Even before COVID-19 brought many retail operations to a standstill, cannabis delivery service was slated to be one of the next waves set to upend the industry. It’s easy to see why: Not only does offering delivery service open a major opportunity for existing dispensaries but in jurisdictions that permit it, launching a delivery-only dispensary is a viable (and often advantageous) business model, too.
If you’re a dispensary owner/operator on the fence about offering delivery, take a moment to read our recent post about the nuts and bolts of cannabis delivery. And if your service is already up and running, we want to share 5 ways you can make it even bigger and better.
(Prefer to watch? Check out our recent webinar on growing your delivery service with targeted advertising campaigns.)
5 Ways to Grow Your Cannabis Delivery Service: Geo-Targeting
We talk a lot about display ads and geo-targeting here at Foottraffik. Why? They’re one of the most precise and effective tools at your disposal for finding potential customers where they live, work, and shop. If you’re looking to maximize your delivery service, this may be the #1 tool you’ll be leaning on.
When targeting by location, you can serve ads only to those customers within defined geographic areas, such as:
- Zipcodes: Looking to reach consumers in specific neighborhoods? Display ads can be set to target cities, towns, zip codes or neighborhoods, giving you exceptional flexibility to serve customized ads to specific residents and populations.
- A radius around your dispensary: Because a high percentage of dispensary sales are made by consumers using mobile devices on the go, targeting them when they’re in close proximity to your dispensary is a standard use of mobile display ads. But you can also use this approach to offer special delivery offers to customers in your immediate neighborhood, saving you money on employee payroll and gas while helping to build the kind of close-knit community that will help build your loyalty base.
- A radius around competing dispensaries: You can use the same idea to target the competition. Can you offer a can’t-miss deal like free delivery? Rewarding those new consumers for giving your service a try might just land you a customer for life.
- Tourist-friendly landmarks and facilities: Until we have legalization on the federal level—which may be coming sooner than you think—cannabis tourism will continue to be an alluring draw for travelers. Targeting places they congregate—airports, hotel strips, local attractions, and other landmarks—can reach those consumers at precisely the right time.
5 Ways to Grow Your Cannabis Delivery Service: Leverage Immediacy
Another hot topic here at Foottraffik is SMS marketing. Because text marketing boasts an impressively high open and response rate compared with email and other channels—and because when people want cannabis delivery, they usually want it right now—reaching out with well-crafted, highly focused texts can deliver impressive results.
Of course, the people you text have to have opted-in to your messaging service. That’s why you should be making every effort you can to capture prospective customers’ contact information. Want to know how? Begin here.
5 Ways to Grow Your Cannabis Delivery Service: SEO
SEO—short for “search engine optimization”—is one of the oldest tenets of digital marketing, and it’s still one of the most important. For years now, we’ve been using a system of careful auditing, onsite and offsite optimization, and robust real-time reporting to boost our clients’ organic search rankings. And when it comes to growing your delivery service, it needs to be a vital part of your overall strategy.
When we’re talking about delivery, the subset of SEO known as “local SEO” is particularly important, because it helps consumers near you make purchasing decisions. How can you improve your local SEO? Check out this post.
5 Ways to Grow Your Cannabis Delivery Service: Develop Customer Loyalty
Along with reputation management—your overarching strategy for controlling how your business entity is perceived—customer loyalty is a huge factor both in the retail world and the cannabis industry in particular. And while focusing on building customer loyalty isn’t a method of gaining new customers, it is a way to turn a higher number of them into your 20% of top customers: The ones who will support your bottom line through thick and thin.
How do you do this? Develop incentives for customers to communicate honestly about your service and products, and engage in respectful dialogue—online and off. According to an oft-quoted study in the Harvard Business Review, “…increasing customer retention rates by 5% increases profits by 25% to 95%.”
Now that doesn’t sound like something you want to miss out on, does it?
5 Ways to Grow Your Cannabis Delivery Service: Direct Mailers
If you think direct mail is a thing of the past, think again. With a reported 73% of surveyed American consumers saying they prefer being contacted by brands via direct mail as opposed to digitally, that’s a hefty portion of the public practically asking you to mail them something.
Like their digital-age equivalent (display ads), direct mailers need to be carefully targeted, both to remain effective and to stay in compliance with local ordinances. But with an average response rate that can hit 9% or higher with well-designed campaigns, direct mailers are a tool you definitely want to have at your disposal when you’re trying to grow your delivery service.
Finally, there’s an important factor in growing your delivery service that you might not have thought of: Website design. Website design and construction are a key component of what we do here at Foottraffik, and for good reason: Because the user experience—or “UX”—of your site has such a direct and measurable effect on metrics like SEO and convertibility, having a well-designed and smoothly running website is about a lot more than good looks.
Website design is a real factor in both your immediate profitability and in your ultimate goal: Getting new customers to discover you and buy in to your brand identity and messaging.
If you want to set yourself up for success and get on the fast track to connecting with customers in your delivery zone, contact us for a customized advertising plan!