Entries by Mia Sciuto

How Does Customer Retention Increase Sales and Improve Margins?

Once you have a customer, you have to keep them…

 

 

In today’s world, many businesses focus on customer acquisition. But little attention is spent on Customer Retention. Companies concentrate on bringing new customers in the door, leaving existing customers to feel undervalued.

Acquiring a new customer is often 5-10 times more expensive than retaining an existing one. And depending on your fixed costs, an increase in customer retention can boost your bottom line profit 25%-100%.

Most importantly, customer retention isn’t just about future purchases and up/cross-sell opportunities. It’s about creating word-of-mouth advocacy and referrals — the most important form of marketing.

 

How to retain current customers and get them referring more often?

Customer retention is a result of combining customer satisfaction, engagement, loyalty, and trust. Each must be monitored, measured, analysed, and acted upon to keep your customers coming back for more.

 

At the core of this lies the Customer Experience (CX).

You should have a clearly defined CX strategy, ensuring a smooth and easy experience at every touch point. You want to put the customer at the heart of your business, focusing on their needs and wants. And, you want to measure and track the Customer Experience to identify key areas for improvement.

 

A Customer Experience Management(CXM) platform can help with that.

 

Customer Experience Management refers to a system of:

  • Collecting customer feedback
  • Engaging with customers to create relationships
  • Measuring effectiveness and bottom-line results
  • Improving retail experience based on customer feedback

This systematic approach helps manage experiences. It helps you understand what your customers want, building loyalty and increasing retention.

 

Create Higher Profitability with CX

By actively engaging, listening and responding to customers, you gain their trust, loyalty and enthusiasm.
And by taking into account their feedback and behaviors, you’re able to make more intelligent business decisions to feed bottom-line results. Resulting in higher retention rates and greater lifetime values.

 

Customer Experience analysis can help with retention marketing strategies as well. It allows you to tailor your products and services to match your customers personal values and preferences.

The key is to identify the trends from data your customers submit through messages and surveys. Then take action!

 

Now, you’re able to intelligently invest in you marketing. You’re better positioned to launch new products which has a reciprocal benefit for your customers and your margins.

If you’d like to learn more about RipeMetrics, and how we can help you improve customer satisfaction, loyalty, retention and repeat purchasing…

Schedule a Demo Today

Product Knowledge Increases Sales

Customers need to feel you have their best interest at heart. Customer tastes are constantly changing. It’s important to monitor these trends to understand the evolving customer demands.

Knowledgeable budtenders understand what other customers are saying about specific products. They’re more informed and able to make better recommendations based on unique customer needs. This results in higher customer satisfaction and a better customer experience.

 

And employees with a greater understanding of the product feel more confident selling to consumers.

Training sessions, testimonials, and personal use are all great ways to gain knowledge. Capturing feedback directly from your customers is another important factor. But it’s often a time a consuming, tedious and manual process.

Voice of Customer (VOC) feedback surveys helps budtenders better understand products. They’re an excellent way to stay on pulse of customer demand.

Customer Experience Management (CXM) platform makes it easy to automatically send a survey after a purchase. It allows you to track the performance and interpret the results.

 

 

By identifying the trends and patterns, you’re able to adjust inventory to sort out poor performing products and optimize your business. Simple reporting allows you to share the results, so your team and budtenders are more knowledgeable and better trained.

 

When customers feel listened to and happy with their product and service, they’re more likely to purchase more frequently, and spend more when they do. They’re also more likely to recommend and share their positive experiences with their friends and family.

 

 

Being able to quickly track, manage and respond to your customer experiences feedback can help improve overall operations. You can eliminate unnecessary cost and make room for new upcoming products to introduce your customers to. All of these strategies can be used in combination to overall increase sales.

If you’re ready to discover how RipeMetrics can help you on your journey to build a world class Cannabis Customer Experience, let’s setup a demo today.

Need to Know: The 3 R’s of Customer Marketing

RipeMetric’s 3 R’s of Profitable Marketing: Retention, Referral & Reputation Management

Effective marketing is a challenging task. There are some basic steps your business can follow to receive a larger response and bring in more profit.

RipeMetrics employes 3 key fundamentals for modernized marketing to create a profitable marketing plan:

  1. Retention
  2. Referrals
  3. Reputation Management
  1. Retention – Acquiring new customers is extremely costly, with estimates stating that it’s 5-10 times more costly to acquire new customers than retain existing ones. Retention marketing focuses on your customers with the goal to create repeat customers, and increase both their frequency of purchase and the average order volume per purchase.

    Offering personalized deals to customers based on their purchases can help retain a customer, continuously bringing them back

  2. Referrals – Referral marketing is word of mouth marketing. Loyal customers are likely to refer to your business and products. Encouraging your customers to tell their friends about you is also a strategy of referral marketing.

    Having a personal relationship with the person referring you to a business creates an initial sense of trust. A lot of money can be saved with referral marketing because it doesn’t cost money, it does require providing a good customer experience.

  3. Reputation Management – Your reputation is something that can bring in sales or drive them away. The way a majority of customers choose a business depends on the review sites.

    Reputation management is monitoring and influencing the online reputation of a business and brand
    Using a comprehensive Customer Experience Management platform and Customer Data Platform allows you to maintain a good reputation by resolving concerns in real time and directly with your customer before a bad review is written.

Conclusion

Retaining customers saves you money on acquiring new ones and at the same time your loyal customers continue to refer and bring in business.

Giving your customers a good customer experience promotes loyalty and good reputations. Using all 3 R’s Retention, Referral, and Reputation management are key strategies that when used together have an entourage effect for a profitable marketing plan.

RipeMetrics is the premier CXM for the cannabis industry. Sign up for a demo today to discover how RipeMetrics can help you on your journey to build a world class Cannabis Customer Experience.

Business and Sales Opportunities with RFM scoring

Receiving constant emails and notifications from a business can cause the opposite effect of the intended outcome. From time to time, these notifications can serve to remind and encourage your customers to come back.

 

It can be hard to know how often to reach out to customers and create balance between being too pushy and bringing attention back to your business. Customers can be unpredictable and have a range of shopping styles.When you uncover behavioral patterns of customers you can use that information to effectively apply marketing strategies and uniquely target customers with the right messages at the right time .

 

Push notification can be a very helpful marketing strategy if used properly.If notifications are sent too often customers will mute them or opt out.

 

The amount of notifications as well as the context of these messages are normally not customized to match the customers needs. Understanding your customers better will aid you in creating personal push notifications and marketing strategies to be most effective.

 

Recency, Frequency, Monetary Analysis (or RFM) is a database marketing tool used to automatically analyze your customers behaviors, and orders them into the most valuable to least valuable.

 

Customers are ranked based on the recency of their purchase, amount of time they come in, and the amount of money they are spending. These scores allow you to effectively target customers.

 

Let’s say your RFM analysis shows a particular customer segment has a high Monetary Value score, because they make large purchases every time they visit your store, but low Frequency score because they only come once a year. You now know you need a strategy that gets these “high rollers” to visit your store more often each year, and you could target this audience segment with an offer to for special premium coupons giving them a notable discount once a quarter, for example.

 

Loyal customers may not need frequent reminders and notifications, with the RFM scores you’re able to differentiate between these customers.

 

If the RFM notices a recent and frequent customer who may not spend much money, it will display these metrics and help you as a business owner know to target these customers to encourage them to spend more on each trip.

 

Being able to customize the approach you take towards your customers makes RFM a valuable tool to your business.RFM scores will also benefit the customers, they no longer will receive unnecessary notifications that do not apply to them. Investing in RFM for your business creates loyal and happy customers who will continue to return.

What is RFM Scoring ?

Each one of your customers is a unique individual with personalized spending habits. Some customers will order a large quantity at once, while others purchase smaller quantities more often. Marketing towards these two customers would need to be approached in different ways.

 

RFM (Recency, Frequency, Monetary value) analysis is the tool that measures the data of your customers purchases to evaluate their patterns and sort them based on the three factors.

 

  • Recency is how recently a customer made a purchase
  • Frequency is how often they purchase
  • Monetary value relates to the amount of money the customer spends

Together, these data points can predict the likelihood a customer will return. This data helps you make optimal marketing decisions. Knowing how much revenue comes from new vs returning customers can give you the information you need to know to be able to turn occasional buyers into regulars.

 

RFM works by analyzing your company’s CDP, scoring each customer on a scale in each of the three categories.

So, for example, depending on the purchase cycle of your company’s product or service you might evaluate customers for recency on a scale of 1-5, with a score of 5 indicating the customer had made a purchase from your company within the last week, and a score of 1 indicating that their last purchase was 10-12 months prior.

 

Evaluating each category together can give you a clear picture as to where to put your money and energy in your marketing strategies. Recent customers could help as an example of what is doing well that keeps them coming back. Regular customers do not need as constant of notifications as infrequent shoppers.

 

Unnecessary reminders can serve the opposite effect. Customers who may have a low monetary value score could be sent incentives and deals to encourage them to buy more products.

 

RFM analysis is based on the marketing axiom that “80% of your business comes from 20% of your customers. Most commonly RFM analysis measures customers based on the scale of 1-5 with ‘555’ being the most ideal customer. Certain deals may work better for these high rating customers than the low rated ones. Unique marketing strategies to fit your customers behaviors creates a better response rate.

Why is CDP better than a CRM?

Why is a Customer Data Platform (CDP) better than a Customer Relationship Manager (CRM)?

 

Customer Data Platform (CDP) aggregates and organizes customer data across multiple touch points, creating a detailed image of each particular customer and their patterns. It collects real time customer data and structures it into individualized customer profiles. When used correctly it allows the business to leverage marketing strategies and provide a more individualized and improved customer experience.

 

Customer Data Platforms is the more individualized and detailed version of a Data Management Platform.“DMPs are cookie-based, do not create a persistent customer profile and integrations tend to be limited to advertising (not the full customer journey)” – Tealium. CDP’s collect data tied to a specific individual whereas DMPs collect anonymous users data.

 

Customer Data Platforms can be used as leverage to market more effectively because of the fact you have a more individualized look at someone’s preferences and patterns.

 

A CRM or Customer Relationship Management platform stores a customer’s transaction data plus some individualized concerns and data points.“They do not have insight into anonymous user behavior (often requiring a form fill or purchase), typically are focused on sales data and only have limited integrations to other systems” – Hill 2020. 

 

Where a CDP autonomously creates unified customer profiles with data gathered across a variety of online and offline channels, a CRM only tracks a customer’s intentional interactions with a company via manual entry.

 

There are many differences between a CRM and a CDP. Some key differences include:

 

  • Customer Data Platforms deeply analyze the lifetime of the customers journey
  • CDPs can collect data both online and offline automatically
  • CDPs can also collect data on unknown visitors
  • Customer Relationship Management platform will only analyze the sales line and potential forecasting of purchases
  • A CRM offline data needs to be uploaded manually
  • CRM can only collect data on pre-existing or prospect customers

 

With a Customer Data Platform you’re able to get more detailed and usable data, to make more effective and efficient marketing decisions. This platform compared to others, can increase sales and provide a positive and memorable customer experience.

 

Sign up for a demo today to discover how RipeMetrics can help you on your journey to build a world class Cannabis Customer Experience.

Customer Data Platforms

What is a Customer Data Platform (CDP)?

 

Customers need an individualized approach, they feel taken care of and trusting. Being able to give a customer a unique and personalized experience used to mean a lot of interactions and time must have been spent with that individual.

 

This process has been made easier with technology being able to automatically aggregate data and analyze it. Customer Data Platforms (CDPs) are the new way to produce a more effective customer experience. According to the CDP Institute, a CDP is defined as “a packaged software that creates a persistent, unified customer database that is accessible to other systems.”

 

A CDP collects data from other sources and centralizes it into one place for better marketing, customer service and experience purposes. Using this data, you can review trends and build individual customer profiles. These profiles include customer-company history, NPS scores and any CXM data.

 

“CDPs are purpose-built to collect data from a wide range of sources, unify it together to form a comprehensive view of the customer across devices and channels, and then make that data available to other systems” (Hill 2020)

 

It also provides stacks which adapts to the customers changing preferences and patterns. More effective marketing strategies can be put into place, advertising based on past purchases, and behavior. Customer Data Platforms also make you more effective in your business. Hours of manual integration can be saved with the automatic integration of data offered by the CDP.

 

“Customer Data Platforms are packaged software that helps companies solve a huge and growing problem: the need for unified, accessible customer data. Like most packaged software, a CDP reduces risk, deploys faster, costs less, and delivers a more powerful solution than custom-built alternatives…

With careful planning, a CDP will provide the foundation your company needs in the years ahead to meet customer expectations for exceptional personalized experiences.”— David Raab, Customer Data Platform Institute.

CRM, POS, CXM & What They Are

Like most cannabis companies you’re probably using a POS (point of sale) and CRM’s (customer relationship management) to increase customer satisfaction and revenue.

 

These platforms help to increase the profitability and effectiveness of your business. However, with evolving technology, newer systems bring a more comprehensive analysis which helps you make smarter business decisions.

 

There is an improved way to analyze your sales and build relationships with lasting customers.

 

Customer Experience Management (CXM) platforms you’re able to automatically collect relevant data about customers experiences, preferences, and requests to understand and meet customers needs.

 

POS or Point of Sale collects the products, time and place of a purchase.This information is valuable, although it does not tell you anything about the experience your customer is having .

 

A CRM or Customer Relationship Management platform collects data about your customers i.e., their phone numbers, and emails. The CRM also can automatically generate emails or reminders. You use the information from the CRM to make business decisions to improve your relationship with your customers.With stronger relationships you also increase your overall revenue .

 

Both of these platforms together collect great quantitative data but lack qualitative data that is needed to improve customer experience in an efficient and timely manner.

 

CRM’s capture and manage only a limited amount of customer data. The depth and intimacy of dynamic customer experiences require a more comprehensive approach to information. They require CXM — customer experience management — to ensure better strategy, more relevant experiences, and a critical competitive edge.

 

 

That’s why we created RipeMetrics, the world’s first CXM for the cannabis industry

 

CXM or Customer Experience Management platforms enable you to develop and build meaningful relationships with your customers. This technology is an automated system utilizing actionable market research and feedback management to amplify customer retention.

 

CXM differs with CRM in that it makes use of the CRM and POS data and attempts to improve customer experiences.

 

With a CXM you can chat directly with a customer in real time, this unique experience allows you to make specific improvements while repairing a relationship with a customer who otherwise may have left your business.

 

It costs roughly 5-10 times more to acquire a new customer than to keep an existing one. These stats make a strong case for a greater focus on ensuring the happiness and loyalty of your existing customers.

 

CRM and POS platforms are limited and incomplete. Together they work to improve customer relationships but only CXM takes a customer focused approach to improving your business.

 

CXM provides data that can predict customers behavior enabling you to take proactive actions in real time to improve your business and retain more customers.

 

Investing in a customer experience management platform will and referral rates, improve:

    

  • Increase retention
  • Boost referral rates
  • Promote efficiency
  • Improve output
  • Raise profits

 We know staying on top of new technology can make the difference and CXM creates that competitive advantage, why wouldn’t you invest in it?

 

RipeMetrics is the premiere CXM for the cannabis industry. Sign up for a demo today to discover how RipeMetrics can help you on your journey to build a world class Cannabis Customer Experience.

Valuable Customer Retention Strategies


There are many strategies you can put in place to help increase customer retention.

 

For example, asking customers to leave a 5-star review for exchange of a discount or reward points is a good way to view the positive feedback your loyal customers share and this information is vital.

But the honest criticism gives you the opportunity to change and grow with your customers and the evolving business of cannabis.

Good customer service also plays a major role in keeping customers coming back. Customers who have a great experience are more likely to share their experience with others.

This will drive more traffic into your business. It takes a few positive experiences for a customer to feel loyal to a company. Consistency with customers is important to keep those customers on your radar.

Another strategy is to use a Experience Management (CEM) platform , which takes a customer focused approach to improving your business. Technology like this enables you to develop and build meaningful relationships with your customers.

This technology is an automated system that utilizes actionable market research and feedback management to amplify customer retention.


CEM technology allows you to analyze the customer side of transactions to improve sales and retention rates. You can create automated surveys that thank the customer for their loyalty as well as gently reminding them to refer others.

Being able to build loyalty between your business and your customers is what keeps them coming back.

Providing quality customer service is one of the most important ways you can do this.

Taking advantage of leading technologies allows you to get a detailed view on what exactly your business is either succeeding or struggling, giving you the power to make changes that will benefit your company.


RipeMetrics is the premier CXM for the cannabis industry . Sign up for a demo today to discover how RipeMetrics can help you on your journey to build a world class Cannabis Customer Experience.

Customer Experience in the Cannabis Industry

 
There’s no denying it. Customers belong at the heart of your business.

But did you know, experts say by the end of 2020, Customer Experience (CX) will overtake price and product as the key brand differentiators worldwide? Still,
for many companies, customer experience feels like something that’s mostly out of their control.


What is Customer Experience?

Customer Experience is the sum of all the interactions a customer has with your company over the life of the “relationship”.

Most importantly, it’s the feelings, emotions, and perceptions your customer has about those interactions.

It’s more than just their thoughts about the products they purchased, or how long they had to wait in the check outline.

The customer experience and customer journey starts with the first interaction with your brand,
whether that’s seeing you on a billboard, walking in fresh off the street, or receiving a recommendation from a friend.


Why is Customer Experience important in the Cannabis Industry?

CX in the cannabis industry is vitally important. The stigma sometimes attached to cannabis, and
the uncertainty of first-time customers means it’s critical to focus and understanding how your customers interact with your company.

Being able to understand your customer’s needs and direct them towards the most beneficial products, helps develop credibility and trust.

Creating a positive and inclusive environment helps a customer feel safe, comfortable to ask questions and be open to try new products.


Is Customer Experience the same as Customer Service?

The short answer is no, but it’s one of the Six Key Components to Cannabis Customer Experience.

Excellent customer service begins with the first interaction with an employee. Budtenders who embody the values and goals of the company directly reflect your company brand to the customer.

Educated employees also build trust between a customer and a business. If a customer feels taken care of, they’re more likely to spend more and return more frequently.

According to Anne Forkutza, an Experience Director at Cova POS:

“Even the most experienced budtender must be able to educate beginner and expert consumers alike with the facts, address their questions and ease their concerns all at the same time”.

But there’s a lot more to Cannabis Customer Experience than just dealing with the budtenders. 

A lot goes into a positive experience for a customer. How they interact in the waiting area, the music you play, and the ease and flow for purchasing products. How simple it is to order online, receive a delivery, or pick up in-store… everything is a contributing factor.

Even if they’re not interacting with another human being.


Personas and Journey Mapping

To really dial in your CX you’ll want to identify your Customer Personas and Customer Journey Maps to better understand how each unique segment of customers experience your business differently.

We’ve put together a quick how to guide to get the most out of your CX initiatives.

Listening to Your Customers

 

It goes without saying… it’s important to provide a variety of products.

 As a business you do your best to keep up with new brands and try to predict what your demand will be.

Every customer has their own tastes and preferences, and the products you carry can influence their purchasing behaviors.

But, with limited shelf space and inventory constraints, how do you know which products to carry?

Good CX involves listening to the customer’s input and reviews, and letting them influence changes in your product lineup. However, often this can be a guessing game. Suggestion boxes are one way to address this problem…an outdated, slow, manual process.

Luckily, there’s a better and easier way.

 

RipeMetrics: A Systematic Approach to CX

At RipeMetrics we’ve pioneered a better way to automatically and systematically approach the customer experience.

With the information, you collect from a Customer Experience Management (CXM) platform you can make better-informed business decisions. For example, you can easily identify which products customers are having issues with, and which brands aren’t in stock but customers are demanding.

While a quality Point of Sale (POS) system can help track each customer’s purchase history and provide a smooth check out experience,you need a CXM platform to take control of the customer experience with a systematic process.

Take control of the Customer Experience by establishing a systematic CXM process.

 

 

Customer Experience Management (CXM) refers to a system of:

  1. Collecting customer feedback
  2. Engaging with customers to create relationships
  3. Measuring effectiveness and bottom-line results
  4. Improving retail experience based on customer feedback

 

 

CXM is an automatic approach to collect feedback, engage with the customers to close the loop, analyze the feedback to measure the metrics, and act on it to make operational improvements

It helps companies create repeat and ongoing positive interactions to build meaningful relationships.  It’s all based on the fine art of communications.

By actively engaging, listening, and responding to customers, you gain their trust, loyalty, and enthusiasm.  And by taking into account their feedback and behaviors, you’re able to make more intelligent business decisions that feed bottom-line results.

 

The Importance of Customer Experience Management (CXM)

For example, with the information you collect from a CXM you can make informed business decisions on what products will bring in the most profit.

According to Harvard Business Review, 73% of businesses agree that being able to deliver a reliable and positive customer experience is critical to their growth and success today.

As the cannabis industry is maturing, it’s crucial that customer experience be a leading focus. Stigmas against cannabis are still prevalent and strong, employees are the front end of altering the negative stigma and creating a space that helps flourish the cannabis industry.

 

Click here to learn more about how the RipeMetrics Customer Experience Management Platform can help your cannabis business retain more existing customer and provide a better overall experience.