How to Optimize Discounts and Deals with Sweed’s Data Insights 

In today’s competitive cannabis market, dispensary operators must strike a balance between offering enticing promotions and maintaining healthy profit margins. While discounts can drive sales, improper discounting can erode profits. So how do you ensure that promotions increase revenue rather than just shrinking margins? 

The answer lies in data-driven discount strategies powered by Sweed's all-in-one retail platform.

Unlocking Customer Insights with Sweed

Sweed provides dispensary operators with a deep understanding of customer spending behaviors, allowing you to optimize promotional strategies based on real-time data. Here’s how you can leverage Sweed’s platform to create smarter promotions that maximize profitability. 

1. Personalize Discounts Based on Customer Spending Profiles

Not all customers respond to promotions the same way. Sweed segments customers into key spending profiles, Frugal Shoppers, Regular Buyers, Big Spenders (2x average ticket), and Whales, allowing dispensaries to tailor discounts to maximize impact. 

• Frugal Customers (Budget-Conscious, <1x Average Ticket): This group responds well to discounts but doesn’t necessarily increase purchase size. Use threshold-based promotions (e.g., “Spend $100, get 10% off”) to encourage larger baskets while protecting margins. 
• Regular Customers (Consistent Shoppers, 1x average ticket): Keep them engaged with loyalty-based incentives and targeted promotions on products they frequently buy. 
• Big Spenders (Generous Buyers, 2x average ticket): Offer them limited-time bundles or product exclusives to enhance their experience while maintaining profit margins. 
• Whale Customers (High Spenders, 4x Average Ticket): These customers make large purchases regardless of promotions. Rather than offering unnecessary discounts, reward them with exclusive perks like early product access or VIP events to maintain loyalty. 

2. Use Sweed to Optimize Discounting Strategies for High-Frequency Customers

Frequent customers drive the majority of dispensary revenue. Swede identifies key customer frequency segments, Champion (weekly+ buyers), Loyalty (monthly+ buyers), and Occasional (quarterly buyers), so you can optimize promotions that retain these valuable shoppers. 

• Champions (Weekly+ Shoppers): Since they purchase frequently, avoid deep discounts and instead offer targeted product recommendations based on purchase history. 
• Loyalty (Monthly+ Shoppers): This group benefits from retention incentives like monthly “members-only” deals or personalized bundles. 
• Occasional (Quarterly+ Shoppers): To re-engage these customers, send targeted email or SMS promotions with limited-time discounts to encourage more frequent visits. 

3. Boost New Customer Retention with First-Purchase Incentives

Sweed tracks new customers in real time, allowing dispensary operators to target them with onboarding promotions: 

• Identify first-time buyers immediately and send them a "Welcome Offer" with a small discount on their next purchase to drive repeat visits. 
• Use Sweed’s automated marketing tools to send follow-up emails or texts with exclusive offers based on their initial purchase. 
• Offer Buy More, Save More promotions for their second visit to increase order size. 

4. Drive Higher Ticket Sales with Budtender-Focused Tools

Budtenders play a crucial role in upselling and guiding customers toward high-margin products. Sweed’s checkout interface equips them with real-time customer insights that help increase average ticket value: 

• Personalized Recommendations: Budtenders can see a customer’s favorite products and most recent purchases, allowing them to suggest complementary products or refills on previously purchased items.
  
• AI-Powered Product Carousels: Budtenders can leverage AI-driven insights to surface smart product suggestions at checkout based on purchase history, stated preferences, and behavior patterns from similar customers. This empowers staff to confidently upsell and personalize every interaction‍
• Promotions Awareness: The deals page highlights products available at a discount, helping budtenders seamlessly upsell special offers and encourage bulk purchases. 

By using these tools during checkout, budtenders can personalize recommendations, upsell premium products, and enhance customer experience – leading to higher overall sales per transaction. 

5. Run A/B Tests on Promotions with Sweed’s Data Analytics

Not sure which discounts work best? Sweed  allows you to test different promo structures and compare performance: 

• Run A/B tests on flat discounts vs. threshold-based discounts to see which drives larger purchases. 
• Test different promotional strategies on new vs. existing customers to determine the most effective retention tactics. 
• Use Sweed’s custom reporting tools to track customer responses to various deals over time. 

Smarter Discounts, Higher Profits

Sweed empowers dispensary operators with real-time customer insights, automated reporting, and advanced analytics to ensure that promotions drive real sales growth. Instead of applying blanket discounts, you can fine-tune promotional strategies based on spending behavior, shopping frequency, and discount effectiveness – leading to increased revenue and stronger customer loyalty. 

Ready to optimize your dispensary’s promotional strategy with Sweed? Start leveraging data-driven insights today and watch your sales – and profits – grow!