Audience Segmentation: Supercharging Dispensary Loyalty

Imagine a loyal customer, Sarah, who regularly visits your dispensary. She's part of your loyalty program and frequently engages with your emails. Now, picture sending her an offer for a product she's never interested in. It's like inviting a vegetarian to a barbecue - a mismatch from a generic marketing approach.

Audience segmentation is the process of dividing your loyalty program members into smaller, more defined categories based on specific characteristics. These can range from purchasing behaviors to email interaction frequency and event attendance.

Cannabis dispensary shelves

Think of it as tailoring your marketing strategy to fit perfectly rather than opting for a one-size-fits-all approach. The result? A more profitable loyalty program.

Personalization:

Personalized marketing increases transaction rates six times more than non-personalized approaches.

Segmentation allows you to serve your loyalty program members with relevant content.

Efficient Resource Use:

Targeting specific groups allows for more efficient allocation of marketing resources.

Increased Engagement:

Tailored messages make loyal members feel understood, increasing the likelihood of brand engagement.

Audience segmentation is more than dividing your email and sms subscriber lists by age or location. Here's where RFM Analysis comes into play:

Recency

When was the last time they made a purchase? Members who've recently made a purchase might be interested in complementary products.

Here are two illustrative examples of how recency might drive different marketing approaches.

Just made a purchase

Customers who've just bought from your dispensary are prime candidates for complementary products.

If Sarah recently purchased a cannabis oil, she might be interested in a high-quality vaporizer or even complementary edibles. It's about enhancing her overall experience.

Purchased a few weeks ago

This segment might appreciate a reminder to restock or try a new arrival. They may be almost out of their last purchase and would welcome a nudge. Use your dispensary loyalty program to send targeted emails based on purchase frequency.

Offer "complementary product" discounts to those who've just purchased or "restock reminders" to those running low.

Frequency

How often do they buy? Regular buyers could benefit from special deals, while infrequent buyers might need a nudge with a unique offer.

We'll look at an example of a customer who visits more frequently than someone who stumbles back to your store every so often.

Someone who buys regularly

These are your enthusiasts. They're familiar with your products and trust your brand. For them, exclusive access to new strains, events, or even 'members-only' hours can be a treat.

The infrequent buyer

They might be exploring their options or need clarification on what they like. To reintroduce them to your offerings, this group could benefit from a sampler pack offer or a "curated product of the month." Segment your email list based on purchase frequency. Consider sending "VIP exclusive" deals to regular buyers and "discovery offers" to infrequent ones to boost their engagement.

Monetary

How much do they spend on average? Higher spenders could be enticed with premium products, while lower spenders might be more interested in discounts.

Here’s how you might view the two differently.

Higher Spenders or VIPs

These customers might seek premium, artisanal, or limited-edition cannabis products.

They value quality and exclusivity, so a first look at premium product releases or even an invitation to a tasting event can be enticing for them.

Budget-Conscious Buyers or "Ballers on a Budget."

lookout for value. They are price-sensitive; these individuals appreciate a good deal and respond to bulk purchase discounts or "happy hour" sales. Categorize your dispensary loyalty program members based on their average spend.

Craft exclusive "premium member events" for the high spenders while rolling out "value deals" or "bundle offers" for those more budget-conscious. Beyond RFM, other behaviors can be excellent proxies for segmenting loyalty members.

Behavioral Segmentation

Understanding the behavior of your dispensary loyalty program members is akin to having a cheat code for improved engagement. Let's delve deeper into the nuances:

Product Usage

How and when do your members use your products? They may prefer edibles over vapes or lean towards CBD products for medicinal purposes.

Segmenting based on product usage can help you target members with promotions or information on products they're likely to consume.

Benefits Sought

Why do your members buy cannabis products? Is it for relaxation, pain relief, or recreational use? Recognizing the underlying reasons behind a purchase can provide valuable insights.

For instance, if a segment of your loyalty program members seeks pain relief, you could target them with products or strains known for their analgesic properties.

Loyalty Levels

Not all dispensary loyalty program members are equal. Some might be frequent visitors, while others might only drop by occasionally. Segmenting based on loyalty can help tailor specific offers.

For example, you might offer exclusive discounts to your most loyal members or introduce a referral program to incentivize less frequent visitors to introduce friends.

Demographic Segmentation

While behavioral segmentation gives insights into the 'why' and 'how,' demographic segmentation offers a window into the 'who.' Here's how demographic factors come into play:

Age

Different age groups may have varying product preferences. For instance, younger adults might be drawn to trendy products like vape pens or artisanal edibles, while older adults might prioritize medicinal oils or tinctures.

Segmenting by age can help you market age-relevant products more effectively.

Gender

Men and women might have different purchasing habits or product preferences. By segmenting based on gender, you can craft gender-specific promotions.

Perhaps you've noticed that many of your female members lean towards skincare-infused cannabis products, while male members might prefer a particular strain or edible.

Knowing these preferences can refine your marketing approach.

Income

Higher-income members might not hesitate to purchase premium products, while those with a moderate or lower income might be looking for deals or value packs. Segmenting based on income can help you offer suitable promotions.

For example, luxury cannabis products can be introduced to the higher-income segment, and value bundles can be introduced to those with a tighter budget.

Occupation

A person's job can offer insights into their consumption habits. Professionals in high-stress positions seek relaxation products, while creatives might look for strains that boost creativity. By segmenting based on occupation, you can send tailored newsletters or offers that appeal directly to their professional lives and needs. When it comes to dispensary loyalty programs, the devil is in the details. By recognizing and acting upon these behavioral and demographic patterns, dispensaries can craft promotions and messages that resonate deeply, turning casual buyers into loyal enthusiasts.

Without proper segmentation, you risk:

• Lower Engagement: Generic content leads to fewer clicks and conversions

• Decreased Trust: Irrelevant content may undermine customer confidence

• Resource Drain: Untargeted approaches waste marketing resources

1. Gather data about your loyalty members through surveys, buying behavior analysis, and direct interactions.

2. Apply your findings by creating specialized campaigns for each segment.

3. Continuously test and refine your approach.

Understanding your audience's nuances is essential for dispensary growth. At CAA, we're not just experts in cannabis email marketing; we're your partners in ensuring your messages resonate with your audience.

Let's create a strategy that makes your members feel seen, heard, and valued. Audience segmentation isn't just a buzzword; it's a powerful tool that, when used correctly, can drive foot traffic and boost your bottom line.

By segmenting wisely, you can transform your dispensary loyalty program into an engagement powerhouse.

Implement these insights and watch your customer relationships and business thrive.