How Dispensaries can Improve Profit in 2021
2020 was a profitable year for the cannabis industry. States such as Illinois and Michigan set and broke their records of monthly cannabis sales. In September of 2020, Illinois sold more than $100 million in cannabis. Last month, Michigan witnessed a 70% uptick in cannabis sales over a year. The industry is the fastest-growing industry ever. Additionally, consumers are afflicted with post-quarantine fever. There is a large populace that is literally itching to get outside. It took a global pandemic for people to realize how much they missed going to dispensaries This means that there is substantial room for owners and operators to establish a profitable dispensary. Here are a few marketing objectives that can help promote sales.
Understanding loyalty programs
A loyalty program is the moniker given to a program implemented by a company that bestows incentives on customers for choosing their business instead of competitors. These programs often come in the form of individual membership or program cards. As far as incentives, loyalty programs can grant consumers discounts, exclusive and even free merchandise.
One case of a loyalty program is the Extracare Card implemented by Caremark Industry’s CVS Pharmacy. By signing up for this program at no cost to the consumer, they are automatically eligible for discounts, coupons, member’s only offers, and in-store credit (referred to as ‘Extra Bucks.’)
On the surface, it appears that the consumer is reaping all of the benefits. Nevertheless, the business responsible for implementing an attractive loyalty program can see a great return. These values are certainly transferable to cannabis businesses and retailers.
How loyalty programs improve dispensaries
When implementing a successful and attractive loyalty program, companies gain a bevy of benefits. Customers who enroll in a loyalty program offered by a business have been magnetized. Magnetization refers to the process of collecting valuable consumer data such as names, areas, and contact information utilizing an engaging vehicle such as a loyalty program.
Moreover, a loyal customer spends approximately 70% more than a conventional customer over three years. Loyal customers are also ten times more likely to purchase their initial enrollment in a loyalty program. This data can be helpful in the short-term as well as long-term goals of a dispensary. Loyalty programs increase revenue, brand appeal, awareness, and overall success.
Taking the ‘ask’ as serious as possible
For any business’s marketing arm to be successful, every employee must be informed of the programs and campaigns. Specifically, employees should be trained on the most effective way to enroll customers in digital receipts and email marketing. Having a stellar loyalty program or email marketing campaign if the soldiers on the front lines do not understand the most efficient way of implementing the ask to the customers they have a professional relationship with. Consider implementing a script upon check-out to engage customers.
E-receipts and a dispensary’s digital wellbeing
Although many consumers are straying away from increasing their carbon footprint, customers like choices, consider making e-receipts printer-friendly. There is still a respectable amount of customers who like to accumulate a record of their transactions the old-fashioned way. Providing customers with the open-to-print receipt will present another vehicle of engagement with the customer. This can increase available rates dramatically. Consumers have gotten in the habit of receiving a receipt after a purchase. This transactional ritual ought not to be neglected. Even if customers elect to receive digital receipts, they are subconsciously programmed to engage with the receipt after a transaction, albeit physical or digital. By staying aligned with this consumer conditioning, customers are significantly more likely to open and engage with the e-receipt immediately following the transaction.