Overview
Your customers are deluged with choices and information. Sometimes they’re brand new to the dispensary experience. At the same time, they want to learn all about the cannabis they're considering buying. Your budtenders also want to be educated consultants, so that they can effectively assist your customers. As a dispensary owner, you need to reach the right target markets. Your dispensary has to remain relevant, in the wake of changing retail trends, as shoppers increasingly expect one-stop buying.
Here's how interactive retail display stations check all those boxes.
Problem
As more dispensaries open every day in an increasingly competitive legal cannabis industry, dispensaries are challenged as to how they differentiate themselves, as well as how they attract and retain customers. As more states continue to legalize adult use cannabis, resulting in eventual federal legalization, this challenge will only continue to grow.
Furthermore, the cannabis industry is still severely limited when it comes to advertising and reaching customers, often missing out on collecting valuable consumer data. The two most popular advertising platforms, Facebook and Google, do not accept cannabis ads, so most cannabis brands have to rely on window displays or static billboards, neither of which provides adequate customer insights or ROI.
Accordingly to Oracle, today’s average consumer uses 4-6 touchpoints when shopping, prior to making a purchasing decision. These touchpoints provide consumer data that most cannabis dispensaries are missing out on with analog shopping methods or with products behind glass cases. Interactive displays allow you to collect data via touch point systems in brick and mortar stores; data that is typically only collected through ecommerce.
Lastly, when a customer visits a cannabis dispensary, oftentimes they are overwhelmed and do not know how to find the right products. The sales staff may not be informed, may be offering subjective information, or the information may not be streamlined.
Solution
Installing interactive retail display stations, effectively creating a cannabis smart store, is the answer to these challenges. The stations educate customers and budtenders, providing a personalized shopping experience, all while building relationships and brand loyalty between shoppers and your dispensary. According to a study from Epsilon and GBH Insights, 80% of customers say they are more likely to purchase when brand offers a personalized experience.
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This smart store solution is considered a far more comprehensive solution than some of the more traditional, dated, or hard to track systems, such as offering discounts, for example, which often results in the commoditization of products and services.
How interactive retail display stations work:
- Customers explore and learn via the interactive displays which are triggered when consumers pick up a uniquely tagged product. The customers can then add their selected products to a cart for checkout. The checkout information is then received by the Point Of Sale.
- Prices, inventory, content, and images are displayed in the TPB station. When a customer is finished building their digital cart, it is sent back to POS for fulfillment.
- User behavior data is collected in the TPB system that will allow you to understand your customer; invaluable insights that will help improve and tailor the customer buying experience. You can make smart marketing decisions with consumer behavior data that shows how your customers shop.
Expected Results
According to our internal case studies, customers who touch products are 60% more likely to purchase. You can also expect the following results when you implement interactive retail displays as a solution:
Smart Stores
- 88% of customers begin shopping by picking up a product
- Staffing overhead reduced by 20%
- 40% basket size increase
Branded Stations
- 17.5% Brand Device sales uplift
- 15% Brand Product sales uplift
- Featured Brand Products sold at a rate 4.6x higher than those not featured
- 84.4% of customers said that they were more likely to make a Brand purchase after interacting with the display
- 25% of customers said that they would not have purchased Brand products if they had not interacted with the display
- 28% greater likelihood of recommending Brand to a friend
A CB Insights study found that 85% of consumers prefer interacting with brands using both digital and physical channels – a preference consistent across all generations. Omnichannel experiences are a natural fit with the brick-and-mortar dispensary customer journey, and the legal cannabis industry’s diverse customer personas.
Furthermore, an additional study found that the use of digital devices before or during shopping will influence 58% of in-store sales by 2022, so it is vital that dispensary owners find ways to tap into this digital customer journey, as well as capture the data.
Next steps
The Peak Beyond’s interactive retail displays educate your customers, increase revenue, customer loyalty, and build strength for your brand. Educated customers feel empowered and make safer, healthier, more confident purchasing decisions. Additionally, when brands make the effort to educate their customers, brands develop relationships with their consumers that support integrity and transparency. Transparency builds trust, translating into longevity for your brand, especially for brick-and-mortar stores that increasingly compete with online retail.
Visit our website for more information on how The Peak Beyond will help you build the ideal customer journey and grow your brand’s ROI with our smart store solutions. Contact us to schedule a demo and discovery call today!
