KPI #8: Customer Loyalty Opt-In Rate

Your dispensary's New Customer Loyalty Opt-In Rate is a vital metric indicating how effectively you convert first-time visitors into engaged loyalty program members. Based on our analysis of single-store, multi-store, and multi-state dispensaries across the United States, this key performance indicator directly correlates with customer lifetime value and repeat purchase rates.

New Customer Loyalty Opt-In Rate measures the percentage of first-time customers who join your loyalty program during their initial visit.

For example, if your dispensary sees 100 new customers in a month and 40 of them join your loyalty program, your New Customer Loyalty Opt-In Rate is 40% (40/100 = 40%).

Based on our proprietary BNCHMRK dataset, here's how we categorize dispensary New Customer Loyalty Opt-In Rate performance:

• Great: New Customer Opt-In Rate ≥ 60%

• Average: New Customer Opt-In Rate between 60% and 30%

• Needs Improvement: New Customer Opt-In Rate < 30%

Author Note: this target will evolve over time as our dataset grows. Individual opt-in rates can vary based on market maturity, local competition, program benefits structure, and staff training effectiveness.

Our latest data from October 2024 shows significant variations in New Customer Loyalty Opt-In Rates across dispensaries in our dataset. We currently have data from dispensaries in 9 U.S. markets; below is the performance distribution by percentage:

Dispensary Performance Distribution

• Dispensaries Scoring 'Great': 75% of dispensaries scored in this range with an average New Customer Opt-In Rate of 82%

• Dispensaries Scoring 'Average': 0% of dispensaries scored in this range with an average New Customer Opt-In Rate of 32%

• Dispensaries Scoring 'Needs Improvement': 25% of dispensaries scored in this range with an average New Customer Opt-In Rate of 11.18%

To accurately calculate your dispensary's New Customer Loyalty Opt-In Rate, follow these steps:

#1. Track New Customers

• Identify first-time visitors through POS system

• Include all sales channels (in-store, delivery, online)

• Exclude returning customers

• Track across all locations if multi-store operation

#2. Count New Loyalty Sign-Ups

• Monitor new program enrollments

• Verify first-time customer status

• Include all enrollment channels

• Track sign-up source (budtender, self-service, online)

#3. Formula

New Customer Loyalty Opt-In Rate = (Number of New Loyalty Members / Total New Customers) × 100

Several key factors influence your dispensary's ability to convert new customers into loyalty members:

Program Value Proposition

Enrollment Benefits

• First-visit bonus points or rewards

• Sign-up discounts

• Welcome kit or merchandise

• Exclusive new member promotions

• Birthday rewards registration

Ongoing Program Features

• Point earning structure

• Redemption options

• Tier benefits

• Special access opportunities

• Member-exclusive products

Staff Performance

Training Effectiveness

• Program benefit knowledge

• Enrollment process familiarity

• Value communication skills

• Objection handling ability

• Sign-up goal setting

Incentive Structure

• Staff enrollment targets

• Performance recognition

• Enrollment competitions

• Success celebration

• Regular feedback systems

Enrollment Process

Sign-Up Convenience

• Digital registration options

• Mobile-friendly forms

• Minimal required fields

• Quick completion time

• Multiple enrollment points

Customer Experience

• Clear program explanation

• Simple benefit structure

• Immediate reward access

• Easy point tracking

• Transparent terms

Based on our experience working with dispensaries across multiple markets, we've identified several key areas that drive improvements in New Customer Loyalty Opt-In Rate performance:

Program Enhancement

Value Proposition

• Competitive benefit analysis

• Sign-up incentive optimization

• Tier structure refinement

• Reward variety expansion

• Member exclusive creation

Communication Strategy

• Benefit visualization

• Clear value messaging

• Success story sharing

• ROI demonstration

• Program comparison tools

Staff Development

Training Programs

• Regular education sessions

• Role-play exercises

• Best practice sharing

• Success story highlighting

• Performance coaching

Performance Management

• Goal setting systems

• Progress tracking

• Recognition programs

• Feedback loops

• Improvement planning

Process Optimization

Technology Integration

• POS system alignment

• Mobile enrollment tools

• Digital form optimization

• Automation implementation

• Data capture refinement

Customer Journey

• Touchpoint mapping

• Friction reduction

• Communication timing

• Follow-up systems

• Experience measurement

• Customer Return Rate

• Average Order Value

• Customer Lifetime Value

• Marketing Opt-in Rate

• Net Promoter Score

• BNCHMRK Monthly Reports: Access the latest insights on dispensary performance.

• Marketing Performance Scorecard: Get your free BNCHMRK scorecard to assess your marketing efficiency.

• Consultation with Growth Experts: Schedule a free consultation with one of our cannabis growth experts for personalized advice.

To improve your New Customer Loyalty Opt-In Rate, focus on enhancing the program's value proposition, effectively communicating benefits, training staff to engage customers, and streamlining the enrollment process. Successful dispensaries make loyalty membership an integral part of the customer journey, offering clear, immediate, and tangible benefits that encourage sign-ups during first visits.

Last Updated: November 10, 2024. Data sourced from BNCHMRK's proprietary database of dispensary performance metrics.

What is a good New Customer Loyalty Opt-In Rate for a dispensary?

A good rate is 60% or higher, meaning 60+ out of every 100 new customers join your loyalty program. Top-performing dispensaries achieve 90-100% rates, while the dataset average is between 60-80%.

How do you calculate the New Customer Loyalty Opt-In Rate for a dispensary?

Divide the number of new loyalty program enrollments by total new customers in a period, then multiply by 100. For example, if you had 50 new members from 200 new customers, your rate would be 25% (50/200 × 100 = 25%).

What are the most effective ways to increase loyalty opt-in rates?

Focus on staff training, compelling sign-up incentives, streamlined enrollment processes, and clear communication of program benefits. Ensure immediate value delivery and maintain consistent program promotion.

How often should I calculate my dispensary's New Customer Loyalty Opt-In Rate?

Track this metric weekly to identify immediate trends and adjust tactics. Calculate monthly averages to assess longer-term patterns and program effectiveness. Review quarterly to evaluate seasonal impacts and program adjustments.