Many recreational dispensaries don’t have a good understanding of who their customers are. At first, they don’t need to – they have lines out the door. But as the industry matures and expands with competition, there needs change. There comes a point when simply having cannabis to sell is not enough to keep customers. This is why many successful and expanding dispensaries proactively implement tactics and tools to help them build customer relationships...before this point in time comes. One of the most successful customer relationship-building tools is a customer relationship management (CRM) software.
From increasing retention rates to expanding your business, CRM software can improve your dispensary's value in multiple ways. It helps you target your marketing and communications to improve customer service, customer experience, and loyalty. If you don’t already have a CRM system, you could be missing out on potential revenue adding to your bottom line...and this won’t go unnoticed by business stakeholders.
When searching for dispensary software, such as a CRM, it’s important to look for tools that were designed specifically for the cannabis industry. A cookie-cutter program will not address the nuances of the cannabis industry. But an industry-specific CRM, like Baker, address all regional compliance needs on top of providing you with all the tools and features you need to properly build customer relationships and customer loyalty.
Why a CRM Improves Your Business Value
Using a CRM can increase your revenue by as much as 15%! It’s a well-known fact that it costs five times as much to attract a new customer then to keep an existing one. Therefore customer retention costs your business less than customer acquisition. The probability of selling to a new prospect is only 5-20% while the probability of selling to an existing customer jumps up to 60-70%. Customer relationship management software is designed to make it easier for you to build more personal relationships with your customers – this, in turn, increases customer retention and loyalty.
Not only do loyal dispensary customers come in more often, but they also spend more too. The “regulars” to your dispensary spend 67% more and because retention is more cost-effective than customer acquisition, this focus on customer loyalty will boost your revenue.
Why a POS isn’t a CRM
While some cannabis point of sale (POS) software offer some similar features to a CRM, they are not a complete solution and do not produce the same results. After all, POS system is designed to run transactions and keep your business compliant, but they don’t have all the features necessary to successfully build customer relationships. Using just parts of a POS or generic CRM (not specifically designed for the cannabis industry) typically is not enough to develop loyal customers and repeat business in this industry.
How a CRM Helps You Stand out from the Competition
A cannabis-specific CRM software will also help you stand out to investors and stand out in your cannabis retailer application. For Baker clients that are applying for their retail license, we can help provide visuals and examples to support your application and make it stand out. Having a CRM shows investors and those reviewing your application that you’re forward-thinking, technology-driven, and place an emphasis in your relationships with customers and the community.
CRM Software and Compliance
Compliance is another important topic for anyone operating in the cannabis industry. This is why using a CRM designed for the cannabis industry, like Baker, is so important to your business. Using Baker, not only will you abide by all Telephone Consumer Protection Act (TCPA) requirements, but it satisfies your region’s compliance requirements – which vary across states and counties.
Launch Top-Performing Marketing Campaigns
A person using cannabis to provide relief from chronic pain will want different products than a recreational user. With a CRM, you can target topical treatments to the customer with chronic pain and separate them from marketing campaigns for customers with different cannabis needs. You can make sure your marketing strategies are designed with each unique customer in mind.
Create a Buzz for New Products
You can have the most amazing product in the world, but you will never sell a single item if customers do not know about it. With a CRM, you can immediately promote your new products and merchandise. It only takes a few seconds to send out a text message campaign with details and information about your newest product line.
Crush it with Text Message Campaigns
Text or SMS messages are a top way to reach your customers, as 98% of text messages are read, but only 23% of emails are read. SMS campaigns also have significantly higher conversion rates that lead to an actual purchase – only 0.9% for email, but 11.8% for SMS.
A CRM platform allows you to use the information you do have about your customers to segment them into lists when you send an SMS message or text campaign.
It is time to leverage the power of SMS marketing, and we can help.
Improve Customer Experience and Loyalty
If you have a client who just enjoys smoking on the weekends at friends, a topical product for pain is probably not the best option for that individual. Your CRM helps you improve your communications with customer by directing appropriate campaigns to customers about the exact products they want or need. This approach is useful when you are designing your dispensary business plan. There are many gaps in the marketplace you can fill, but customer service is a popular option. You may not be able to offer products that are unique to your dispensary, but you can make sure your customers receive top quality customer service and an experience that makes them want to come back again and again.
Build a Loyalty Program
Building a successful dispensary is all about getting repeat business into your shop. A loyalty program allows you to give your return customers discounts, points, and other rewards. You can also customize your loyalty program to provide first-time visitors with a reward that will help to turn first-time visits into repeat business thanks to a positive first experience.Customers love joining a loyalty program because it allows them to save money and discover new products, while still getting the classic products they’re used to. These customers often feel like they are getting an exclusive, customized offer just for them. If a customer receives a loyalty discount, they are more likely to return to your dispensary instead of shopping elsewhere.
The Next Level of Loyalty
The personalized messaging and top-quality customer experience play a significant role in transitioning customer satisfaction into true customer loyalty. Your CRM will help you transform average customers into brand advocates that will share their experience with friends and family, bringing new referral-based customers to your door. Learn more about what it takes to establish loyalty throughout the customer journey from our recap article “Top 5 Marketing Insights From Hubspot Inbound.”
Connect Your Customer-Facing Operations
You do more than just sell products to your customers. You also provide marketing and customer service to each client. You’re likely using different systems that don’t speak to each other for sales, customer service and marketing. By using a POS integration with your CRM, you can get a more complete understanding of your customers since you can combine customer order information with customer interests and preferences. Through the integration, your product sales, marketing tools, and customer service portals can all work together cohesively; allowing you to reach each customer with the right messages and marketing for their needs.Not only will the CRM integration help you provide the best customer experience possible, but it will also save your dispensary time by eliminating repetitive and manual tasks. For example, instead of having to update your product menu on a third-party listing site and then update your website menu for online ordering, you can automatically pull the product information from your POS to update your menus in near real-time.
A dispensary-specific CRM gives you the exact customer service, sales and marketing options you need. This type of CRM software offers the right solution for dispensaries and allows you to start growing your revenue. That’s where Baker comes in!Get in touch with us to request a demo of our cannabis-centric software. It’s the only online tool you’ll need to maintain your dispensary’s customer service and marketing requirements.