Why Focus on Existing Customers?
Existing customers already trust your brand. They know your in-store experience, product quality, and staff expertise. This familiarity lowers the barriers to purchase, making them more likely to try new items or upgrade to premium products.
Stat to Note: Industry data often shows it’s five times more expensive to acquire a new customer than to sell to an existing one. So, by pivoting some of your resources toward cannabis upselling and cross-sell strategies, you can see a sharper increase in profitability.
1. Personalized Product Recommendations
Key Tactic: Tailor suggestions based on a customer’s past purchases. If someone regularly buys flowers, recommend a higher-grade strain or a pairing, like rolling paper or a quality grinder.
How to Implement:
- Use Purchase History: Many point-of-sale systems let you track what each customer has bought before.
- Segment Your Lists: If you’re sending marketing emails, group customers by product interest—edibles, concentrates, topicals—to deliver relevant suggestions.
- Ask Staff to Upsell: Train budtenders to briefly highlight higher-end or complementary products during checkout.
2. Timely Cross-Sell Offers
Key Tactic: Catch customers during high-intent moments—like when they add items to their online cart or reach the store’s register. Offer related items or limited-time deals that spark interest.
Examples:
- Edibles + Beverage Pairing: If a customer is buying THC-infused gummies, suggest they try a cannabis-infused beverage that complements the flavor profile.
- Flower + Glassware: Someone purchasing a premium flower strain might appreciate an upgrade in gear, like a high-quality bong or specialized pipe.
3. Utilize Cannabis Marketing Automation
Automation makes it simpler to follow up with targeted offers at just the right time, especially as your customer base grows. Imagine you see that a particular customer typically replenishes their vape cartridges every three weeks. Automatically sending an email or SMS with a relevant upsell (like a new flavor or a discounted multi-pack) around that three-week mark can encourage timely repeat purchases.
Implementation:
- Trigger-Based Campaigns: Program your system to send cross-sell recommendations after a purchase is made or if the customer hasn’t visited in a while.
- Cart Abandonment Emails: If someone adds an accessory to their cart but doesn’t check out, remind them of the items and possibly toss in a small discount or free shipping offer.
4. Rival Response Lead Targeting for Existing Customers
You might think Rival Response lead targeting focuses solely on competitor website visitors. However, it can also help refine your approach to existing customers. For example, if data shows certain customers also browse competitor sites for edibles, you can serve them specialized ads or email offers that highlight your brand’s unique edible flavors or better pricing.
Why This Matters: By knowing exactly where else your customers shop, you can tailor your upsell or cross-sell offers to meet (and exceed) competitor offerings.
5. Measure, Optimize, Repeat
Whether you’re focusing on cannabis upselling or cross-sell strategies, a key part of success lies in tracking what works and what doesn’t. Monitor metrics such as:
- Upsell Conversion Rate: How often do customers accept an upsell offer?
- Cross-Sell Transaction Value: How much extra revenue do cross-sell items bring in on average?
- Customer Lifetime Value (CLV): The total net profit you gain from a customer over time, which should rise as you optimize your sales approach.
By analyzing these metrics, you can refine your processes, discontinuing underperforming offers and doubling down on proven winners.
Strengthening Dispensary Customer Retention
Upselling and cross-selling aren’t just about bumping sales in the short term; they can also elevate your brand experience. When your staff or marketing automations recommend genuinely relevant items, customers appreciate the personalized attention, becoming more loyal in the process.
Retention Tip: Offer loyalty points or discounts on future purchases for customers who consistently upgrade or bundle. This not only boosts immediate revenue but encourages them to come back next time they need a restock.
