As a cannabis business owner, you’re on the frontier of a relatively new industry. That in itself is pretty exciting. You have the opportunity to reach and attract customers, many of whom may be just dipping their toes into the cannabis world.
There’s no better time than now to look for ways to boost your profits and grow your business. Have you considered adding new revenue streams and product offerings as a solution? Tactics like loyalty programs and subscription boxes can be highly effective. Here’s what you need to know.
Benefits of Additional Revenue Streams
Adding new revenue streams might seem like a lot of work, but they do come with some pretty significant benefits:
- Increased profits
- Greater financial security and flexibility
- New target markets and a broader customer base
- Ability to invest more in your business and achieve your growth goals
Two Ways To Increase Your Cannabis Money Making
Now let’s take a look at two ways to increase your cannabis money-making potential:
A Cannabis Membership or Loyalty Program
Gaining new customers is obviously vital for business growth. However, your repeat customers play an essential role, too. Research shows these customers spend 67% more on average than newcomers (and they generally cost less to maintain).
A cannabis or CBD membership or loyalty program rewards your most loyal customers for their repeat business. Typically, customers earn points or stamps with each purchase, which they can use toward discounts, freebies, and other enticing incentives.
- Loyalty programs can boost customer retention.
- Customers may increase their spending to reach incentives.
- You can generate new leads to reach more customers.
- The data you collect can help you personalize customer experiences and keep the most desirable items in stock.
- While you want to collect customer data, a lengthy or complicated sign-up process can deter people from joining the program.
- Programs don’t cost much to implement, but too many (or significantly large) discounts could reduce profits if customers don’t spend enough.
- Sign-up discounts or rewards encourage people to enroll, but 40% of people who do sign up don’t return.
A Cannabis Subscription Box
These days, there’s a subscription for just about everything. The model involves sending subscribers a box of specially curated products, samples, and other goodies every month (or another set frequency). Food, pet products, beauty items, fitness — you name it, there’s likely a subscription box for it. It’s even permeating the cannabis industry.
In addition to products like flowers, prerolls, and edibles, a cannabis business can include an assortment of supplies, such as rolling papers, hand pipes, and bongs. Stickers and t-shirts make for fun additions, too. Successful boxes feature high-quality, must-have items that customers are willing to purchase.
- Helping subscribers discover new strains and products encourages future sales.
- A variety of subscription options at different price points attracts different types of customers.
- Subscriptions open up additional marketing opportunities (for instance, teasing what’s in the next box).
- Many possibilities exist to create strong relationships with subscribers (excellent customer service, consistency, high-quality products, etc.).
- Subscribers can get bored if the items aren’t exciting or there isn’t enough variety.
- Desirable and unique boxes require time and creativity to curate.
- Products in the box must cost less than the subscription price to make a profit.
Grow Your Cannabis Business With Bespoke Financial
Like any other business growth strategy, a cannabis membership program or subscription box service requires you to spend money to increase your revenue. If you need a financial boost to get you started, Bespoke Financial is here to help. With services like lines of credit, inventory financing, and dispensary financing, we can help you achieve your goal of implementing your new cannabis money-making strategy and growing your business. Visit Bespoke today to learn more!