In the oversaturated cannabis industry, standing out in a sea of competition isn’t easy.
It helps if you spend time developing your brand story, curating quality inventory, and creating memorable campaigns. But sometimes, an exciting retail promotion is the best way to generate buzz that cuts through the noise.
A well-executed promotion converts wavering prospects and increases sales—at least in the short term. And if your new customers receive a great product, excellent service, and compelling follow-ups, many will stick with you for the long haul. In this article, we'll discuss:
Let's dive in.
A retail promotion is a kind of persuasive marketing strategy designed to drive sales. Most retail promotions appeal to logic and urgency. They communicate to shoppers: “This is a great deal and you don’t want to miss out!”
Successful promotions provide a boost in sales and may convince indecisive shoppers it’s time to buy. So without further ado, here are four common types of retail discounts and how to implement them at your dispensary.
Discounting products is typically the most popular type of retail promotion. Everyone loves a bargain, so it makes sense to offer sales discounts when you want to capture customers’ attention.
You can offer a percentage discount, such as “10% off pre-rolls,” or offer dollar amount deals, such as “$5 off cartridges”. Promotional pricing can apply to your entire dispensary, or it can apply only to certain products. Storewide promotions tend to attract the most buzz, but it’s important to do what works for your dispensary.
In retail terminology, BOGO means Buy One, Get One. You’ve probably seen the acronym BOGOF for Buy One, Get One Free. Some retailers offer buy one, get one half-off deals.
These offers entice customers because they cut down on shopping guilt. People feel more comfortable spending money when they secure a deal they wouldn’t normally get.
For potential customers hesitating to make a purchase, BOGO deals can nudge them in the right direction.
Loyalty programs are a great investment because they increase customer retention and maximize their lifetime value to your dispensary. With loyalty points, customers earn points each time they shop with you. They can earn discounts (or even free items) when they reach a certain number of points.
In the broader retail world, many retailers also award points for actions such as social sharing, writing reviews, and referring other customers.
Seasonal promotions convey urgency because they’re available for a limited time only. Think special products like pumpkin-spiced lattes at Starbucks or annual holiday sales in department stores. In the cannabis industry, seasonal promotions typically align with noteworthy dates such as 420, 710, and Green Wednesday.
Retail promotions work for a reason: when you add value to the customer experience, customers are more likely to shop. And when paired with a strategic and creative marketing campaign, promotions build buzz, too. Everyone loves a bargain. Dutchie makes discounting even easier with our robust Discount Engine. From simple sales to complex BOGOs, our highly advanced discounts engine was designed for maximum flexibility, powering your online and in store sales, together. Plus, you can increase basket sizes up to 30%. Create, edit and manage your discounts all from Dutchie POS, then automatically sync to Dutchie Ecomm - saving you time, reducing errors and ensuring a great experience for your customers.
Disclaimer: Don’t forget to review your local marketing and advertising regulations to make sure all dispensary promotions are compliant in your state.
Dutchie is a complete technology platform for cannabis retailers. With solutions for point of sale, payments, ecommerce, insurance, and more, Dutchie empowers dispensaries to run efficiently, scale their operations, stay compliant, and provide exceptional experiences to staff and customers alike. And since Dutchie’s solutions are seamlessly connected, it’s easy to manage a business from one central hub and ensure all operations stay in sync.
