Note: This article was originally published on LinkedIn and can be accessed via this link. The information included may be outdated.

April 20th is known for raking in record-breaking dispensary sales volume. 4/20 in 2022 continued the trend as the "largest single-day driver of dispensary sales".

At the category level, Headset reported an 86% increase in cart volume during 4/20 of 2021 compared to the previous month. Looking at 2022, flower sales declined slightly while pre-rolls, vaporizers, and edibles shot up in popularity in April.

Product trends will always ebb and flow, but one thing’s for sure: 4/20 is always a massive opportunity for cannabis retailers to reach new customers and turn them into regulars. So if you're running or working for a cannabis dispensary, follow these tips to incentivize customers before, during, and after 4/20:

1. Use dispensary technology that allows you to market your 4/20 deals seamlessly

Dispensary managers can (and should) use available tech platforms to promote 4/20 deals and get the most in-store traffic. Everything is on the table, including rewards/loyalty programs, e-commerce platforms, social, in-app marketing (like Spendr), SMS marketing, and Point-of-sale(POS).

If you have an omnichannel plan to reduce back-and-forth, even better! The technology you choose for your store should make compliance easier. You’ll get promotions that are easier to trace and cleaner data.

Use cash-back rewards to turn new shoppers into loyal customers

Happy Cabbage Analytics found that dispensary loyalty programs encourage consumers to spend more during each visit. Customers like turning points into discounted dollar amounts because they feel more tangible to redeem than other types of rewards (like swag or accessories).

To add exclusivity, you could set up your dispensary reward program with tiers that customers earn by spending specific dollar amounts

This tactic entices consumers with goals since points/reward dollars build up over time, “thus saving money and building long-term loyalty.”

Promote deals on your online store, rewards app, & social media channels

Strategically use your tech to hype up your customers for the best 4/20 yet! While in-store sales boards and posters have benefits, you’ll miss potential customers if you don’t get loud online too. Announce your 4/20 deals in advance, so consumers know your store is the place to shop.

Update the deals on your e-commerce engine and your mobile rewards app

Share your 4/20 campaigns with email marketing and SMS communications, and engage your social media following.

Pro tip: You don’t need to discount everything in the store

Focus on your POS data to narrow down your best-selling products and popular brands. Over-discounting can work against you in the long run because customers may associate a lesser value to the product line or expect discounts every time they visit your dispensary.

Don’t forget to back up your technology with a hotspot in case your internet fails

Even if your software is known for zero downtime, be prepared for compromised bandwidth. None of your clerks or customers will enjoy the slow manual sales process on the Christmas of cannabis.

2. Do a deep dive into your consumer data and move into action

This step teaches you how to understand consumer trends and apply that information. First, gather all resources. You should rely on your POS and rewards app insights to know what sells best. If you’ve already been marketing to customers, consider your CRM data.

Merchandise your store according to what you discover

While you want to stay accessible to medical patients by leaving topicals and RSO in plain sight, organize the rest of your shelves according to your sales numbers. Put can’t-miss 4/20 deals in a prominent location, with plenty of backstock readily available.

Next, look into what sold well during 4/20 the year prior and make those products a secondary focus. Think about what you can cross-sell to your typical consumer. Finally, in any retail environment, it’s always best to keep add-ons by the register, like single pre-rolls or gummies.

Now that we’ve covered your brick-and-mortar strategy—let’s go digital

Surfside’s cannabis ad platform talks about personalizing marketing to connect with your audience. Create a spreadsheet with your CRM information and add other elements of your customer’s journey, like their transaction history. Organizing your data this way will allow for a full view of each customer. If that sounds overwhelming, start with your frequent customers.

Like Surfside says in “Your 4/20 Cannabis Digital Advertising Checklist: Audience Data, Ad Creative, Attribution,” use customer data to streamline your marketing:

“For example, if you have a customer group who only purchases flower and you’re advertising a special for edibles, you probably don’t want to waste ad budget [marketing resources] showing ads [promos] to flower buyers.”

Not only do you want to attract new customers on 4/20, but you also want to affirm your relationship with recurring shoppers. Consider rewarding them with spending milestones for their continued support.

Customers want on-the-go convenience

Since customers respond better to personalized marketing, it makes sense that 33% of customers who left loyalty programs did so because the multi-channel experience wasn’t addressed. Rewards and promotions should have a mobile app so customers can surf discounts, shop, and become loyal on their terms.

If your app has built-in retention marketing and your customers can submit cashless payments from their phones, you’re ahead of the pack.

3. Make the in-store experience more efficient with an inventory audit, a fast lane, and QR code checkouts

Rewards and promotions only matter if the in-store experience is top shelf. Consumers want to get the deal they’re promised, free of stock issues

To ensure this happens, run an inventory audit the week before 4/20. Confirm the quantities of all your products and align them in your POS, e-commerce, and other applicable systems. While it can be a big undertaking, it will make sales move faster on the big day, provide a better experience for customers, and keep compliance up-to-date.

Create an express checkout lane for customers who pre-ordered their goods on your website or for consumers who’ve set up ACH payments. Excite customers about this lane with signage.

If you don’t have the time to create a sign, no worries! Your clerks can encourage customers to use the “QR code checkout, free of charge!” If they’re new to mobile checkouts, incentivize them by choosing a partner with a sign-up reward.

In just seconds, shoppers can download the app, favorite your store, and scan a code to pay with a click. Your team can speed up transactions vs. cash for higher overall 4/20 revenue, and your customers can appreciate the new world of modern cannabis shopping.

To learn more about Spendr, the first FDIC-insured cannabis payments and rewards app of its kind, explore spendr.com or reach out to hello@spendr.com. We’d love to help you grow!

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