Alpine IQ: Master Dispensary Audience Segmentation

Eric Allred Head of ProductOCT 7, 2024, Email & SMS

In the competitive landscape of cannabis retail, understanding and effectively engaging your customer base is paramount. 

Alpine IQ offers dispensaries powerful tools for audience segmentation, enabling targeted email and SMS marketing campaigns that drive engagement and sales. 

This comprehensive guide will explore leveraging Alpine IQ's capabilities to master your dispensary's audience segmentation strategy.

The Foundation of Effective Cannabis Marketing

Quality Over Quantity: Engaging Your Best Subscribers

Regarding dispensary email and SMS marketing, the adage "quality over quantity" couldn't be more relevant. Your communication strategy should engage your most responsive subscribers as frequently as possible rather than blast messages to the largest audience.

Why? Because engaged subscribers are more likely to:

  • Open and read your messages

  • Click through to your website or offers

  • Make purchases based on your promotions

  • Provide valuable feedback and data

Focusing on these high-value subscribers will improve the ROI of your marketing efforts and build stronger, more profitable customer relationships. It will also help you improve your sending score so that when you do send, your messages are seen.

Screenshot of Alpine Forecasted Audience Size

Screenshot of Alpine Forecasted Audience Size

Ideal Segment Sizes

While it might be tempting to create highly specific micro-segments, finding the right balance between personalization and efficiency is crucial. 

Over-engineering your segments can lead to diminishing returns, as the cost and effort of creating tailored content for tiny audiences may outweigh the benefits.

As a general rule, aim for segment sizes that are:

  • Large enough to justify the resources spent on creative, copy, and campaign management

  • Small enough to maintain relevance and personalization

  • Typically between 500-5000 subscribers, depending on your total audience size

Remember, the goal is to maximize impact while minimizing unnecessary complexity in your marketing program.

Aligning Segmentation with Dispensary Goals

Effective segmentation isn't just about dividing your audience – it's about mapping these divisions to your business objectives. When building segments in Alpine IQ, consider:

  1. Operational requirements: What are your dispensary's key performance indicators (KPIs)?

  2. Business outcomes: How can segmentation help you achieve specific goals?

  3. Customer journey: How do different segments align with various customer lifecycle stages?

By framing your segmentation strategy around these considerations, you'll create a framework that organizes your audience and drives meaningful business results.

Essential Audience Segments for Dispensaries

Leveraging Alpine IQ's robust segmentation capabilities, you can create highly targeted groups based on customer attributes and behaviors. Let's explore the key subscriber segments every dispensary should consider:

Email Subscriber Segments

Screenshot of Alpine Email Subscriber Non-Loyalty Member Audience Builder

Screenshot of Alpine Email Subscriber Non-Loyalty Member Audience Builder

Email Subscribers, Non-Loyalty Members

Purpose: Target potential loyal customers who haven't yet joined your loyalty program. 

Strategy: Focus on showcasing the benefits of your loyalty program and providing value that encourages sign-ups. This segment highlights exclusive offers and demonstrates the advantages of becoming a loyal member.

Screenshot of Alpine All Email Subscriber Audience Builder

Screenshot of Alpine All Email Subscriber Audience Builder

Email Subscribers (All)

Purpose: Reach your entire email audience for broad communications and major announcements. 

Strategy: Use this segment for new product launches, dispensary-wide promotions, and important updates. It's also useful for A/B testing content and helps you understand what resonates with your broader audience.

SMS Subscriber Segments

Screenshot of Alpine SMS Subscriber Non-Loyalty Member Audience Builder

Screenshot of Alpine SMS Subscriber Non-Loyalty Member Audience Builder

SMS Subscribers, Non-Loyalty Members

Purpose: Engage SMS subscribers who haven't joined your loyalty program with targeted, high-impact messages. 

Strategy: Send concise, compelling messages about joining your loyalty program and exclusive SMS-only offers. Use this channel to demonstrate the immediate benefits of being a loyalty member.

Screenshot of Alpine SMS Subscriber Audience Builder

Screenshot of Alpine SMS Subscriber Audience Builder

SMS Subscribers (All)

Purpose: Quickly reach all SMS subscribers with time-sensitive information and promotions. 

Strategy: Utilize this segment for flash sales, limited-time offers, and important dispensary updates. SMS is perfect for creating urgency and driving immediate action.

Crucial Exclusion Segments

Screenshot of Alpine Inactive Email Audience Builder

Screenshot of Alpine Inactive Email Audience Builder

Inactive Email Subscribers

Purpose: Exclude to improve overall email engagement metrics and deliverability.

Strategy: Identify and separate subscribers who haven't opened emails in a specified period to prevent sending them to unengaged addresses.

Screenshot of Alpine Inactive SMS Audience Builder

Screenshot of Alpine Inactive SMS Audience Builder

Inactive SMS Subscribers

Purpose: Maintain SMS list quality and optimize engagement rates.

Strategy: Isolate numbers that haven't responded to or interacted with SMS messages to prevent wasting resources on unresponsive contacts.

Failed Email / SMS

Purpose: Maintain list hygiene and ensure compliance with marketing regulations. 

Strategy: Regularly attempt to update contact information for these subscribers to re-engage them. This segment is crucial for maintaining the overall health of your marketing lists and improving deliverability rates.

Engaged Email vs. Engaged SMS Segments

Understanding the distinction between engaged email and SMS subscribers is crucial for optimizing your communication strategy. Alpine IQ allows you to analyze engagement patterns across both channels:

  • Email Engagement: Track email campaigns' open rates, click-through rates, and conversion rates.

  • SMS Engagement: Monitor response rates, coupon redemptions, and store visits prompted by text messages.

By comparing these metrics, you can:

  1. Identify which channel works best for different types of messages or promotions

  2. Tailor your content strategy for each medium

  3. Allocate resources more effectively between email and SMS campaigns

Remember, a customer highly engaged with SMS might not be as responsive to emails, and vice versa.

Use this insight to create a multi-channel approach that respects individual preferences and maximizes overall engagement.

Engagement Segments

Engagement segmentation allows you to tailor your marketing efforts based on how customers interact with your touchpoints. This approach helps nurture highly engaged customers and increase engagement among less active ones.

Screenshot of Alpine Email Open, Web Visit, or In-Store Purchase Audience Builder

Screenshot of Alpine Email Open, Web Visit, or In-Store Purchase Audience Builder

Number of Opened Emails

Purpose: Optimize email marketing strategies and content.

Strategy: Reward high email engagers with exclusive content, while creating re-engagement campaigns for low openers.

Number of Website Visits

Purpose: Enhance the online experience and drive conversions.

Strategy: Offer personalized online experiences for frequent visitors and create campaigns to encourage more web engagement from infrequent visitors.

Number of In-Store Visits

Purpose: Maximize the value of in-person interactions.

Strategy: Provide VIP treatment for frequent visitors and create compelling offers to increase the frequency of visits for occasional shoppers.

Loyalty Program Segmentation

Screenshot of Alpine Birthday Audience Builder

Screenshot of Alpine Birthday Audience Builder

Birthday

Purpose: Create personalized, timely offers to celebrate customers' birthdays and increase engagement. 

Strategy: Send special birthday offers, exclusive discounts, or gifts to make customers feel valued. This highly personal approach can significantly boost engagement and loyalty.

Screenshot of Alpine Tiered Reward Audience Builder

Screenshot of Alpine Tiered Reward Audience Builder

Tiered Rewards

Purpose: Tailor offers and communications based on customer value and loyalty program tier. 

Strategy: Create separate segments for each tier of your loyalty program (e.g., Bronze, Silver, Gold). This allows you to offer tier-specific rewards, communicate progress toward the next tier, and incentivize increased engagement to reach higher levels.

Visit-Based Segmentation Strategies

Understanding how often customers visit your dispensary is crucial for tailoring your marketing efforts.

Alpine IQ allows you to create segments based on the number of visits, enabling you to craft messages that resonate with customers at different stages of their relationship with your business.

Pro Tip: Comparing these segments against each other also gives you a macro insight into when a typical customer drop-off happens.

Screenshot of Alpine First Visit Audience Builder

Screenshot of Alpine First Visit Audience Builder

First Visit Customers

Purpose: Welcome new customers and make a strong first impression.

Strategy: Create a warm, inviting experience that encourages return visits. Provide educational content about your products and services, and introduce your loyalty program.

Screenshot of Alpine Second Visit Audience Builder

Screenshot of Alpine Second Visit Audience Builder

Second Visit Customers

Purpose: Reinforce the positive experience from the first visit and begin building a habit.

Strategy: Acknowledge their return, offer a special "second visit" promotion, and gather feedback on their initial experience.

Screenshot of Alpine Third Visit Audience Builder

Screenshot of Alpine Third Visit Audience Builder

Third Visit Customers

Purpose: Solidify the customer relationship and encourage increased engagement.

Strategy: Introduce more diverse product offerings, personalize recommendations based on previous purchases, and highlight the benefits of becoming a regular customer.

Screenshot of Alpine Fourth Visit Audience Builder

Screenshot of Alpine Fourth Visit Audience Builder

Fourth Visit Customers

Purpose: Recognize emerging loyalty and incentivize continued patronage.

Purpose: Offer rewards for consistent visits, introduce exclusive "frequent shopper" perks, and seek deeper customer insights through surveys or feedback requests.

Screenshot of Alpine Fifth Visit Audience Builder

Screenshot of Alpine Fifth Visit Audience Builder

Fifth Visit and Beyond

Purpose: Cultivate long-term loyalty and turn customers into brand advocates.

Strategy: Provide top-tier service, offer personalized experiences, and create opportunities for customers to engage with your brand beyond purchases (e.g., events and community initiatives).

Lifecycle Segmentation for Customers

Customer lifecycle segmentation allows you to tailor your marketing efforts based on where each customer is in their journey with your dispensary.

Pro Insight: These segments are created from individual customer buying distribution behaviors, meaning they comprise a series of individual buying behaviors relative to a person rather than a holistic criteria that assigns them into a segment; we'll share an example of a calculation for each below.

Alpine IQ's powerful analytics enable you to create and target these critical lifecycle segments:

Screenshot of Alpine Lifecycle Active Audience Builder

Screenshot of Alpine Lifecycle Active Audience Builder

Active Customers

Purpose: Maintain engagement and encourage increased frequency and spending. 

Strategy: Regular communication with personalized product recommendations, early access to new products, and targeted promotions based on purchase history.

Example Qualification Criteria: Active (100%) = they come in every 10 days

Screenshot of Alpine Lifecycle Chilling Audience Builder

Screenshot of Alpine Lifecycle Chilling Audience Builder

Chilling Customers

Purpose: Re-engage customers showing signs of decreased activity before they become inactive. 

Strategy: Send "We miss you" messages, offer incentives to return, and provide updates on new products or services that align with their preferences.

Example Qualification Criteria: Chilling (1x) = it’s been 20 days since last visit (10 days + 1 X 10 days)

Screenshot of Alpine Lifecycle Absent Audience Builder

Screenshot of Alpine Lifecycle Absent Audience Builder

Absent Customers

Purpose: Reactivate customers who have not purchased in a while. 

Strategy: Create a win-back campaign with compelling offers, remind them of your unique value proposition, and ask for feedback on their absence.

Example Qualification Criteria: Absent (1.5x) = it’s been 25 days since last visit (10 days + 1.5 X 10 days)

Screenshot of Alpine Lifecycle Highly Absent Audience Builder

Screenshot of Alpine Lifecycle Highly Absent Audience Builder

Highly Absent Customers

Purpose: Make a final push to re-engage customers at high risk of churning. 

Strategy: Offer significant incentives for returning, provide a personalized outreach if possible, and consider a survey to understand why they've stopped visiting.

Example Qualification Criteria: Highly absent (1.75x) = it’s been 27.5 days since last visit (10 days + 1.75 X 10 days)

Screenshot of Alpine Lifecycle Gone Audience Builder

Screenshot of Alpine Lifecycle Gone Audience Builder

Gone Customers

Purpose: Attempt to revive the relationship with customers who haven't engaged in an extended period. 

Strategy: Create a "We want you back" campaign with a strong offer, highlight any major changes or improvements since their last visit, and consider removing them from regular communication if there's no response.

Example Qualification Criteria: Gone (2x) = it’s been 30 days since last visit (10 days + 2 X 10 days)

Purchase-Type Segmentation

Understanding how customers prefer to shop with your dispensary can inform your marketing strategies and operational decisions.

Alpine IQ allows you to segment customers based on their preference for purchasing:

Screenshot of Alpine Online Order Audience Builder

Screenshot of Alpine Online Order Audience Builder

Online Customers

Purpose: Enhance the digital shopping experience and encourage repeat online orders.

Strategy: Optimize your online menu, offer exclusive online-only deals, and provide targeted email campaigns featuring easy re-order options.

Screenshot of Alpine In-Store Audience Builder

Screenshot of Alpine In-Store Audience Builder

In-Store Customers

Purpose: Maximize the value of face-to-face interactions and encourage more frequent visits.

Strategy: Train staff on personalized recommendations, create in-store-only promotions, and use SMS to alert customers about in-store events or flash sales.

Screenshot of Alpine Delivery Audience Builder

Screenshot of Alpine Delivery Audience Builder

Delivery Customers

Purpose: Streamline the delivery experience and increase order frequency.

Strategy: Offer incentives for repeat orders, provide accurate delivery time estimates, and create bundled deals for delivery customers.

Segmenting by Monetary Value

Segmenting customers based on their spending habits allows you to tailor your marketing efforts to maximize revenue from each group.

Alpine IQ's analytics can help you create these valuable segments:

Screenshot of Alpine High Spending Audience Builder

Screenshot of Alpine High Spending Audience Builder

High-Spending Customers

Purpose: Retain these valuable customers and increase their loyalty.

Strategy: Offer premium products, VIP experiences, early access to new products, and personalized specials to make them feel valued.

Screenshot of Alpine Medium Spending Audience Builder

Screenshot of Alpine Medium Spending Audience Builder

Medium-Spending Customers

Purpose: Encourage increased spending and move them towards the high-spending segment.

Strategy: Introduce tiered pricing strategies, bundle deals, and loyalty program incentives that reward increased spending.

Screenshot of Alpine Low Spending Audience Builder

Screenshot of Alpine Low Spending Audience Builder

Low-Spending Customers

Purpose: Increase transaction size and frequency.

Strategy: Offer entry-level product bundles, educate on product benefits to justify higher prices, and offer incentives for trying new products.

Frequency-Based Customer Categories

Understanding how often customers shop with you is crucial for developing retention strategies and encouraging more frequent visits.

Alpine IQ helps you segment customers based on their purchase frequency:

Screenshot of Alpine Frequent Customer Audience Builder

Screenshot of Alpine Frequent Customer Audience Builder

Frequent Customers

Purpose: Maintain high engagement and reward loyalty.

Strategy: Exclusive access to limited products, personalized recommendations based on purchase history, and high-tier loyalty rewards.

Screenshot of Alpine Occasional Customer Audience Builder

Screenshot of Alpine Occasional Customer Audience Builder

Occasional Customers

Purpose: Increase visit frequency and overall engagement.

Strategy: Create compelling reasons to visit more often through limited-time offers, educational content about new products, and benefits from mid-tier loyalty programs.

Screenshot of Alpine Infrequent Customer Audience Builder

Screenshot of Alpine Infrequent Customer Audience Builder

Infrequent Customers

Purpose: Boost engagement and prevent churn.

Strategy: Re-engagement campaigns, introductory offers to encourage more frequent visits and easily attainable loyalty program perks.

Recency Segmentation for Timely Outreach

Recency segmentation allows you to tailor your marketing based on how recently a customer has interacted with your dispensary.

This approach helps you maintain engagement with active customers and re-engage those who may be slipping away.

Screenshot of Alpine Recent Customer Audience Builder

Screenshot of Alpine Recent Customer Audience Builder

Recent Customers - Last 14 Days

Purpose: Capitalize on recent interactions to drive repeat purchases and build habits.

Strategy: Follow up with product recommendations based on recent purchases, ask for reviews, and offer quick return incentives.

Screenshot of Alpine Engaged Customer Audience Builder

Screenshot of Alpine Engaged Customer Audience Builder

Engaged Customers - Last 21 Days

Purpose: Maintain momentum with customers who have shown recent interest. Strategy: Share new product information, provide educational content related to their purchases, and offer loyalty point boosters for their next visit.

Screenshot of Alpine Inactive Customer Audience Builder

Screenshot of Alpine Inactive Customer Audience Builder

Inactive Customers - Last 30-60 Days

Purpose: Re-engage customers before they fully lapse.

Strategy: Send "We miss you" campaigns, share what's new since their last visit, and offer compelling reasons to return soon.

Screenshot of Alpine Lost Customer Audience Builder

Screenshot of Alpine Lost Customer Audience Builder

Lost Customers - Last 60-180 Days

Purpose: Reactivate customers who haven't engaged in a significant period.

Strategy: Create strong win-back offers, highlight major changes or improvements, and consider surveys to understand their absence.

Mapping to Dispensary Goals (Examples)

Operational mapping involves aligning your segmentation strategy with specific business operations and goals. Here are some examples of how to use Alpine IQ's segmentation for targeted campaigns:

Loyalty Point Non-Redeemers

Purpose: Encourage loyalty program engagement and point redemption.

Strategy: Send reminders about available points, highlight popular redemption options, and create limited-time point multiplier events.

Weekly Deals

Purpose: Drive regular traffic and increase average transaction value.

Strategy: Segment customers by preferred product categories and send targeted weekly deal notifications.

Happy Hour

Purpose: Boost sales during typically slower periods.

Strategy: Create segments based on customer availability (e.g., after-work shoppers) and send timely happy hour promotions.

In-store Events

Purpose: Increase foot traffic and build community engagement.

Strategy: Segment by product preferences to promote relevant brand or category feature events.

Slow Moving SKUs

Purpose: Optimize inventory and increase sales of underperforming products.

Strategy: Identify customers who have purchased similar products and offer targeted promotions for slow-moving items.

Special Drop

Purpose: Generate excitement and drive sales for new or limited products.

Strategy: Create a VIP segment of high-value customers to offer early access or exclusive invitations to special product drops.

Out-of-Town / Seasonal Customers

Purpose: Maximize value from non-local or infrequent visitors.

Strategy: Create targeted campaigns around tourist seasons or major events, offering special packages or local-themed products.

Conquesting Competitor Customers

Purpose: Attract customers from competing dispensaries.

Strategy: Use location data to identify potential customers near competitors and offer compelling first-time visitor promotions.

By leveraging Alpine IQ's powerful segmentation tools and applying these strategies, you can create highly targeted, effective marketing campaigns that drive engagement, increase customer loyalty, and ultimately boost your dispensary's bottom line. Remember to continuously analyze your results and refine your segments for optimal performance.

Advanced Alpine IQ Techniques

Leveraging Alpine IQ's sophisticated features allows you to create more nuanced and effective segmentation strategies. Here are some advanced techniques to consider:

Multi-Channel Engagement Analysis

Purpose: Understand how customers interact across different communication channels.

Strategy: Use Alpine IQ's cross-channel tracking to identify customers who engage on multiple platforms (e.g., email, SMS, and in-app notifications).

Tailor your messaging to leverage their preferred channels and create a cohesive, omnichannel experience.

Predictive Churn Modeling

Purpose: Identify and re-engage customers at risk of churning before they become inactive.

Strategy: Utilize Alpine IQ's AI-driven predictive analytics to spot patterns indicative of potential churn. Create proactive retention campaigns for these at-risk customers, offering personalized incentives to keep them engaged.

Product Affinity Segmentation

Purpose: Optimize product recommendations and cross-selling opportunities.

Strategy: Analyze purchase history to identify product affinities and create segments based on preferred product categories or consumption habits. Use this information to craft targeted promotions and personalized product suggestions.

KPIs for Segmented Campaigns

To ensure your segmentation efforts are driving real results, tracking relevant Key Performance Indicators (KPIs) is crucial. Alpine IQ provides robust analytics tools to help you measure the success of your campaigns:

Engagement Metrics

  • Open rates and click-through rates for email campaigns

  • Response rates and conversion rates for SMS campaigns

  • App usage statistics and push notification engagement

Conversion Metrics

  • Redemption rates for segment-specific promotions

  • Average order value (AOV) by segment

  • Purchase frequency changes within segments

Loyalty Program Metrics

  • Program enrollment rates from targeted campaigns

  • Point accumulation and redemption rates by segment

  • Tier progression rates for segmented loyalty members

Customer Lifetime Value (CLV)

  • Track changes in CLV across different segments

  • Measure the impact of segmented campaigns on overall CLV

Return on Investment (ROI)

  • Calculate the ROI of segment-specific marketing efforts

  • Compare campaign performance across different segments

Reviewing these KPIs will help refine your segmentation strategy and optimize your marketing efforts for maximum impact.

Elevating Dispensary Marketing with Alpine IQ

Mastering audience segmentation through Alpine IQ can significantly enhance your dispensary's marketing effectiveness. By creating targeted, relevant campaigns for specific customer groups, you can:

  1. Increase customer engagement and loyalty

  2. Improve the efficiency of your marketing spend

  3. Drive higher conversion rates and average order values

  4. Create a more personalized and satisfying customer experience

Remember that effective segmentation is an ongoing process. Continuously analyze your results, refine your segments, and adapt your strategies based on changing customer behaviors and market conditions.

Key Takeaways for Segmentation Mastery

  1. Focus on quality over quantity in your subscriber base

  2. Align your segmentation strategy with specific business goals

  3. Utilize a mix of demographic, behavioral, and engagement-based segments

  4. Leverage Alpine IQ's advanced features for predictive analytics and multi-channel engagement

  5. Continuously measure and optimize your segmented campaigns

  6. Always prioritize customer privacy and regulatory compliance

Next Steps for Implementation

  1. Audit your current customer data and identify gaps in your segmentation strategy

  2. Set up key segments in Alpine IQ based on your business priorities

  3. Develop targeted content and offers for each primary segment

  4. Implement A/B testing to refine your messaging and offers

  5. Establish a regular review process to assess the performance of your segmented campaigns

  6. Stay informed about industry trends and update your segmentation strategy accordingly

By leveraging Alpine IQ's powerful segmentation tools and applying these strategies, you can create a sophisticated, data-driven marketing approach that sets your dispensary apart in a competitive market.

Remember, the goal is not just to sort your customers into groups but to create meaningful, personalized experiences that drive long-term loyalty and business growth.

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