In the dynamic world of cannabis, where competition is fierce and consumer expectations are high, it’s not just about the product itself—it’s about the connection. This was the key takeaway from a panel discussion at the recent Benzinga Cannabis Capital Conference in Chicago, where industry experts emphasized the importance of emotional connection in driving success.
Beyond Price and Potency: Understanding Consumer Needs
Richie Proud, CEO and director at iAnthus Capital Holdings Inc, emphasized the need for cannabis brands to move beyond simply focusing on price and potency. Instead, the focus should be on clearly articulating the benefits of cannabis products. This means understanding how these products meet consumers’ needs, whether it’s aiding sleep, alleviating pain, or enhancing mood.
“There are certain ways that the cannabis plant will be able to benefit you, and that’s the in-state of that product. We’re learning how to balance all of these kinds of conversations together,” Proud explained.
Bridging the Gap: Attracting New Customers While Keeping Existing Ones
Proud highlighted the challenge of balancing the interests of seasoned cannabis connoisseurs with attracting new customers. He proposed that fostering emotional connections can help bridge this gap, enhancing both consumer acquisition and retention. This involves building trust through transparency, providing educational resources, and offering high-quality products that consistently meet expectations.
The Importance of Retail Prowess and Wholesale Success
The panel discussion also delved into the interplay between retail and wholesale in the cannabis market. While retail requires agility and responsiveness to meet the diverse needs of individual consumers, wholesale necessitates balancing the needs of both end consumers and retail partners.
“Not only do you have customers who are visiting your competitor’s dispensaries and seeking out your brands, but you have that other business as a customer of yours, and you have to service their business needs,” Proud added.
Data-Driven Decisions and Building Trust
Sandy Li, CFO of Wana Brands, emphasized the importance of data in the cannabis wholesale market. While there is a lack of customer data compared to traditional retail, understanding consumer behavior is crucial for effectively targeting markets. This can be achieved through market research, analyzing sales data, and leveraging insights from budtenders.
Jon Levine, CEO of MariMed Inc, echoed the importance of building trust through consistent quality and reliability.
“It’s all about giving the consumer what they want,” Levine said, emphasizing the need for clear brand identity and purpose. This means delivering products that resonate with consumers and meet their needs, while also ensuring consistency in dosage, flavor, and effects.
The Role of Budtenders in Education and Sales
The panelists acknowledged the critical role of budtenders in educating and informing consumers about cannabis products.
“Budtenders are absolutely the number one sales force for us on the floor,” Levine stated.
Jamie Mendola, chief business development officer of GM of the western region at Ayr Wellness Inc, confirmed that budtenders influence a significant portion of transactions, highlighting the importance of their expertise and marketing efforts.
The Future of Cannabis Retail: Education and Experience
The future of cannabis retail lies in financial planning, strategic merchandising, and creating a forward-facing, modern shopping experience. This includes investing in education and providing consumers with the information they need to make informed decisions about cannabis products. The industry is gradually shifting towards a more effect-based understanding of cannabis, with increasing interest in topics like terpene profiles and minor cannabinoids.
By prioritizing emotional connection, building trust through quality and education, and fostering a culture of informed decision-making, cannabis brands can pave the way for sustainable growth and success in this evolving market.
