This article is brought to you by LogicKit, helping cannabis businesses retain customers with integrated cannabis delivery software.It’s no secret. Delivery platforms are dominating consumer spending, while traditional brick and mortar retailers are forced to find new ways to reach customers. Like traditional consumers, cannabis customers are becoming more educated about products and have started flocking to cannabis delivery services.
How can retailers in the cannabis industry stay competitive? Like other retail sectors, success in the cannabis industry means connecting with customers outside of the dispensary and meeting them in their favorite places when it’s too inconvenient for them to visit a retail location – at home, at a concert or just when they’re out with friends. In saturated markets like California, a thriving cannabis delivery service can mean the difference between life and death for cannabis retailers.
Investing in delivery to invest in customers
Delivery services have become a part of our everyday lives, but unlike traditional retail sectors, there are many challenges in setting up a cannabis delivery service. From integrating compliance systems, to managing drivers, to maintaining point-of-sale systems and keeping track of inventory, retailers are faced with layers of business and regulatory complexity. In addition, business owners also have to think about expanding their operations through strong customer relationships, customer data, and retention strategies.
Increasingly, small business owners and major dispensaries alike have been turning to platforms like LogicKit to build out their cannabis delivery operations.
For retailers by retailers: one contract, one platform, no hassle
Unlike other delivery platforms, LogicKit was built by experienced cannabis retailers with cannabis retailers in mind. Over the course of two years, we’ve learned that it’s a nightmare for retailers to try to get all of their platforms to work together, so we created cannabis delivery operations software to address their largest issues,” says Narek Khachatryan, co-founder of LogicKit.
LogicKit is a one-stop cannabis delivery software solution that enables cannabis retailers to take their products on the road. The platform was built by a team with years of cannabis retail experience to address the pain points that only business owners understand. Over the last 12 months, LogicKit’s customers have increased their sales by up to 30%, while also substantially increasing ticket size and retention metrics.
LogicKit’s field-tested platform helps cannabis businesses seamlessly transition from traditional in-store only models while maintaining critical data and providing valuable opportunities to enhance the customer experience. Additionally, LogicKit also offers marketing tools, including loyalty programs, promotional codes, and direct advertising. By giving cannabis dispensaries the ability to generate demand, LogicKit is empowering them to scale and grow beyond the physical limits of their stores.
Enabling cannabis enterprise across the country
In order to expand, cannabis business owners have to find a model that works for their business and their customers. Traditionally, there have been two models of delivery: the “hub and spoke” model and the “ice cream truck” model.
The hub and spoke model is used by cannabis retailers who have a physical store or warehouse. Drivers are dispatched from a physical location to the customers, which means they can deliver the entire selection of the dispensary. Alternatively, in the ice cream truck model, offsite drivers bring a smaller selection of products in a vehicle to each region because regulations may limit how much each driver can carry. Each model has its advantages and disadvantages. While the hub and spoke model gives more selection to the customer, the ice cream truck model allows for quicker deliveries.
LogicKit’s flexible software solutions have allowed a third, hybrid model to emerge. The company describes it as the “dual-system model.” As described by LogicKit’s CEO, Arman Siradeghyan:
“The dual-system model was created to overcome some of the problems that retailers were seeing with the traditional models by combining the existing models through software. With LogicKit, retailers can show customers a wider menu that includes both what they can get immediately, via the ice cream truck model, and what they can get shipped to them in the future via the hub and spoke model. In California, you can’t have more than $3000 worth of product in your vehicle, so being able to market a more extensive menu provides more opportunity for sales and customer satisfaction. It’s not about choosing the model for the retailer but giving them the ability to operate how they want.”
With increasing competition, catering to customers is the name of the retail game and maintaining flexibility in business is a must. It can be challenging for cannabis retailers with a small staff or limited resources to support both offsite sales and scheduled deliveries. LogicKit provides a way for cannabis business owners to make it a reality using only a single platform.
Custom solutions to scale
A new LogicKit customer receives a customized delivery website, live updating of their inventory, driver management apps, financial dashboards, and an entire back-office software suite for relationship management.
As Siradeghyan notes, “the [driver] app makes it easy for drivers to make multiple deliveries and receive ratings. Owners can use the backend for route tracking and performance management. They can send notes to their drivers and monitor the entire delivery experience.” With the LogicKit, delivery and back-office operations are streamlined and manageable – making multi-channel delivery achievable for small businesses and independent retailers.
In addition to delivery operations, retailers also need to capture and retain cannabis delivery customers. Retailers that don’t have strategies to keep customers have to make sure that they aren’t out of sight, out of mind after the first transaction is made.
LogicKit offers a suite of intelligent data-driven tools to maintain an engaged and loyal customer base. From loyalty programs to promotional marketing and demand generation, the LogicKit platform aims to please and retain delivery customers. Using LogicKit, cannabis retailers can also integrate marketing strategies such as influencer programs.
Siradeghyan explains that cannabis retailers can leverage influencers with LogicKit by creating custom promo codes for influencers to share on social media platforms. Owners can build their influencer program the way they want, including how influencer sales are tracked and compensated.
No matter which features they choose, LogicKit supports retailers with soft launches and white-glove guided implementation.
Enhancing cannabis delivery in every community
“We’re in a world where people shop for value, and owners have to show how they appreciate that…maybe it’s delivery; maybe it’s promotional codes; maybe it’s more insight into transactions. LogicKit gives business owners a fighting chance to impress their customers and give them the tools to compete,” says Khachatryan.
The future of retail is online, and LogicKit wants to empower independent retailers to compete in the big leagues. From urban markets to rural areas, LogicKit’s product suite helps cannabis retailers to keep customers in their ecosystems by bridging gaps that standalone solutions simply cannot.