Marijuana Business Magazine July 2018

9. The Customer is King  For cannabis retailers in a hotly competitive market, consumer loyalty is key to survival. Brett Roper, CEO of Medicine Man Technologies, a Denver consulting firm that licenses its cultivation and dispensary operating solutions, said that means thinking beyond what products to stock on store shelves. It means contemplating the overall customer experience and what’s going to appeal to as broad a base as possible. For instance, Roper said, when customers are evaluating a shop, they’ll think about: • Was it easy for me to find a parking spot? • Was the location well lit? • Was the property clean and well kept? • Did I feel safe walking to the entrance? • Was the location convenient? Roper suggested pay- ing close attention to basics, such as having a professionally dressed staff member at the door to immediately answer customers’ questions and concerns and explain how the retail operation works. The same is true for customers leaving the store. Roper emphasized that one bad experience can be a serious detriment to a retailer – even if it comes at the tail end of a visit. “One poor experience can result in the loss of a customer,” he said. Having an employee on hand to make certain all ques- tions are answered – or even just to wish them a good day as they leave – can stick in customers’ minds as a reason to return or recommend the shop to others. That’s because word of mouth, social media and online reviews are powerful drivers of foot traffic, especially in states that have a plethora of MJ storefronts to choose from. “What people say about your brand will determine your success,” Roper said. 8. Think Beyond Plant Touching in California For investors wanting to break into California’s multibillion-dollar cannabis market, there’s good news and bad news. The bad news: The Golden State is already saturated with growers, retailers, edibles makers and other plant- touching businesses. The good news: There’s a shortage of support-service com- panies, which means numerous business opportunities exist in the ancillary sector. That’s according to California industry leaders Amanda Rei- man, vice president of com- munity relations at Flow Kana, and Dustin Moore, principal at Main Street Strategies. Reiman is in cultivation and distribution; Moore is involved with MJ policy work in Sacramento. “Don’t come to California. We’re good, thank you,” Reiman said, referring to the tens of thousands of growers already in California that are still trying to get business permits. Instead, she and Moore said, those looking to tap the California market are more likely to find success in non- plant-touching areas – whether that’s packaging, market- ing, technology, compliance, security or something else. Moore said the real business opportunities are in “picks and shovels” – a clear reference to how entrepreneurs made risk-free fortunes selling supplies to min- ers during the California Gold Rush. In particular, she suggested plant-touching companies will need help with regulatory compliance. Reiman also said she believes growers and manufac- turers are facing the biggest regulatory hurdles, and that “ancillary support services will help them make that leap” into the fully legal market, particularly when it comes to regulatory compliance, covering legal liabilities and ensur- ing smooth operations on a day-to-day basis. Dustin Moore Amanda Reiman Brett Roper July 2018 • Marijuana Business Magazine • 85