420 is a high reward holiday. Consumers purchase up to three times as much cannabis product, making it a huge opportunity for revenue.
A lot of consumers will enter the market, try out different dispensaries maybe walk into the store, when they usually are purchasing online or vice versa.
However, 420 is also high risk, right?
There's a lot of competition and your market is probably saturated with deals and discount prices. Your tech stack could surge with a higher order volume.
That’s why having a strategy surrounding your acquisition and technology plan is critical.
Or else, it could have negative effects on profit where you're missing out on potential revenue.
Your own first-party data is the most valuable resource. It's immediate, accessible, and representative of your customers and business.
Using this data allows you to benchmark your dispensary performance, which is critical to developing a winning 420 customer acquisition strategy.
The best way to start building your dispensary's 420 strategy is to pose business questions that you can answer through data.
You'll want to start on a broader scale to orient your overall approach and then follow-up with more specific tactical questions.
It's important to note your topline strategy should revolve around sales and revenue.
For example, you could start looking at which sales channels drive the most order volume, or how 420 order volume compares to a normal day.
All leading revenue KPIs would fall under the tactical portion of this framework.
These could address: which 420 marketing campaigns to run; expected revenue from marketing; what BOGOs to offer; how many budtenders and delivery to staff.
At a high-level, you’ll have new customers and repeat customers on 420, which you can split by sales channel.
This is a general framework to start thinking about various audiences for marketing with what experience you should provide.
For example, you might find that your storefront or Weedmaps menu drive majority new customers. Then those that reorder do so from your dispensary or delivery website.
Using order source and customer volumes to segment tactics allows you to decipher what products work with your audiences and figure out your levers.
This is key for hitting blended 420 sales and average ticket size targets. If you can find the audiences have higher average ticket sizes, then you can tailor messaging and deals to improve results.
We recommend evaluating dispensary 420 discounts in terms of feasibility and efficacy.
That means, which promotions are easiest for your dispensary to execute and generate ROI.
A general 20% discount might be quicker to deploy but result in less orders. Meanwhile, a targeted discount to 1000 customers might take more time to prepare, however convert more buyers.
Look at your historical first-party data to find out what performed best in March, or last year's 420.
Is it BOGOs that brands market independently? Or is it the blanket discount below a certain dollar amount? Which audiences did you target?
Once you've identified your best promotions, cross-reference to your audience and entire consumer base to see where you can scale them.
How you craft 420 marketing messages can significantly impact campaign results.
Most importantly, you should always include terms that match the campaign audience.
For example, messaging should vary between regulars and customers, that haven't shopped with you in awhile.
Messaging should also vary between flower and edible shoppers.
Generally, our data shows that specificity with messaging and audiences will result in better campaign performance.
One way you can target more precisely is via product and brand-specific segments.
Especially with brand promotions, you can implement brand name keywords, which cannabis consumers tend to respond to positively.
In terms of your dispensary's point-of-sale or technology stability, sometimes things don't go as expected.
During last year's 420, a few providers out there had issues and systems went down for several hours which left many dispensaries stranded.
Providers like BLAZE take special precautions to ensure stability, which includes code blackouts where they release no new code prior to 420.
Ask your provider to share a system status page that you can check. This is a URL where you can go and check to see if there's any reported system-wide problems.
This URL is definitely worth bookmarking in your browser, just to make sure that prior 420,everything's good with your system.
Also, make sure to configure and test your POS hardware to prevent unexpected transaction delays on the day.
That way you won't be in a position where you can't open the cash drawer and have to wait on a receipt to print.
Another point to remember is updating your POS app. This is an integral part of making sure you're prepared for 420.
Give yourself at least 12-24 hours in advance to get the latest version. This should also make your app run faster.
Budtender interactions are key to increasing transaction size and sales volume on 420.
Before the holiday, think of a way totally the budtenders around sales KPIs set by the retail team.
This could include things like a team target for the amount of volume or individual targets for average ticket size.
As long as it's a metric that's simple and directly sourced from the reconciling in-store orders, it will be more effective than a brand-spiffing structure.
Consider tracking brand-based KPIs if you're trying to push an in house brand for 420.
But generally, if every budtender tries to optimize for a different KPI, you'll end up with a lot of different outcomes and won't be able to recap on the team's holiday performance.
If you're running delivery operations on 420, you should plan measure average delivery time in advance.
This will allow you to plan based on which zip codes you will be able to service quickly and those that might take a bit longer.
Knowing average delivery time by zip code enables you to communicate reliably and potentially retain newly-acquired customers on 420.
The best part? You can find this in your data!
Another opportunity for 420 in terms is identifying which delivery zones to maintain and try to acquire new customers.
Again, compare delivery times to staff count and volumes of new versus existing customers.
You can then decide whether it's worthwhile operationally or if you won't able to meet these delivery times with the team available.
Taking to one step further, you could then drive more promotional content on closer regions that you can meet with better delivery times.
Your data is there. Your strategy can't wait.
Founder & CMO