dispensary loyalty program dispensary marketing

How To Market Your Dispensary Using Customer Persona Segmentation

September 12, 2019 | Jeffrey Harris

Think of segmentation as the difference between a door-to-door salesman and a private consultation. One tries to sell random products to anyone brave or bored enough to answer the door. The other is an appointment with an expert who is going to tell you everything they know about the one thing you really want. 

One of these strategies definitely works a lot better than the other. 

Segmentation is essential in any dispensary marketing strategy because it targets the cannabis consumers who are most likely to respond to your marketing campaigns. In other words, it allows your dispensary to make sure the money you spend on marketing your cannabis dispensary is spent deliberately, not randomly. 

what is segmentation?

Segmentation allows you to organize the members of your dispensary loyalty program into specific customer personas based on a variety of data points. Instead of sending mass texts targeting everyone in your list with the same promotions, you can target the people who like flower with flower promotions and the people who like edibles with edible promotions. You can even get more specific than product category and target loyal customers according to the specific cannabis brands they prefer. 

Because we know the value of segmentation to a dispensary’s marketing strategy, springbig’s platform gives dispensaries the tools needed to fine tune their marketing strategies, creating unique campaigns targeted towards each audience’s unique needs.

knowing your filters

Product categories and customer information relevant to cannabis marketing are not always accurately generated by cannabis industry POS systems, if at all. springbig’s dispensary marketing platform gives you the ability to fill in these gaps by adding a variety of new filters onto customer profiles.

segmentation filters infographic FINAL

By utilizing these filters and constantly keeping up to date with loyal customer’s preferences you can adjust your marketing strategy according to their needs, and show them you’re treating them better than average.

timing is everything

Timing is key in any digital advertising campaign, especially with text message advertising for dispensaries selling fast-moving consumer goods. To that end, when brainstorming new dispensary marketing ideas, don’t just think of what products customers want, think about when they want them.

There are a variety of ways springbig’s dispensary marketing platform enables dispensaries to incorporate timing into their dispensary marketing strategy, here are just a few.

  • the ‘next visit time’ feature 

Predict when the next time a dispensary loyalty program member will visit next. 

Dispensaries can use this to reinforce their customer’s visit habits, turning them into repeat customers. You can set a campaign to target all customers most likely to shop between 4:00pm and 8:00pm, telling them the dispensary is running a special until 7:00pm. This way, you are engaging with them during their peak hours and incentivizing them with a sense of urgency.

You can also use this filter to disrupt customer visit habits. For example, if you’re running an early bird special from 11:00pm to 12:00pm, you can set a campaign to message all customers most likely to visit between 5:00pm and 9:00pm to see if you can bring them in sooner.

  • visit recency filter

makes it easier for dispensaries to target customers based on how recently they’ve visited. Whether you want to reach out to customers who have visited in the last 24 hours, or the last 180 days, segmentation makes this attention to timing possible.

stacking your filters

Each filter allows you to zero in on a subgroup and tailor your content marketing strategy towards each subgroup, as well as the rewards you offer to them. A little specificity goes a long way. You can gain a higher redemption rate from the rewards you offer through you customer loyalty program by combining filters to really narrow down the customer personas you target.

When building a campaign, some filters have an option to apply ‘sub-filters’. For example, in the ‘visit total’ filter you can add a date range sub-filter. Say you want to target people who have visited more than 4 times but only within the last 30 days, it’s easier than ever.

Once again, you can stack more filters to advertise specific products. Got a new strain of flower you want to showcase over the weekend? Select customers who’ve purchased flower but only those who’ve spent more than $50 in the past 30 days to increase the chance of conversion.

show me the money

Another strategy for using segmentation is focusing on customer spending habits. Some members already have a habit of spending more than the average customer, and you want them to keep doing that. Others might be a little below average, and you want to push them to spend more. Applying the right filters to the right campaign can make this a lot easier.

With big spenders, you might want to send a text message campaign for a more expensive product, because the odds are they are more likely to purchase that item than those who spend below the average customer. 

Have a new brand with a wide array of products you want to inform customers about? Send offers on the most expensive premium items to your members with higher spend averages, while sending more conservative offers to those with lower spending habits.

Having a ladies night special? Add the new gender filter to your campaign so that you send a unique message to all the loyalty members who have marked themselves as female in their customer profile, and have an above average spend to draw that crowd. 

Additionally, you can use rewards as an incentive to gain even more marketing data on customers by offering rewards in exchange for that information.

For example, say you really want to bulk up your email marketing list. So, you decide to send an offer to all your dispensary customers who do not have an email address in their customer profile. 

You have customer group 1, who:

  • Have been loyalty program members for over 1 year
  • Have an average spend of $500 per visit
  • Do not have an email address

You have customer group 2, who:

  • Have only been loyalty program members for 3 months
  • Have an average spend below $50 per visit
  • Do not have an email address

You wouldn’t want to offer customers spending 10x more than others the same reward. But, you still want to reach out and try to get those email addresses. With segmentation you can stack filters to narrow down these audiences. So send both groups an offer in exchange for their email address, but use filters segment each group into separate campaigns offering rewards proportional to their spending habits. 

location, location, and I forget the last part

 Geographic segmentation is one of the most common forms of segmentation in digital marketing. In this case, your dispensary text marketing can be segmented to focus on customers by two kinds of location tracking.

  1. Dispensaries with multiple stores can apply a filter for customers who visit a certain store location. For example, if one location is trying to clear out some inventory, you can run a special that targets only those who shop at that location.
  2.  Specific area codes can be targeted. If you open a new store in an area and want to drive local customers to it, this is the perfect segmentation. 

Or if you’re running a delivery deal that only services certain area codes, you can select to target them specifically.

Every time you add segmentation you may be reaching a smaller audience, but greatly increase the chances of converting that audience. The return on your investment is more potent, because so is your marketing.