For MedMen Enterprises's loyalty program, should we emphasize exclusive product access or greater point accumulation and discounts to drive customer retention?

Introduction

For MedMen Enterprises's loyalty program, we're facing a critical trade-off between emphasizing exclusive product access or focusing on greater point accumulation and discounts to drive customer retention. This decision will significantly impact our customer engagement strategy and overall business performance. I'll analyze this trade-off by examining the product context, potential impacts, key metrics, and experimental approaches to inform our decision-making process.

Step 1

Clarifying Questions (3 minutes)

• Based on the competitive landscape, I'm thinking exclusive product access might be a key differentiator. Could you share insights on how our competitors' loyalty programs are structured?

Why it matters: Helps position our offering in the market Expected answer: Competitors focus more on discounts Impact on approach: Would lean towards exclusive access if true

• Considering our revenue model, I assume the loyalty program significantly impacts our bottom line. What percentage of our revenue currently comes from loyalty program members?

Why it matters: Determines the potential impact of changes Expected answer: 40-50% of revenue from loyalty members Impact on approach: Higher percentage would justify more aggressive changes

• Looking at user behavior, I'm curious about the engagement patterns of our loyalty program members. What's the average purchase frequency of our loyalty program members compared to non-members?

Why it matters: Indicates the effectiveness of current program Expected answer: Loyalty members purchase 2-3x more frequently Impact on approach: Lower frequency might suggest need for more compelling benefits

• Regarding technical feasibility, I'm wondering about our current system's capabilities. How easily can we implement and manage exclusive product access features within our existing platform?

Why it matters: Determines the viability of the exclusive access option Expected answer: Moderate difficulty, requires some development Impact on approach: High difficulty might favor the points/discounts option

• Considering resource allocation, I'm thinking this might require significant marketing efforts. What's our current budget and team capacity for promoting and managing loyalty program changes?

Why it matters: Affects implementation and rollout strategy Expected answer: Limited additional resources available Impact on approach: Might need to phase implementation or choose less resource-intensive option