

Integrate Your Loyalty Program with Your Store’s Technology

Integrating your loyalty program with your store’s technology makes it easier to track customer activity and reward them automatically. This can be done through various digital tools and systems.

Loyalty Program Software

Use dedicated loyalty program software to track points, reward milestones, and send notifications to customers.

POS System Integration

Integrating the loyalty program with your Point-of-Sale system ensures that customers automatically earn points when making purchases.

Mobile App Integration

A mobile app can give customers easy access to their loyalty points, rewards, and special promotions. It also opens the door for push notifications and targeted marketing.

Email and SMS Notifications

Keep your customers engaged with automated emails and text messages reminding them about their points, rewards, or special offers.

Wrapping Up

A successful loyalty program can be a game-changer for your vape or e-cigarette store. By setting clear goals, choosing the right program model, and offering appealing rewards, you can build long-lasting relationships with your customers. Don’t forget to integrate the program with your technology to streamline operations and enhance the customer experience.

Remember, a loyal customer is not just a one-time shopper – they’re an advocate for your brand and a key driver of your business’s growth.