KPI #9: Marketing Opt-In Rate

Your dispensary's Marketing Opt-In Rate measures the percentage of loyalty members subscribing to your email marketing list. This key performance indicator is crucial for driving customer engagement, enhancing lifetime value, and improving customer communication.

Marketing Opt-In Rate measures the percentage of your loyalty program members who have opted in to receive marketing communications (primarily email).

For example, if your dispensary has 1,000 loyalty members and 600 subscribers to its email list, its Marketing Opt-In Rate is 60% (600/1,000 = 0.60).

Based on our proprietary BNCHMRK dataset, here's how we categorize dispensary Marketing Opt-In Rate performance:

• Great: Opt-In Rate ≥ 70%

• Average: Opt-In Rate between 40% and 70%

• Needs Improvement: Opt-In Rate < 40%

Author Note: this target will evolve as our dataset grows. An individual Marketing Opt-In Rate is highly dependent on the maturity of the loyalty program, quality of staff training, and effectiveness of opt-in collection processes.

Our latest data from October 2024 shows significant variations in Marketing Opt-In Rate across dispensaries in our dataset. We currently have data from dispensaries in 9 U.S. markets; below is the performance distribution by percentage:

Dispensary Performance Distribution

• Dispensary's Scoring 'Great': 75% of dispensaries scored in this range with an average Opt-In Rate of 91%

• Dispensary's Scoring 'Average': 12.5% of dispensaries scored in this range with an average Opt-In Rate of 46.31%

• Dispensary's Scoring 'Needs Improvement': 12.5% of dispensaries scored in this range with an average Opt-In Rate of 35.03%

To accurately calculate your dispensary's Marketing Opt-In Rate, follow these steps:

#1. Calculate Total Loyalty Members

• Include all active loyalty program members

• Remove inactive or churned members

• Account for duplicate profiles

#2. Count Marketing Subscribers

• Total number of opted-in email subscribers

• Include SMS subscribers if tracking combined opt-in rate

• Verify subscriber status is current and valid

#3. Formula

Marketing Opt-In Rate = (Number of Marketing Subscribers / Total Loyalty Members) × 100

Several key factors influence your dispensary's Marketing Opt-In Rate:

Staff Training Effectiveness

• Clear understanding of opt-in benefits

• Consistent ask protocols

• Value proposition communication

• Privacy concern handling

• System usage proficiency

Customer Experience

• Sign-up process simplicity

• Clear value communication

• Privacy assurance

• Immediate benefit delivery

• Multi-channel enrollment options

Program Value Proposition

• Exclusive offers for subscribers

• Early access benefits

• Educational content value

• Special event invitations

• Personalized recommendations

Technical Implementation

• Mobile-friendly signup process

• Integration with POS system

• Automated welcome sequences

• Preference management options

• Data security measures

Based on our experience working with dispensaries across multiple markets, we see several key areas that drive improvements in Marketing Opt-In Rate performance:

Staff Training Enhancement

Process Development:

• Standardized ask scripts

• Timing optimization

• Objection handling guides

• Success measurement systems

• Regular performance reviews

Knowledge Building:

• Benefits communication

• Privacy policy understanding

• System usage training

• Customer preference insights

• Success story sharing

Value Proposition Optimization

Offer Structure:

• Sign-up incentives

• Exclusive promotions

• Member-only content

• Early access opportunities

• Birthday/anniversary rewards

Communication Strategy:

• Clear benefit messaging

• Privacy assurance

• Customization options

• Content preview examples

• Success stories sharing

Technical Optimization

Process Improvement:

• Signup flow simplification

• Form field optimization

• Mobile responsiveness

• Integration efficiency

• Error handling enhancement

System Integration:

• POS system connection

• CRM data synchronization

• Automated workflows

• Preference management

• Performance tracking

To get a complete picture of marketing engagement, monitor these related KPIs:

• Overall Loyalty Opt-In Rate

• Customer Return Rate

• Marketing Efficiency Ratio (MER)

• New Customer Loyalty Opt-In Rate

• Email Engagement Rates

• BNCHMRK Monthly Reports: Access the latest insights on dispensary performance.

• Marketing Performance Scorecard: Get your  free BNCHMRK scorecard to assess your marketing efficiency.

• Consultation with Growth Experts: Schedule a free consultation with one of our cannabis growth experts for personalized advice.

To improve your Marketing Opt-In Rate, focus on enhancing staff training, simplifying the opt-in process, and communicating the value of subscribing. Successful dispensaries make marketing opt-ins an integral part of the loyalty experience, offering exclusive benefits and a seamless sign-up process that encourages high participation rates.

Last Updated: November 10, 2024. Data sourced from BNCHMRK's proprietary database of dispensary performance metrics.

What is a good Marketing Opt-In Rate for a dispensary?

A good Marketing Opt-In Rate is 70% or higher, meaning 70% or more of your loyalty members are subscribed to your marketing communications. Top-performing dispensaries achieve 80-100% rates, while the dataset average is 78%.

How do you calculate Marketing Opt-In Rate for a dispensary?

Calculate the Marketing Opt-In Rate by dividing the number of marketing subscribers by total loyalty members and multiplying by 100. For example, if you have 800 email subscribers out of 1,200 loyalty members, your rate is 66.7% (800/1,200 × 100 = 66.7%).

Which subscribers should I include in Marketing Opt-In Rate calculations?

Include all active email subscribers who have explicitly opted to receive marketing communications. Exclude bounced emails, unsubscribes, and invalid addresses. If tracking combined rates, include active SMS subscribers.

How often should I calculate my dispensary's Marketing Opt-In Rate?

Track Marketing Opt-In Rates monthly to identify trends and adjust strategies. Calculate weekly rates during promotional periods or new initiative launches to measure immediate impact.