Kognitiv x Cannabis Retailer

-
5 mins
67%
revenue lift from AI-optimized personalization
>4k
at-risk customers reactivated in just two weeks
10%
increase in annual loyalty program member spend in the first year
>$2M
in incremental annual sales
Cannabis retail store
About the Brand
Our client is a major player in the cannabis industry, operating 149 dispensaries across the United States. They offer a wide variety of high-quality cannabis products, catering to both medical and adult-use markets. With a commitment to expanding accessibility and delivering a premium retail experience, our client continues to grow their presence in key states, ensuring that their products meet the diverse needs of their customers.
Cannabis Retailer
North America
149 Dispensaries
The Challenge
Our client was struggling to effectively manage customer engagement across various stages of the customer lifecycle, while also navigating stringent industry regulations that limited what they could and could not communicate across different states. Operating in a new, highly competitive industry with a rapidly growing customer base, they needed to find a solution to effectively engage new customers, grow their share of wallet, and establish themselves as an industry leader. They were looking for personalized customer loyalty solutions that could provide real-time insights into where their customers were in their journey, predict future behaviors, and deliver relevant communications at each stage to drive higher customer retention and lifetime value.
Client’s Goals
  • Launch a successful loyalty program that drives LTV
  • Improve retention by driving purchases from at-risk customers
  • Increase campaign conversion rate
The Results
67% revenue lift from AI-optimized personalized communications
>4k at-risk customers reactivated in just two weeks
91% of sales are attributed to the loyalty program
10% increase in annual loyalty program member spend in the first year
>$2M in incremental annual sales
The Solution
Deploying a High-performance Loyalty Program
Kognitiv designed a spend-based loyalty program that is differentiated, and simple to understand, communicate, and execute. The program was rolled out nationwide using Kognitiv Inspire, a robust loyalty management software, to deliver corporate connectivity and regional adoption.
The program achieved immediate breakeven with a 2.3X ROI over 5 years.
Optimizing Lifecycle Communication with Predictive Real-time Insights
By leveraging Kognitiv Pulse, a predictive lifecycle optimization tool, our client was able to map their customers’ behaviors, identifying strengths and opportunities in the customer lifecycle journey at an individual level. Real-time insights enabled the client to determine customers that needed to be activated and detected early signs of disengagement, ensuring timely lifecycle communication at scale.
Improving Customer Retention & Increasing Reactivation
Leveraging Kognitiv Pulse, the client identified three customer groups to improve retention and reactivation: customers who are currently at risk, new customers who are predicted to become at-risk during the crucial onboarding phase, and those who are just outside their usual purchase cadence, signaling potential future risk of inactivity. Our client was able to deliver personalized, customer-level communication to these groups, ensuring customers remain active and engaged. Additionally, we helped the client test and understand the communication and offers that drive the highest activation, including revenue-to-cost ratio.
Reward offers outperformed other communications in driving early retention, resulting in a 13%+ increase in transacting customers.

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About Kognitiv
Kognitiv is redefining loyalty with its AI-native outcome-based technology. Our award-winning loyalty software and a suite of cross-channel intelligence and personalization products enable brands to deliver hyper-personalized experiences, predict and optimize customer engagement in real time, and achieve measurable results.
It’s time to move beyond transactions and earn customers’ lifetime loyalty. Discover how reimagining your loyalty strategy and customer engagement with AI can foster deeper connections and drive long-term success. Get your personalized demo today or talk to one of our loyalty strategy consultants.
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