How Leading Cannabis Brands and Retailers are Collaborating to Drive Ecommerce Success

The share of consumer online vs. in-store spending is increasing at an average 32% year-over-year, and as shopping goes digital, the need for brands and retailers to adapt accordingly is critical. On average, a typical dispensary carries more than 1,500 SKUs. With so many products available, today’s online shopper is met with an overwhelming number of options, resulting in lower brand loyalty, check-out rates, and customer satisfaction.

Don’t be mistaken - it’s not an uphill battle. When optimized, digital storefronts can unlock more revenue, reduce costs, and increase retention rates for both brands and retailers. Through Surfside Commerce Media, leading brands and retailers are doing just that, and driving ecommerce success via menu merchandising, tailored content, and streamlined experiences.

VERANO PUTS PRODUCTS FRONT & CENTER WITH ONLINE MENU MERCHANDISING

Verano is a powerhouse in the US cannabis industry with 140+ retail locations across 14 states and 10+ wholesale brands, generating $1B in annual revenue. Verano’s brands are sold in hundreds of 3rd party, independently operated retail locations - presenting a challenge for Kevin Moses, VP CPG Marketing, and his team in being able to influence sell-through of Verano products at-scale.

According to Kevin, “The starting point of great marketing is great brands and products. The second thing is investing time & resources into really great partnerships with third party vendors and dispensaries. And the last piece: wherever you can invest dollars that is closest to that path of purchase, the better!”

To support these objectives, Surfside Commerce Media is a cornerstone of Kevin’s strategy. Through the platform, he is able to promote Verano’s house of brands across third party menus via high-visibility ad placements, targeting consumers while they’re in the purchasing mindset - driving incremental sales and maximizing his ROI.

“Verano invests dollars towards targeted groups of consumers that are in that purchasing mindset,” Kevin explains. “It’s much closer to that path-of-purchase and that zero moment of truth.”

PHARMACANN RECOMMENDS RELEVANT PRODUCTS BASED ON CONSUMER DATA

At Pharmacann, another IL-based MSO with operations in multiple states across brand and wholesale, Bryan Benavides, Director of Retail and Digital Marketing, takes lessons from adjacent retail verticals.

“It’s bringing best practices from outside of the industry that we know have worked,” he remarks. “Like targeting a third party menu, personalizing based off of POS data, using that to optimize. Because if a consumer will not inhale anything and only eats, why show him a product of pre-roll? Let’s just show him all of the edibles.”

Through Surfside Commerce Media, Bryan and his team at PharmaCann “use what they have already to be smarter” and dynamically display products at the point-of-sale based on historical SKU-level consumer purchase preferences and behaviors, streamlining them to products they are most likely to trial and purchase again.

THE VAULT STRENGTHENS WHOLESALE PARTNERSHIPS AND DRIVES SUPPLEMENTAL REVENUE

As an independent operator making waves in the Massachusetts market, the Vault has 2 locations and have been working together with their brand partners to implement innovative digital advertising solutions to support sell-through of their products.

As a retail media publisher, CEO Mike Botelho and his team have recognized the value of displaying ads at the point-of-purchase in the form of incremental sales and higher conversion rates. “With these ads,” he explains, “it’s another opportunity for us to bring the products that we value front and center. When somebody visits our website to order something, they see those ads. And you can’t get any better than that.”

Sales lift isn’t the only program benefit. The Vault has also been able to use the opportunity to build stronger relationships with their wholesale partners, while also unlocking a new revenue stream from the advertisements. Steve Cranshaw, Cofounder of Blend Brand Group and Marketing Advisor to the Vault states, “It became a revenue stream. We’re providing space for brands and wholesalers to advertise and we’re seeing returns from the ads.”

All of this represents a big opportunity for brands and retailers that are prepared to lean in and seize on these opportunities to get more strategic with their co-marketing efforts. Ecommerce will continue to grow and the battle will be fought just as much online as in store. Smart brands and retailers - armed with reliable data and powerful technology - will emerge the victors.