Every new industry faces a set of challenges when it comes to attracting and retaining new customers. There’s a natural phase of curiosity and apprehension, which is even more amplified if you are entering a completely new market.
The cannabis industry — which is not only new, but newly legalized — is a perfect test case for building a strong customer relationship. To build a diverse and loyal clientele, cannabis business owners should keep the following in mind.
Understand Your Customer’s Apprehension
Customers new to the legal cannabis industry are typically consumers who have been removed from cannabis because it was illegal. Now they are trying it for the first time or returning after decades. These customers are overwhelmed by how many cannabis products are available and need to be educated.
The most important thing for the retailer to understand is the need for creating an environment where the customer feels like they can take their time and ask as many questions as they need to. The more they explore, the more they spend, the more loyal they are to the store that helped them learn — and the more likely they are to refer you to their friends and families.
An Educated Salesforce Is Your Secret Weapon
Would you order an entree your server said was “fine”? Would you buy a car from a salesperson who didn’t drive the same model? The recommendations of client-facing salespeople cannot be underestimated. No matter how robust your marketing campaigns or descriptive your product packaging, these testimonials are what matter most to your customers.
When it comes to a cannabis dispensary, customers largely base their purchasing decisions on “budtender” recommendations. Your salesforce should consist of vested experts who have spent time not only learning the industry and researching your products, but listening to clients. Budtenders act as translators for customers, allowing them to get to know your products, understand their effects and make informed purchasing decisions.
Diverse Hiring Strategies Will Grow Your Business
Everyone comes to cannabis for a different reason, often a very personal one. Whether it’s pain management, anxiety, sleep problems, illness or recreation, every customer’s story is unique. In order to get the most out of their cannabis experience, customers must feel comfortable with their budtender. Hiring a diverse workforce across age, gender and race not only serves your company’s growth potential but offers each customer a chance to find someone they can relate to.
An Inviting Retail Experience Helps Build Brand Identity
It is really difficult to build a brand identity around a retail store, particularly if you are based in a state that sets limits on vertical integration of cannabis businesses. Therefore, a strong focus on customer experience is paramount. In my Washington state dispensary, we focused on providing education and the promise that if customers were unsatisfied with their purchases, they could bring them back and we would work with them to find the right product. This is a successful model that has become a cornerstone of mega brands such as Starbucks and Nordstrom. To offer the cannabis customer a satisfaction guarantee may feel like a risk, but not doing it might be riskier.
Prioritize Quality Over Competitive Pricing, Every Time
Market compression is often driven by retailers trying to offer the lowest prices. This impacts the entire industry as retailers force negotiations with farms, manufacturers and distributors to slash prices so they can remain competitive with their neighbors. This isn’t specific to the cannabis industry. When they were first introduced to the market, 32-inch plasma screen TVs cost $40,000. Now you can buy a 70-inch screen for a few hundred bucks. The only way to survive market compression is to build a brand with a quality standard so well-respected and consistent that no one questions why it’s more expensive than the no-name competitor.
Build Your Reputation Upon Transparency
Customer trust, like Rome, can’t be built in a day. Every industry has its ups and downs and controversies that affect the consumer. No one in the cannabis industry has been unphased by the tragic deaths caused by black market counterfeit vape products. Consumer safety is always top of mind. If customers confront you about a controversial industry issue, don’t panic or avoid the conversation. Instead, think of it as an opportunity to further educate your customers. They will gain a greater understanding of the issue and you will show that listening to their concerns is your priority. Publicly display your certifications and include information on your testing and tracking methods. By doing this, you can have confidence in guaranteeing consumer safety. And that isn’t something their “weed guy” can offer.
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