How to Use Geofencing to Increase Foot Traffic for Your Cannabis Dispensary
When customers are out and about, they almost always have their smartphones in hand.
In fact, smartphones are one of the most crucial tools for both in-person and online shopping. Searches related to finding businesses “open now near me” have increased by 400% year-over-year.
So, when a customer is nearby and ready to spend, it’s up to you and your geofencing strategy to make sure that they end up at your dispensary.
What is Geofencing?
Geofencing is a marketing strategy that sends real-time notifications to potential customers in the form of push notifications, emails, ads, or text messages when that person enters a virtual barrier you place. To do this, it uses GPS, WiFi, and cell phone data to see exactly where customers are.
Let’s say you’re shopping on a Saturday and you happen to stroll by Bath and Body Works. If they set up a geofence, they can see that you’re in the vicinity and might light up your phone with a text that says: “Shop our Saturday sale, BOGO 50% your favorite fall scents!”
Given that you’re close in proximity to the store and you know of a sale you weren’t aware of before, there’s a much higher chance you’ll stop into their store and make a purchase.
Your dispensary can send the same types of ads, emails, and texts out. Your geofence catches someone within your virtual barrier and sends out messaging that says: “Stop in to see us today to get one free pre-roll with your purchase!”
Chances are, the person who received that message is going to head your way — there’s a deal to be taken advantage of and they’re already nearby. Why wouldn’t they?!
This is how geofencing strategies increase foot traffic and, ultimately, increase revenue for your dispensary.
How Does Geofencing Work?
As we mentioned before, GPS uses a mix of location-based technology to target your customers where they are. Meeting your customers where they are is the best way to engage with them.
- GPS is the best tactic for those who are driving.
- WiFi and cellular data are best for walkable cities where most people travel by foot/bike/public transportation.
- RFID and Bluetooth are best for airports and malls where precise indoor targeting is needed.
Using this technology, you can draw a boundary around your store, a competitor’s store, or someplace contextually related to your dispensary. For example, if you drew a geofence around a convenience store famous for its snacks, you could probably entice munchie-lovers to come to your dispensary and pick up some “green” supplies for their chill night in with an expertly-timed text message.
The timing, location, and behavior of a customer create the perfect storm for greater foot traffic to your dispensary.
Segmenting Your Geofence
After you’ve laid the boundary for your geofence, you can start segmenting it. Inspect customer data for people who frequent the geofence and tailor your ad messaging to them.
For example, if your dispensary is near a college campus, you could craft the language to revolve around campus life, emphasizing topics such as post-exam prep relaxation, game days, and good sleep. Getting to know your customers on this level will make your geofencing advertising that much more effective at getting customers to walk through your doors.
Let’s Get Started
The benefits of geofencing range far and wide (literally)! By using this strategy, you can target your most relevant audience members, increase foot traffic, and increase conversions. At Cannabis Digital Solutions, we have everything you need to get started. Reach out to our team today to launch a geofencing campaign for your dispensary!
