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A dollar saved is a dollar earned— especially when it comes to customer acquisition costs. Acquisition costs refer to the expenses businesses incur when attracting and winning new customers, which can cost five times more than retaining an existing customer. In the cannabis industry, companies are not only contending with each other to acquire new customers; they must also compete with pay-to-play directories such as Weedmaps, which all but own the “deals on cannabis” market.
The challenges of acquiring new customers go beyond creating a cost-effective strategy. To ensure a high acquisition cost is worthwhile, you must also find ways to retain those newly acquired customers in an environment shaped by strict regulations and cut-throat competition. But the effort is well worth it! Increasing customer retention by 5% can increase profits from 25-95%.
The key to addressing your biggest customer acquisition and retention questions lies in the power of first-party data. As it is collected directly from your customers or users, first-party data is more reliable, accurate, and specific to your business. Using first-party data, cannabis companies can efficiently target the right audience and build long-term relationships with existing customers by understanding their preferences.
