EXCLUSIVE: Cannabis Industry Experts Share Insights On Building Customer Loyalty - 'It's All About Education'

A panel of experts discussed how cannabis companies are targeting retail customers, at the Benzinga Cannabis Capital Conference in Miami Beach on Tuesday.

The panel shared tips and tricks on what businesses should be doing to engage and keep their customers coming back for more.

Frictionless Environment To Recognize Customers: The biggest challenge for cannabis retailers is knowing who customers are, and once they've been identified, knowing how to take care of those clients without being a drugstore.

"I believe that we should not only think about who our customers are, but also about what their issues are. That is why we must visit the stores and listen to our consumers," said Sarah Kabakoff, VP and business development at Dutchie.

One of the biggest challenges in Canada for dispensaries is excessive regulations and a still-thriving illicit market. According to Raj Grover, president, and chief executive officer at High Tide Inc. HITI, the lack of enforcement and varying regulations in the country means that stores are often geographically close to each other and have difficulty differentiating themselves in terms of their merchandise.

However, from Grover's perspective, diversification could be a solution. Since its inception, High Tide has been working on diversifying the company. It's not just about lowering prices, it's about creating a loyalty program for consumers, he said.

Data Point

Through data, retailers can understand the preferences and habits of consumers.

Although it's also about sophistication: "the data point is definitely the jewel on your crown to be able to understand the consumer, so as quickly as you can trigger that data and learn your customer segment and then appropriately market to them, the faster you are able to grow," said Wendy Berger, board member of Green Thumb Industries Inc GTBIF.

"It's all about education," added Item 9 Labs Corp. INLB CEO Mike Weinberger, referring to the "newbie" consumer, specifically.

Berger also noted that investing in technology and maintaining the brand consistently, is key to growing cannabis retail sales.

Building Customer Loyalty

To ensure long-term success, businesses must build customer loyalty, and strategies like exceptional service, incentives, personal relationships, transparency, feedback, quality, and positive branding can help.

“An engaged customer is a returning customer,” said Grover. "If you do not have a loyalty program, you cannot communicate with your customers, whatever channel you choose to communicate your message."

A loyalty program incentivizes customers to return, allowing businesses to gather data and personalize experiences, improving satisfaction and loyalty.

The effort, time, and investment put in can create a loyal customer base and increase revenue, Grover added.

Image by Benzinga