Unlocking Tobacco Funding for Your Loyalty Program

A retailer’s loyalty program can offer customers personalized incentives funded by the manufacturer.

February 15, 2024

This article is brought to you by Stuzo.

Tobacco remains an extremely important contributor to foot traffic and in-store sales, but the category is quickly changing. Adult consumers have come to expect personalized experiences and are also more open than ever to trying new products. “In this landscape, being able to leverage investments from tobacco manufacturers is a game changer,” said Jake Kiser, chief customer officer at Stuzo.

“Tobacco manufacturers want to help retailers develop a win-win-win partnership, but they are also looking for retailers to have the right tools in place to do so effectively,” said Kiser. “Traditional loyalty programs need to evolve technologically to access the maximum amount of funding available to retailers.”

Kiser explained that retailers must first meet tobacco manufacturing digital trade program requirements to be able to unlock any available retailer incentives. The right loyalty provider with key capabilities and partnerships can assist with this step.

“Another complication in this space is that it is age-restricted and heavily regulated,” said Kiser. “Tobacco manufacturers would like to partner with retailers who can reduce friction while remaining compliant within the mobile experience. These retailers can leverage vendor-funded incentives for each customer that engages with their offers in a compliant fashion.”

Once a customer has gone through the process verifying their age and identity, the retailer’s loyalty program can offer that customer personalized incentives funded by the manufacturer.

“From the standpoint of the manufacturers,” Kiser said, “they want to partner with retailers that are able to target adult tobacco customers in real-time based on transaction data. For example, which brands and products they buy, when they buy and how much they spend.

“Tobacco companies are looking to invest, but they want to know that those investments are moving the needle,” Kiser said. The requirements for success are similar to those that come into play when partnering with a CPG manufacturer. In both cases, suppliers want to see return on investment. That means showing them data about the sales of products in your store and the growth of distribution of their products across your footprint. “It’s particularly powerful to be able to show that customer behavior changed as a result of these incentives,” Kiser said.

He explained, “If you have defined outcomes and can show results, you can earn more investment into your program. That, in turn, allows you to keep rewarding your program members with manufacturer-funded special offers.”

Stuzo can help maximize CPG funding to your program and guarantees a 50% increase in members and transactions. Learn more about Stuzo.