Dispensary KPI #6: Review Rate

Your dispensary's Review Rate is a vital metric that measures customer engagement and satisfaction while directly impacting local visibility and new customer acquisition.

Based on our analysis of single-store, multi-store, and multi-state dispensaries across the United States, this key performance indicator significantly influences a dispensary's local search rankings and customer trust.

Review Rate measures the percentage of customer transactions resulting from an online review. For example, if your dispensary receives 20 reviews from 100 transactions monthly, your Review Rate is 20% (20 reviews/100 transactions = 20%).

Based on our proprietary BNCHMRK dataset, here's how we categorize dispensary Review Rate performance:

• Great: New Customer Review Rate ≥ 1.25%

• Average: New Customer Review Rate between 1.25% and .5%

• Needs Improvement: New Customer Review Rate < .5%

Author Note: this target will evolve as our dataset grows. Based on market maturity, local competition, customer demographics, and review generation strategies, individual review rates can vary.

Our latest data from October 2024 shows significant variations in Review 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

• Dispensaries Scoring 'Great': 25% of dispensaries scored in this range with an average Review Rate of 1.8%

• Dispensaries Scoring 'Average': 12.5% of dispensaries scored in this range with an average Review Rate of .94%

• Dispensaries Scoring 'Needs Improvement': 62.5% of dispensaries scored in this range with an average Review Rate of .22%

To accurately calculate your dispensary's Review Rate, follow these steps:

#1. Track Total Reviews

• Count new reviews across all platforms:

  • Google Business Profile

  • Weedmaps

  • Leafly

  • Yelp

  • Other industry-specific platforms

#2. Count Total Transactions

Include all sales channels:

• In-store purchases

• Online orders

• Delivery orders

• Express pickup

#3. Formula

Review Rate = (Total Monthly Reviews / Total Monthly Orders) × 100

Several key factors influence your dispensary's Review Rate:

Customer Experience Variables

Staff Interaction Quality

• Budtender knowledge and friendliness

• Check-in process efficiency

• Checkout experience

• Problem resolution effectiveness

Product Selection and Availability

• Menu variety

• Stock consistency

• Product quality

• Price competitiveness

Store Environment

• Cleanliness and organization

• Wait times

• Store layout

• Parking accessibility

Review Generation Systems

Review Request Timing

• Post-purchase automation

• Follow-up sequence optimization

• Multi-channel approach

• Frequency management

Staff Training

• Review request protocols

• Timing guidelines

• Response handling

• Feedback management

Technology Integration

• POS system connection

• SMS/Email automation

• Review management platforms

• Response tracking

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

Customer Experience Enhancement

Staff Development

• Comprehensive product training

• Customer service protocols

• Review request training

• Feedback handling procedures

Service Optimization

• Wait time reduction

• Express pickup efficiency

• Online ordering improvement

• Delivery service enhancement

Product Management

• Inventory consistency

• Quality control

• Menu optimization

• Price competitiveness

Review Generation Process

Automated Systems

• Post-purchase messaging

• Review request timing

• Platform selection

• Follow-up sequences

Staff Engagement

• Performance tracking

• Incentive programs

• Training systems

• Success recognition

Customer Communication

• Request personalization

• Multiple contact points

• Platform guidance

• Feedback acknowledgment

Review Management

Response Systems

• Quick response protocols

• Template development

• Issue resolution

• Positive reinforcement

Performance Tracking

• Platform monitoring

• Response time measurement

• Satisfaction scoring

• Trend analysis

Quality Control

• Content monitoring

• Response consistency

• Platform management

• Brand alignment

Implementation Framework

Successful Review Rate improvement requires a systematic approach:

Assessment

• Current performance review

• Challenge identification

• Resource evaluation

• Competitive analysis

• Process documentation

Strategy Development

• Impact prioritization

• Resource allocation

• Timeline development

• Goal setting

• Measurement planning

Execution Management

• Performance monitoring

• Team feedback collection

• Customer input gathering

• Strategy adjustment

• Success recognition

To get a complete picture of review performance, monitor these related KPIs:

• Average Star Rating

• Review Response Rate

• Customer Satisfaction Score (CSAT)

• Net Promoter Score (NPS)

• Customer Return Rate

• 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 Review Rate, focus on enhancing the customer experience, implementing effective review generation systems, and managing customer feedback thoughtfully. Successful dispensaries leverage a combination of staff training, technology integration, and personalized customer interactions to encourage more reviews and improve local visibility.

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

What is a good Review Rate for a dispensary?

A good Review Rate is 1.25% or higher, meaning 1.25% of all transactions result in a customer leaving a review. Our data shows top-performing dispensaries achieve rates of over 2.4%, while the dataset average is .71%.

How do you calculate Review Rate for a dispensary?

Calculate the Review Rate by dividing the total reviews by the total transactions and multiplying by 100. For example, if you receive 50 reviews from 100 transactions, your Review Rate is 50% (50/100 × 100 = 50%).

Which review platforms should I track?

Track reviews across all major platforms: Google Business Profile, Weedmaps, Leafly, Yelp, and any relevant industry-specific sites. Focus particularly on the platforms most used in your market.

How often should I calculate my dispensary's Review Rate?

Track Review Rate weekly and monthly to identify trends and adjust strategies. Quarterly and annual rates should also be calculated to account for seasonal variations and long-term patterns.