Have you ever walked into a dispensary, asked a budtender for advice, and left wondering if they truly understood your needs? Martez Knox, founder and CEO of BakedBot AI, believes AI can revolutionize the cannabis retail experience, ensuring customers get the right product every time. BakedBot AI, launched in January 2023, harnesses the power of AI to enhance customer experiences and B2B transactions. Knox, previously involved in marketing automation and lead generation, witnessed firsthand the frustration of dispensaries struggling to connect with customers due to marketing limitations and budtender knowledge gaps. “The idea hit me when I realized that the budtender had no clue what would work best for me as a customer,” Knox shared. He recognized the potential of AI to address these challenges, offering personalized recommendations and boosting efficiency for dispensaries.
BakedBot AI tackles a critical issue in the cannabis industry: reaching customers through marketing channels. Traditional marketing methods face limitations, as carriers often block messages containing cannabis-related keywords. BakedBot AI addresses this by leveraging AI-powered autonomous agents that streamline customer engagement and enhance outreach without relying on expensive marketing agencies.
One of BakedBot’s flagship products, Smokey, the AI budtender, is a game-changer in personalized customer experience. Smokey uses customer purchase histories and other data points to recommend strains based on individual preferences, considering factors like terpene profiles and personal needs. “We’re keeping their customers happy, lowering acquisition costs, and increasing lifetime value (LTV),” Knox explained. This AI-driven personalization fosters customer loyalty and reduces business costs.
Beyond personalization, BakedBot AI streamlines daily operations for dispensaries, helping them reduce losses and optimize workflow. By implementing AI tools, dispensaries can automate tasks like price tracking against local competitors. “We’ve saved marketers hours by automating the process of gathering competitor data,” Knox stated, emphasizing how AI enables businesses to maintain competitive pricing strategies without manual effort.
BakedBot’s AI also assists dispensaries in optimizing shelf space by analyzing sales trends and customer preferences. “We help owners determine which products should be discounted and which should remain at full price, based on real-time market data and customer demand,” Knox revealed. This tool not only prevents losses from overstocking slow-moving products but also maximizes profitability by focusing on top-selling items.
One of BakedBot AI’s key advantages is its ability to create detailed buyer archetypes. “AI is great at finding patterns in big data,” Knox explained. “We look at thousands of data points to predict customer behavior, whether it’s a college student on a budget or a more established adult seeking specific effects.” This capability allows dispensaries to tailor their marketing and product offerings more effectively, ensuring a higher probability of customer satisfaction. For example, if a customer enjoys OG Kush with specific cannabinoid and terpene profiles, there’s a high chance they’ll appreciate similar strains.
BakedBot AI combines big data and local knowledge to create a comprehensive solution for dispensaries. Dispensaries can upload their own data on local trends, customer preferences, and word-of-mouth feedback into the system, further enriching the AI’s insights.
Knox sees immense potential in AI’s ability to drive lead generation. “Lead generation is all about getting customers into your funnel.” BakedBot’s headless menu solution allows dispensaries to optimize product visibility on Google, driving organic traffic without relying on external platforms. He emphasized the crucial role of dispensaries owning their customer data. “Dispensaries need their web presence to generate first-party data. If your dispensary is using the biggest marketplaces out there, you’re not getting access to first-party data,” he cautioned. “We provide dispensaries with the tools to gather that data directly from their websites.”
BakedBot AI employs a freemium model, offering a basic version of Smokey for free, including features like the budtender tool and a headless menu solution. For more advanced automation and in-depth analytics, dispensaries can upgrade to paid plans starting at $50 per month. This pricing model makes AI tools accessible to smaller operators while providing flexibility for larger operations to scale their use of AI.
Knox is confident that BakedBot AI will continue to disrupt the cannabis retail landscape. The company plans to expand its features and capabilities, further enhancing the dispensary experience. Investors can witness firsthand how BakedBot AI’s tools drive critical improvements in margins, cost of goods, and shelf optimization at the upcoming Benzinga Cannabis Capital Conference in Chicago on October 8-9, 2024. With over 2,000 attendees and 200 investors expected, the conference provides a platform to showcase the transformative power of AI in maximizing profits within the cannabis retail sector.
