Cannabis Retailers Guide to 4/20
Candy has Halloween, beer has the Superbowl, and Cannabis has April 20th. 4/20 is the most lucrative sales opportunity of the year for cannabis retailers, for example 4/20 in 2018 saw sales increases up to 184% higher than average, according to a study by Headset. And this year its on a weekend which always means even more sales for recreational products.
4/20 will be a highly competitive day for dispensaries nation-wide and your performance on the day itself can often carry your dispensary through the year. The Holiday is not only a chance to generate large amounts of revenue in one day, but also leave a lasting impression on new and existing customers and turn them into loyal regulars. If your dispensary stands out on 4/20 it will stay in the customer’s mind throughout the year especially when other Holidays come around.
So dispensaries must take all necessary steps to generate as much traffic to their store as possible and more importantly make sure every customer leaves satisfied. Every retailer and brand will be offering discounts and promotions to attract as many customers as possible, so you need to get the word out to as many people as possible in the weeks leading up to the holiday in order to compete. This means leveraging every marketing channel available to you. This includes email marketing, text marketing, social media marketing and more.
So you don’t want to wait to kick off your marketing campaigns just a couple of days before the holiday. You’ll want to start promoting your 4/20 special and encouraging people to enroll in your loyalty rewards program in the weeks leading up to the holiday. In this post we’ll show you how to maximize your dispensary’s performance on 4/20 by leveraging the power of a cannabis loyalty CRM and text messaging program.
expand your membership
Because texting is quick and accessible, you can use it to grow your customer database in the weeks leading up to 4/20. When newcomers come into your shop before 4/20, kindly ask them to sign up for dispensary text messages with springbig’s text-to-join feature, simply let them know that they can join by sending a text message with a code, such as “JOIN DISPENSARY420”, prompting them to sign up for your dispensary loyalty program. Another even more frictionless method would be to have a QR code at checkout for a customer to simply scan and enroll in a snap.
If customers don’t want to give out their cell phone number you can always just direct them to your website where you can create a form for them to join with an e-mail address.
Another way to increase your list size before the holiday is running a refer-a-friend promotion. Offer discounts or extra points to customers who get their friends to enroll in the days leading up to 4/20. This is the best time of the year to run a promotion like this because your existing customers will want to get as much of a discount as possible before the holiday and they most likely know a person or two who will also be looking for deals on 4/20.
Once these new members have joined they can input their interests right from their phone or you can use springbig’s digital communications platform to send them surveys asking what products they would like to see on sale for the holiday. This will allow you to not only analyze past purchase history and stock up on what’s already selling well but also ensure you don’t overlook the preferences of the many people who will be purchasing for the first time on 4/20.
4/20 will likely be the time where people who have been on the fence about trying cannabis will decide to partake. As cannabis continues to become destigmatized more and more people consider trying it out every day. Now that it is no longer taboo, the primary barrier keeping these potential customers from trying is simply a lack of knowledge or intimidation. Think about it, baby-boomers are the fasting growing demographic of cannabis consumers (source). When they were growing up the vast array of products and brands available today were non-existent. Today they are likely to feel intimidated by the sheer amount of choice available in today's dispensaries. This is what’s known as “the Paradox of Choice”. Someone may walk into your store take a look at the wide range of choice and have no idea what most of it is and how it will affect them.
A great way to solve this problem is through education to reduce intimidation. Remember Cannabis isn’t just like buying groceries, it is a psychoactive substance and people are wary of how it will affect them.
Companies like Seed Technologies have solved this by providing dispensaries with an interactive digital platform that offers standardized cannabis information and guides customers through the buying process.
"Dispensaries face a unique challenge when it comes to providing a superior customer experience. With a high mix of inexperienced users, the burden to educate consumers on cannabis falls on the dispensary staff. This can be complicated even more if the shopper is not made comfortable enough to ask what can be sensitive questions in order to get the right product fit." - Matthew Cutone, CEO Seed Technologies.
By placing a Seed Kiosk at the front of your store you have the ability to ask customers what physical effects they are seeking from Cannabis and various other questions in order to formulate a curated and personalized recommendations for specific products within your inventory. This can also help streamline the buying process by freeing up your budtenders to process the huge amount of transactions and keep the line moving instead of spending large amounts of time educating novice customers. Avoiding long wait times pleases everyone so let's get into a few more ways of making your sales process more efficient.
avoid long lines
Not all customers want to get caught up in the frenzy on the actual holiday. Encourage your regular customers to stock up on their preferred products before the day itself. This will help reduce wait times help prevent the possibility that the most popular products will sell out on 4/20 before everyone has had a chance to buy them.
Another way to accomplish this is by encouraging online ordering. springbig has full integration with many major cannabis delivery solutions like our partners, iheartjane.
find out what your customers really want
Analyze your dispensary metrics before the holiday, so you can create deals tailored by product to best serve your visitors and clear out your stock.
You know your customers better than anyone. We simply help you track what they love. Use springbig’s comprehensive, real-time analytics and to brush up and stock up on what your customers want. After checking your company dashboard and tracking your past sales, you can see which products were most popular on previous holidays and make sure you have enough available on 4/20.
Conversely, be sure to check out what has not been selling as effectively. With all of the 4/20 foot traffic, a new customer is bound to walk in who will appreciate that oil other customers had not been too interested in.
Products that may not be popular with experienced users like pre-rolls will sell at higher rates on 4/20 due to a large amount of inexperienced or completely new ones looking to partake in the cannabis community’s biggest day of the year. In fact, according to a study by Headset, pre-rolls have been the most popular 4/20 item for 3 years in a row!
Another way to clear your inventory of unpopular products is to bundle them with other popular products. Because basket sizes on 4/20 will be larger, and many people will be attending parties and events with groups of friends they are likely to want to buy a variety of products in large quantities.
Since you’ll want to leave a lasting impression on your 4/20 shoppers, show them how appreciative you are for their business using autoconnects. Using spend milestone autoconnects you can create messages that are triggered to send your thanks and appreciation to customers who exceed a certain amount (that amount is completely up to you).
You can also set up messages that automatically thank everyone who purchased something on 4/20 and even run a promotion offering a coupon for a discount on a future purchase if a purchase is made on 4/20. This will incentivize someone to come in specifically on 4/20 and most likely buy a bit more than they originally planned because of the special occasion.