Preparing for 2025: Cannabis Promotional Plans That Drive Real Growth
Dec 19, 2024Customer acquisition and retention are critical for cannabis retailers heading into 2025. While many stores excel at attracting new customers, most miss opportunities to bring them back, increase spending, and build loyalty.
The key? A well-planned promotions calendar that aligns your marketing strategy with customer needs and store goals.
At Vetrina, we know that maximizing every marketing dollar starts with a clear understanding of Customer Acquisition Costs (CAC) and building promotions that work smarter, not harder.
Why Marketing is an Investment, Not an Expense
When profits slip, it’s tempting to cut marketing budgets. But research shows that halting advertising leads to 16% lower sales in year one, climbing to 25% by year two.
Instead, marketing should be viewed as an investment in growth. Allocating 7-10% of revenue toward marketing, split between acquisition and retention, ensures you:
- Maintain market share.
- Fuel growth opportunities.
- Build trust and loyalty with customers.
It’s worth noting that 70% of revenue comes from loyal customers. During economic downturns, these customers are critical, as they’re more cautious with spending and seek trust in the brands they return to.
Understand Your Customer Acquisition Costs (CAC)
Before you plan promotions, get clear on how much it costs to acquire a new customer.
Here’s the formula:
Customer Acquisition Cost = Marketing Spend ÷ New Customers
Example:
- Q3 Marketing Spend: $150,000
- New Customers Acquired: 2,700
CAC = $55.55 per new customer
Now ask yourself:
- How many purchases does a new customer need to make before you break even?
- What’s your average order value and gross margin?
If your CAC is high, your promotions plan must focus on:
â–¶ Lowering CAC by optimizing marketing channels.
â–¶ Increasing average order value through upselling or bundles.
â–¶ Driving repeat purchases with loyalty programs and better service.
Building a Promotions Plan That Works
At Vetrina, we use the Four Peaks Promotional Strategy to help dispensaries align marketing with peak consumer spending moments. Here’s how it works:
1. Identify Your Four Peaks
Focus on four major promotional periods throughout the year to maximize impact:
- Seasonal Holidays: 420, 710, and festive holidays.
- Gifting Occasions: Valentine’s Day, Mother’s Day, and end-of-year celebrations.
- Category-Specific Campaigns: Summer adventures, winter relaxation, or vape-specific promotions.
- Industry-Specific Days: Celebrate cannabis culture with targeted, community-driven promotions.
2. Map Out Customer-Centric Promotions
A strong promotion isn’t just about discounts—it’s about building trust and value. Tailor promotions that:
- Align with customer needs and buying habits.
- Highlight key products or categories.
- Encourage repeat visits through loyalty incentives or multi-purchase offers.
Don’t Overlook Gen Z
The rise of Gen Z, which makes up 32% of the global population and accounts for a quarter of the workforce, brings a new marketing challenge. This generation is digitally native, socially conscious, and demands authenticity.
Key strategies for winning Gen Z loyalty:
- Focus on connection and real brand storytelling.
- Use user-generated content to showcase authenticity.
- Avoid campaigns that feel insincere or profit-driven.
Gen Z values brands that prioritize trust and community. Winning their loyalty early can deliver long-term dividends for your dispensary.
How to Build Your 2025 Cannabis Promotions Calendar
Creating a promotions plan requires alignment, strategy, and focus. Use these steps to get started:
- Key Dates and Peaks:
- Identify seasonal spending occasions (420, 710, holidays) and plan campaigns around them.
- Seasonal Relevance:
- Tailor promotions to match shifting customer behaviors through summer, fall, winter, and spring.
- Target Audience Segmentation:
- Define customer segments (e.g., Gen Z, loyal shoppers) and create promotions that speak directly to their needs.
- Promotion Types:
- Include a variety of promotions: discounts, bundles, loyalty programs, and exclusive offers.
- Product Focus:
- Highlight key product categories and align them with customer spending habits and trends.
- Educational Initiatives:
- Educate customers through promotional content, helping them explore and understand new product offerings.
Tips for Cannabis Brands and Retailers
To optimize your 2025 marketing strategy, consider these best practices:
- Diversify Marketing Efforts: Look beyond Weedmaps to build loyalty and focus on owned channels like SEO, email, and social.
- Set Realistic ROAS Expectations: Focus on sustainable growth rather than chasing diminishing returns.
- Implement a Four Peaks Calendar: Align promotions with key consumer spending periods to drive consistent traffic and sales.
- Frequency of Promotions: Focus on one major initiative per quarter, supported by bi-weekly product features.
- Fine-Tune Your Calendar: Regularly review and refine your promotions every 6-8 weeks to stay agile and relevant.
- Prioritize Retention: Invest in loyalty programs and exceptional customer experiences to maximize Customer Lifetime Value.
- Budget Wisely: Allocate 7-10% of revenue to marketing with clear goals for acquisition and retention.
- Use Data to Optimize: Track ROI and analyze performance to guide future promotions.
Ready to Build Your 2025 Plan?
If this blog has you thinking about the year ahead, download our Promotions Tips & Tricks to create impactful promotions in 2025.
đź“Ą Download the Promotions Planning Template
Let’s make 2025 the year your dispensary thrives.
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