What actually drives revenue in cannabis retail? It’s not what you think.

Most cannabis retailers aren’t short on effort.
They’re short on systems.

Promotions aren’t strategy.
Posting menus every Friday isn’t marketing.
And retention doesn’t happen by accident.

In a saturated, over-regulated market—predictability is power.
And the only way to get there is with structure.

This isn’t about louder ads.
It’s about building the machine that works while you sleep.

Let’s break it down.

1. Marketing Is a Funnel.
Not a Fire Drill.

Forget the “build it and they’ll come” fantasy.
A funnel is how cannabis retailers move people—from curiosity to loyalty.

A working cannabis funnel includes:

  • Awareness — Ads, SEO, Google Maps, Weedmaps
  • Consideration — Menu browsing, reviews, brand storytelling
  • Conversion — Online or in-store purchase
  • Retention — Lifecycle flows, loyalty rewards, SMS re-engagement
  • Advocacy — Referrals, UGC, reviews, repeat visits

If you’re skipping steps—you’re burning budget.

Start here:
  • Map every digital touchpoint across the customer journey
  • Match each touchpoint to its funnel stage
  • Add a clear next step at every interaction
  • Track engagement and drop-offs using Google Analytics 4 (GA4) or CRM analytics


2. Lifecycle Marketing Is the Strategy That Scales

Lifecycle marketing replaces guesswork with rhythm.
It deepens relationships and automates retention.

Start with these core flows:
  • Welcome Series — Teach, build trust, offer value (not just a discount)
  • Post-Purchase Nurture — Say thank you, offer product tips, recommend next buys
  • Lapsed Buyer Flow — Trigger at 30, 60, and 90 days of inactivity
  • Behavior-Based Segments — Customize by product type or order frequency
  • Loyalty Milestone Touchpoints — Celebrate birthdays, streaks, and top spenders

Set it once. Refine as you grow.

3. Know Your CAC—
or You’re Just Hoping

Customer Acquisition Cost in cannabis can climb over $100.
And most brands don’t even know what theirs is.

To calculate CAC:

  • Add up total monthly marketing costs
  • Include paid ads, platforms, consultants, and design
  • Divide by number of net new customers that month
  • Benchmark across channels and compare to LTV
Healthy CAC:

Less than 30% of your average Lifetime Value.
Otherwise, you're scaling losses.

4. CRM Isn’t a Newsletter.
It’s a Nervous System.

A smart CRM doesn’t just send emails.
It tracks behavior, automates journeys, and drives revenue.

Must-have CRM capabilities:

  • Behavioral segmentation (recency, category, spend)
  • Triggered flows (purchase, inactivity, product affinity)
  • Full integration with POS, menus, and loyalty
  • Reporting on revenue per recipient—not just opens

Top platforms for cannabis retail:

5. Retention Is the Revenue Model

The second sale is always more profitable than the first.
Retention isn’t a “nice to have.” It’s the engine.

Retention system checklist:

  • Launch a loyalty program (points, tiers, exclusive access)
  • Create winback flows at 30/60/90 days
  • Segment by engagement and reward top 10% of customers
  • Run surprise-and-delight offers for high-value segments
  • Measure and test what brings people back

If you want loyalty, you need a lifecycle.

6. Content Isn’t King.
Relevance Is.

Content doesn’t need to be constant.
It needs to be aligned.

Content by funnel stage:

  • Top of Funnel — Educational blog posts, intro events, local SEO pages
  • Middle of Funnel — Product explainers, staff picks, terpene deep-dives
  • Bottom of Funnel — Limited drops, bundles, social proof
  • Post-Purchase — Usage tips, review requests, loyalty nudges

If it doesn’t drive a behavior, it’s just noise.

7. Metrics Are the Map

Visibility means nothing without direction.
You can’t optimize what you’re not measuring.

Track these KPIs weekly:

  • Customer Acquisition Cost (CAC)
  • Lifetime Value (LTV)
  • Repeat Purchase Rate
  • Average Order Value (AOV)
  • Revenue per Email/SMS Recipient
  • Loyalty Redemption Rate
  • 90-Day Inactivity Rate

Dashboards aren’t optional—they’re your command center.

Bonus: POS + E-Commerce Systems That Play Well With CRM

  • Dutchie — E-commerce + menu system with CRM and ad pixel support
  • Jane Technologies (iHeartJane) — Menu system with loyalty and analytics integrations
  • Flowhub — POS with loyalty, CRM, and Surfside integration
  • Treez — Enterprise POS with robust data capabilities