Cannabis retail is at the forefront of new and emerging technology, with industry experts leading innovation by integrating modern retail technology options and creating enhanced customer experience. As an industry consultant, Daniel Fried shares his knowledge with clients from new dispensaries opening their first storefront to established stores growing their footprint with new locations.
Daniel Fried shares his experience in the legal cannabis industry to ensure client success
Fried won his first dispensary license, 805 Beach Breaks in Grover Beach CA, three years ago. Since then, he has consulted in a variety of areas including licensing, planning, building, and operations. With over a decade of experience managing cannabis dispensaries with a fully integrated service model to serving as an industry consultant for dispensaries opening new locations, including Empire Dispensaries and Culture Cannabis Club in the broader LA area. Fried’s successful model of using the latest and most advanced retail technology shows how important innovation is to creating thriving cannabis dispensaries.
Read more: 7 Reasons Why These LA Dispensaries Are Crushing It Right Now
Building for relevance with digital technology
Having successfully aided in the opening of eight retail locations with more to come, Fried has seen not only the challenges of opening a brick and mortar store, but also those unique to cannabis dispensaries. Cannabis dispensaries face the obstacles typical of any modern retailer, from saturation in the marketplace to tax burdens from state legislation, along with challenges that are above and beyond typical retail.
When opening a cannabis dispensary, store owners need to take local and federal cannabis laws that are constantly changing into account. Cannabis is still illegal at a federal level, so cannabis dispensaries deal with the complicated issues of complying with regulations and finding limited banking opportunities. Federal Tax Code 280E prohibits companies that deal directly with cannabis dispensaries from deducting business expenses or using tax credits, bringing the average taxes paid by cannabis businesses to levels much higher than other retailers. Federal regulations can also lead to additional challenges in advertising limitations and inhibited funds from investors.
With amazing tenacity, we see dispensaries meeting these challenges every day while scaling operations and procedures and building a business that will stay relevant in the future—making efficiency and technology vital to their success. Fried innovates solutions by bringing his new and emerging ideas with The Peak Beyond to clients to offer resolutions and generate great results.
“Dan is a great collaborator! When it comes to retail tech innovation, he is always a few steps ahead. We have enjoyed creating some of the most forward-thinking smart stores in cannabis and, together, continue to reiterate what the future of interactive retail looks like. For anyone opening a cannabis dispensary, I highly recommend at least a consultation with Dan Fried; he has some of the most valuable insight in the market, and he’s an awesome guy.” - John Capogna, The Peak Beyond CTO
Enhancing Customer Experience
Fried shared with us several insights on how he has been able to successfully confront the challenges cannabis dispensaries face in 2021, and it all comes back to allowing customers to dictate their shopping experience by focusing on consumer experience, convenience, and loyalty. Consumers are becoming more savvy, and businesses need to gain new perspectives by embracing a human-centric approach that leads to purposeful connections with shoppers.
Fried has found that a large segment of cannabis customers are incentivized exclusively with marketing ploys, including customer discounts, deals, and almost “free” marketing incentives. Customer loyalty is essential for companies, with studies showing that 20% of current customers make up 80% of a company’s future revenue, and a 5% increase in customer retention increases profits by 25-95%. Rather than creating customer loyalty, these marketing tactics lead to lower customer retention and a customer base that revolves around deals.
Dispensaries can overcome this by appealing to consumer needs in other sectors and creating a unified customer experience across all channels of retail. Store experience, convenience, and innovative programs are vital areas that store owners can focus on to create a shopping experience that consumers come back to again and again.
Building cannabis retail dispensaries fit for the future
Fried’s service model focuses on creating personalized customer experiences that allow retailers to extend their reach to a broader audience. The Peak Beyond’s technology empowers customers in their shopping journey to interact with a smart system, providing them with the opportunity to directly engage with products that are often tucked behind cases and within cabinets. Menu boards that show products in plain sight and exhibit products easily drive symbiosis between customer and sales members who learn about products through universal content.
Building a seamless shopping experience
When consulting with store owners who are opening new cannabis dispensaries, Fried emphasizes the power of The Peak Beyond’s technology. Without waiting in line, customers can engage and learn about products or fulfill their own orders with kiosks. The Peak Beyond technology allows customers to truly create their ideal shopping experience. Whether they utilize e-commerce to seamlessly preorder and pick up items at their convenience or bypass kiosks and learn about the products from sales members, customers can take their experience into their own hands. What does this mean for the retailer?
According to Fried, customer feedback with The Peak Beyond technology has been incredible. Customers enjoy the ability to explore the large catalog of products at their fingertips. Many customers prefer to utilize the kiosks to place orders and take time without interruption or the rushed pressure of waiting in line.
“Customers are impressed with the integrated technology functions and enjoy interactive learning. In fact, the proof is in the pudding. Our customer average ticket is $15 more than the average retailer and our average items per basket are 2 items higher than the average.” Daniel Fried
The future of cannabis retail is now
The new and emerging cannabis industry is the ideal place to use new and emerging retail technology to ensure success and keep up in the digital-first era. As a passionate dispensary consultant who has carved this niche for himself with focus, determination, relationship building, and experience in the cannabis industry, Fried has seen how important it is for cannabis dispensaries to integrate these innovative retail technologies now. For both digital and brick and mortar retailers, a hybrid fulfilment approach to retailing will ensure not only survival, but growth.
In collaboration with Fried, The Peak Beyond is bridging the gap between online and in store experiences by creating a seamless link between shopping experiences. Together, they are creating the first real wave of omnichannel retail technology in the cannabis industry. Stay tuned.
Embrace the future of retail technology today with The Peak Beyond
The Peak Beyond offers retailers the chance to blend the convenience of ecommerce-like shopping with the empowerment of product tangibility in traditional brick and mortar settings. Get in touch today to learn how you can integrate The Peak Beyond’s technology. Daniel Fried can be reached at daniel@friedconsultinggroup.com.
