Terpli and The Source: Pioneering AI-Driven Cannabis Retail in Nevada

Challenge: Thriving in Nevada's Competitive Cannabis Market

In Nevada, cannabis retailers confront fierce competition, price compression, and the constant need to distinguish themselves. To prevail in this challenging environment, The Source+ sought to deliver a distinct, engaging, and personalized experience to its customers. The goal was to stand out, enhance customer loyalty, and increase revenue across their four locations.

One Year Later with Zippy, The AI Cannabis Sommelier Powered by Terpli

While the challenges of competition and price pressure remain, Zippy has kept The Source+ ahead of the curve. Through ongoing innovation and customer engagement strategies powered by Zippy, The Source+ continues to drive growth in sales, enhance customer loyalty, and deliver a highly personalized shopping experience. As highlighted by GreenState in their feature on how AI is perfecting the cannabis shopping experience, Zippy has become a key player in transforming how customers shop for cannabis, keeping The Source+ at the forefront of this revolution.

The Solution: Terpli's cutting-edge AI budtender technology, uniquely personified by The Source as "Zippy, the AI Cannabis Sommelier".

Zippy, The Source+’s branded AI Budtender, backed by Terpli's AI technology, seamlessly integrates with The Source+'s ecommerce, POS, and Alpine IQ Loyalty (AIQ) platforms to deliver personalized recommendations. This integration even extends into their physical stores, where QR codes on TVs allow customers to easily engage with Zippy for express and curbside pickup orders.

When the Terpli team visited The Source+ in Las Vegas, they experienced firsthand how the technology was making an impact. Budtenders shared stories of customers frequently asking for specific product recommendations, such as a high-linalool flower for sleep. In many cases, when the budtender’s suggestion matched Zippy’s AI-powered recommendation, customers confidently completed their purchase. The visit also provided valuable feedback and insights from the staff, who noted how Zippy was not only enhancing the customer experience but also empowering the team to better understand and cater to customer preferences.

The immersive interaction between customers and Zippy didn’t just guide them to the perfect product match; it also captured valuable insights, enabling The Source+ to refine their offerings and respond more effectively to customer demand.

Throughout 2023, Terpi’s offered features have continued to evolve.

• Highlighting The Source's In-House Brands: Camp, Flower House, and High Heads became key features in Zippy's recommendations, accounting for over 30% of all clicks in Terpli.

• Integration of QR Codes and Full-Page Embed: Enhanced the customer journey by creating a cohesive experience both in-store and online, allowing seamless access to Zippy’s recommendations.

• February 2024: Launched a special Valentine's edition of "Terpli Tinder," with a themed version tailored for the holiday (graphic available upon request).

• April 2024: Rolled out a 420-branded version of Zippy to celebrate the cannabis holiday and boost customer engagement.

• July 2024: Introduced animated features, such as glowing icons, typewriter-style welcome messages, and spinning icons on initial load, to make interactions more visually engaging.

• July & August 2024: Implemented an advanced analytics system and dashboard, offering deeper insights into customer data and behaviors for more effective operational optimization.

With Terpli in place, The Source+ has been able to scale personalized service across all four locations, driving both customer satisfaction and operational efficiency.

Results: Boosted Sales, Increased Customer Engagement and Loyalty

Impacts: The First 90 Days

The introduction of Terpli drove impressive results in just 90 days ~ As of 07/31/2023:

• Sales Growth: Achieved a 6.5% increase in sales and volume across four locations.

• High ROI: Generated over $37,000 in monthly influenced revenue, yielding a 7.2x ROI after AIQ loyalty points.

• Enhanced Customer Loyalty: Users returned 20% faster, spent 5% more, and doubled their Lifetime Value (LTV). Reviews boosted returns by 53% and spending by 20%, quadrupling LTV.

• New Loyalty Members: Added 350 new sign-ups in three months.

• Customer Engagement: Collected 6,800+ reviews, creating a valuable feedback loop.

Since the introduction of Zippy, The Source+ has experienced substantial growth in key areas like sales, customer engagement, and loyalty. Over the past year, Zippy has continued to deliver impressive results that exceed the performance metrics seen in the first 90 days.

One Year of Growth and Impact

Zippy’s influence on online orders and revenue has expanded exponentially over the past year:

• Six Months of Growth: Over the past six months, online orders facilitated through Terpli increased by an extraordinary 100x, well over $2,000/day in direct revenue. This surge in orders demonstrates Zippy’s continued ability to deliver personalized product recommendations that resonate with customers across all four locations.

• Revenue Growth: Similarly, online revenue through Terpli has surged by 202.1% in the last six months. This marks a significant improvement compared to the early months of Zippy’s introduction, further confirming the long-term revenue-generating potential of Terpli’s AI technology.

Faster Customer Returns and Increased Spending: Loyalty in Action

Zippy’s tailored recommendations have driven strong customer loyalty and increased spending, building on the early success seen in the initial case study:

• Faster Returns: Customers who engaged with Zippy continued to return 20% faster, a trend that has remained consistent since the first 90 days.

• Higher Spending: Zippy users have shown increased spending per visit, contributing to the 191% growth in online revenue over the past six months. This reinforces Zippy’s role in boosting both repeat visits and average order values.

Future Horizons: Continuing the AI-Driven Cannabis Retail Revolution

Zippy’s first year at The Source+ has laid the foundation for continued innovation and growth in the cannabis retail industry. Building on the success achieved so far, Terpli remains committed to enhancing Zippy’s capabilities to deliver even deeper personalization and engagement. As The Source+ continues to expand, Terpli will refine product recommendations to include more tailored suggestions, such as personalized edible options and sponsored products to boost retailer revenue.

To further support The Source+, Terpli will provide ongoing analytics and data-driven insights, leveraging AIQ’s advanced capabilities for targeted outreach and customer segmentation. These efforts will ensure that Zippy continues to drive growth, enhance customer loyalty, and deliver exceptional experiences across all five locations.

Looking ahead, Terpli’s role in optimizing The Source+’s operations is set to grow even more impactful. With plans for a Holiday Terpli reskin and other enhancements on the horizon, we are excited to keep pushing the boundaries of AI-driven cannabis retail and shape the future of the industry together.