Adult Use Is Transforming Customer Dynamics Across the Country
As medical cannabis markets expand to include adult use, history shows demand soars. Brands and dispensaries need to move quickly to capitalize on this growth. While new customers enter the market and existing customers see their options broaden, just how much can we expect customer retention dynamics to change? What trends and behaviors should be considered to both acquire and retain customers? On average, a dispensary in a medical-only state can expect to capture the overwhelming majority of its customers’ trips — almost 80 percent. This could be due to a host of factors including limited number of dispensaries, medical card regulations, or familiarity with dispensary experience and staff. As we look to adult-use markets, share of trips drops to an average of around 60 percent. This share-of-trip reduction starts gradually as markets mature as opposed to a steep decline. Maturing markets such as Illinois and Massachusetts show less decline — between 70 and 80 percent. In total, th...