As any business owner knows, sales are essential to keeping the doors open. But sometimes, customers can be reluctant to spend more than they need to. Many cannabis retailers are looking for ways to boost their sales. Getting customers to keep coming back and encouraging them to spend more at checkout is a great way to do that.
Because cannabis is still a regulated product, business owners are tasked with knowing the rules and regulations in the Cannabis Act inside and out. This will guide you on how to promote cannabis products without the red tape.
If you're looking for ways to boost your cannabis sales, here are five tips to get your customers to open up their wallets.
Top 5 Tips to Get Your Customers to Spend More
Try these marketing tactics to encourage your cannabis customers to fill up their cart:
1. Easy Navigation on Your Website or Retail Store
Good customer service is essential for any cannabis business. After all, the customer's experience in the store can make or break a sale. One of the most critical elements of good customer service is providing easy navigation for your website or retail store.
A well-thought-out design and layout (both in your retail or online market) are essential in getting customers through the door. In a retail store a long checkout process or difficult navigation could mean they leave without making a purchase. While a great online experience at checkout may make people more likely to shop with you again.
If people have an enjoyable experience, then chances are high that these customers will become loyal shoppers. However, if there's anything about it which makes their life difficult (long sign-up processes) this might send them elsewhere instead.
2. Simple Checkout Process
A simple checkout process is one of the most critical factors in customer satisfaction that can boost sales significantly. Customers are more likely to spend when they have a positive experience, so it's essential to ensure your process is as streamlined and efficient as possible.
There are a few key things to remember when designing your checkout process:
● Give your customers the option to pay with their preferred method, cash, credit, or debit card.
● Ensure your customer service team can answer any customer questions or concerns. For your online shop, enable a chat box on your website that can answer any questions shoppers may have before completing their transaction.
● Position merchandise near the checkout at your retail store for quick access. For your online experience, create a section to pull in similar products to the ones in their basket. Product recommendations with “customers also purchased” within the checkout process may increase their overall spend or get them to reach free-shipping.
You can encourage customers to buy more products by placing their most desired items near checkout. Research conducted by Integer supports that 61% of consumers would purchase one or two additional items if they were standing close enough while browsing.
3. Loyalty Programs
A loyalty program is a marketing strategy designed to attract and retain customers by offering them rewards, discounts and other special incentives. Unlike traditional retailers, cannabis dispensaries are more restricted and regulated on how and where they can advertise.
Most forms of marketing, including social media, are extremely limited in the cannabis industry. Restrictions are due to privacy laws that do not allow dispensary CRM systems and POS software to save the customer's contact information. This is a problem because it limits your ability to communicate with your customers.
However, there are ways you can use loyalty programs in your cannabis store, such as:
Use discounts to reward customers for the duration of membership to your loyalty program. You can also offer a loyalty member-only discount that gives members 5% off most items in your store. You can make customers aware of these programs through texts or emails. This way, you encourage customers to spend more without violating regulations.
You can use merchandise to reward customers without going against restrictions. Leveraging merchandise or swag is a great play to create brand awareness and reward customers.
Some brands will send store owners branded swag to distribute with each purchase of their product. Treat your loyalty members to merchandise after three months of membership for example without the need to part with your product. It’s a win/win.
Price drop, new product, and inventory alerts
Another way of offering loyalty programs is by alerting your customers about price drops, new products, and inventory alerts. When people see their favourite products have dropped in price, are back in stock, or that you have a new product they would like to try, they’ll be back in store as soon as possible.
4. Gifts and Rewards
Companies often give out gifts and rewards to encourage customer loyalty. Rewards or discounts for making a purchase, signing up for a newsletter, or leaving a review can be gifted to shoppers.
For instance, upsell their total purchase by offering a $10 gift card if your customers buy a high ticket product or reach a purchase threshold. Offer rewards for making select purchases, spending a certain amount, or referring a friend. This is a well-used tactic for merchants to push certain merchandise or product categories and control cash-flow.
While these incentives can effectively boost sales, it is essential to use them sparingly. Otherwise, customers may expect freebies and become less likely to purchase unless offered a gift or reward. It is crucial to strike a balance when using gifts and rewards as customer incentives.
5. Free Delivery
Consumers these days have gotten used to free and fast delivery. Shipping fees can be one of the barriers for your customer to buy online. A study found that 79% of shoppers are more likely to purchase online if offered free delivery.
Including delivery fees is a great way to encourage customers to spend more to meet the threshold for free shipping. Customers are more likely to add items to their cart when there are no delivery fees to restrict them.
In addition, free shipping can help to build customer loyalty, getting customers to come back and shop again in the future. As a result, free delivery is an effective marketing tool that can positively impact sales.
Of course, free delivery is only sustainable if it is cost-effective. Therefore, businesses must consider whether they can afford to absorb the delivery cost before offering this perk to customers.
If you want to increase your sales, it may be time to look at your ecommerce checkout experience, or your retail store layout.
Remember to ask yourself these questions; are customers able to navigate through your site easily? Is the checkout process straightforward? Do you have loyalty programs that reward customers for their continued business?
Considering these factors and others, you can make it easier for customers to keep shopping with you.
How Can Merrco Help?
Merrco offers payment processing solutions to regulated businesses in Canada and the U.S. If you have any questions on how we can help you streamline your payments, please contact us at firstname.lastname@example.org or call us on our toll-free number at 1-800-957-0534 and our team will get back to you.