## Cannabis Brands: Winning Through Engagement, Loyalty, and Budtender Partnerships
The cannabis industry is booming, but competition is fierce. To stand out, brands need to go beyond just selling products; they need to cultivate lasting customer relationships. That’s where customer engagement, loyalty, and strategic budtender partnerships come in.
At the recent Benzinga Cannabis Capital Conference, a panel titled “Good Reviews are the Best Marketing Strategy: Cultivating Loyalty in Cannabis Retail” explored these crucial areas. Moderated by Laurie Parfitt, founder of LKP Impact Consulting, the panel brought together industry leaders to share their insights on how brands can connect with both customers and retail partners to foster loyalty.
Budtenders as Brand Evangelists
Kristi Palmer, co-founder and president of Kiva Confections, highlighted the critical role of budtenders, whom she calls “the gatekeepers.” These individuals, she explained, are the ones making product recommendations to customers. Kiva’s approach is to invest heavily in educating and engaging budtenders. They host “marketing blitzes” where they distribute samples and branded merchandise to budtenders, ensuring Kiva’s brand is top-of-mind when customers seek advice. “You absolutely have to work with [budtenders],” Palmer emphasizes, “You can’t ignore them because they make those vital decisions right there at the counter.”
Christine Apple, CEO of Grön, takes a similar approach but incorporates digital tools for budtender education. Grön utilizes the C-Talent platform, which enables budtenders to complete training modules and earn rewards. “It’s impossible to go touch thousands of stores across the country at once,” Apple acknowledges. “But with this, we’re able to send a text to their phone that says, ‘Hey, go check this out. You can learn about this new product that we just released.'” Apple explains that digital training has been effective, especially when paired with incentive-based programs on platforms like Sparkplug, which pays budtenders a set amount per sale on targeted products.
Reaching Budtenders with Exclusive Events
Tiffany Chin, head of cannabis and hemp at Death Row Records Cannabis, shared a unique approach that leverages the company’s celebrity connections. Chin recounts how they’ve hosted exclusive events where top-performing budtenders can meet, and even smoke, with Snoop Dogg. “Sales went up, I would say, like 188%” she notes of a recent event, though she acknowledges that not every brand can replicate such experiences. For Death Row, these budtender events create strong, memorable connections to the brand. Parfitt, the moderator, pointed out that this type of trade marketing, focused on budtenders rather than consumers directly, can have a significant impact in the cannabis sector, given the limitations on in-store product displays.
Leveraging Customer Reviews to Build Loyalty
Customer feedback is a crucial element of building loyalty. Chin emphasizes the importance of directly responding to online reviews to address misunderstandings, especially regarding pricing. With the opening of Death Row’s new dispensary SWEED near LAX, Chin has been actively engaging with reviews on social media to ensure information is clear and build goodwill.
Steve Riparip, CEO of TACT Firm LLC, adds that negative reviews offer valuable insights into the customer journey. For example, complaints about long wait times could be addressed by creating a more engaging waiting area or offering educational materials, rather than solely focusing on adding registers.
Loyalty Programs for Retention
In a highly competitive market, loyalty programs are essential for retaining customers. Riparip shared data from TAC Firm, revealing that around 50% of new customers don’t return for a second purchase. “The stores we work with aren’t struggling to get customers in,” he explains, “They’re just not coming back.” TAC Firm uses data to develop tailored loyalty programs that re-engage these customers, including automated messages to encourage repeat visits. In one Michigan dispensary, targeting “lost customers” who hadn’t visited in 60 days generated $96,000 in revenue over just two months.
On the brand side, Apple describes how Grön combines education through the C-Talent platform with sales-based incentives through Sparkplug. This dual approach keeps budtenders engaged and informed about Grön products, leading to more enthusiastic recommendations to customers. “We call them our brand evangelists,” she adds.
Data-Driven Strategies for Post-Purchase Engagement
Riparip stresses the importance of data in shaping post-sale engagement. TAC Firm’s approach begins with analyzing Point Of Sale (POS) data and loyalty metrics to understand what brings customers back – or drives them away. Dispensaries with robust customer journey strategies ensure customers receive timely, relevant offers after each visit, which builds loyalty over time. “If you’re not capturing their phone numbers and emails, you have no way to bring them back in,” he explains.
Apple notes that brands like Grön can leverage tools such as I Heart Jane, which lets customers pre-order products for pickup. This platform allows Grön to see valuable purchase data and track consumer preferences, even though brands typically don’t have access to the same level of customer data as retailers.
By implementing these strategies, cannabis brands can build stronger relationships with their customers, nurture their budtender partners, and ultimately thrive in the competitive cannabis market.
