Even though cannabis has been an illegal recreational drug for decades, it is now recognized as a medicinal plant. This has led to it being legalized in many different countries and in some US states.
This legalization has caused an increase in cannabis usage in certain countries while also having a significant economic impact. It is predicted that in 2025, legal marijuana sales will earn as much as $23 billion in the US alone.
Cannabis brands are now looking for ways to improve customer satisfaction and grow revenue in this new market, which isn’t a hard task to accomplish if you know all the necessary steps. To help you grow your business in this competitive industry, we listed these strategies below.
Importance of customer experience and satisfaction in the cannabis industry
As cannabis is legal for both medical and recreational use, brands need to think about how to satisfy both types of customers and provide them with the best possible experience.
Recreational cannabis users often look for cannabis that will be enjoyable but not something that will lead to an overly intense experience. Medical cannabis users, on the other hand, can look for a product that can help them with issues ranging from anxiety relief to the prevention of epileptic seizures.
This is why brands are currently investing in research and development so they can meet specific customer needs.
As cannabis wasn’t legal until just a few years ago, there hasn’t been enough time to create an accurate picture of an average cannabis consumer. Adding to the fact that everyone has different needs from the experience, it’s impossible to create one specific customer persona.
However, you still need to think of all the different people who may buy your products.
5 tips for improving customer experience as a cannabis brand
If you truly want to improve customer experience, read on. What follows is five effective ways to improve customer experience as a cannabis brand.
- Identify the most profitable customers
Your products will attract a couple of different types of cannabis consumers which you need to segment into groups:
- People who only smoke flower
- People who only vape and don’t smoke flower
- Those who only consume edibles
- Customers who want to smoke shatter
- People who only consume CBD oil
- Customers who consume different types of CBD products
When you know who your customers are, you’ll be able to create strategic marketing campaigns.
- Use email marketing
With email marketing, you can keep your customers updated on all your products, attract new customers, and upsell to existing customers. Email marketing is a very profitable marketing strategy, as every $1 you spend has an average return of $42.
As long as you keep your emails relevant, consistent, and filled with useful information, your campaign will be successful.
- Create a loyalty program
Loyalty programs have been used in retail for years to create repeat customers by offering rewards and incentives when they complete a purchase. With a loyalty program, you can retain customers, make them feel appreciated, and get relevant customer data.
To create a loyalty program in the cannabis industry, you need to offer something valuable and unique to your customers. You can offer gifts, store credit, free samples, or anything your customers may appreciate.
- Offer special deals
Special deals can attract a lot of customers and they serve as a great customer experience. You can create a 2-for-the-price-of-1 deal, discounted bundles, and run conditional promotions to draw in customers and increase your sales numbers.
- Use the right CRM tool
A Customer Relationship Management software (more commonly known as a CRM) is a tool businesses use to improve customer loyalty and retention. When you use a CRM tool, you can convert one-time buyers into regular customers.
You can use a CRM tool to build customer loyalty by doing the following:
- Promote your latest products to generate higher demand.
- Create targeted offers for each of your customers.
- Run loyalty programs for your customers to ensure you’re always their number one pick.
- Create an inventory and keep track of your stock.
- Offer coupons to customers.
Success story: How DirectScale helped a cannabis brand scale its efforts
A few years ago, while still at her old job, Mari Jo was acquiring world-class knowledge about customer relationships that would later help her start her own business. Having started SimpleInSite, she wanted to help other direct selling companies but struggled to find the right platform.
She found it when one of her clients migrated to DirectScale, an Exigo company. Taken aback by all the features of DS such as the platform’s openness and customizability, she realized that was all she needed to launch clients quickly and successfully.
Learning more about the platform’s user-friendliness, she has understood how simple it actually is to complete tasks like adding coupon codes or a merchant account, and even building a digital library without even having to talk to programmers.
“One thing I love about DirectScale is it’s usability.” Mari Jo said. “It’s surprisingly user-friendly. I can do things other platforms don’t offer out of the box so clients can launch quickly and efficiently. Things like changing colors and company logos are simple. And I can build custom pages and widgets by myself! No other platform can do that!”
Before the COVID pandemic, she worked on creating a full line of CBD hemp-derived products for her client NuHemp. The collaboration is more than successful, having launched the brand’s Amazon storefront and eCommerce platform.
How to use CRM to boost cannabis sales
A good CRM tool can be crucial to boosting your cannabis sales. If you get the right tool and know how to use it, you’ll be impressed with the results. Here are just a few ways you can use your CRM tool to boost sales.
- Acquiring better leads
A CRM tool gives you access to valuable customer data which you can use to segment your target audience based on demographics, psychographics, as well as behaviors. With this information, you’ll be able to identify ideal customer profiles and run marketing initiatives to find matching leads.
- Selling to new customers
Your sales team can use this tool to make new deals and track customers as they go through the entire sales funnel without missing any milestones or important tasks. They will also be able to gain invaluable insights into which marketing campaigns are successful and which aren’t, so you’ll be able to focus on those that are more profitable.
- Increasing customer loyalty
Your marketing team will find it easier than ever to keep consumers engaged with your brand and lead them through the marketing funnel as they transition from leads to customers. If you combine your CRM tool with email marketing, you’ll be able to create an unforgettable digital brand experience that will distinguish you from your competitors.
In addition, the data you collect with your CRM tool can be used to get a better insight into all the challenges and problems your customers face. Once you know all of these issues, you’ll be able to connect to your customers on a deeper level by providing them with relevant and interesting content.
- Cross-selling and upselling
It’s much cheaper to sell to an existing customer than spend money trying to acquire a new one, so when someone shows that they’re interested in your products, you need to keep them around. You can use your CRM to create a variety of automated communications that give you the opportunity to do business with customers again and again.
One way you can approach this is to set up an email marketing campaign that is triggered when a customer purchases something from your store. That customer will then receive emails in which you will offer them complementary products that go well with the one they just purchased.
- Creating personalized communications
Personalization is of great importance in the retail world, as it allows you to connect to your customers and show you care about them, not just their money. When you use a CRM tool, you can send targeted personalized messages to all of your customers.
These personalized messages will include much more than just the recipient’s name. Your CRM tool will help create tailored messages based on demographics and behaviors as well. As you’ll have access to a plethora of data, you’ll be able to customize communications to be as personal as possible.
- Providing better customer service
Customer service becomes a breeze with a CRM tool, as your team will have access to all past communications and the customer’s history with your company as soon as they contact you. This will make communications more efficient and agents will be able to solve all problems much faster.
- Increasing sales and ROI
A CRM tool allows you to automate communications, marketing, and sales processes, all of which will lead to your sales and marketing ROI increase. Since your team will have access to data that allows them to create better strategies, you’ll attract more quality leads and close sales much faster.
One of the things you can do with your CRM tool is to analyze data to determine what time is ideal to communicate with customers and when you’re most likely to get a reply. This will save a lot of time while also minimizing the cost of every sale.
- Boosting employee productivity
Automation is something every business needs to implement. As soon as you find the right tool and create repeatable processes, your team will be able to be much more productive. They won’t have to focus on menial and repetitive tasks, so they will save a significant amount of time.
Even though the cannabis industry is still relatively new, its steady growth isn’t surprising at all. If you run your own cannabis business and are hoping to improve sales, you need to realize that your customers are the key to your success and their satisfaction should be your number one priority.
As long as you work hard on improving customer experience and strive to turn one-time shoppers into loyal customers, you won’t have to worry about anything else. And don’t forget to find the perfect CRM tool, because it could be the thing that will make or break your business.
Speaking of which… feel free to check out the DirectScale tool. It may be the last piece of the puzzle you need to find success in the cannabis industry.