Tag Archives: customer

Great Brand Design Can Grow Your Business

By Moira Stein
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As the cannabis industry grows and the category becomes increasingly crowded, package design is more important than ever. Impactful and meaningful branding is key to getting noticed, differentiating from the competition, connecting with consumers and ultimately making the sale. Today’s cannabis labels are more varied than ever before. They can be fun or luxurious, contemporary or retro, colorful or simplistic. Many brands are moving beyond traditional cannabis leaves to more unique, modern, and unexpected interpretations of cannabis plants. Others are forgoing leaf imagery altogether in favor of more evocative graphics, minimal design or mainstream motifs.

While there is no one-size-fits-all design for cannabis packaging, there are many regulatory requirements and branding best practices to consider. We’ve outlined some critical things to keep in mind before starting your cannabis package design.

Know Your Target Audience

Understanding who your target audience is essential for the appropriate design

There are a variety of cannabis users, each with unique needs, interests and attitudes. Understanding who you’re targeting is essential in determining the appropriate brand design strategy. Graphics for millennials will look different than those for baby boomers. But demographics aren’t the only thing to consider when identifying your target consumer. Euromonitor International has identified several lifestyle and personality-driven consumers segments:

  • Seasoned Consumer – consistent, daily consumer who defies stereotypes and often consider themselves connoisseurs.
  • Casual Social – regular but not daily consumer who uses cannabis as part of their broader lifestyle.
  • Dabbler – occasional user who is familiar and comfortable with cannabis but unlikely to use it regularly.
  • Cannacurious – consumer who is interested in cannabis and demonstrates an openness to using it.

Understanding the motivations of various consumer groups and looking beyond stereotypes or traditional age- and gender-driven demographics can help reach consumers in a more targeted, authentic, and compelling way.

Have a Unique Brand Personality

Concept shots by the Studio One Eleven design division

Design often provides the first impression for a brand, especially in the cannabis category. The first step in developing a winning package design is to determine the best design strategy to differentiate from the competition, communicate your brand story and connect with consumers. Start by thinking about what personality fits your brand, what kind of experience you want to create and what emotions you want to evoke. Do you want to feel healthy and medicinal?  Earthy and natural? Sophisticated? Whimsical? Each personality inspires different design solutions. The designers at Studio One Eleven, the Design & Innovation Division of Berlin Packaging, begin each branding project by developing design platform boards that showcase different ways to communicate the brand personality through design, including color, typography, imagery, and more. These platform boards are a great tool to gain alignment on the most effective and appropriate design strategy before digging into tactical design approaches. They can also help guide brand design across other touchpoints, including digital, social media, and advertising.

Understand Regulatory Requirements

Packaging in the cannabis and CBD industries is heavily regulated. In addition to attracting consumers, your package must comply with local, state and federal regulations. Some states mandate that cannabis packaging can’t appeal to children – so no cartoon images or graphics that resemble familiar candy brands. The FDA prohibits cannabis products from making health-related claims, so it is essential to carefully assess the language used on packaging. Vital information such as ingredients, warnings, health risks, impairment of abilities, proper dosage, batch number and more must be included on cannabis labels.

Label material, thickness and texture are tactile elements that can improve the design experience

These are just a few of the package design requirements to consider. Regulations can vary from state to state, so finding a packaging partner who understands the complex and constantly change rules is critical. Berlin Packaging has been a trusted resource for cannabis packaging since 2014. We are uniquely positioned to help cannabis and CBD companies of all sizes in the fast-paced, ever-changing cannabis industry.

Consider All Aspects of Your Package

Beyond graphics, tactile elements can be important to the overall brand design experience. Label material, thickness and texture, embossing and foil stamping, and die-cuts can create a premium impression and add visual interest. Structural design can also help differentiate from the competition and create an elevated user experience. How a package opens and closes, dispenses and doses, and protects and preserves the product inside are all essential considerations. Berlin Packaging has a vast network of manufacturers with hundreds of stock bottles, tins, jars, tubes and closures in a variety of shapes, sizes and materials to choose from, as well as custom solutions available through Studio One Eleven.

Understanding your target consumer, identifying and communicating a unique brand personality, complying with all regulatory requirements and taking a holistic approach will lead to impactful packaging that wins with consumers and grows your business.

The Inflated THC Crisis Plaguing California Cannabis

By Erik Paulson, Josh Swider, Zachary Eisenberg
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Fraud

The THC content you see on a label when you walk into a dispensary? There is a very good chance the number is false.

In every state with regulated cannabis, there is a requirement to label the potency of products so consumers can make informed purchasing and medicating decisions. The regulations usually state that the THC/cannabinoid content on the label must be within a particular relative percent difference of the actual tested results for the product to be salable. In California, that threshold is +/- 10%.

The problem is, with all the focus on THC percentage in flower and concentrate products, enormous pressure has been placed on cultivators and manufacturers to push their numbers up. Higher numbers = higher prices. But unfortunately, improving their growing, extraction and formulation processes only gets companies so far. So, they proceed to ‘lab shop’: giving their business to whichever lab provides them the highest potency.

There are roughly 50 Department of Cannabis Control (DCC) licensed labs in the state, and competition is fierce to maintain market share in a maturing and plateauing industry. Whereas competition used to be healthy and revolved around quality, turnaround time and customer service, now it’s essentially become a numbers game. As a result, many labs have sacrificed their scientific integrity to chase what the clients want: higher THC potency results without contaminant failures. The practice has become so prevalent that labs openly advertise their higher potency values to gain customers without fear of recourse. Here are two examples:

 

Over a year ago, a few labs fed up with what was happening got together to determine the extent of the potency inflation issue. We proactively purchased and tested over 150 randomly chosen flower samples off dispensary shelves. The results were staggering. Eighty-seven percent of the samples failed their label claims (i.e., were >10% deviant of their labeled values), with over half of the samples >20% deviant of their labeled THC values (i.e., over 2x the legal permitted variance). Additionally, our labs found multiple cases of unreported category 1 pesticides in some of the analyzed samples at multiple times the legal limit – a significant public health concern. The deceit was not limited to small cultivators trying to get by but also some of the industry’s biggest brands.

The same issues and economic conditions are in play for concentrates. Manufacturers of these products also hunt for the highest D9 THC values because wholesale prices for distillate are determined by THC content: <86% for the lowest value, 86-88%, 88-90% and >90%, with a new price point for over 94%. As a result, consumers can walk into a dispensary and find concentrates like the one shown below that report>99% total cannabinoids (>990mg/g) and contains almost 10% additional terpenes. You don’t have to be an analytical chemist to realize those numbers add up to well over 100%, which is physically impossible.

Blame

Everyone can agree that the system is broken, but who is at fault? Should the blame be placed on dispensaries, many of whom use THC % as their only purchasing or marketing metric? Or on cultivators, manufacturers and distributors, who seek the highest results possible rather than the most accurate ones? Or on the labs themselves, who are knowingly reporting inflated results?

Ultimately, the individual businesses are acting in their own self-interest, and many are participating in this practice simply to stay afloat. Dispensaries can’t reasonably be expected to know which results are inflated and which are not. Cultivators and manufacturers feel obligated to use labs that provide them with the highest results; otherwise, they’re putting themselves at a disadvantage relative to their competitors. Likewise, labs that aren’t willing to inflate their numbers have to be ready to watch customers walk out the door to maintain their principles – an existential dilemma for many.

The primary reason why potency inflation has become so prevalent is that there have been no negative repercussions for those that are cheating.  

The axiom is true – don’t hate the player, hate the game. Unlike most businesses, testing labs operating with integrity want meaningful regulations and oversight to assure a level playing field. Without them, the economics force a race to the bottom where labs either have to inflate more and more or go out of business. Since 2016, the DCC (formerly BCC) has taken zero meaningful actions to discourage or crackdown on potency inflation— not a single recall of an inflated product or license suspension of an inflating lab— so predictably, the problem has gotten progressively worse over time.

So, to answer the question above – who is at fault for our broken system? The answer is simple: the DCC.

Inaction

In the Fall of 2021, we began engaging with the DCC to address the industry’s potency inflation concerns. The DCC requested we provide them with direct evidence of our accusations, so we collected and shared the flower data mentioned above. The Department tested the same batches off the shelf and confirmed our results. Somehow not a single recall was issued – even for the batches containing category 1 pesticides.

We pushed for more accountability, and DCC Director Nicole Elliott assured us steps were being taken: “The Department is in the process of establishing a number of mechanisms to strengthen compliance with and accountability around the testing methods required of labs and will be sharing more about that in the near future.”

Instead, we got a standardized cannabinoid potency method (mandated by SB 544) that all labs will be required to use. On the surface, a standardized methodology sounds like a good thing to level the playing field by forcing suspect labs into accepting generally accepted best practices. In reality, however, most labs already use the same basic methodology for flower and concentrate cannabinoid profiling and inflate their results using a variety of other mechanisms: selective sampling, using advantageous reference materials, manipulating data, etc. Furthermore, the method mandated is outdated and will flatly not work for various complex matrices such as gummies, topicals, beverages, fruit chews and more. If adopted without changes, it would be a disaster for manufacturers of these products and the labs that test them. Nevertheless, the press release issued by the DCC reads as though they’ve earned a pat on the back and delivered the silver bullet to the potency inflation issue.

Here are a few more meaningful actions the DCC could take that would help combat potency inflation:

  • Perform routine surveillance sampling and testing of products off of store shelves either at the DCC’s internal lab or by leveraging DCC licensed private labs.
  • Recall products found to be guilty of extreme levels of potency inflation.
  • Conduct in-person, unannounced audits of all labs, perhaps focusing on those reporting statistically higher THC results.
  • Conduct routine round-robin studies where every lab tests the same sample and outliers are identified.
  • Shutdown labs that are unable or unwilling to remediate their potency inflation issues.

For some less disciplinary suggestions:

  • Remove incentives for potency inflation, like putting a tax on THC percentage
  • Set up routine training sessions for labs to address areas of concern and improve communication with the DCC

Fight

Someone might retort – who cares if the number is slightly higher than it should be? No one will notice a little less THC in their product. A few counterpoints:

  1. Consumers are being lied to and paying more for less THC.
  2. Medical cannabis users depend on specific dosages for intended therapeutic effects.
  3. Ethical people who put their entire lives into cultivating quality cannabis, manufacturing quality products and accurately testing cannot compete with those willing to cheat. If things get worse, only the unethical actors will be left.
  4. Labs that inflate potency are more likely to ignore the presence of contaminants, like the category 1 pesticides we found in our surveillance testing.
  5. This single compound, delta-9 THC, is the entire reason why this industry is so highly regulated. If we are not measuring it accurately, why regulate it at all?

We will continue to fight for a future where quality and ethics in the cannabis industry are rewarded rather than penalized. And consumers can have confidence in the quality and safety of the products they purchase. Our labs are willing to generate additional surveillance data, provide further suggestions for improvement in regulations/enforcement, and bring further attention to this problem. But there is a limit to what we can do. In the end, the health and future of our industry are entirely in the hands of the DCC. We hope you will join us in calling on them to enact meaningful and necessary changes that address this problem.

Don’t Go Down with the Ship: How to Create a Cash Influx for Your Cannabis Business During Hard Times

By Adam Benko, Brian Mayfield
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It takes a lot to hack it in the wild world of cannabis.

To dip your toes in this game and open your own business, it could cost you between a quarter to three-quarters of a million dollars after licensure and other start-up expenses – and the battle doesn’t end there. Recent data supports that the turnover rate for the cannabis industry at large is extremely high when compared to other industries, coming in at a whopping 40-60% within the first 2 months.

Oh, and let’s not forget: we’re not living in the easiest of times in general. The Bureau of Labor Statistics now reports that inflation has hit 9.1 percent, the highest ever recorded level of inflation since records began. We know that people are struggling all over the place – and those struggles are even more amplified for cannabis operators and business owners. It’s no secret that amid these struggles, many legacy operators, MSOs and mom-and-pop brands alike are making the tough decision to take on costly loans, seek funding or even ultimately close their doors.

Every time a customer abandons their cart, your business is leaving money on the table.

But, in times like these, you have to remember what brought you to the table to begin with. The cannabis industry is still projected to hit a valuation of over $33B by the end of 2022 and despite the blood in the water that we’ve seen lately, operators of all sizes are still getting wins and making a profit. So, do you throw the towel in and give up on your dreams? Should you just accept that all hope is lost?

Absolutely not.

If you’re a cannabis operator who is struggling, you aren’t alone – and more importantly, you aren’t out of options yet. Not ready to go down with the ship just yet? We didn’t think so.

Here are five, expert-approved tips to create an influx of cash for your cannabis business without significantly increasing spending:

  1. ‘Trim the Fat’ of Your Business by Cutting Lean Costs

While it may seem obvious, many cannabis operators forget that “nice to have” is not the same thing as a “must have” when it comes to keeping your doors open and your bottom line healthy. Take an eagle-eyed second look at your budget and cut back as much as possible on areas that aren’t boosting revenue. Reconsider the “extras” – like software solutions, hiring non-essential staff and slow-moving inventory – and focus your attention on the products that contribute the most to your bottom line.

  1. Make Your Customers a Priority
Focus your attention on the products that contribute the most to your bottom line.

One of the biggest mistakes that cannabis brands make is throwing so much of their marketing budget into getting new customers through the door while neglecting to show existing customers the attention they deserve for their loyalty. In today’s market, cannabis consumers have more options than ever. Why should they keep choosing you? Happy customers are customers that will weather the storm with you. Honing in on targeted ads and marketing efforts geared toward existing customers, in combination with loyalty perks, VIP deals and more is a great way to ensure your business is truly unforgettable in the eyes of the customers that keep your doors open. Looking for an extra leg up? Here’s an insider pro tip: refer-a-friend programs are a great way to get the best of both worlds and help those marketing dollars stretch a little further.

  1. SOS: Save Our Shopping Carts

Shopping cart abandonment is a serious problem for cannabis retailers – and it happens all the time. For mobile users, it can creep as high as 85%. Shopping cart abandonment happens when a potential customer visits your site, builds an order in the cart and then either forgets to check out or chose not to execute the purchase. Every time a customer abandons their cart, your business is leaving money on the table. Fight back against shopping cart abandonment by providing clear calls to action through the shopping and checkout process and targeting customers with emails or SMS messages that include discount offers or reminders to check out.

  1. Pump Up Your Payment Solutions

It’s like Canadian rapper and singer-songwriter, Drake, said in his hit song, “Omerta”, “I don’t carry cash ‘cause the money is digital.” 

Payment providers often give back a portion of transaction fees to business owners.

Let’s be honest, it’s 2022 – not a lot of people love carrying around cash. If your cannabis business is cash-only, you could be missing out on extra revenue from card and mobile payment-loving customers. On average, mobile payment users, on average, spend approximately twice as much through all digital channels as those not using mobile payments. Cash-only retailers also miss out on upsell opportunities by limiting themselves – let’s say a customer comes in with $40 in cash, they won’t be able to pick up that extra pack of cones or the grinder they were eyeing up at the checkout if they’re limited to cash-only transactions.

In addition, retailers who patronize payment solutions via debit card providers or online ACH can benefit from payment kickbacks as an additional stream of income, as these payment providers often give back a portion of transaction fees to business owners.

  1. Don’t Forget About Employee Retention Credit (ERC)

If you haven’t heard of ERC – you could be leaving as much as $26,000 per employee on the table. Many cannabis business owners would be surprised to learn that they can still take advantage of the employee retention credit program that started during the pandemic.

The program was launched in March 2020 as a way to help offset the financial struggles of business owners during COVID-19. But, even this year, cannabis business owners can seek cash relief through ERC – employers can retroactively claim the ERC based on financial struggles they experienced during 2020 and the first three quarters of 2021.

Started your cannabis business after February 2020? You still may qualify under specific ERC provisions that can provide up to $100,000 in refundable credits.

At MJstack, we understand the trials and tribulations that cannabis professionals go through every day because we’re right here working alongside you.

Our team of professionals is familiar with cannabis and what it takes to make the cut in this world. Ready to boost your business and safeguard your investments against whatever comes next? Contact us today to learn more and book your FREE consultation.

Quality in the Retail Ecosystem: A Q&A with LucidaClub Founder Jack Roosevelt

By Cannabis Industry Journal Staff
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The cannabis retail market is very unique. What began as compassion clubs and wellness centers in the early days of legal cannabis, eventually morphed into dispensaries, quickly becoming the retail model that regulators around the country adopted and businesses implemented.

For most states with legal cannabis markets, the dispensary has been the only way for consumers to buy cannabis and cannabis products. Before the pandemic began, we started seeing a handful of states warm up to allowing delivery services. During the height of the pandemic, more states adopted curbside pickup, e-commerce in some shape or form and delivery services that finally expanded cannabis retail beyond the dispensary. Still though, regulations hamper commercial growth in the retail space and the dispensary remains, by far, the place where most people buy their cannabis.

When Jack Roosevelt, co-founder of LucidaClub

When Jack Roosevelt, co-founder of LucidaClub, entered a dispensary back in 2019 in Massachusetts, he shared an experience all too common in the cannabis industry: An overwhelming number of options, jargon like sativa, indica and strain names that make no sense to the uninitiated, confusing product types and an all-around unpleasant shopping experience. Jack saw all those barriers to entry for the canna-curious or novice consumer and thought that there must be a better way to shop for cannabis.

So he started LucidaClub, a membership-based platform that is designed to guide and educate consumers with the advice of experts who can help people understand cannabis products and make the right purchase decision without all of the frustration and trial and error that is so common.

The name, Lucida, comes from a Latin phrase meaning the brightest star in a constellation. Jack and his co-founder, Lucinda, want their company to be the guiding star on your cannabis journey. LucidaClub isn’t just for the cannabis newbie; their in-house curator and team of experts can help any cannabis consumer find products to better fit their needs for sleep, wellness, relaxation, stress or just to have a good time. We sat down with Jack to chat about the cannabis retail market, what his company is all about and what the future of cannabis retail might look like.Jack Roosevelt will be speaking on the cannabis retail experience at the Cannabis Quality Conference & Expo. Click here to learn more. 

Cannabis Industry Journal: Tell us about your background and how you came to the cannabis space.

Jack Roosevelt: I began my career in finance, working for JP Morgan and Barclays. I left Barclays and joined a renewable energy start up before eventually joining the cannabis space.

My move into the cannabis space was due to an event in the summer of 2019. Adult use cannabis had been legal in Massachusetts since November of 2018. Now, I smoked some weed in high school and college, but hadn’t touched it in at least 20 years. However, cannabis was now legal, so I said maybe there’s an opportunity to find something that would help me unwind at the end of the day, help with sleep and manage some of my stress.

Knowing that I smoked in high school and college, I figured that buying weed was buying weed. How difficult could this be? That took me to going to a dispensary for the first time. Walking through those doors made me realize that buying cannabis today is nothing like buying weed back when I was in college. It’s a fundamentally different experience.

I stood there looking at the menu of strains, with names that meant nothing to me, jargon like terpenes, and even the idea of sativa versus indica at that time was foreign to me. Twenty years ago, we didn’t pay attention to the strain name or anything like that. We’d walk into someone’s dorm room and your option would be ‘this is twenty bucks an eighth, forty bucks an eighth and sixty bucks an eighth.’ You weren’t paying attention to the strain or the name of anything like that.

Coming into the dispensary that day, I thought I’d walk out of there with an eighth of flower and something to help me unwind at the end of the day. I walked out of there with a tincture and it really wasn’t because they upsold me to a better product, it was because it was the least worst option I could see on the menu. It was something I felt that I could understand from a dosing standpoint and it was something that didn’t require knowing the strains or names that mean nothing to me. I was quite frankly looking for the easiest way to purchase something and get out of there as quickly as possible

Sitting in the car afterwards, I was mulling over that experience, the feeling of intimidation, how awkward it was, how frustrating it was. I am 6’8” and 300 pounds I am not a small guy, and I’m not a wallflower. I don’t intimidate easily, so if this was my experience, what was this going to be like for everyone else?

That made me reexamine and take a stronger look at the retail market and the potential growth. How do you engage the consumer like me, for whom there are lots of barriers to entry, most of which are perception-driven. Some of the barriers are regulatory and geographic, but most are perception based. Here in Massachusetts, a lot of the dispensaries are in inconvenient locations. Not all towns allow for rec sales, and not all of those towns that do will allow a dispensary to open on the High Street, so consumers often times have to drive out of their way to get to a dispensary.

So, for me understanding what this new consumer base would look like and how they would come into the market was key. Obviously there would be a natural growth progression for the cannabis market. However, if we could build something to help guide people, answer their questions and make them feel comfortable with what they were buying and how to consume, really hold their hand in the initial stage of a consumer coming back into the market or coming in for the first time, then we could help grow the market quicker and put that natural progression of growth on a faster track.

That experience made me start to do some market research, look at the market size, and what that potential market could look like. Our research shows that, depending on the maturity of the market in question, there are between 1.5 and 4 times the number of Cannacurious sitting on the sidelines than there are active consumers in a market. Here in MA, conservatively there are at least 1.5MM Cannacurious sitting on the sidelines, waiting to come into the market. Because our research showed such a large opportunity he in MA and the Northeast, where we live, we decided to focus our efforts here.. Because we are Cannacurious consumers ourselves, we have a natural understanding and empathy for the consumer. I was definitely not and still am not an expert on cannabis. But if we can find the right experts that can answer the questions that we have then we can do the same for the Cannacurious. For 70+ years, we’ve been told that cannabis is bad, smoking weed is bad and everything associated with it is bad. So, we want to break that negative perception, that stigma that is still lingering and open it up to a more mainstream consumer.

CIJ: What gave you the idea to start Lucida Club?

Jack: What I just told you sums it up pretty well. It was basically built out of personal frustration. I thought that if I had this problem, those feelings of intimidation, awkwardness and frustration, then undoubtedly a lot of other people would too. Therefore, we’re looking at how we can create a platform that would make the buying process as simple and convenient as possible, while educating the consumers at the same time.

CIJ: How does Lucida Club work?

Jack: It’s a concept of simplicity and convenience. There are two sides to this: The E-commerce side, when you sign up and become a member and you want to make a purchase, all you have to do is answer three questions: What experience do you want? Do you want to smoke something or not? And how much money what do you want to spend? We put together three experience packages with three key price points, around $100, around $150 and around $250.

It is based on available inventory, which products and price points match up with different packages. We have fully integrated with Flowhub and are doing the same thing with some other POS systems as well. We see the inventory for our retail partners on a live basis. When one of our members makes a purchase, if they choose the sleep, nonsmoking, $100 package and put that option in their cart, by the time it populates in their cart, our platform has already gone to the dispensary inventory, we’ve allocated their inventory by experience and by order preference. So it will put those top two or three or four items in the cart automatically. The consumer doesn’t have to worry about what brands are available.

We’ve done all the work for them. They just need to pay attention to what experience and price point they want and we take care of the rest.

The other side of our business involves our head curator who combs through all the inventories and manages the product selection. But he also works with with our members as a concierge. When you sign up for our service, you automatically get a free consultation with our head curator, which we encourage all of our members to do before they make their first purchase. That way, we can answer all your questions and make sure the package is really tailored towards you individually. You also get a follow up consultation, which helps to guide additional advice and make sure you get the experience you’re looking for. On top of that, we’re also trying to advance consumer education through a lot of content, answering common questions and help to guide consumers on their journey with cannabis and the role it can play in their lives.

CIJ: How do you think you are innovating the cannabis retail experience?

Jack: When I was sitting in the car that fateful day back in 2019, I looked at retail the same way everyone else does: you build a store, an e-commerce platform, you have a product you’re trying to sell and focus on the product itself. What opened my eyes being the consumer that day was that cannabis unique.

We’ve been told for decades about how bad cannabis is for us and for society and these negative connotations have been drilled in to us. We need to look at the retail space from the consumer’s perspective and the barriers to entry that they feel. It’s not something that a regular retailer can do easily.

By definition, a brick-and-mortar retailer, needs to be everything to everybody, for all of their customers. They have to work with the connoisseurs, the regulars that have been consuming for a long time, who really understand what they’re looking for. At the same time, they need to engage with the canna-curious, the newbie that’s walking in the door for the first time. It’s difficult to focus on one market segment for them. If they were to focus all of their efforts on just the canna-curious, they would be missing out and losing traction and not engaging properly with their other customer bases.

We have the ability to engage with a very specific market segment, the Cannacurious, which is a very large group of people by the numbers but still niche. Our research shows that there are at least 1.5 million Cannacurious in Massachusetts alone that are either sitting on the sidelines or engaging in the market in a very small way. We’ve spoken to a lot of people that have other people make purchases for them, their sister or brother going to a dispensary that feels comfortable picking up a single package of edibles for them. That’s a form of hand holding that we want to provide. We want to make consumers feel comfortable and educate them on how they can choose products for the experience they want.

In my mind when we look at the cannabis space, it’s about how we can help people come into the marketplace, how we can help open their eyes to a litany of other opportunities for them and also how to approach things from a consumer perspective.

CIJ: What do you think the future of retail in cannabis looks like?

Jack: That’s a tough question because so much of that is driven form a regulatory standpoint. I know where I think it would go if regulators were just there to make it easy for consumers and for everyone to do business. It changes so much state to state and market to market. In retail in general, so much is moving online and on to e-commerce. Where you have a situation where people actually understand what they want and they tend to buy the same products on a regular basis, e-commerce is great and easy for them to make a purchase. Delivery opens a lot of doors as well with that. But again, it’s really difficult to look at what is going to happen because the market is so fragmented from a regulatory standpoint.

It won’t develop in one direction easily. Delivery is an option but we don’t have it on a mass scale in Massachusetts. It’s the same with e-commerce. Technically in Massachusetts, purchasing online is not an easy thing to facilitate. It still has to be done at the point of sale in-person with pickup and it hampers e-commerce. This potentially slows down how the market could develop. I definitely know where it could go, but looking into that magic eight ball will still be very cloudy if you ask it for an answer. Sorry, I have to obfuscate things a little there because it’s just so hard to figure out what the regulators will greenlight next and where they want the market to go.

We really just don’t know. There are so many ways to look at that question. If you’re a brick-and-mortar dispensary right now and you’re looking at how the market itself is growing in the state of Massachusetts, it’s tough to say. We went from about sixty licensed retailers during the height of the pandemic to well over 200 now. There’s going to be some consolidation. Whether that means that the growth of MSOs will proliferate and everything will be homogenized going forward, I don’t know what that could mean because at the moment it’s very difficult to have that full homogenization when you’re only allowed to have a handful of retail licenses. How do any of the MSOs gain real traction with three locations? If that changes, if you go somewhere like Florida where the rules are different, you see the true growth of the MSO with dozens of retail locations. Here, we still have a lot of mom-and-pop retailers along with a lot of much smaller MSOs who might have locations in one or two other states.

E-commerce will bring a lot to the market and help brands grow significantly. How we grow depends almost entirely on what the regulatory environment looks like. There are so many different things we could do with our platform, but we are so hampered by the regulations in just this one market alone. We built our platform and business model the way we did because it allows us to be flexible and adapt. As we move into a new market, we can build relationships and new markets open up. It’s all about being flexible if you can be.

New Jersey Launches Adult Use Sales

By Cannabis Industry Journal Staff
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On Thursday, April 21, a handful of dispensaries in New Jersey begin selling cannabis to adults over the age of 21. The state has so far issued licenses for adult use sales to seven alternative treatment centers (ATCs), otherwise known as medical cannabis businesses already established in the state. In total, thirteen dispensaries in the state can sell cannabis to adults over 21.

The Capitol in Trenton, New Jersey

The reason why adult use sales could not start on April 20 is because of “unmanageable logistical challenges for patients and other buyers, surrounding communities, and for municipalities,” Toni-Anne Blake, communications director for the New Jersey (CRC) told The Philadelphia Inquirer. “Regulators and industry representatives agreed it was not feasible.”

The seven ATCs awarded adult use licenses are Ascend, Curaleaf, GTI, Acreage, Verano, Columbia Care and TerrAscend. The state’s roll out created a lot of controversy over allowing already established, larger medical cannabis businesses and multi state operators to begin adult use sales before smaller businesses and social equity applicants get licensed.

According to The New York Times, the CRC gave condition approval to 102 companies for cultivation and manufacturing, but they need local approval and real estate before commencing operations. Another 320 organizations have applied for licenses for the New Jersey adult use cannabis market, but could wait up to a year or more before they begin operating.

Regulators in New Jersey say the seven companies commencing sales will need to follow social equity rules, including providing technical knowledge to social equity applicants. “We remain committed to social equity,” says CRC Chair Dianna Houenou. “We promised to build this market on the pillars of social equity and safety. Ultimately, we hope to see businesses and a workforce that reflect the diversity of the state, and local communities that are positively impacted by this new and growing industry.”

Jeff Brown, executive director of the CRC, says they anticipate long lines and crowds. “We expect 13 locations for the entire state will make for extremely busy stores,” said Jeff Brown, executive director of the New Jersey Cannabis Regulatory Commission. “The dispensaries have assured us that they are ready to meet the demand without disrupting patient access, and with minimal impact on the surrounding communities, but patience will be key to a good opening day.”

Adults in New Jersey can purchase up to one ounce of flower, up to five grams of concentrates or up to ten 100mg packages of edibles. Click here for a list of the locations opening their doors for business.

Cannabis Dispensary Displays: What’s Trending in 2022

By Ray Ko
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As additional states around the country legalize cannabis – New Jersey, Arizona, South Dakota and Montana, to name a few– more and more medical and adult use dispensaries are popping up. Business owners are looking for ways to stand out from their competition. Enter dispensary displays, cost-effective hot commodities and a trending topic in 2022. Cannabis displays have become the vehicle to not only house merchandise but can also be a customized branding tool unique to the company’s aesthetic and marketing messaging.

Before we delve into the dispensary display trends disrupting the cannabis industry, let’s start at the very beginning: the basics. The basics include retail space, dispensary layout, cannabis inventory, complementary accessories and of course, budget. Decorating a unique space with a signature aesthetic can be as easy as mixing-and-matching the displays and ideas discussed in this article.

A Well-Lighted, Clean and Simple Space is In

Whether your dispensary is for medical or adult use, a clean design aesthetic is always a good choice. This never-fail approach to decorating conveys a crisp, modern, hygienic feel and a neutral palette like clear, white and black cannabis display cases support this look.

Store lighting plays heavily in dispensary décor, too. According to the lighting experts at Stanpro Lighting Systems, there are three basic types of lighting: ambient, task, and accent and all play a unique role. In short, ambient lighting lights up an entire room or space – outdoor too – to safely facilitate traffic. Task lighting, as the name suggests, is used for a given task such as reading and the like. Directional recessed fixtures, pendant and desk lamps all fall into this category. Light is directed to a focal point and shouldn’t be too bright or harsh. Accent lighting directs attention to a point of interest. Think track lighting, undercabinet or recessed lighting – perfect for dispensaries. When mapping your lighting layout, consider pod holder placement. Place a multi-shelf locking cannabis cabinet under bright lights so customers can see and smell, if appropriate, the merchandise. Alternatively, if lighting is an issue, use a lighted display riser to showcase your pod assortment. A pop of color via custom color pod picks like these from shopPOPdisplays, placed inside a clear cannabis display pod holder on the lighted display riser grabs attention and can be easily switched out depending on the product promotion. It’s versatile, cost-efficient and eye catching.

Make It Marketable

Cannabis displays come in all shapes, sizes, styles and colors. Organize your cannabis, CBD, vape and other merchandise like nitro tins to keep clutter at bay, but make it work for your brand as well. Double-duty dispensary displays like tube holders provide the functionality of neatly presenting products with the bonus of brand recognition through a customization option. If decorating your dispensary business and building your brand on a budget – and who isn’t – customizing key pieces like locking displays and cabinets, may be the solution. Placing products in and on customized cannabis dispensary displays with your logo, brand and/or company color scheme brings instant recognition as well as consumer confidence that your dispensary is not a fly-by-night company. Strategic customization might be the savvy investment option in the long run.

Protecting Your Employees: Health and Otherwise

Security means different things to different people. Physical, financial – you name it – people want to feel safe and protection of others, oneself and properties is at the forefront. Like all business owners, dispensary entrepreneurs invest time, money and sweat equity to get their business up and running. According to cannabis software specialist TRYM, by the year 2025, the cannabis industry is estimated to reach $30 billion dollars. Ensuring the safety and security of staff and inventory investment is a top priority. Cameras, security personnel and alarm systems are all factors, plus practically shatter-resistant plexiglass counters and displays are the new must-have trend. Acrylic sheets don’t end at the counter either. The health of staff members, especially during these times mean plexiglass sheets, clear acrylic barriers and sneezeguards are being implemented in dispensaries across the country. In compact or limited retail space these protective panels ensure social distancing and help ease customer anxiety.

The cost of dispensary inventory is significant, protecting it doesn’t have to be. Many states require cannabis, CBD and vape merchandise be stored in locking display cases and locking cabinets, behind counters, and more depending on the state. Sidestep specific regulations and instead opt for securing all cannabis and high-ticket items in both countertop and locking wall mount displays as well as wall pedestals, lighted pedestals (with acrylic cover or without) with the lock option. These display cases promote waist- and eye-level optimization without taking up valuable retail space.

Color Me Green This Year and Next

As mentioned, in 2022 clean is in, but so is green. In The Psychology of Design: The Color Green, Christi Wharton says, “Green evokes a feeling of abundance and is associated with refreshment and peace, rest and security.” Therefore, it only makes sense to include green when decorating your dispensary. Add planters with greenery to odd corners, break up a white space with a verdant splash of color to bring attention to products. Consider custom green acrylic display risers with company name, brand or logo to literally elevate merchandise or use a LED cannabis display and a showcase is born!

With these current and classic display trends; a well-designed dispensary doesn’t need tricks and a large budget to succeed. Quality merchandise, great customer service as well as classic in-stock and custom dispensary displays never go out of style.

The Cannabis Industry and the Science of Seasonality

By Blaise Lucey
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Let me be honest: I’ve only been part of the cannabis industry for six months. Before that, I worked at B2B tech start-ups and ad tech companies like Roku and Criteo. The most valuable thing I learned is that most good ad campaigns are linked to seasonality.

When I worked at Criteo, the vast majority of our clients were retail and ecommerce. Seasonality initiatives were critical. The more relevant your ads to an upcoming seasonal event, the more relevant they were to the audience. Think about any window display you’ve seen recently – the CVS near me has had Valentine’s Day products in the window since at least mid-January.

When I worked at Roku, we got to take a look at TV streaming behavior. For example, when Ben Affleck started dating Jennifer Lopez again, searches for their movies and music videos skyrocketed. During the space race, general space-related (think Star Trek) TV content went up.

That’s not seasonality – that’s psychology.

As the cannabis industry matures, businesses should start thinking about what seasonal, psychological and cultural factors impact their consumers. Cannabis consumption could be said to be the art of the business, but understanding what cannabis consumers want is the science. Here are three ways to think about that science:

1. The Science of Stash

One analyst recalls that cannabis sales reached “unimaginable” highs in 2020. He called this “pantry-loading” behavior. Let’s call it “stash” behavior.

The buying behavior of a cannabis buyer who buys an eighth is fundamentally different from someone who buys a six pack. The six pack is gone in a weekend. Which flower buyers are buying an eighth just for a weekend? A week? A month?

During the height of the pandemic, with nowhere to go and a lot of anxiety, dispensaries provided at-home entertainment for cannabis consumers. That’s why sales grew by 46%. Cycles of consumption naturally went up. In this case, I think of streaming TV, too – Netflix added 36 million subscribers in 2020 and Roku saw 58.7 billion hours streamed in 2020.

Is there a correlation? Well, stashing behavior obviously correlates with couch behavior. When people spend more time inside, they’re more tempted to go through their stash and cannabis sales increase.

Cannabis isn’t affected by just regular old seasons – it’s affected by what we could call personal, seasonal patterns. Just like streaming TV, when consumers spend more time inside, they buy more cannabis because they consume it faster.

What is the stash turnover rate for your different audiences? What factors make that turnover rate go faster or slower?

Analyzing stash behaviors can reveal your most loyal and high value customers, and offer new perspectives on how to market to different groups.

2. The Science of Celebration.

One estimate shows that Illinois cannabis sales jumped up by 10% in July due to Lollapalooza. Makes sense – more than 385,000 people attended.

women grow event
“When people are coming into cities for events, they’re picking up cannabis then and there, and likely consuming it in true real-time.”

Looking at our own data, there’s a clear spike around St. Patrick’s Day – cannabis sales are 70% higher than average daily sales in February and 54% higher than average compared to March daily sales. This goes against stashing behavior, because the sales happen on the same day.

This is a different science. When people are coming into cities for events, they’re picking up cannabis then and there, and likely consuming it in true real-time.

Event trends can have a huge impact on cannabis sales and psychology. Where there’s a celebration, there’s going to be cannabis buyers. Event trends often translate to tourism trends. And these cannabis buyers aren’t just tourists to cities, a lot of them are likely tourists to cannabis itself as well – novelty consumers who go into a dispensary for the specific event and pick up a little bit of everything.

That’s an opportunity for new brands and more niche categories (beverages, pills, edibles) to connect with a new group of customers. That said, after that initial purchase, how can the brands stay in touch? That’s where dispensaries and cannabis brands need to come up with new strategies for managing cannabis customer data.

3. The Science of States.

Events like Lollapalooza are regional – and so are cannabis markets. In Massachusetts, BDSA data shows continued growth. In the West Coast, analysts call it a “rollercoaster.”

Note the specific pandemic trend lines. Any state that suddenly saw more than 50% sales one year and a sudden slump the next year at the same is bound to see a market crash. It also made it easy to ignore a lot of structural problems – which states like California are now trying to correct.

Legal cannabis sales are radically different depending on the maturity of the market. Let’s not forget that this goes deeper than just states. Only 32% of the California market even has legal dispensaries open right now.

What are regional trends? What are event trends? What are cultural trends?

The more dispensaries and cannabis brands can proactively market to anticipate these needs – and get the message out there to the right audience segments – the better.

Making Cannabis Personal

What keeps becoming apparent is that above all, cannabis is personal. Everyone is looking for something a little different. A consumer’s tastes can change based on all sorts of factors – or not change at all. Different products might suit different occasions. Different messages will talk to different use cases – some people want cannabis that can make a concert better. Others want it to sleep. Dispensaries need to figure out who’s who.

At the end of the day, that’s what makes the cannabis industry so unique. It is an end-to-end experience like no other. From researching products and dispensaries to analyzing brands and products to consuming it, every interaction a consumer has with a cannabis business is very personal. And if they don’t like their personal experience, they won’t come back.

As the industry looks ahead into a competitive 2022, the mission should be simple: make every touchpoint for every customer a great experience, from start to finish.

A Cannabis Brand’s Visual Identity: To Illustrate or Not

By Nate Azark
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In the cannabis industry, it’s vital for your brand to stand out and engage your target customer at every touchpoint. When it comes to your visual identity, choosing the right design style is more than just what looks good to you. It comes down to creating a brand ethos, understanding your customer, defining a brand personality, assessing your budget and time and choosing a designer. In order to harness the power of illustration to take your cannabis brand’s visual identity to new heights, you must consider all of these factors when crafting your strategy.

Creating a Brand Ethos
When you begin to build out your cannabis brand, developing your brand ethos is the perfect place to start. There are many factors to consider. First, remember to be true to who you are because people will see right through you if you try to be something you aren’t. Then, spend the time to write down what you’re passionate about and make sure all areas of your business and brand align with those values.

Next, understand what you do better than anyone else and scream it from the rooftops. That is your differentiator. That is what your customers will come to know you for. After defining what you do best, build up a reputation around it and continue to grow in a positive direction.

Lastly, make sure your design, packaging and messaging are all consistent and work together in a cohesive way. I’ve found that consistency is key in everything from the product quality and your look to your communications and interactions with customers.

Understanding Your Customer

Illustration work Nate did for happie infused beverages

Remember, you can’t be everything to everyone. So many people are under the impression that everyone is going to want their product, but that couldn’t be further from the truth. With the cannabis industry evolving at lightning speed, there are more consumption options than ever before. You still have those true to smoking leaf; others are looking for concentrates, while some want the smoke/smell free route of edibles and beverages. Each of these cannabis products are going to target a different audience and demographics, and all of that needs to be taken into consideration when building your brand.

For instance, edibles are an easy way for someone to first try cannabis. By taking a more educational approach to the packaging, brands can help those customers feel more comfortable with their first cannabis purchase. At the end of the day, people want to know what they are getting into and how it is going to affect them. This should always be taken into consideration when deciding on the design style for these products.

Defining A Brand Personality

I always like to reference the craft beer world when talking about cannabis these days. As craft breweries popped up, the successful ones always had two things: a great product and a great personality that connected with their community. The same should be said for cannabis.

Start with a great product and build a community that appreciates your character and wants you to stay true to it. Are you punk? Are you a stoner brand? Are you taking more of a scientific approach? Whatever speaks loudest to YOU, make sure that approach is carried through to your customer. You will earn their trust and they will appreciate that you stay true and genuine to who you are.

A mural the author created for the Milwaukee Bucks

Once you identify what your brand personality is, then you can start to make decisions on your logo, packaging and verbal communication. Get with your trusted designer and/or illustrator (more on that below), and start to make decisions about what style fits your brand best. Will your look be clever, vibrant or all-natural? Will it be illustrative or photo-forward? There isn’t a one size fits all solution.

Remember to not slack on having your communication match the look, feel and personality of your brand. With a cohesive visual and verbal identity, you’ll be able to create magical moments where the consumer feels like they are uncovering something special when they make a genuine connection with your cannabis brand.

Assessing Your Budget & Time

Budget and time are two HUGE components of deciding what visual direction to take. This is where you’ll really start making decisions about whether you should go with an illustrative design style. While illustration can take your cannabis brand’s visual identity to the next level, there are pros and cons to going that route.

Overall, illustration can be time-intensive and expensive depending on the illustrator and complexity of the work. If you want to have a different illustration for every strain you cultivate it can get pricey, but it may also set you apart from the competition. You have to weigh if the upfront cost of having something created will help differentiate your brand long-term. It is a much easier decision when you only have a couple of SKUs to start with or you choose a simpler illustration style, as these have less potential to initially set you back.

Pros:

  • Most importantly, you get to work with people who are as passionate about their craft as you are in yours. Find an illustrator with a style that you like that fits your brand. I find it harder to find an illustrator and ask them to conform their approach to fit your look. It can be done as there is a lot of talent out there, but if you find someone that is already creating what you like, it will be much easier to get what you’re looking for.
  • You’ll be able to develop a look and feel that sets you apart from the rest of the crowd. Illustration evokes emotions and tells a story, which can be quickly identified by a potential customer.

Cons:

  • Timing is huge. Make sure you find an illustrator you trust that can turn things around when you need it. Give the illustrator plenty of time to execute your vision as well.
  • Budget comes into play as now you need to hire a designer and an illustrator. There are some designers that illustrate as well, but these are diamonds in the rough.
  • If you need a new illustration for every product, that will cost more than simply updating a name and colors in a design system.
  • As many cannabis products are small format, it can be tough to truly highlight the detail in a great illustration.

Choosing A Designer

Grass Fed Studio shirt designed by the author

Finding a designer that focuses on illustration and whose style reflects your brand’s look and feel is important because it’s critical to be on the same page. Sometimes finding a designer AND an illustrator is the way to go. Even if you love the designer’s work, if it doesn’t fit with your brand’s look/feel, you won’t be happy with the end result. A good designer will be able to work with a good illustrator and vice versa.

Questions to ask potential designers include:

  • Are they taking new clients?
  • What do turnaround times look like?
  • How much is the project going to cost?
  • Do you own the artwork when they are done?

It’s incredibly important that you get along with the designer and/or illustrator you choose to work with. There are a lot of choices and it always helps to work with people that share the same values that you do. To open up your options, you can choose illustrators that are at different levels in their careers. A college student may be less expensive, but not have the professional and business experience you need, while a seasoned illustrator has more expertise to bring to the table, but may be more expensive.

The goal is for the designer and/or illustrator you choose to successfully create a visual identity to capture your cannabis brand’s essence and character.

The bottom line is that your visual identity is a critical component of your brand. Make sure you build it in the right way, so you can attract customers who align with and appreciate your cannabis brand identity’s look and feel. Cheers!

Vaporizer Technology Innovation & Hanu Labs

By Aaron Green
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Conduction heating is a method used in most dab rigs and vape pens that relies on heating concentrate or flower on a metal surface to vaporize cannabis compounds for consumption. Care must be taken with conduction heating to avoid overheating the material, resulting in combustion or decomposition. Convection heating (think of heating food in an oven) can also be used to vaporize cannabis compounds and has the benefit of being able to control the heating temperature of the material more precisely.

Hanu Labs recently announced the launch of their Hanu Labs EVO Petra. The tabletop device leverages their convection heat-based Perpetual Heat Thermal Technology, which avoids combustion while efficiently extracting the desired compounds from cannabis flower or concentrates.

Prior to becoming the CEO of Hanu, Ricardo worked in sales at Jetty Extracts where he helped to build the Northern California territory. Ricardo is also a classically trained French chef who used to run a cannabis tourism company in California.

Aaron Green: How did you get involved in the cannabis industry?

Ricardo Willis, CEO of Hanu Labs

Ricardo Willis: I moved to California in 2016. I was a professional chef at the time and had just finished up my master’s degree after eight years of schooling. My business partner and I decided we wanted to get into the cannabis space. So, we started a cannabis tourism business. Cannabis tourism wasn’t in the Bay Area at the time. We were kind of first and we were about two years ahead of legalization. We ran a few tours and we started to get into the cannabis game. I found out I didn’t know as much as I thought I did about cannabis. So, I decided to go and work for Jetty Extracts and that eventually led to where I’m at today.

Green: What was your motivation for joining Jetty?

Willis: Education. I knew about flower, but I did not know as much about the manufacturing process. I was first exposed to concentrates in San Francisco and I was really fascinated by it. I wanted to learn more, because I knew that this was going to be the wave at the time. Coming from the east coast, I had never seen a vape pen. So, I come out to Cali, and I see all these different dabs and I’m like, “I need to know more about this.” Jetty was an opportunity for me to educate myself while also helping them build their Northern California division that had only been around for a few years, and they were trying to expand. It was a great opportunity working for those guys, I learned a lot.

Green: I got a chance to see the Petra in action last night. It’s a bit different from your standard dab rig. Can you talk about the standard dab conduction heating versus the Petra and convection heating?

The mica-encapsulated chamber and heating element

Willis: Think about your standard dab rig in the sense of taking a hot plate and dropping your dab onto that hot plate. It just sits there and begins to bubble and then evaporate from the heat. With the Petra, you take in all those same components, but you’re putting the concentrate into this mica-encapsulated chamber, where you have an all-glass air path that is one of the best surfaces for heating, and one of the safest. Those components with our perpetual heating system allow the dab rig, when we drop that nail in or we drop a basket for flower, that convection air circulates around the actual product. The oil begins to sublimate, or the vapor begins to make it through the flower, and it releases all those molecules that are found in the cannabis plant. And because of our glass air hydro tubes, when you pop those on, it basically filters it through water, and gives you one of the fastest and cleanest hits you’ve ever experienced.

Green: You mentioned flower as well as concentrates. Am I correct in hearing that you can also use flower with the Petra?

Willis: Yes. Dual functionality was one of the things found in our original model, the Vape Exhale that we first released nine years ago. I think that that’s very important for products. If a customer is going to spend anywhere between $300 to $500 retail, you need to give them more bang for their buck. Being able to vaporize flower and concentrates fits for the markets that we’re going into. People are consuming flower and concentrates at about the same percentage rate. So, we want to make sure that our devices can give the customer the ability to do both, either at home or on the go.

Green: So, you worked in the cannabis tourism industry. One of the trends we’ve got coming up in California is consumption lounges. How do you see the consumption lounges evolving over time? What are the challenges you see in California?

Willis: It’s a little different in Southern California versus Northern California. We’ve had consumption lounges in San Francisco, as well as Oakland for the past three years. We outfitted the entire lounge with VapeExhales at Barbary Coast, one of our early clients that we work with, which is downtown San Francisco. For us, we knew this is a space that would be thriving.

The Hanu Labs EVO Petra

I’m a big fan of the lounges, because I think people need a safe place where they can go to smoke. Those lounges offer that to people. It also gives them a chance to experiment with different technology and actually test it out before purchasing. Because of my hospitality and restaurant background, I’m always looking for the opportunity for people to become repeat customers. If you offer these things like consumption lounges, instead of people going to bars, they end up at your lounge after work. I think that is something that’s going to continue to grow.

I do think some of the challenges are going to be around single servings. A person doesn’t need to buy a full gram. Maybe they just need to buy a quarter of a dab or something like that. Companies will need to identify those potential pain points in that process, and then offer those smaller products that can be enjoyed while at the lounge.

Green: There’s a certain experience around the Petra. Where it’s really like a centerpiece of the table. How did you think about designing the user experience and designing around that conviviality?

Willis: That’s a great question. For the Petra, what we decided to design was slightly different from the VapeExhale. With the VapeExhale, the purpose of the device wasn’t super obvious, but the Petra has more of a centerpiece design. I’m a big fan of technology, so when I was designing the Petra, I was thinking about the KitchenAid mixer. That may seem strange, but the KitchenAid mixer is something that as a cook, either at home or in a restaurant, they own these things literally for 20 years. It has a very long product life. I wanted the Petra to be the same. I wanted it to look more like an appliance, I wanted it to be built with stability and durability so that when the customer purchases that product, it becomes a centerpiece that they can set up. If your grandkids come in, they see your vaporizer, it becomes more of an educational opportunity, and less about feeling embarrassed about your cannabis pieces. So, for me, design is all about ease of use, but also being appealing to the eye. The Petra is its own show, and it deserves to make a splash.

Green: What in your personal life or in cannabis are you most interested in learning about?

Willis: I am very interested in the customers. I started off in customer service when I was around 16 years old. The one thing that I learned is that the customer is the most important part of the sales cycle. I think that sometimes people focus on the B2B side and making our business partners happy, but my focus is, and always will be on the customers. I need to understand what customers want and how they want it. I’m intrigued by the science behind customer acquisition and want to learn more about how to make my customers happy. If they want cheaper pricing, I’m going to find a way to develop products to give them what they want at the price point they want. There is always going to be a customer who wants premium, or mid-tier or a customer who just wants something fully functional. Maybe they want something that provides the right experience for them, and they don’t have to break the bank to get it.

Green: Thanks Ricardo. That concludes the interview.

Willis: Thanks, Aaron.

Creating a Deeper Client Relationship with a Customer Success Mindset

By Samantha Smith
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Why is customer success a critical differentiator when evaluating technology partners for your cannabis operations? You’re probably familiar with a customer service department. Typically, a customer service team is a reactive relationship that you call on when you have a question or problem. Customer success is different because it takes a proactive approach to relationship management and focuses on your company’s desired outcomes.

It Starts with Transparency

The customer success team is introduced during the sales process, so they know the customer’s goals, objectives and the pain points they’re looking to solve. Keeping these priorities top of mind allows the entire implementation process to align to the customer’s objectives, ensuring immediate success after purchase and a long-term roadmap for future deployments.

A boilerplate solution in software implementation is often not a good idea. While you need standard processes in software deployment, it’s mostly about listening and learning to adapt to a customized approach. Each client can weather different levels of change and advancement, so a customized strategic effort starting in the beginning of the process can help avoid issues later on.“Customer success ensures you are not making unnecessary investments while educating you on available software that would complement existing technology.”

Implementing new software can be a lengthy and challenging process, depending on how many team levels need access, what software integrations are required and the level of business activity you have on a seasonal basis. Adopting new technology into facilities can be even more complicated when implementation delays occur, or the product isn’t working as intended during the initial rollout. Customer success provides transparency throughout the deployment process by conducting ongoing timeline reviews, drafting enablement plans that work within your schedule and driving awareness and adoptions throughout your organization, resulting in a faster return on investment.

Creating a Deeper Partnership

Customer success works as an advocate for the customer while balancing the needs of the business. With software products, it’s easy to turn capabilities on as it is to turn them off, so determining the right timing for each new feature is part of the balancing act. Knowing when customers are ready for specific features and functionality provides a software roadmap for a customer. In this role, the customer success advocate becomes a trusted advisor and becomes integrated into the customer’s business operations.

Being Proactive, Not Reactive

A simple way to describe the differences between customer service and customer success is to consider how your software vendor works with you. Is it a proactive approach or a reactive one? Customer success always leads proactively, strategizing on solutions to benefit the customer immediately while also keeping the long-term vision top of mind.

Creating Benchmarks for Success

Software as a Service (SaaS) has become a competitive advantage for cannabis operators looking to implement a consistent, cost-effective cloud-based technology. Still, many companies end up overspending or paying for more licenses than needed. Customer success ensures you are not making unnecessary investments while educating you on available software that would complement existing technology. Customer success does this by providing tailored reporting, enabling existing and new team members within your facilities on product features and functions, and aligning your software deployment to your facility’s requirements.

When considering a technology partner, inquire about post-sales support. Do you only hear from your technology providers when it’s time for renewal or when you call in for help? Are they offering a “set it and forget it” support model approach? Customer success is about a mutually beneficial relationship between the customer and the software vendor, retaining a happy, using, paying customer who achieves a measurable outcome when using the software. Your success is customer success.