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Retail cannabis loyalty programs.
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October 17, 2023

Retail Brew

TikTok Shop

It’s Tuesday, and Tyson Foods is getting into the insect-protein business. The meatpacker is forming a joint venture with a Netherlands-based startup to produce bug-based meal and oil, which—you may be relieved to learn—is still mostly used to feed fish and dogs.

In today’s edition:

—Andrew Adam Newman, Alex Vuocolo

MARKETING

Sweeten the pot

Inside a cannabis store. Heath Korvola/Getty Images

Pity the cannabis marketer. Among the 23+ states where recreational use is legal, some prohibit advertising, while others impose myriad restrictions—the rationale, naturally, being to keep minors from seeing the ads.

Even if you’re in a state that allows advertising, good luck online. Google Ads prohibits cannabis advertising, as does Meta/Facebook.

So it’s no wonder that for retail cannabis marketers, an essential in their stash box is something with considerably more leeway: loyalty marketing.

“Loyalty is a cornerstone of the cannabis marketer’s playbook,” Mikaela McLaughlin, SVP of business development at Springbig, which provides loyalty and other marketing solutions for the cannabis industry, told Retail Brew.

But as retailers who’ve moved from other retail sectors into cannabis know all too well, and as Retail Brew has covered extensively this year, the cannabis business seems to always face headwinds, from being dropped by banks and point-of-sale vendors, to being spurned by credit-card companies.

Ditto for cannabis loyalty programs. Setting them up is more complicated than for coffee shops and drugstores, but with a bit of navigation, you can get there. So we leaned on McLaughlin to come up with this cheat sheet.

Keep reading here.—AAN

     

PRESENTED BY TIKTOK SHOP

A whole new (selling) world

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When it comes to how you sell and interact with customers, TikTok Shop gives you plenty of options, like:

  • shoppable videos (Customers can shop directly from their feeds.)
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  • shop page (Customers can browse or shop your full product catalog.)
  • shop tab (Customers can search and discover your products + promos.)

Start creating fun, easy shopping experiences on TikTok Shop.

DTC

Direct attention

Birkentstocks on a store shelf Ethan Swope/Getty Images

Do you hear that? That’s the patter of cork-soled sandals on Wall Street’s cobblestones.

Iconic ugly shoe brand Birkenstock made its public debut on Wednesday, and while so far, the stock is underperforming, a recent SEC filing offers a closer look at a company that’s increasingly leaning on its direct-to-consumer (DTC) channel to drive growth.

DTC sales jumped from 30% of revenues in fiscal 2020 to 38% two years later, according to a prospectus Birkenstock filed on Thursday.

  • Between 2018 and 2022, DTC experienced a compound annual growth rate of 42%.
  • In the nine months ended June 30, 2023, DTC brought the business $416 million in revenue, compared to $310 million the previous year.
  • E-commerce also represented a whopping 89% of DTC sales in fiscal 2022, and the company is banking on this segment to fuel future sales growth.

Keep reading here.—AV

     

E-COMMERCE

Fake it to the limit

The Yelp app on a mobile phone. Smith Collection/Gado/Getty Images

This summer, a Baskin-Robbins in Santa Ana, California, put up a sign in its shop to entice customers to leave glowing reviews.

“Give us a 5-star review on Yelp & get a free kids scoop!!!,” it said. “Show us the review. :)”

While some people may have taken them up and received a cold treat, it also got the business in hot water with Yelp. The platform prohibits what it calls a “compensated activity.” And after a user sent a photo of the sign, Yelp slapped a pop-up window on the shop’s Yelp page.

“We caught someone offering up payment in the form of cash, discounts, gift certificates, or other incentives in exchange for someone to write, change, prevent, or remove reviews for this business,” Yelp warns in the pop-up window. “We wanted you to know because these actions not only hurt consumers, but also honest businesses who play by the rules.”

In a recent post on Yelp’s blog, Noorie Malik, VP of user operations, announced the platform was now publishing an index of alerts about “compensated activity” and “suspicious review activity” on its site.

Keep reading here.—AAN

     

TOGETHER WITH NEWSTORE

NewStore

Do omnichannel like the best of ’em. Well-rounded retail advice can go a long way. And you can get it in NewStore’s new e-book. It contains 11 lessons from future-forward industry changemakers about how to achieve success on your omnichannel journey. Get guidance from folks who have done the dang thing. Download your copy.

SWAPPING SKUS

Today’s top retail reads.

No aid for Rite Aid: Facing a $4 billion debt load and multiple lawsuits over its role in the opioid crisis, Rite Aid on Monday filed for Chapter 11 bankruptcy. (Bloomberg)

Redistribution: To cut costs, some retailers are closing distribution centers just a few years after many invested heavily in building out their supply chains. (Modern Retail)

Big candy’s big day: Mars Wrigley’s “chief Halloween officer” talks about how the maker of Snickers, Twix, and M&Ms is preparing for the big holiday. (CNBC)

Not a normal shop: A cool shop. When you sell on TikTok Shop, you create the kind of shopping experience customers want. Plus, you can reach qualified audiences + tap into creator collaborations. Learn more.*

*A message from our sponsor.

VIRTUAL EVENT

Retail marketing: Sephora’s expert insights

What's Working in Today's Retail Marketing Landscape promo. Morning Brew

Paint a picture of retail marketing excellence with us on Thursday, Oct. 19, at a virtual event with Emmy Brown Berlind, SVP and GM of loyalty at Sephora. We’ll discuss tactics to establish and maintain customer loyalty, innovative strategies retailers are using, and how sophisticated tech is transforming what’s possible. Register now.

JOBS

Are you an exec looking to make your next career move or join a board of directors? We’ve partnered with ExecThread, where you can find thousands of confidential job opportunities and board roles that aren’t listed anywhere else. Check out positions like:

SOCIAL GATHERING

Retail marketing hits and misses from the past week.

Coffee hacks: TikTok accounts are sharing tips on how to get deals on Starbucks drinks using the chain’s mobile app. One user found a way to cut 50% off the price for a venti iced coffee by keeping 25 cents in their loyalty member account, which unlocks the ability to customize a drink for free. (Sophia Celentano on TikTok)

Horrifying fast food: Two fast food chains have produced horror-themed ads that double as scary short films. Jack in the Box released an 8-minute “thriller” called “Feeding Time” to introduce its new Angry Monster Tacos, with credits from the Hollywood screenwriters behind American Horror Story: 1984, Servant and the Saw franchise. Burger King, meanwhile, released a short called “The Call” to promote its ghost pepper Whopper and chicken fries. (Jack in the Box and Burger King on YouTube)

Price swings: Amazon’s two-day Prime Day event on Oct. 10–11 offered sizable discounts for members, but some social media users are alleging that the brand raised some prices prior to the event. One Reddit user noted that many of the so-called sales items were the same price as they were weeks ago. (Majikku0317 on Reddit)

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