What the numbers say
Adapting strategies to take advantage of increased customer interest during the period can help retailers optimize sales and customer retention. This includes offering attractive discounts, accommodating the shift to cashless payments, and focusing on initiatives to retain customers.
Recent data from cloud commerce platform Treez noted a 20% increase in shoppers on 4/20 compared to any other single day in the year, as the date attracts a swath of both casual and regular customers who are looking to stock up on cannabis products.
The week of 4/20 also experiences a 19% increase in customers, suggesting heightened interest in cannabis shopping throughout the entire week. However, the week following 4/20 experiences a 24% decrease in customers, likely attributed to customers having stocked up during the preceding week.
Payment methods are also evolving in the cannabis industry. While cash remains the primary method of payment, the percentage of cash transactions is decreasing. In 2021, 80% of revenue on 4/20 was in cash, while in 2022, it dropped to 71%.
The decline indicates a growing preference for cashless payments, as retailers look to accommodate the shift to cater to customer preferences.
The company also analyzed 7,500 discounts, representing more than $3.5 million in sales, and found that the highest discount offered was 25% off the entire store, with most discounts being limited to the day of 4/20 itself.
The top 10 redeemed discounts ranged from 15% to 42% off, indicating that customers are attracted to significant markdowns during the period.
The average return rate for new customers using the top 10 discounts was 35.9%, while the overall customer repeat rate was 22.79%, highlighting the importance of offering attractive discounts to acquire new customers and encourage repeat business.
—Adam Jackson is a reporter for Green Market Report
