11 Jun 2024

How to Increase Dispensary Sales

Image of Cieryl Sardool

Cieryl Sardool

As the cannabis industry continues to grow, dispensaries face increased competition. To thrive in this environment, dispensaries need to implement effective strategies to attract and retain customers – from loyalty programs to referral bonuses to incentive programs. These programs not only encourage repeat business but also help build a loyal customer base. Here are several strategies dispensaries can use to increase sales and maximize their ROI.

1. Implement a Loyalty Program

A well-designed loyalty program can significantly increase customer retention. By offering points for each purchase that can be redeemed for discounts or free products, dispensaries create an incentive for customers to return regularly. Ensure the program is easy to understand and use, and consider offering special perks for reaching certain point thresholds, such as exclusive access to new products or special events.

2. Offer Referral Bonuses

Word-of-mouth is one of the most powerful marketing tools. Encourage your existing customers to refer friends and family by offering referral bonuses. For instance, both the referrer and the new customer could receive a discount on their next purchase. This not only brings in new customers but also rewards loyal ones, fostering a sense of community and appreciation.

3. Provide Exclusive Member Discounts

Creating a membership program that offers exclusive discounts can make customers feel valued and special. This could include monthly or bi-weekly sales for members only, early access to new products, or member-only events. Such exclusivity can encourage more frequent visits and larger purchases.

4. Utilize Digital Marketing

In today’s digital age, leveraging social media and email marketing is crucial. Regularly update your customers about new products, upcoming sales, and special promotions through these channels. Personalized email campaigns that offer special deals based on past purchases can be particularly effective in driving sales. Make sure your online presence is engaging and informative, keeping your audience excited about what your dispensary has to offer.

5. Host Educational Events and Workshops

Hosting events and workshops can attract new customers and engage existing ones. Educational sessions about the benefits and uses of different cannabis products can demystify the buying process for new customers and provide valuable knowledge to regulars. Offering discounts on products discussed during these events can drive immediate sales and foster a deeper connection with your brand.

6. Seasonal and Holiday Promotions

Seasonal and holiday promotions are a great way to boost sales. Consider offering themed promotions or discounts during holidays and cannabis-related events such as 4/20. These promotions can create a sense of urgency and excitement, encouraging customers to make purchases they might have otherwise delayed.

7. Enhance the In-Store Experience

Creating a welcoming and informative in-store experience can significantly impact sales. Train your budtenders to be knowledgeable and friendly, providing excellent customer service. An inviting atmosphere, with clear product displays and informative signage, can help customers feel comfortable and confident in their purchases. Offering in-store only promotions can also drive traffic to your physical location.

8. Leverage Customer Feedback

Customer feedback is invaluable in understanding what works and what doesn’t. Regularly solicit feedback through surveys or direct interactions and use this information to improve your products and services. Showing customers that their opinions matter can increase their loyalty and encourage them to spread positive word-of-mouth.

9. Bundle Products

Bundling products is an effective way to increase the average transaction value. Offer discounted bundles that include popular items alongside lesser-known products. This not only introduces customers to new products but also increases the perceived value of their purchase, encouraging them to spend more.

10. Incorporate Budtender Incentives

Budtenders are crucial in driving sales, as they directly interact with customers. Implementing incentive programs for budtenders can significantly boost sales. By rewarding them for upselling items, strategically designed incentives not only increase sales but also improve staff retention by making employees feel valued – maximizing ROI and fostering a positive, productive team environment in the process.

Case study

In 2024, Arizona dispensary recently implemented a leaderboard-style incentive program for their budtenders, running it for four weeks. The program rewarded the top-performing budtenders based on their sales performance, creating a competitive yet motivating atmosphere that encouraged budtenders to excel in their roles. As a result, the dispensary experienced a remarkable 151% increase in sales compared to the previous period. This initiative not only boosted sales but also significantly improved staff morale and customer service quality, proving the effectiveness of targeted incentive programs.

Increasing dispensary sales requires a multifaceted approach that combines excellent customer service, strategic marketing, and effective incentive programs. By implementing these strategies, dispensaries can not only attract new customers but also build a loyal and engaged customer base. Remember, the key is to create value for both your customers and your budtenders, making each visit to your dispensary a rewarding experience for everyone involved in every sale.