insights@happycabbage.io4154390279
November 27, 2020

Revenue in the Palm of Your Hand


It might be Black Friday, but you don’t need crazy promotions or blowout deals to boost sales and engagement. Over sixty percent of smartphone users unlock their phones immediately after waking up, and nearly 80% in the first 15 minutes of their day. Factoring in COVID lockdown and holiday ennui, this year has made it easier to access customers where they are: on their phones.



SMS marketing provides an unprecedented opportunity for cannabis retailers and brands to build a new top revenue channel. With a robust SMS strategy, brands can directly engage mobile shoppers with messages perfectly tailored to where they are in their buyer journey.
SMS messaging:

  • Features a 98% open rate. 
  • They can be accessed from anywhere a  phone can go
  • They produce clear metrics
  • Message delivery is instantaneous and direct


So how can you be sure that your SMS messaging this Black Friday will get you the results you’re looking for? 


Advanced Segmentation

How do you identify key customers? Segmentation within your lost and existing customer base is vital to higher engagement. The goal is to create identifiable subsets within a given market. We are drawn towards behavioral attributes like POS data, brand loyalty, geography, order latency, demographics, etc., and less on demographics like age and sex, because they are not product or brand specific. The level of segmentation has a direct result on your overall revenue per customer. The graphic below demonstrates how much revenue per customer increases with varying levels of segmentation and customization. The scale starts with the text blasts at the base and spans into algorithmically-targeted marketing campaigns with products like Polaris. 



To better understand machine learning-generated messaging, we took a look at some of Happy Cabbage’s highest performing SMS campaigns with Polaris, all in the first 24 hours of the campaign. We are measuring success as revenue per customer, directly resulting from promotions or discounts sent via SMS. 


Best Rate of Recapture in 24 hours


We’ve emphasized the importance of customer retention and recapture before (read here), but essentially, targeting lost customers is valuable for many reasons. 


A lost customer... 

  • Follows your brand.
  • Saw the value in your product, prices, or overall mission.
  • Made a purchase, perhaps more than once.
  • May no longer see value in your product or service
  • May see value, but a new purchase is not top-of-mind


The retailer above targeted customers who hadn’t made a purchase in the last 90 days, sent a feeler message, and closed with a discount. About 24 hours later, they recaptured 19 lost customers, generating $2,026. 


Largest Revenue Generated per Text Message


This retailer messaged 291 customers and generated $11.79 per text message sent. They created urgency, offered a generous discount, and made payment options easier, creating a strong positive response and conversion rate. 




Largest Ticket Size in 24 Hours


A dispensary in San Francisco decided to promote a specific flower and concentrate brand, so they targeted 376 regular customers who had purchased both brands before. These customers were regulars, but they hadn’t been in the store for at least 14 days. The text message presented “selected deals” based on the customer’s brand affinity, and then offered two generous BOGO deals with a cliffhanger to check out their full website. 


With hypersegmentation and classic strategies like creating urgency, discount codes, website links, and seamless payment, retailers and delivery services have many tools to boost their engagement and revenue. Exercise with caution, however. Sending special offers more than four times per week tends to lead to more opt-outs and lower deliverability. Also, be sure to keep your messages diverse (for example, feature an in-store promotion, a holiday message, a deal, or a loyalty program). 


Polaris generates 30x in returns. So for every dollar you spend on Polaris, you’ll earn $30 in revenue. For more information on Polaris or marketing tactics to ensure your campaign’s success, message us at insights@happycabbage.io


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