Much like any consumer good, ordering cannabis is impacted by many factors; weather, holidays, seasons, even enforced sheltering in place (take a look at our previous blog post outlining the rise of cannabis during confinement here). We know that Thursday, Friday, and Saturday all show impressive numbers for cannabis purchases, but taking a closer look at when these purchases were made can lend some interesting insights.
Knowing which hours of the day shoppers are likely to visit your online store or retail location and make a purchase may help you schedule marketing campaigns, staff up for increases in customer service requests and shipments, and overall optimize your revenue.
The unique advantage that cannabis has over other consumer goods is that it can be considered both essential and/or supplemental. Typically, Fridays and Saturdays fall at the end of the workweek for many shoppers when they are focused on social activities, entertainment, and aspirational pursuits. Whereas other consumer goods purchased in store or online often drop on these days, consumers often factor cannabis in as another aspect of their socializing or entertaining. By Sunday, customers may become more task oriented, looking for items they need for the week, so for the regular user, medical or recreational, a Sunday purchase is also likely.
We took a look at 2020. The research revealed that on average, purchases through delivery and retail are made around 3 p.m. The earliest purchases across the board show delivery for extracts, while the latest are retail for pre-rolls.
Customers typically purchase pre-rolls from a retail location later in the day, with smaller ticket sizes. This might account for customers making last minute purchases as the day comes to a close, without committing to a large order. Retail purchases overall were more often made later in the day, likely due to customer availability at later times. So if they’re looking to avoid longer wait times at the dispensary, consumers should consider heading over earlier in the day.
The largest ticket sizes earlier in the day? Extracts, including vape oil, hash, and tinctures, boasted the largest ticket sizes. This category also factored in the earliest average order time. These types of products can be associated with routine, be it for medical purposes or vaping, so buying in bulk at earlier times in the day could correlate with ordering out of necessity. Communications starting around midday could serve as a reminder to customers to check their personal reserves.
Average conversion rates on Friday and Saturday were also relatively high. Fewer cannaconsumers visit an online store on Fridays and Saturdays, but those who did visit an online store for delivery weren't just browsing and were more motivated to make a purchase. Even though the conversion rates were relatively high, total revenue was somewhat lower because there were fewer total sessions. Fridays' hourly conversion rates tended to climb more quickly before dropping off earlier at about 4:00 p.m., but generally, the conversion rate curve was similar throughout the week.
This insight — that more shoppers may visit your online or retail location and make a purchase on Sunday or Monday — should impact your strategy for when and how you market. You might schedule on-site promotions (think sales, contests, or even a product introduction) to launch on those busiest days.
Being strategic about your messaging means not just knowing what to communicate, but when. Being able to take the guesswork out of your consumers' habits is the gateway to improving revenue. For a deeper dive on consumer behaviors and how you can adjust your communications, reach out to us at email@example.com.