Properly utilizing the data you collect from your dispensary customers can help identify how your marijuana retailer can improve. Fully understanding your consumers will help in ordering inventory, increasing sales, and reaching a larger audience.
The data you have already been collecting can help you stock the right products at the right time, increase customer orders and their lifetime value, identify the best and worst performing marketing campaigns, improve efficiency, increase sales and profit, and more.
Who is your Target Demographic?
First, it is important to identify your target demographic, as different demographics prefer different weed strains, products, and trends. This will offer insight into how you should be stocking your shelves.
With so many new products hitting the market daily, your work is never done in terms of deciding which products to stock. The more familiar you are with your target market, the easier this will be. Pay attention to your individual customers whenever possible, as they tend to offer the best insights on what may become the next best seller.
Each time your budtenders or sales staff processes a transaction, all the data from that transaction is stored. Your business has a record of each patient’s purchase history that can prove helpful in the future, as information on previous purchases provides insight into preference patterns. Fully utilizing the software you use for your POS will help determine your customer’s buying habits.
The data you collect can be used to provide a detailed understanding of preferences, along with opportunities to align offers with what the customer really wants.
When budtenders can efficiently understand consumers’ past purchases, they are empowered to make your customers feel heard and cared about. Customers will also feel connected to your brand, which can lead to their return to your storefront to purchase again.
Empowering your marketing staff with personalized messages and deals for your customers has been proven to increase repeat purchases and larger order sizes.
New vs. Returning Customers
Retaining a customer base is necessary for any marijuana retailer to be successful. Ensure you are analyzing your customer retention rate based on new customers versus returning patrons. If you are experiencing a high percentage of customers not returning, a complicated check-in process or a problem with customer service could be the culprit.
A high percentage of new customers could be the result of a successful marketing or advertising campaign. Ensure you maintain analytics on all marketing efforts.
Average Transaction Amount
If your dispensary is seeing a lot of low transaction amounts, perhaps a discount that encourages high-volume sales is in order.
Upselling is another great way to increase your average transaction amount. Discuss logical opportunities to pair products together with your staff and ensure they’re upselling when the chance to do so is presented.
Focus on Analytics
The analytics you collect can offer insight into pricing analysis, business strategies and planning, and marketing. Focusing on specific analytics will assist in improving your business model through time.
Leveraging your retail analytics will allow you to improve sales performance, better manage inventory, and offer an accurate insight into financials. Your POS system may be able to show you your top-selling products, best-selling strains, highest performing budtenders/staff, busiest times of the day, and more.
Don’t Sleep on Social Media
Reviews and interactions with consumers via social media platforms can create an immense amount of visibility into what your customers truly want. Through review and commenting features, you can hear what your target audience thinks about current products you offer, and products you don’t currently have in stock but that your consumers want to purchase.
Take the time to stay apprised of what people are saying on social media or have someone gather reports of the information for you to review.
This concept stands true in most industries, but it is especially imperative for companies within the cannabis industry. Your company should never stop evolving and being innovative. Once your location has been operating for a while, you can create projections based on previous years, and this information will be especially useful in controlling your inventory size and stock.
Always pay attention to your analytics and learn as much as you can from your data.
Check out our newly added items for ideas on what your customers may want next!