COVID-19 Is Changing Consumer Trends, And Cannabis Marketing Plans Need To Adapt

Convenience always plays a big factor in determining customer purchase trends, and before the coronavirus, convenience in cannabis was defined by proximity. Based on Surfside’s consumer insights and location data, we discovered that 95% of cannabis consumers chose their dispensary based on proximity to their home or place of work.

With stay-at-home orders in place, the majority of consumers are mandated to only leave their home for essential purchases, which has led to a decrease in commercial visitation by 46%. Dispensaries, which in many states have been deemed essential businesses, have actually seen a net increase in foot traffic of 18%, but consumer preference still heavily leans towards online shopping over in-store or curbside pick-up.

Now, as consumers self-quarantine and proactively limit their in-store shopping activities, convenience has been redefined as the ability to order online for at-home delivery. Many legal markets previously restricted online ordering and delivery of cannabis, but as a result of the health crisis, state and federal regulators have adjusted compliance guidelines to allow for delivery and curbside pickup.

This rapid adoption of e-commerce across the cannabis industry has led to an average increase of 43% in online orders across multiple recreational and medical states. This represents a brand new medium for many dispensary operators, and even brands, to be able to capitalize on a new purchase channel previously limited or not allowed to many businesses.

COVID-19 is not changing consumer trends in a direction that the industry did not already see coming, it is just accelerating the path towards a lower touch purchase journey via e-commerce. In order to prepare and adapt to these changing consumer trends, it is important to re-evaluate your marketing plans and how you are identifying and reaching your consumers:

1. Expand the reach of your targeting – Delivery opens up your business to a wider audience of potential consumers who may not have considered your dispensary because a competing dispensary was more conveniently located.

2. Retain existing customers – Utilize your internal CRM, customer data and historic foot traffic data to convert and educate your existing customers to your e-commerce offering.

• Creating a positive and personalized experience based on customer preferences, leads to increased basket sizes and higher order volumes.

For the full Surfside COVID-19 Trends & Best Practices and additional information on how we can work together, click here or contact us at hello@surfside.io

Leer en Español: Marihuana y COVID-19: 3 Maneras de Compartir Cannabis sin Transmitir el Coronavirus