Branded gift cards are a great way to increase profits and revenue at your cannabis dispensary during the holiday season. It is indeed one of the best gifts preferred by people, as it's timeless and the receiver can purchase whatever they want. Also, for many cannabis retailers, sales tend to slow down in January as shoppers recover from the holidays. But for dispensaries that offer gift card programs, the new year can bring in new customers who otherwise may not have stepped foot inside the store for which they received a gift card. In fact, gift cards are a great way to help market your brand and raise profits year-round — and in this post, we’re going to show you exactly how a gift card program can help your cannabis retail operation attract new clientele and boost the bottom line.
Benefits of Gift Cards for Cannabis Dispensaries
1. Upfront Revenue
Perhaps the biggest benefit a gift card program can offer your dispensary is the opportunity to get paid for merchandise upfront. When you think about it, gift cards are a win-win for retailers; if the recipient never gets around to redeem their gift, then you banked the card’s value at zero cost. But even when the gift card is redeemed, you still benefited from bringing in upfront revenue before selling any merchandise.
2. Paid in Full
Another major benefit to cannabis gift cards is that customers are 2.5 times more likely to purchase products at full price when they’re using a gift card versus when they’re paying with their own cash. Since they’re redeeming a gift, shoppers typically aren’t as concerned about bargain hunting or waiting for sale prices. Naturally, selling cannabis products at full retail price is always a win for you and your bottom line. Additionally, many customers end up spending more than the value of their gift cards. Download our free guide to launching your cannabis gift card program for more stats.
3. Free Marketing
Gift cards are also an excellent way to promote your brand at no extra cost to you. In fact, customers who purchase your gift cards to give to their friends and loved ones are actually paying you for their marketing efforts on your behalf! It just doesn’t get any better than that.
4. More Convenient than Cash
In certain markets, cannabis retail is still a cash-only industry, even though cashless payments are possible with Cova. This can often be a detriment to dispensaries, as many consumers don’t typically carry cash on hand. In these cases, gift cards make the shopping experience extremely convenient and easy for the customer, especially in the highly regulated cannabis industry.
5. New Customers
Finally, gift cards help drive new shoppers to your store, some of whom just may turn into loyal customers. This is particularly true when it comes to cannabis retail. For people who are new to cannabis and have been hesitant to take that first trip to the dispensary, a gift card is a great excuse to finally go and see what it’s all about. What’s more, gift cards help maintain consumer privacy, which may be a concern for cannabis newcomers.
Cannabis Gift Card Success Stories
Campaign A (Dispensary XY):
Dispensary XY introduced a gift cards program with the help of Birchmount Network and promoted it heavily over the Valentine’s Day Weekend in 2021. They strategically capitalized on the theme of love and incentivized their customers to share the love on this special occasion. They used the tactic of offering a free card of a fixed value if a person spends a certain amount of money at the dispensary. This campaign was extremely successful as over 2000 cards were purchased or activated over the weekend with an average transaction value of $145, which was significantly higher than the average transaction value on regular days.
Campaign B (Dispensary ZX):
Dispensary ZX capitalized on marijuana’s biggest holiday (4/20) to make the whole month of April 2021 a grand success for them. They kept their promotions simple by offering extra free value on gift cards of two different amounts, incentivizing customers to purchase it either for a loved one or even themselves. It also helped them increase their online purchases, and grow brand awareness.
(These are based on actual numbers but real names of dispensaries can’t be revealed due to confidentiality agreements. Download THE ULTIMATE GUIDE TO GIFT CARDS FOR CANNABIS BUSINESSES to learn more.)
Boost Your Bottom Line with Cova’s Branded Gift Cards
There’s no question that gift cards can help drive new traffic to your store, increase cannabis sales, and boost your dispensary’s bottom line. Once you've set up your cannabis gift card program with Cova, you’ll be able to provide your customers the perfect gift for their friends and family who are either canna-curious or already seasoned consumers. And the best part for you — aside from all the revenue-boosting benefits we’ve already discussed — is that the only upfront cost you’ll pay is for the physical cards themselves and the customization.
Ready to start leveraging the power of a gift card program at your cannabis retail store? Simply tap the button below to get started today!