Delivery services, also known as non-storefront retailers, are responsible for the delivery of cannabis and cannabis products from a retail store to the end consumer. Depending on the state, delivery services may be tied to a dispensary license, a standalone license for third-party delivery, or both.
Keys to Success
Coverage and Planning
Delivery services tied to a brick-and-mortar dispensing license need to carefully balance the costs of providing delivery in a given service area against the offsetting impacts of delivery fees and delivery minimums on store revenue. While a well-executed delivery plan can be a great way to drive revenue and stand out in competitive markets, staffing needs, not to mention transportation costs, are typically much higher per dollar of product sold. These costs grow exponentially with each mile of delivery radius you add, so striking the right balance is important. Beyond the direct effects on margins, it’s also worth considering the powerful effect delivery can have on customer loyalty and brand identity. If your mission is customer, and especially patient-centric, delivery can be a key part of demonstrating that commitment.
Third party delivery providers should likewise choose the brands they deliver carefully with an emphasis on maximizing their service area while minimizing the logistical challenges of serving a given area. This often means prioritizing vendors that drive sales volume, maximize margins, and have centralized pickup locations within a given territory. Third-party delivery services cannot forget customer loyalty and brand identity either. Without a brick-and-mortar store front, these retailers face unique challenges as well as opportunities when it comes to promoting their brand. While there are many different approaches, a frictionless process and well-trained staff are essential for driving customer loyalty.
Speed and Reliability
Speed and reliability are, simply put, the two primary performance metrics for all delivery services. Regardless of how you slice these items into KPIs, delivery services that track their business data will find that customer satisfaction, along with many other metrics, are directly correlated with on-time delivery rate. Drivers who are able to reach their destinations on time will reliably provide better customer service and more compliant and consistent delivery experience. For this reason, a culture that emphasizes logistics and resource management is critical to the success of any delivery service.
