EXCLUSIVE: Unlocking Potential Of Ancillary Companies In Cannabis Industry

In the world of cannabis, where innovation and diversification are keys to success, ancillary companies are making significant strides: because of not touching the cannabis plant directly, this sector can list on US exchanges and access banking services, making them an attractive investment opportunity.

"I do think that the ancillary part of this business is a great way for mainstream investors to look at cannabis," Gary Santo, principal at Meridius Capital Advisors and moderator at Benzinga's Cannabis Capital Conference, said.

He added: "Looking at the ancillary providers is a great way to take the temperature on the health of the operators, who’s paying their bills, who’s not, who’s expanding, who’s not."

Santo and other prominent figures from the cannabis ancillary sector convened at the Marriott Downtown Magnificent Mile in Chicago to offer a glimpse into the strategies and values driving these ancillary firms forward.

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Customer Success: A Paradigm Shift

In the fast-paced world of cannabis, the concept of customer success has risen to prominence.

Craig Snyder, the CEO of Greenlane Holdings GNLN, one of the leading platforms for the development and distribution of premium consumption accessories, packaging, vape solutions, and lifestyle products, stressed the transition from traditional customer service to ensuring customer success.

"Whether it’s the MSOs or the smoke shop owners, they are looking for what are the next set of transformative products that have unique differentiation. Now the demand is counsel us on what products are going to sell through," Snyder said.

Suresh Khanna, president and COO of Treez Inc., a cloud commerce platform providing point-of-sale software, retail analytics, cashless payments, and integrated partner solutions, echoed this sentiment, emphasizing their role in assisting retailers in making informed decisions.

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"Our value proposition is to help those retailers make better decisions, whether it's in merchandising, guiding budtenders to sell the right products to the right customers, or boosting average order values," Khanna said.

Building Trust And Transparency

Trust is the cornerstone of any successful business relationship, and it's no different in the cannabis industry.

Solonje Burnett, co-founder of ERVEN.AI, a company that provides data exchange and sales performance data from the retailers to the brands, emphasized the importance of trust and transparency in data exchange. "Our competitors have their products that are not as streamlined, they want to sell your data," Burnett said.

In order to build that trust, Burnett noted that the faces of the people behind ERVEN.AI are on its website and that she establishes real relationships with her customers, reaching out to social equity brands and mom-and-pop operators, making sure they see them as real people.

"We don’t want to be a traditional tech company that kind of hides behind the data and gives it away," she added.

Meanwhile, Bradley Natrass, CEO and chairman at Urban-gro, Inc UGRO, an architectural, engineering, and cultivation systems integration company for commercial cannabis and food-focused CEA facilities, said, "For us, it’s very simple: we do what we said we are going to do, on the schedule we set out, and we over-communicate with our clients."

However, as Snyder pointed out, the true test of trust often occurs during challenging moments, those "moments of truth" when customers encounter problems and need assistance. It's how a company responds during these challenging times that can significantly impact customer loyalty.

"We try to plan to prevent those moments, but how you’re able to deal with those challenges develops the loyalty," Snyder said.

The Power Of Collaboration

Burnett highlighted the significance of collaboration over competition in the evolving cannabis market. She stressed the need for a collective mindset where success is intertwined, stating, "If you grow, I grow." In this nascent industry, fostering collaboration among tech and cannabis brands is crucial for long-term growth.

Santo echoed this sentiment by emphasizing the maturity of the market, where specialization is becoming more accepted. "Specialize in one area and excel at it," he advised.

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