“Consumers want to feel like they're in a regular store when they buy cannabis, and that's not some fringe industry,” said FlowHub Founder and CEO )'s Kyle Sherman said at Benzinga's Cannabis Capital Conference.
His remarks set the tone for a panel discussion exploring the evolving role of technology in cannabis retail, emphasizing the importance of personalization and data-driven strategies.
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“The Next Generation of Cannabis Retail: Technology Trends and Best Practices for Being Customer-Centric” was moderated by Lou Magazzu of Weiner Law Group and featured industry leaders such as Dutchie CTO Chris Ostrowski. John Loewen, co-CEO of Surfside. Wendy Berger, WBS Equities, LLC GTBIF CEO.
Personalization as a key driver of customer loyalty
Mr. Ostrovsky outlined the future of personalization in cannabis retail.
“Our vision at Dutchie is to lean into new technologies like AI and machine learning to create a personal connection with each consumer,” Ostrowski said of Dutchie's latest product launch, Dutchie 2.0. Explained.
This new platform uses customer data to build powerful relationships that go beyond markdowns and discounts, saying, “Your store knows your customers better than any other store on the block.” We aim to keep customers coming back for this reason.
This focus on personalization was a key theme throughout the discussion. Sherman reinforced the idea that technology can help retailers break away from price competition.
“Technology is reaching sufficient maturity to create truly personalized customer experiences,” Sherman said, highlighting the potential for one-on-one customer interactions powered by data to foster stronger connections. .
Data-driven insights to drive retail decisions
Panelists also discussed the increasing role of data in guiding operational decisions in cannabis retail.
Surfside's Mr. Lowen discussed how his company leverages first-party data to help pharmacies optimize their marketing strategies.
“We take information from our customers' POS and CRM systems and use it to run better marketing campaigns. We create ads and experiences,” Loewen said.
Loewen also mentioned the importance of understanding consumer behavior across different markets and platforms. He explained how Surfside allows retailers to leverage data not only for marketing but also to gain deeper insights into customer preferences.
This allows pharmacies to tailor their product offerings and target specific customer segments more effectively. “Our tools allow retailers to examine trends in customer demographics and spending behavior to adjust marketing campaigns and improve loyalty programs.”
Loewen also predicted that the future of cannabis retail will require more precise targeting through advanced analytics. “The ability to use real-time data to create personalized experiences and understand what motivates customer loyalty is critical.”
Sherman furthered this point by explaining how FlowHub's clients have adapted their operations based on data insights. “Our Michigan customer used data from FlowHub to realize the two stores they needed to serve their blue-collar customers and doubled their revenue. It’s a value-driven approach.” Sherman explained.
He added that for cannabis retailers to be successful, it's important to have an omnichannel strategy, meaning a consistent experience whether shopping online, in-store, or for delivery.
Compliance and operational challenges
The panel also addressed the compliance challenges faced by cannabis retailers due to the fragmented regulatory landscape across U.S. states. The moderator asked panelists how these hurdles impact the customer experience.
Berger, an early investor in the cannabis industry, responded that while compliance is essential, it shouldn't stifle innovation.
“Compliance is fundamental. If compliance isn't right, nothing else matters. But you don't have to wait for federal legalization to improve your customer experience,” she said. He went on to say that retailers can still find ways to innovate and enhance their operations within the current regulatory framework.
Sherman added that while the lack of federal regulation has created challenges, it has also facilitated the development of powerful compliance tools that can keep companies agile.
“The compliance aspect has given the industry a great data set,” says Sherman. “The customer data you need to capture can be used not only for compliance purposes, but also to understand and better serve your customers.”
The Future of Cannabis Retail: Building for Longevity
As the discussion moved toward the future, panelists shared their vision for the long-term evolution of cannabis retail.
Ostrovsky emphasized that Dutchee's new tools are designed to help retailers grow by integrating marketing, loyalty programs, and data to create a seamless customer experience. .
“We are bringing together marketing, loyalty, and data sets to create a more seamless experience for both consumers and retailers,” he said, adding that technology will strengthen the retailer-consumer relationship. Emphasized possibilities.
Concluding the conversation, Berger noted that while the industry has made “tremendous progress,” there is still work to be done.
“The better the technology, the more customizable it can be and the closer we can get to a truly frictionless experience,” she said.
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Photo credit: Wendy Davis
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