The cannabis industry is going through a significant shift right now. There is no denying the industry’s phenomenal growth, with legal sales projected to reach $34 billion in 2023. How do you get your product into the hands of customers? is a new problem that comes with this growth. How do you ensure that the product is the appropriate one and not simply any one? The solution is found in analytics technologies that enable retailers to gain a greater grasp of their customers’ needs than ever before to provide them with a top-notch experience each time they visit your dispensary or online store.
Optimizing Dispensary Inventory
The technique of managing inventories to maximize profitability is known as inventory optimization. Understanding their customers, competing with other retailers, and managing their supply chain are all ongoing processes for retailers. In order to make informed decisions about what products to buy or sell, when and where they should be placed on shelves (or online), how much should be stocked in each location, and more importantly, who should have access to those products before anyone else does, this requires detailed data about customer demand, competitor pricing, and product availability.
Cannabis retail buyers are looking to their data more than ever to understand customer brand and product preferences. To prevent merchandise from spoiling while it is being sold, it is essential to fill the shelf space at your dispensary with high-turnover inventory. Detailed dispensary analytics on the goods, brands, and categories that bring in the most profit for your company are provided by a robust cannabis retail system.
Customer segmentation refers to the process of grouping customers according to shared traits. You may categorize your customers by zip code or neighborhood, for instance, if you own a dispensary in New York and want to know where your customers are coming from. You can more effectively target your customers and understand them thanks to customer segmentation.
A smart place to begin is by categorizing your cannabis customers according to the products they buy, how frequently they buy them, their location, age, and gender. Higher conversions can also be achieved by building specialized customer segments for groups like elderly people, veterans, medical patients, and social influencers. With special filtering options like days since their most recent purchase and the number of times they’ve made purchases in a certain time period, cannabis retail solutions can help you locate customers. This keeps your customers interested in your promotions by tailoring them to their specific tastes.
Decisions Driven by Data
Making accurate predictions can help you stay ahead of your competition since data-driven judgments are made with data rather than intuition or gut instinct. This makes them more likely to be correct than those made without the use of hard data. One of the main benefits of employing dispensary analytics is that it enables you to monitor how your customers interact with your store in real-time so that you can adjust as necessary before they cause difficulties or perhaps leave permanently (missing out on significant revenue in the process).
It might be a sign to adjust your low inventory threshold in your point of sale if, for instance, a customer finds something they like at one location but can’t find it again when visiting another location in your chain because someone else purchased the last few remaining items. This would give you enough time to place an order for more of that specific product before it runs out.
The capacity to offer a customized e-commerce experience for each customer will influence the future of cannabis retail. This can be done using branded themes, promotions, and suggestive product choices. Dispensaries will be able to provide recommendations based on a user’s past purchases or browsing activities with the proper technology. In addition to improving conversion rates and sales revenue, this enables them to offer a more engaging experience.
If cannabis retailers want their industry venture to be successful in the long run, they must have a functioning website. You need an eCommerce website that can connect to analytics tools like Google Analytics so you can track everything from traffic sources (where they came from) all the way down to conversions/purchases made through your site in order to really understand what customers want out of their online shopping experience.
A terrific way to connect with your audience and foster client loyalty is through SMS marketing. Sending mass SMS messages can, however, become expensive and produce poorer conversion rates than customized marketing. Your messaging will be more precise and powerful the more customer categories you build. To maximize the effectiveness of SMS marketing, you can identify your customer categories with the aid of a robust business intelligence platform.
Dispensaries investing in the creation of an app for iOS and Android devices is an alternative that is growing in popularity. Push notifications can now be used to market to customers more affordably. Customers can be informed of special offers, new products, holiday specials, etc. with push notifications sent from a dispensary app, which often convert at a higher rate than SMS messages.
Use of Cashless Payments
It is highly probable that cannabis retailers are well-versed in the benefits of cashless transactions. Customers find cashless transactions convenient, and they also help to prevent theft and loss. But how do they affect the business you run?
Because of the popularity of debit cards, digital coupons, and online payments, it’s critical for dispensaries to stay up to date on these trends in order to deliver outstanding customer service. When customers visit the dispensary, it’s critical for the staff to inform them of their payment alternatives. They should also include banner ads on their website to promote pre-paid online orders.
How much education is required can be determined using analytics for dispensaries to learn what proportion of your customers use these payment methods. Customers that utilize cashless payments instead of cash typically increase their basket size by 25% to 35%, which can have a significant positive impact on your bottom line.
Dispensaries are progressively adopting more data-driven retail methods as cannabis legalization sweeps the country. Despite the unique characteristics of the cannabis market, dispensary analytics have been a game changer for retailers in many industries. Learn how dispensary analytics can help your business grow by revealing hidden potential in your data.
Ready to learn more about what FasTrax POS can offer your business? Get in touch with us today to schedule a consultation and check out a demo!
Danielle is a content writer at FasTrax POS. Her writing focuses on all-in-one, innovative POS and business solutions that can help companies stand out. Aside from having a love for writing and reading, she is also passionate about animals, crafting, and documentaries.