What Role Does a CRM Play in the Cannabis Industry
Updated: Nov 14, 2019
There are numerous marketing tools In the cannabis industry that brands and retailers alike need to take advantage of. One of the most important ones being a CRM system built specifically for cannabis businesses.
understanding what makes a cannabis CRM
Before we dive into why a CRM system is so important for cannabis businesses, let’s make sure we are on the same page as to what exactly a CRM actually is.
CRM stands for Customer Relationship Management. And CRM software is designed to help you build relationships with your customers, build brand loyalty, increase customer satisfaction and retention.
To that end, a CRM system will analyze data from a customer’s history with your company, then use that information to help improve your relationship with that customer.
Probably one of the most useful characteristics of an effective CRM platform is the ability to segment customers based on unique data points, letting you target specific groups based on their current status in their customer journey with your business.
In doing so a CRM solution can streamline and syncs your customer service, sales, and marketing strategies so that each is working to complement one another.
In a nutshell, CRMs are programs that put a focus specifically on two things that are vital in the cannabis retail space:
Driving sales growth
Now you might be thinking- I’ve got a point-of-sale and e-commerce website, and a dispensary customer relations phone number. Problem solved, right? Sure, if you think a flathead is all you need to change a tire.
So how does CRM software differ from the dispensary technology solutions you already have?
POS vs CRM
If you’re currently running a cannabis dispensary you’re already familiar with one of the numerous options for the cannabis compliant Point-of-Sale (POS) systems. This is that super convenient, never confusing piece of technology where you complete all retail transactions. While your POS system might have some of the tools that you might consider Customer Relationship Management, they are not specifically designed with the tools that make a fully-fledged Cannabis CRM.
However, by utilizing a seamless integration with your POS, you can collect the data from your point-of-sale directly into your CRM. This way, you can analyze what your customers are buying, and anticipate their needs. Using data points like preferences for certain brands or products, you can then create more personalized marketing.
To sum it up, both POS and CRM are essential tools for growing your cannabis retail business. You might think you can get by with just a POS, but using these tools together will make your strategy stronger and more cost-effective. A POS system lets you process transactions that provide data, while a CRM lets you use the data to strengthen connections with your customers.
If the POS is a hammer, think of a good CRM as a heavy-duty nail gun.
creating customer loyalty with CRM
Some tools are at their best when they are combined with others to get the job done. One of the best ways to utilize a comprehensive CRM is with a loyalty program and text message communication engine, which takes cannabis dispensary and brand marketing to a whole new level.
Remember how we said that CRMs help collect important data on customers? Well, it also uses that data to show you who your most loyal customers are. Through that connection with your POS system, you have the ability to track important trends in your customers, including:
Who visits more frequently
Which customers spend the most
What products and brands are most popular
ROI of rewards and promotions
With a DIspensary CRM system, you can apply these kinds of key data points to your loyalty program. This way, you can reward customers based on their commitment to your store. While your rewards program should be designed to fit your company’s unique business model, we believe making rewards proportionate to a customer’s loyalty makes a program more effective and successful. Using a CRM that integrates with your POS and supports your loyalty program makes this all the more possible.
building it with springbig
At springbig, we are constantly innovating the tools that help cannabis retailers build a better business. As the leading CRM and loyalty marketing platform designed specifically for the cannabis space, we can show you how to supercharge your dispensary’s marketing strategy.
Keep in mind, we are also here to teach you and your team how to make better use of the tools you already have, and show you how to upgrade the experience with the other gadgets in our tool belt.