Expansion Through Licensing: Benzinga Conference Delves Into How Cannabis Brands Ensure Consistency

Cannabis companies are increasingly turning to licensing as a means to expand their presence and revenue streams.

Licensing in the cannabis sector presents unique challenges, particularly when it comes to ensuring consistency for consumers. 

1. The Essence of Brand Consistency in Cannabis

Maintaining brand consistency is pivotal for cannabis brands, given the sensitive nature of the industry. A study conducted by Cannabis Business Times found that 73% of consumers prefer brands they trust when purchasing cannabis products.

See Also: Trying to Grow Your Cannabis Business? Why Licensing May Be the Answer

This underscores the critical role consistency plays in brand loyalty and consumer trust. To ensure consistency in the cannabis sector, consider the following steps:

Establish Robust Brand Guidelines

Before venturing into licensing agreements, create comprehensive brand guidelines that encompass your brand's core values, messaging, visual identity, and quality standards. These guidelines serve as a foundation for licensees, ensuring they adhere to your brand's ethos and values.

Stringent Quality Control and Compliance

Given the highly regulated nature of the cannabis industry, implementing stringent quality control measures is imperative. Regular audits and compliance checks will help maintain the desired consistency in product offerings while ensuring adherence to legal and safety standards.

2. Fostering Trust and Consumer Perception

In a sector where regulations and perceptions vary greatly, building and preserving consumer trust is of paramount importance. A study by Brightfield Group reported that 60% of cannabis consumers prioritize brands they are familiar with. Here are strategies tailored to the cannabis industry:

Educational Marketing Collaborations

Collaborative marketing efforts that focus on education and responsible consumption can strengthen consumer trust. Partnering with licensees for educational campaigns and responsible use initiatives can reinforce the connection between your brand and the licensed products.

Transparent Sourcing and Authenticity

Transparency in sourcing and authenticity is critical in the cannabis sector. Encourage licensees to openly disclose the origin and quality of their cannabis products. Ensuring that your brand's values align with those of your licensees will help maintain authenticity and bolster consumer confidence.

3. Harnessing Customer Feedback in Cannabis

Customer feedback is a potent tool in the cannabis industry, where word-of-mouth and online reviews can significantly influence consumer choices. A study by Leafly found that 84% of cannabis consumers read reviews before making a purchase decision. Here's how to leverage feedback effectively:

Feedback Integration and Adaptation

Establish a feedback loop with licensees to collect insights from customers regarding licensed products. Analyze this data to identify areas for improvement and adaptation. By responding to customer input, you can maintain brand consistency and consumer satisfaction.

Consistent Customer Service Standards

Ensuring consistent and responsive customer service across all licensed channels is crucial in the cannabis industry. Whether customers engage with the original brand or a licensee, they should experience the same level of support. This consistency reinforces trust and brand loyalty.

Want to learn more about this topic? Join the panel "Expansion Through Licensing: How Do You Ensure Consistency For The Consumer?" at this fall's Benzinga Cannabis Capital Conference.

The panel features prominent figures including Crystal Millican from Cookies, Christine Smith representing Grön, Josh Hirschey of Timeless Refinery, Kit Gallant from Fernway, and Laurie Parfitt, an expert from LKP Impact Consulting.

See Also: Everything You Need to Know About Buying Cannabis Businesses and Licenses on the Secondary Market

Benzinga Cannabis Capital Conference

The most successful cannabis business event in the world, the Benzinga Cannabis Capital Conference is happening on Sept. 27-28 at the Magnificent Mile Marriot Hotel in Chicago.

SEPT. 27-28. 

This is where DEALS GET DONE, money is raised, M&A get started and companies meet investors and key partners. Don’t miss out.

Secure your tickets now before prices go up.