First, Average order value (AOV) refers to the average amount of money customers spend when ordering from your dispensary. Quick equation – Average Order Value (AOV) = Total Sales Revenue / Number of Orders
How to π AOV on 4/20!
1. Implement UP/X-Selling
To increase sales, it is essential to implement cross-selling and upselling techniques. This can be achieved by suggesting complementary products to your customers to encourage a more significant purchase. A straightforward way to do this is by highlighting which items pair well with one another in your product descriptions and making it clear in your messaging and store layout that your items are better together.
In the world of cannabis retail, your budtenders are essential for driving sales. The relationships they establish with customers can significantly impact their experience. Equipping your budtenders with the skills and motivation to upsell and cross-sell to all customers who visit your dispensary is crucial. To achieve this, it’s essential to understand the difference between upselling and cross-selling.
Upselling involves convincing customers to upgrade the product they originally intended to buy. For example, if a customer wants to buy the cheapest oil cartridge, upselling would involve persuading them to purchase a higher quality, more expensive option.
On the other hand, cross-selling involves adding a separate but usually related product to a sale. For instance, if a customer is purchasing a pre-roll, the budtender could encourage them also to buy a lighter and some hemp wick.
Both upselling and cross-selling rely on the same skills from a budtender: understanding a customer’s wants and needs and then providing education on potential solutions. Ultimately, the goal of your budtenders should not solely be to make more money for the store but rather to offer more value for customers. By empathetically suggesting the right products, your budtenders can keep customers returning for more.
You can also program ACE to upsell to entice customers to purchase more items. Don’t forget a pre-roll with your purchased cartridge!!
2. Bundle Deals & Bulk Options
To encourage customers to make more significant purchases, consider offering limited-time promotions. These deals can create a sense of urgency, prompting shoppers to add more items to their carts. One way to do this is by providing short-term discount codes, such as those with a 24-hour window, on specific items, which can help increase the average order value.
There are also a few tried-and-true promotions that can temporarily boost purchase values. For instance, you can offer a specific percentage or amount off once a customer reaches a particular threshold. For example, “Spend $85 and get a pre-roll for $0.01”. Buy-one-get-one (BOGO) deals can also raise purchase values, as customers need to buy at least two items to take advantage of the sale.
Additionally, you can offer bundle discounts on items customers would be more likely to buy in bulk if the price was lower. This discount can be staggered, such as providing 10% off for two items, 15% off for three items, and so on. This approach can be offered all year round, providing an ongoing incentive for customers to purchase more.
4. Free Gift
Everyone loves free things – entice shoppers to hit checkout by offering free gifts for their purchases.
Utilize Visual merchandising to benefit your sales
How you arrange your merchandise within your physical store can significantly impact the value of purchases. You can encourage cross-selling by showcasing tempting impulse buys near the cash register.
βTo prompt spur-of-the-moment purchases, businesses often rely on one or more of the following factors: a sense of urgency, perceived value, and excitement. While many retailers employ this tactic, established companies in retail and cosmetics have effectively perfected this strategy.
We’ll win with ACE, payment solutions, and a solid 4/20 strategy! Time to sell some cannabis. π₯
