Is Trust the Missing Piece of Your Cannabis Loyalty Puzzle?

Building trust is the first step to getting your loyalty program thriving.

Want to know the secret ingredient for success in cannabis retail? A loyalty program built on trust. Loyalty programs are no longer a differentiator. They're no longer a perk - they're the standard. But a successful program goes beyond points and discounts. It thrives on a foundation of trust. It thrives on a belief between your team and customers that your brand delivers on its promises.

Just like any business, trust in a cannabis retail organization is multifaceted, and it can be challenging. It encompasses how employees feel about their leadership, how they interact with each other, and, ultimately, how they represent your brand to customers. 

Here's why prioritizing trust is crucial and how to build it in a way that strengthens your loyalty program.

The Power of Trust

Trust is what keeps your cannabis retail business together. It's the foundation of all your relationships and is essential to your business. Without it, processes will slow, and the team will become less invested, possibly leading to lower sales. 

With it, you become unstoppable. 

There are four unique categories of trust. Each one is integral to your store's success and relies on the others. Here are examples of trust and how it affects your business. 

Organizational Trust

Organizational trust is the big picture or vision of the organization. Who are the senior leaders, and what do they believe in? That's where organizational trust begins. It's why many innovative, global brands share their small-town, everyday-person origin stories. They share those stories because they build trust. 

The company's overarching culture and values attract like-minded team members and customers. When these values are communicated regularly and reinforced throughout the company, people remain invested and eager to contribute. Customers remain loyal because they see themselves somewhere in the culture or origin story. 

When organizational trust is dialed in, strategic trust comes more easily.

Strategic Trust

Have you ever worked at a job and had zero idea why new initiatives were launched? Things were different when you showed up to work, but there was no explanation. If you asked about it, your manager gave you vague answers. When this scenario happens more than once, people begin to disengage. Their trust in the organization slips, leading to a lack of investment.

Team members who trust the company's leadership to make sound decisions are more committed and productive. When the team is encouraged to ask questions and engage in a dialogue, they feel like they're a part of something bigger. They feel like they belong. 

Strategic trust also means letting your team know what's not working. Inform the team if a promo doesn't go well or if a new product isn't selling. Every business has ups and downs, but one thing is for sure—every team member wants to help the company win. 

Strategic trust is why people work at your company. Your team members could work at any cannabis retailer, but they work for you because of strategic trust, which leads to personal trust. 

Personal Trust

Personal trust is between people, just like it sounds. It is a must-have in a retail store because the team must manage so many outside elements daily. These include customers, vendors, location, and even the weather. 

When budtenders call out sick, they rely on personal trust. When a customer gets upset, the team solves the problem together and makes that customer happy. When a car accident shuts the freeway down and no one can get to work, personal trust allows the team to communicate quickly and plan the next steps. 

When the store team trusts their managers to treat them fairly, their commitment and work performance skyrocket. They're more likely to pick up an extra shift, be enthusiastic brand ambassadors, work on a special project, become problem solvers, or go the extra mile for a customer.  

All of this trust translates directly to customer trust. 

Customer Trust

Your loyalty program is all about customer trust, which directly results from organizational, strategic, and personal trust. All that trust is layers deep, and when you have a robust loyalty program, your customers can feel it and want to be a part of it. 

Customer trust is critical. It means people believe in your business, culture, and values and want to support them. They want to be included.

Customer trust can't be bought or faked. Community is essential to business, and your loyalty program equals community. 

The Enemies of Trust: How They Impact Your Loyalty Program 

Building trust takes ongoing work. It's not a set-it-and-forget-it situation; companies need to work on it daily.

Here are some common trust-crushers and how they can negatively impact your loyalty program:

Inconsistent Communication

Unrealistic promises about program benefits, sudden changes in messaging, or a lack of transparency about program updates erodes trust. Confused employees can't effectively promote the program, leading to declining customer interest and sign-ups. 

For example, a dispensary launches a new loyalty program, promising exclusive discounts and early access to new products. However, the program details are vague, and budtenders struggle to answer customer questions. Perhaps the point system changes frequently without explanation. 

This scenario leaves everybody confused, so they disconnect. 

Inconsistent Standards 

Favoritism in rewards or unequal treatment across locations can create resentment and confusion. Customers will only feel valued if they perceive consistency in how they're rewarded.

Let's say a dispensary chain offers a rewards program with bonus points for buying specific brands. However, one location heavily promotes these brands, while another prioritizes in-house products. This inconsistency creates confusion and possibly frustration for customers who do not get the same experience at each location.

Misplaced Benevolence

Ignoring employee apathy or negativity creates an unhappy culture.
This lack of engagement can translate into a lackluster customer loyalty program experience.

Sometimes, dispensary managers avoid addressing budtenders who consistently provide inaccurate information to customers. This avoidance leads to disgruntled employees who witness the misinformation and lack of accountability. It can also result in poorly informed customers who may have negative experiences.

False Feedback/Consistent Underperformance

False feedback can have lasting effects long-term.

Inflating performance reviews to avoid conflict or putting off difficult conversations typically ends poorly. The "hope it will get better" without action is a recipe for disaster. 

If a budtender consistently receives positive performance reviews despite negative customer feedback about their lack of product knowledge, it's bad for you and them. 

If the budtender doesn't know where they went wrong, they can't improve, leading to a decline in customer satisfaction and team frustration. 

Failure to Delegate

Hoarding responsibilities and micromanagement is a trust killer.
When we give our teams autonomy, they thrive. 

If a dispensary manager insists on approving every sale or answering every question, this will create long lines and bottlenecks. This micromanagement prevents budtenders from building rapport with customers and hinders overall efficiency.

Rumors in a Vacuum 

What's really going on?

Let's say a dispensary begins taking new security measures, but some customers find it intrusive or are unsure of the change. 

Without clear communication, rumors may begin to circulate about the reason for the change, which can lead to unnecessary anxiety and distrust of the dispensary.

Lack of communication and information can lead to mistrust and misinformation.

Building Trust in a Cannabis Retail Setting

So, how do you build trust within all facets of your organization and, in turn, strengthen your loyalty program? 

Here are some actionable steps:

Open and Honest Communication

When your dispensary launches a new loyalty program, have the management team hold a company-wide call to explain the program's features, including the point system, exclusive discounts, and member events. Encourage budtenders to ask questions and have an open dialogue. Goals should be outlined clearly, and best practices for member acquisition and engagement should be shared so everyone is set up for success.

Throughout the program, communicate any updates and changes via email, internal messaging boards, and team meetings. Share wins with everyone and use this communication as an opportunity to bond. We get trust when program goals, benefits, and expectations are clearly laid out to all employees. 

Always be transparent about any changes and address concerns proactively. Roll out information to everyone at the same time.

Fair and Consistent Policies

Let's say the dispensary's loyalty program offers tiered rewards based on points earned. Establish clear guidelines for points awarded on purchases, participation in educational events, and referrals. 

Team members should receive the same training materials and meet with their leaders to ensure consistency across all locations.

When you develop clear guidelines for your loyalty program, you ensure consistent application across staff and locations.

Empower Your Employees 

Knowledge is power. 

When we thoroughly train our budtenders on the loyalty program, product knowledge, and potential customer inquiries, they are empowered to recommend products, offer personalized advice, and answer questions. 

This information and empowerment fosters a sense of ownership and allows budtenders to build stronger customer relationships.

Honest Feedback Culture

Encourage budtenders to offer feedback on the loyalty program. They may suggest improvements to features or share what aspects customers like best. Feedback is the best way to make your loyalty program even better.

Budtenders should receive feedback on their effectiveness in promoting the loyalty program during regular performance reviews. For example, how are they explaining program benefits, handling member inquiries, and upselling loyalty program memberships? 

Open communication between employees and management is vital to success. Use performance reviews and on-the-spot coaching to provide feedback on how each team member can better support the loyalty program.

Once the feedback loop is spinning, loyalty will take off.

Celebrate Success

Brainstorm ways in which you can reward your team.

Hold a monthly award ceremony recognizing budtenders who achieve exceptional member sign-ups or consistently deliver positive customer experiences within the program. Winners may receive a small bonus or prize. Their accomplishments may be celebrated in a company-wide newsletter. 

Recognition motivates employees and reinforces the importance of providing excellent service to loyalty program members.

Small celebrations go a long way, and the positive effects ripple throughout the team.

Building Trust in Trying Times

Every business faces challenges. When difficult situations arise, prioritize internal communication and address employee concerns openly. Demonstrate a calm, approachable leadership style and provide support. This proactive approach helps maintain trust and prevents issues from spilling into customer interactions.

Be honest and transparent with employees and involve them as soon as possible. People are smart, and they want the truth from their employers. People can work anywhere, and they will want to stay working for you when there is trust.

Rebuilding Trust After a Breach

Mistakes happen, but how you handle them is the crucial part. Remember, people tend to mirror the behaviors of their leaders. A calm, empathetic, and steady approach will guide other employees.

If trust is broken, take the following steps:

• Identify the cause and extent of the damage. 
• Acknowledge the Issue and take responsibility: Own up to the problem and apologize for the loss of trust.
• Develop a Recovery Plan: Create a clear plan to rebuild trust with specific goals and timelines.
• Address Root Causes: Implement changes to prevent future breaches and ensure program integrity.
• Communicate Progress: Regularly update employees on your efforts to rebuild trust. Communication is the key to moving forward.

Building Trust: An Ongoing Journey

Trust is not a destination; it's a continuous journey. By prioritizing trust-building strategies within your organization, you foster a culture where employees remain engaged and empowered to champion your loyalty program. Trust translates to a more positive customer experience, ultimately driving program success and brand loyalty. 

When employees are invested and supported in doing their jobs, customers can feel the positivity, making them more likely to join your loyalty program.

Building Trust Beyond Your Doors

The impact of trust extends beyond your employees. Build trust with your customers through your loyalty program. 

Here are some ways to achieve this:

• Transparency in Rewards: What's in it for them? Communicate the program's earning structure and redemption options.
• Personalized Engagement: No two customers are the same: tailor program benefits and communications to individual customer preferences. 
• Demonstrate Value: Go beyond points and discounts. Offer exclusive rewards and experiences that enhance the customer journey. Make an upcoming holiday a remarkable experience.

By fostering trust on both sides of the counter, you create a thriving loyalty program that drives customer retention, brand advocacy, and business success.

Let's Build Trust Together!

We encourage you to share your experiences and ask questions about building trust in the comments below. Additionally, we've compiled a list of resources on building trust in the workplace to help you on your journey. 

Remember, a focus on trust is an investment in the future of your cannabis retail business.