How To Increase Your Cannabis Dispensary Sales: Part II

In the previous article (which you can read by clicking this link) How To Increase Your Cannabis Dispensary Sales: Part I, I discussed the importance of having a well educated staff and why a culture of education and continual improvement is essential to increased sales. I posted a few statistics about how having trained staff correlates to better sales. In this article, I will analyze why there is a correlation by examining the question, how does employing a highly knowledgeable staff increase sales?

Let us look first at the costs, or loss of potential sales, of having an under-trained staff. When a guest asks a question about a product, or cannabis in general, the consultant will respond in one of 4 ways:

1. They will know what they are talking about (even at an elementary level)

2. They will say “I don’t know” and then go find out from other people or resources

3. They will deflect by changing the subject

4. They will make something up

3 & 4 are unacceptable. Regarding #2, It is OK, and even admirable to say, “I don’t know, let’s see if Evelyn knows,” or “I’m not sure, but I will look into that and the next time you come back, I’ll have an answer for you.” However, while not costing you the loss of a guest, #2 is inefficient and doesn’t meet the mark of excellence.

So really, the only desirable option is #1, employing highly knowledgeable consultants. How do you currently ensure all your consultants are educated enough to give excellent, accurate advice and service? If you don’t have a culture of learning, a plan for education, or at the very least, some basic resource information for your consultants on cannabis, cannabis products, and how cannabis interacts with human physiology, you are just hoping your consultants are giving helpful, accurate information.

Let us now look at the “why” behind educated cannabis consultants being a factor in increasing sales.

Trust- When the consultant is knowledgeable, the guests will trust the consultant more. If they trust the consultant, they will be more likely to part with their money. Think of your own consumer behavior- if you encounter a new product that interests you, but you don’t know anything about it and you don’t fully trust the salesperson, you might hesitate to purchase it, or you might only purchase a small amount to test the quality and to test the salesperson’s advice. If you trust the salesperson, you might buy larger amounts to save money or limit your trips to the store. If you really trust the salesperson, you might be willing to purchase multiple products, and be more likely to purchase things you are curious about but don’t really need. The quickest way to lose guests is to give them advice that doesn’t end up being true, especially with cannabis, and this is compounded if the guest is using cannabis as medicine.

Loyalty- If the guests like your shop’s service and trust your consultants, they will measure all other shops to yours. This is critical as I mentioned in the previous article that it is much harder and more expensive to get a new customer, and even harder to sell to them, than it is to keep and sell to an existing customer https://www.markinblog.com/customer-loyalty-retention-statistics/?gclid=CjwKCAjww8mWBhABEiwAl6-2RTu9FN-zehCC0h3bRf-88BCSbRzfB7_eNJHNxMAx68BLLgEkRMkVPBoC12MQAvD_BwE. This is why many brands have loyalty, or rewards programs, which leads into the next point- Word of Mouth. People are significantly more likely to recommend a product or store for which they are a member of its loyalty program.

Word of Mouth- This is the most valuable form of advertising because it is personal. People tend to “tune-out” billboards, commercials, and sales pitches unless they are particularly arresting in stimuli, or they address a particular need in the person’s life. But people do pay attention to and remember words of praise from someone who has used the product or shopped at the store. Again, think of your own consumer behavior; when you are preparing to spend money on a product or service, what would you trust more, online reviews or a personal recommendation from a friend? However, this can have the opposite effect if the product or service disappoints the consumer. People are 10 times more likely to share a bad experience than a good one. The negative stays in our consciousness longer.

Faster Encounters- For this I should really say “more efficient.” It is never a good idea to make a guest feel rushed through a sales experience. However, if the consultant can determine what the guest needs quicker, and then determine the appropriate product quicker, can find it on the shelf faster, that speeds up the transaction making the consultant available for other guest quicker, and saves the guest time which makes them happier with the whole experience. People don’t like their time wasted on inefficiency or incompetence, even if it is just a few minutes.

Substance Over Fluff- A consultant who isn’t authentically knowledgeable and is “programmed” with sales talking-points is not going to be enthusiastic. People in any job don’t want to be put in a situation where they can’t answer a customer’s question, but in cannabis, the plant and products are so complex, and new information is coming out daily on cannabis, that it is likely consultants will have to work at keeping up with the most recent information. Most knowledgeable consultants I know are enthusiastic to share what they know with their guests. It is like a badge of honor. Additionally, spending time and resources on “blinging-up” your shop isn’t going to fool anyone in the long run. You can have a fancy shop, or trendy/flashy decorations, but if your service lacks or is inaccurate or inefficient, you won’t retain your guests for long. On the contrary, you can have a well-worn shop and people will overlook that if your service excels.

This article just scratches the surface of how having a well-educated and trained staff can increase sales, but the logic will hopefully help you understand the perspective of the article series. Check back for my third installment of this article series when I discuss some strategies for developing a culture of education and developing some ideas for building a training program in your dispensary or organization.