EXCLUSIVE: Cannabis Tech Leaders Push Personalization, Data Insights As Key To Beating Price Wars

“Consumers want to feel like when they’re buying cannabis, it’s like a regular store. This is not some fringe industry,” said Kyle Sherman, Founder and CEO of FlowHub, at Benzinga’s Cannabis Capital Conference.

His remark set the tone for a panel discussion that explored the evolving role of technology in cannabis retail, highlighting the critical importance of personalization and data-driven strategies.

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“Next-Gen Cannabis Retail: Tech Trends and Best Practices in being Customer-Centric,” moderated by Lou Magazzu of the Weiner Law Group, featured industry leaders including Dutchie CTO Chris Ostrowski; Surfside co-CEO Jon Lowen; and Wendy Berger, CEO of WBS Equities, LLC GTBIF.

Personalization As A Key Driver of Customer Loyalty

Ostrowski outlined the future of personalization in cannabis retail.

“Our vision at Dutchie is really leaning into newer technologies like AI and machine learning to create a personal connection with each consumer,” Ostrowski explained, referring to Dutchie’s latest product launch, Dutchie 2.0.

This new platform uses customer data to build stronger relationships that go beyond price cuts and discounts, aiming to keep customers returning because “your store knows them better than any other store on the block.”

This focus on personalization was a key theme throughout the discussion. Sherman reinforced the idea that technology allows retailers to move away from pricing wars.

“We're getting to a point where technology has matured enough to create a truly personalized customer experience,” Sherman said, stressing the potential for one-on-one customer interactions using data to foster stronger connections.

Data-Driven Insights Powering Retail Decisions

The panelists also discussed the increasing role of data in guiding operational decisions in cannabis retail.

Surfside’s Lowen explained how his company helps dispensaries optimize their marketing strategies by utilizing first-party data.

“We take information from your point-of-sale and CRM systems and use it to run better marketing campaigns. We create personalized ads and experiences based on what your customers actually want,” Lowen said.

Lowen also mentioned the importance of understanding consumer behavior across different markets and platforms. He explained how Surfside enables retailers to use data not only for marketing but also for deeper insights into customer preferences.

This helps dispensaries adjust their product offerings and target specific customer segments more effectively. “With our tools, retailers can look at trends in customer demographics and spending behavior to tailor marketing campaigns and improve their loyalty programs.”

Lowen also predicted that the future of cannabis retail will involve more precise targeting, driven by advanced analytics. “The ability to use real-time data to craft personalized experiences and understand what motivates customer loyalty is critical.”

Sherman built on this point by describing how FlowHub clients have been able to adapt their operations based on data insights: “We had customers in Michigan who used data from FlowHub to double their revenue by realizing two stores needed to cater to blue-collar customers with a value-focused approach.” Sherman explained.

He added that omni-channel strategies—ensuring a consistent experience whether shopping online, in-store, or through delivery—are crucial for cannabis retailers to thrive.

Compliance And Operational Challenges

The panel also addressed the compliance challenges facing cannabis retailers due to the fragmented regulatory landscape across U.S. states. The moderator asked the panelists how these hurdles impact the customer experience.

Berger, an early investor in the cannabis industry, responded by saying that while compliance is essential, it shouldn’t stifle innovation.

“Compliance is foundational—if the compliance isn't right, nothing else really matters. But we don't need to wait for federal legalization to improve the customer experience,” she said. She continued by saying that retailers can still find ways to innovate and enhance their operations within the current regulatory framework.

Sherman added that although the lack of federal regulation creates challenges, it has also driven the development of robust compliance tools that enable companies to remain agile.

“The compliance aspect has given the industry a great dataset,” Sherman said. “The customer data we're required to capture can be used not only to stay compliant but also to understand and serve customers better.”

The Future Of Cannabis Retail: Building For Longevity

As the discussion turned toward the future, the panelists shared their visions for the long-term evolution of cannabis retail.

Ostrowski highlighted that Dutchie's new tools are designed to help retailers thrive by integrating marketing, loyalty programs, and data to create a seamless customer experience.

“We're bringing marketing, loyalty, and data sets together to create a more seamless experience for both consumers and retailers,” he said, underscoring the potential for technology to strengthen retailer-consumer relationships.

Wrapping up the conversation, Berger pointed out that while the industry has seen “tremendous progress,” there is still work to be done.

“The better the technology, the more we can personalize, and the closer we get to making the experience truly frictionless,” she said.

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Photo by Wendy Davis