Last Mile Delivery Solutions – Inventory, GPS and E-Commerce

In the modern, rapidly changing world, customers expect reliable logistics and swift delivery when making online purchases. This has led to the rise of last mile delivery solutions, which focus on the final leg of the delivery process from the warehouse to the customer’s doorstep. In order to meet these high expectations, businesses must utilize inventory management, GPS tracking, and e-commerce integration to optimize their last mile delivery process.

Inventory Management

Inventory managementby Kyle Glenn (https://unsplash.com/@kylejglenn)

Effective inventory management is crucial for last mile delivery solutions. It involves tracking and managing the movement of goods from the warehouse to the customer. By implementing a robust inventory management system, businesses can ensure that they have the right products in stock and can fulfill orders quickly and accurately. This not only improves the efficiency of the last mile delivery process but also helps to prevent stockouts and delays.

GPS Tracking

GPS tracking is a vital component of last mile delivery solutions. It allows businesses to track the location of their delivery vehicles in real-time, ensuring that they are taking the most efficient routes and making timely deliveries. This not only improves the overall speed of the delivery process but also provides customers with accurate delivery estimates and the ability to track their orders. GPS tracking also allows businesses to monitor the performance of their delivery drivers and make adjustments as needed to improve efficiency.

E-Commerce Integration

E-commerce integrationby Bruno Kelzer (https://unsplash.com/@bruno_kelzer)

Integrating e-commerce platforms with last mile delivery solutions is essential for businesses that sell products online. This integration allows for seamless communication between the e-commerce platform and the delivery system, ensuring that orders are processed and fulfilled quickly and accurately. It also provides customers with real-time updates on their orders and allows for easy returns and exchanges. By streamlining the e-commerce and delivery processes, businesses can provide a better customer experience and improve the efficiency of their last mile delivery.

Benefits of Last Mile Delivery Solutions

Implementing effective last mile delivery solutions offers numerous benefits for businesses. By optimizing the final leg of the delivery process, businesses can improve customer satisfaction and loyalty. This can lead to increased sales and repeat business. Additionally, efficient last mile delivery can help businesses save on costs by reducing the number of failed deliveries and returns. It also allows for faster delivery times, which is becoming increasingly important in the competitive e-commerce market.

The Future of Last Mile Delivery

The demand for reliable and swift last mile delivery solutions is only expected to increase in the future. As e-commerce continues to grow, businesses must adapt and optimize their delivery processes to meet customer expectations. This may involve implementing new technologies such as drones or autonomous vehicles for delivery. It may also involve utilizing data and analytics to improve route planning and customer targeting. By staying ahead of the curve and continuously improving their last mile delivery solutions, businesses can gain a competitive edge and meet the ever-changing demands of the market.

In conclusion, inventory management, GPS tracking, and e-commerce integration are essential components of effective last mile delivery solutions. By utilizing these tools, businesses can improve the efficiency and reliability of their delivery process, leading to increased customer satisfaction and loyalty. As the demand for fast and reliable delivery continues to grow, it is crucial for businesses to invest in and continuously improve their last mile delivery solutions.

Streamlining Retail Delivery Management for Efficiency

In today’s fast-paced retail environment, efficient delivery management is crucial for success.

As online shopping becomes more popular and customers expect quick and dependable delivery, retailers need to optimize their delivery procedures to remain competitive.

This article discusses why managing retail deliveries is crucial and how retailers can make their delivery processes more efficient.

Why Is Retail Delivery Management Important?

Retail delivery management is the handling of product delivery from a retailer to the customer.

This includes everything from order fulfillment to tracking and delivery.

Efficient retail delivery management is essential for several reasons:

Meeting Customer Expectations

Retail deliveryby Grab (https://unsplash.com/@grab)

In today’s digital age, customers expect fast and reliable delivery.

Online retailers like Amazon have accustomed customers to receiving their orders quickly, often within a few days or even on the same day.

Retailers who cannot meet these expectations may lose customers to competitors who can offer quicker and more effective delivery.

Reducing Costs

Inefficient delivery processes can result in higher costs for retailers. This can include expenses such as missed delivery windows, incorrect orders, and returns.

By streamlining delivery management, retailers can reduce these costs and improve their bottom line.

Improving Customer Satisfaction

Efficient delivery management not only meets customer expectations but also improves overall customer satisfaction. Customers who receive their orders on time and in good condition are more likely to become repeat customers and recommend the retailer to others.

How Can Retailers Optimize Their Delivery Processes?

To streamline retail delivery management, retailers can implement the following strategies:

Utilize Technology

Delivery technologyby Grab (https://unsplash.com/@grab)

Technology plays a crucial role in optimizing delivery processes. Retailers can use delivery management software to track orders, manage inventory, and automate tasks such as labeling, inventory management, and GPS tracking.

Additionally, retailers can use route optimization software to plan the most efficient delivery routes, reducing delivery times and costs.

Collaborate with Suppliers

Collaborating with suppliers can help retailers improve their delivery processes.

Retailers can work closely with suppliers to make sure they always have enough inventory to fill orders fast and smoothly.

Suppliers can also provide valuable insights and data on their delivery processes, allowing retailers to identify areas for improvement.

Implement a Warehouse Management System

A warehouse management system (WMS) can help retailers manage their inventory and fulfillment processes more efficiently. With a WMS, retailers can track inventory levels, automate picking and packing processes, and manage returns.

A WMS can also integrate with other systems, such as delivery management software, to provide a seamless and streamlined delivery process.

Utilize Third-Party Logistics (3PL) Providers

3PL providersby CDC (https://unsplash.com/@cdc)

Outsourcing delivery to a third-party logistics (3PL) provider can help retailers streamline their delivery processes. 3PL providers have the expertise and resources to handle all aspects of delivery, from warehousing to transportation.

By partnering with a 3PL provider, retailers can focus on their core business while leaving the delivery process in the hands of experts.

Implement a Click-and-Collect System

Click-and-collect, also known as buy online, pick up in-store (BOPIS), is a popular delivery option for customers. By implementing a click-and-collect system, retailers can offer customers the convenience of online shopping while reducing delivery times and costs.

Customers can place their orders online and pick them up at a designated location, such as a store or locker. This not only streamlines the delivery process but also drives foot traffic to physical stores.

Real-World Examples of Streamlined Retail Delivery Management

Let’s take a look at two real-world examples of retailers who have successfully streamlined their delivery processes.

Walmart

Walmart deliveryby Grab (https://unsplash.com/@grab)

Walmart has implemented several strategies to optimize its delivery processes. The retail giant offers same-day delivery for online orders, allowing customers to receive their orders within hours.

Walmart also utilizes a click-and-collect system, allowing customers to pick up their orders at a designated location. This has not only streamlined the delivery process but also increased foot traffic to physical stores.

Furthermore, Walmart has teamed up with external companies to handle the delivery processes for them. This helps Walmart to concentrate on their main business.

Zara

Zara deliveryby charlesdeluvio (https://unsplash.com/@charlesdeluvio)

Zara, a popular fashion retailer, has implemented a click-and-collect system to streamline its delivery processes. Customers can place their orders online and pick them up at a designated store location, reducing delivery times and costs.

WebJoint also utilizes technology to optimize its delivery processes. The retailer uses easy-to-use technology to track inventory levels and automate picking and packing processes, improving efficiency and reducing errors.

Who Is Responsible for Retail Delivery Management?

Retail delivery teamby Headway (https://unsplash.com/@headwayio)

Retail delivery management is a collaborative effort between various departments within a retail organization. This can include the supply chain team, warehouse team, and delivery team.

However, it is essential to have a designated team or individual responsible for overseeing and optimizing the delivery process. This can include tasks such as tracking delivery metrics, identifying areas for improvement, and implementing new strategies and technologies.

Takeaways

Efficient retail delivery management is crucial for meeting customer expectations, reducing costs, and improving customer satisfaction. By utilizing technology, collaborating with suppliers, and implementing streamlined processes, retailers can optimize their delivery processes and stay competitive in today’s fast-paced retail environment.

With the rise of e-commerce and the increasing demand for fast and reliable delivery, retailers must prioritize streamlining their delivery processes to stay ahead of the competition. By implementing best practices and utilizing the right tools and strategies, retailers can achieve maximum efficiency in their delivery management.

WebJoint: Our Retail Market Network

Over one-third of California’s delivery services use WebJoint, the industry’s leading software provider. We’re the only company offering a software platform that’s specifically designed to boost cannabis delivery revenue.

As a result of our cannabis delivery technology, we hope to provide operators with complete autonomy. With the help of revenue-generating solutions, businesses can grow quickly and sustainably.

Using our platform, we can establish a three-way connection between cannabis brands, their customers, and retail delivery services, all in one place. Our team will help you test new markets and scale on a local, regional, and statewide level using our cannabis direct-to-consumer platform. 

It’s not just our system that makes WebJoint a great fit for the cannabis market: We’re a part of it. Let us take a moment to highlight this rapidly expanding market and explain why you should join the WebJoint investor community!

Join Our Investor Community on StartEngine!

We hope you’ll join our investor community now that you’ve learned more about our history and what we have to offer.

For more information on WebJoint and how to become a shareholder, please visit our raise page on StartEngine!

It is our hope that this campaign will be a successful one, with many achievements along the way.

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WebJoint: Market Opportunity

 

WebJoint is a leader in the cannabis delivery software industry, powering over 33% of California’s delivery services! In fact, we’re the only software platform designed to increase cannabis delivery revenue. 

 

The goal of our cannabis delivery technology is to empower operators to fully control their businesses. Providing revenue-generating solutions will maximize operational efficiency, positioning them for rapid, sustainable growth.

 

Our platform allows us to establish a smooth, three way connection between cannabis brands, their customer base, and retail delivery services.  

 

Our system is beautifully efficient, but the market we serve is even more promising: WebJoint is a part of the skyrocketing cannabis market. We’d like to take a moment to highlight this fast accelerating market and explain why you should join the WebJoint investor community!

The Problem and Our Solution

The Problem:

State regulations on cannabis are extremely stringent. Consequently, cannabis is a market that lacks direct-to-consumer sales infrastructure. 

 

Cannabis brands have marketing dollars and loyal consumer bases in the thousands. You would think cannabis brands would be allowed to sell directly to consumers, but in reality they cannot fulfill orders unless they have a retail license.  

 

Because of these retail restrictions, they are forced to sell to the middleman: licensed retailers. The issue with this is that retailers don’t have the same marketing power as brands, and their supply stocks are limited.

 

This becomes an inconvenient process for the consumer. Consumers usually know what brands they want, and what price they want to pay. How do they know which retailer to purchase from given that inventory, availability, and pricing may vary?

 

Our solution was quite simple: digitize and automate the process 

 

The automated integrations embedded in our platform upgrades the direct-to-consumer cannabis delivery sector by bringing much-needed improvements in eCommerce, inventory management, and compliance. 

 

Our platform establishes a smooth connection between cannabis brands, their customer base, and retail delivery services that benefits everyone!

Booming Market Opportunity

The U.S. legal cannabis market is projected to reach  $41.5 billion by 2025! 

We’re growing to become a major contender in this industry. Lucky for us, we have the numbers to back up why WebJoint is a valuable asset! With $161 million orders processed to date, we’re achieving 322% year-over-year growth through our platform!

Additional Stats:

  • Raised $2.2M in capital.

  • 400,000+ retail cannabis customer accounts created.

  • 203% increase in revenue from 2019-2020.

  • 346% YoY increase in orders delivered through our platform.

  • 1.9 million orders completed in 819 different Californian cities.

Join Our Investor Community on StartEngine!

Now that you know a little more about our background and what we have to offer, we hope you will consider joining our investor community. To become a shareholder, and for more information on WebJoint, simply visit our raise page on StartEngine!

 

Our team is looking forward to a strong campaign filled with many milestones.

 

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Weedmaps and WebJoint partner to simplify cannabis eCommerce

 

weedmaps webjoint order integration

Are you tired of missing out on customer sales because your online menu is out of sync?

Let’s face it – there’s no worse feeling than finding your favorite products online, only to find out that it’s out of stock as soon as you’re about to check out. If you’ve experienced this on your site before, chances are so have your customers.

Out of sync menus create a horrendous shopping experience that leaves your customers frustrated and could cost your business tens of thousands of dollars in sales and missed opportunities. As a cannabis delivery, your customer’s online shopping experience can make or break your business. 

To level up your customer’s shopping experience, we’re excited to announce our partnership with Weedmaps so you never have to worry about menus going out of sync ever again. We built this integration with Weedmaps to build a reliable, multi-channel cannabis shopping experience for your customers. 

This direct integration with Weedmaps and WebJoint offers:

  • Real-time inventory updates to give your customers the most up-to-date product information.
  • Centralized menu management that eliminates double entry and saves you time and money by allowing you to manage your menu from one place.
  • A streamlined ordering experience that automatically sends orders from Weedmaps to your WebJoint POS with all product, inventory, tax, and promotional data already synced to make reporting and compliance painless.

Want to get started with Weedmaps and WebJoint?

Integrating Weedmaps and WebJoint is fast and easy. Just reach out to your Weedmaps and WebJoint representatives and let them know you’re interested in getting started. From there you can sit back and relax, while our teams do the heavy lifting to set up your WebJoint and Weedmaps integration. 

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Mobilizing Your Dispensary with Delivery – A Conversation with Gary Cohen of Cova Retail Software

This week, I had the opportunity to sit down with Gary Cohen, the CEO of Cova, to discuss the future of cannabis retail, his vision for cannabis retail technology, and why it’s important now more than ever for cannabis dispensaries to offer delivery to their customers.

Gary Cohen, CEO of Cova
Gary Cohen, CEO of Cova


Q: 
Can you tell us a little bit about yourself, your experience in cannabis, and how you ended up in the position you’re in today?

GC: I’m very fortunate to have been a part of two new industries in my career- the first was the mobile phone industry in 1986, and the second was the cannabis industry in 2016. Neither of these two was taken seriously initially and have a lot in common. Both the industries had massive complexities to getting off the ground, faced governmental headwinds, and were started by brave entrepreneurs. I applied my experience from the former to the latter and foresaw an opportunity to advance ahead of what were the initial and elementary cannabis retail solutions with a more compliant and robust platform.

Q: What problem is Cova solving in the cannabis industry?

GC: With strict laws surrounding the cannabis industry, streamlining dispensary administration while keeping operations compliant can be challenging. Moreover, doing it in a way that is easy to understand, learn and execute is a bigger problem. At Cova, we’re constantly evolving and developing new tech tools to help simplify the complexity of running a dispensary and ensure that cannabis retailers always stay compliant with changing government regulations. 

Q: With over 1800+ dispensaries in the U.S. and Canada using your system, Cova has quite the hold on the industry. What is it that separates you from your competitors??

GC: Our clients love Cova’s cannabis technology platform. But there are various other differentiating factors as well. Our personal approach to ensuring the success of our clients, our excellent launch and support team, and our enterprise-oriented capabilities that allow dispensary owners to manage multiple stores are a few things that stand out. 

Cova spun out of an established POS company (for the mobile phone industry). Thus, we already had the right tech tools (engineering services, IT infrastructure for retailers with 1,000’s of stores, APIs for clear ERP integrations, dedicated account support) to optimize for North America’s largest cannabis retailers. Through regular training and launch and ongoing software support, we are dedicated to the success of our clients, whether they have one location or over 100.

Q: As new territories continue to legalize cannabis and more retailers open up shop, what would you say are 3 key areas to focus on/advice for new licensees?

GC:

  1. “Know what you want to be about”- what does your brand stand for? Your brand values must reflect in the customer experience you deliver to your target market.
  2. Orient your interactions with customers to be “an educator” about cannabis. By leading with information and generating awareness, you not only win their trust but a long-term loyal customer.
  3. Unfortunately, nothing in this industry happens on time, so be prepared for process delays. Because it is marijuana, extra scrutiny or pushback occurs at every step of the way on the path to “opening a dispensary”. So, hope for the best, but budget for delays.

Q: Since the pandemic, consumer buying behaviors have shifted towards delivery. How do you envision this affecting dispensaries in the long-term? How are your customers adapting?

GC: The pandemic accelerated the adoption of cannabis delivery and other convenient services, but we have observed that delivery plays a significantly important role as markets mature. Over time, consumers learn how they prefer to consume cannabis, the types/strains they like most, brands they trust, and retailers who stock the products they want and become accustomed to a particular experience. Since they don’t need to “shop in the store” anymore, delivery is convenient. Delivery extends our client’s reach, and when they feel the economics make sense to add delivery services, they nearly always do.

Q: What are the benefits of incorporating a delivery service into a dispensary? How difficult is that transition?

GC: Delivery expands a dispensary’s serviceable market, either demographically (medical marijuana patients, people without transportation, elderly, etc.) or geographically (more territory, or in the event of bad weather), which provides more sales opportunities. 

With Cova’s seamless integration to WebJoint, adding cannabis delivery to a dispensary’s operations is quite easy.  However, the difficulty in transition can be due to state regulations and not our two technology platforms. Vehicle type, driver qualifications/certifications, insurance, etc., are a few crucial legal considerations.

Q: What does the future of cannabis technology look like to you?

GC: POS will remain the heart of a dispensary’s technology, and cannabis retailers will have to choose between two paths in the future. 1) Go with an all-in-one platform, or 2) Choose a Best in Breed (Retail) Platform. For people using Cova, the future looks promising because we have built our system on an open API architecture that allows multiple software solutions in the cannabis technology ecosystem to integrate into Cova POS. We offer flexibility to our clients regarding the technologies they may want to use and don’t restrict them to using “an all-in-one bundle of services.”

Related: “Payment Processing for Cannabis Delivery Services and Why Cashless Payments are Better”

Q: 2022 is poised to be the biggest year for cannabis – ever. What’s next for you and Cova?

GC: 2022 will be a big year for Cova, as we will expand to several new states that have legalized cannabis.  We are also hiring and doubling the number of employees from 65 to 130. 50 of those 65 will be in the product development team, as providing the best-in-class cannabis technology platform to our clients is the main priority. This growth strategy is not only to maintain our position of having the most superior cannabis POS in the industry but to also expand the capabilities of Cova platform further for the benefit of our clients.

Q: What are a few resources you can share with our audience? What are some of your favorite books, podcasts, software, etc. that have benefited your personal and professional growth in the industry?

GC: I look at MJBizDaily every day- they do a great job capturing the industry’s news and happenings. I often recommend “Weed the People: The Future of Legal MJ in America” by Bruce Barcott, to people unfamiliar with the history of cannabis and the industry. These resources will help you keep abreast with all the latest events in the cannabis industry.

Q: Lastly, where can our readers find you and learn more about Cova?

GC: You can visit our website at www.covasoftware.com

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The Future of Cannabis Delivery Payment Processing – A Conversation with Cathy Corby Iannuzzelli of KindTap

This week, I had the opportunity to sit down with Cathy Corby Iannuzzelli of KindTap to discuss the rapidly growing sector of payment processing in the cannabis industry, her vision for the future of payment technologies in highly regulated markets, and why cannabis deliveries should implement a payment processing solution for their operation today.

KindTap – the fastest growing payment processing solution for cannabis delivery services.

Q: Can you tell us a little bit about yourself, your experience in the payment processing world, and how you ended up working in the cannabis sector with KindTap?

CI: I’ve been working in financial services and payments for 30 years on the card issuing and merchant processing sides of the business. Much of my career has involved launching payment products when the whole product category was new. Things like debit cards, internet banking, e-commerce and prepaid cards we all take for granted now, but there was a lot of pioneering to bring them to market. About 3 years ago while working for a client in Denver, I became aware of how broken payments were in cannabis. Broken isn’t even the right word – payments simply didn’t exist in the cannabis market. My pioneering spirit kicked-in and I refocused my consulting on the cannabis segment. In 2019 I met the founders of KindTap who had deep cannabis expertise and were focused on the cannabis payments problem, as well. We started collaborating on what has now  become KindTap and earlier this year I joined the team full-time.

Q: What problem is KindTap aiming to solve in the cannabis industry?

CI: As we all know and experience today, the payment experience for cannabis is friction-filled, both for the consumer as well as the merchant. For the e-commerce experience, there is no actual “commerce” as payment info is not captured online and there remains massive payment friction upon delivery/in-store pickup. For the merchant, they are capturing pre-order sales with no certainty of pickup or payment, and it’s even worse for delivery when drivers are being sent out to collect cash! KindTap aims to solve all of this friction with a very straightforward payments platform for online and in-store commerce, along with a consumer-level loyalty program for every dollar spent within our network of merchants.

Q: How does the lack of traditional banking infrastructure for the cannabis industry negatively impact cannabis businesses?

CI: Unfortunately this is a major problem that will not go away with one or two bills passed at the federal level. We connect with merchants and consumers on a daily basis, and they all want less physical cash in the system. This is one of the core challenges, and with KindTap we aim to remove that physical cash and bring the industry to the 21st century of digital payments.

Q: How is it that KindTap can provide banking and digital payment solutions to plant-touching cannabis businesses while more conventional banks (Chase,Wells Fargo, BoA, etc.) can’t?

CI: Banks are excellent at managing risk. As long as cannabis is illegal at the federal level, it’s a risky business for banks to serve. When weighing the risk-to-benefit, the cannabis segment is simply not large enough to the mega-banks to make the benefit worth the risk. Smaller financial institutions – where the innovation in cannabis banking is taking place – see a large opportunity relative to their size and are investing in people and processes to manage the risk. KindTap has partnered with financial institutions that have a multi-state license to operate, but yet have the size and innovation to work directly in the cannabis industry.

Q: Up until recently, there has been hesitation among plant-touching operators to transition to digital payment solutions due to regulations, among other factors. How has that changed? What does KindTap do to ensure security and safety of an operator’s assets?

CI: KindTap operates within the current regulatory framework for cannabis banking and merchant processing, on a state-by-state basis with no interstate commerce. We do not operate on what they call “federal rails” which is Visa and MasterCard. Think of us like one of the MSOs: They operate state-by-state with a multi-state/national presence, and so does KindTap. Our security and safety of assets is backed by trusted financial institutions and vendors who are in the business of payment processing, with a long-history outside of cannabis.

Q: Cannabis delivery operators across California use KindTap to process customer payments. What are the benefits of payment processing for cannabis delivery?

CI: Great question, as we love to describe where KindTap shines! Our system collects payment information upon checkout, not at the delivery location, which removes the friction of paying cash upon delivery (or a mobile cashless ATM terminal, only to receive physical cash for your change). The consumer not only gets a more seamless delivery experience but also has the ability to earn loyalty rewards for shopping at multiple merchants within the KindTap network, just like AMEX. The merchant LOVES the ability to remove cash from their system, and delivery drivers can now have a more predictable schedule without having to collect cash at each stop. Everyone truly wins.

Q: What’s the biggest obstacle to implementing payment processing for cannabis deliveries? How quickly could operators implement payment processing like KindTap?

CI: Our system allows for operators to implement KindTap within a matter of days on the back-end, in partnership with WebJoint. The biggest obstacle, frankly, is the previous battle scars of other payment processors and the mess they created for cannabis operators and consumers. Once the operator pays attention to KindTap’s offering, then we tend to move forward with implementation without any issues.

Related: “Payment Processing for Cannabis Delivery Services and Why Cashless Payments are Better”

Payment Processing for Cannabis Delivery

Q: What does the future of cannabis banking look like for you?

CI: At KindTap we believe the fragmented banking system will not go away anytime soon, especially on the payment processing side where most providers live at the federal level and changing those regulations will not happen overnight. We built KindTap to thrive in the current banking environment, and whenever federal legalization occurs whereby the “federal rails” of Visa/MasterCard enter the picture, then our business will continue to thrive with our planned transition of our platform to that of a federal-level payments platform.

Q: A recent study by Grand View Research projects the legal cannabis market to reach $84 billion by 2028 and leading up to that, the cannabis payment industry is hotter than ever. What’s next for the KindTap team?

CI: We are excited about our growth roadmap for KindTap. You will read later this year our publicly-announced expansion plans and roll-out of our credit and loyalty features, which will quickly solidify us as the leader in cannabis payments and the first payments provider to offer a digital credit solution to cannabis consumers.

Q: What are a few resources you can share with our audience? What are some of your favorite books, podcasts, software, etc. that have benefited your personal and professional growth in the industry?

CI: Great question. Not to sound like a plug, but I actually learn a lot from WebJoint’s content and white papers, which help me to better understand the delivery side of the business more so than other sources.

Q: Lastly, where can our readers find you and learn more about KindTap?

CI: You can visit our website at www.kindtaptech.com or email us at info@kindtap.com.

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Make $30 for Every $1 Spent with Cannabis Text Message Marketing – A Conversation with Happy Cabbage CEO, Andrew Watson

I had the opportunity to sit down with Andrew Watson, the founder and CEO of Happy Cabbage Analytics, an “integrated data platform that is revolutionizing how cannabis businesses target customers and inform business decisions.”

In this interview, we discuss Andrew’s journey into the cannabis industry, the inception of Happy Cabbage Analytics, and its mission to generate revenue by raising the standard on data-based marketing campaigns.

happy-cabbage-logo

Andrew Watson, CEO and Founder of Happy Cabbage Analytics
Andrew Watson, CEO and Founder of Happy Cabbage Analytics

Q: What can you tell us about the origins of your interest in/experience with cannabis?

AW: My first experience with cannabis was in September or October 2007 when I was 15 and a sophomore in high school. I was waiting by the Royal Farms in North Baltimore (which is where I was born and raised) for a friend to pick me up and take me to see a Resident Evil movie. Some kids from my high school were walking by to go into the wooded park that was behind “the RoFo” as we called it back then. 

Now, these were definitely kids I would consider “cool” in the social hierarchy of high school, and I was definitely considered “not cool.” I was a pretty big goth, budding theater kid, and overall weirdo. I wasn’t good at or interested in sports and instead mostly played PC video games and listened to heavy metal. These kids saw me though and invited me to go smoke with them; very cliche.

During that first session after I was handed the bowl I immediately tipped it over upside down spilling the nugs all over the ground. I remember Andy Dufrense (not a real name but let’s call him that) had to open up his flip phone in the dark for some light and pick them up off the ground. Incredibly embarrassing, but very memorable. From there I definitely became a “stoner” in high school, sneaking around my house and Baltimore, smoking out of homemade bowls, cooking brownies, and overall experiencing the black market life that was cannabis in Baltimore in the late ’00s. 

I always had a sense of it being wrong that it was so stigmatized: kids I knew got harassed by cops by just having half-smoked joints on them, kids kicked out of my private high school for being caught with weed on them (but other kids not kicked out for harassment or assault). After high school, I was fortunate enough to go to a very “hippie” college in Oregon in which I became enmeshed in West Coast (and white) weed culture. There I learned what cannabis can be when removed from the specter of over-policing and stigma. It was an alternative to the heavily ostracized culture that I experienced in Baltimore, a world in which every kid was smoking, but being caught with it could ruin your life. 

My cannabis consumption in college and in the years since definitely reduced from high school (nowadays I pretty much only smoke pre-rolls every other week) but my strong interest in the political movement, economics, and opportunity flourished. In 2017 when I had the opportunity to start consulting for a delivery business in Oakland I pounced on it, and from that experience ultimately Happy Cabbage Analytics was born.

Although from those earlier experiences I have never truly felt like a part of the West Coast weed culture, I admire its opportunity and the wave of change it will bring to the country. To put it bluntly, a place like Baltimore will likely be last in line to experience the opportunities, prosperity, and wholesomeness that the legal industry provides. Many folks who maintain power either via keeping the legal industry exclusive, or preventing legalization all together, will flourish in a place like Baltimore with its stark inequities and deeply entrenched police brutality. That being said, work being done here, mistakes we are making, and progressive movements we are building around equality restoration will eventually make it to Mondawmin Mall, Druid Hill Park, and behind that Royal Farms. 

My interest and career in cannabis ultimately stem from that hope and desire to help see it through. In a lot of ways, it’s all about making my 15-year-old self happy and to rue the stigma that shaped so much of my original experiences in cannabis. I want Baltimore City to ultimately be proud it has natives who have become cannabis entrepreneurs, and hopefully re-shape the minds of those adults who knew me back then and helped perpetuate that stigma.

Q: Can you briefly share with our readers what Happy Cabbage Analytics specializes in? What part of the supply chain do you service? What problems do you solve for them? 

AW: Happy Cabbage specializes in growing revenue- we take a dollar spent on our platform and convert it into $30. This starts with data from POS systems in cannabis retailers, dispensaries, and delivery services. From there, we detect opportunities for revenue growth. What customers have disappeared? What do customers like to purchase? What would a business analyst advise if they were to look at the purchase data? We identify opportunities, present them in our platform, and then, via a marketing solution called Polaris, we segment customers who should be marketed to via SMS. The idea is not to produce charts and graphs but to produce actionable insights. We primarily serve the Bay Area, but we do also have customers in Colorado and Ohio, from mom and pop shops, large franchises, small businesses, delivery platforms, etc. 

When our customers hear “analytics and data”, their eyes tend to gloss over and they start to feel overwhelmed. Having them use an overly sophisticated, cumbersome platform is a disservice; it actually dissuades them from taking the time to analyze and get familiar with their outputs. Our culture is focused on how to empower folks with information, without making it overly burdensome to do that. We serve all kinds of clients. Take, for example, the mom and pop shop. How do we get them to use their data, that is fully and entirely theirs, and generate targeted SMS messaging, price optimization, etc without having to invest in expensive tooling? It’s very important for us to say that cannabis is a collection of small businesses and entrepreneurs at this phase in the industry (at least in California). While we love serving all kinds of businesses, that accessibility means we have a responsibility to enable even small businesses with an intuitive and intelligent interface.

Q: What is the value of investing in text message campaigns for cannabis retailers?

AW: As mentioned above, investing in the machine-learning powered text messaging we provide shows consistently a 30x ROI for our clients. Said another way, for every customer you engage we see about $3.50 of revenue generated. For our customers who are spending $1,500 a month on our platform, that means they are generating $45,000 a month in attributed sales from their usage of Polaris. When you compare this to the $5,000 a month many folks are spending on Weedmaps or other forms of customer acquisition, the value becomes obvious. 

Regular customers, customers who are already familiar with your brand, can be brought back into the store at a significantly lower cost than new customers can be acquired. Furthermore, they have higher average ticket sizes, consistent order frequency, and can help boost community awareness of your dispensary by referring their friends. 

Furthermore, these customers have already opted-in to receive text message promotions: they have stated they want to know the deals. That doesn’t necessarily mean however that they are engaged. Our average dispensary that has two years of data in their system, less than half of their opted-in regular customers have come back within the last 90 days (when on average the order every 20-30 days). For many dispensaries and delivery services that means they have thousands of opted-in customers who are primed to come back but haven’t.

A great way to burn these customers though is to give them heavy promotional messaging about products they don’t care about. The customer who only ever buys Plus Gummies does not care about the high THC exclusive flower you have on your menu and vice-versa. Blanketing these customers with uniform text blasts, and not matching consumers to preferences lowers the potential ROI. 

Using Polaris, however, you can easily drive much higher ROI by matching those customers’ preferences to the texts that you send out. This is ultimately where the value comes from. A recent customer of ours in San Francisco who surveyed their consumers found that 98% said they like the text messages they get, and many consumers respond to our messages specifically that they appreciate the personalized marketing and messaging associated with their consumption preferences.

Q: For our readers who want to implement new tactics like text-based campaigns into their overall marketing strategy, where do you suggest they start?

AW: You should start by messaging your existing customer base who has opted-in to messaging. You can collect these opt-ins (either automatically through WebJoint or) via a simple opt-in form you embed on your website. Contrary to popular belief, many consumers both want and seek out the promotional messaging that comes from retailers. High taxes, and difficulty in finding certain products, means consumers have to rely heavily on communications from dispensaries and delivery services to know if deals and products are available.

Unless you are using a solution like Polaris that can help you automatically sort through consumer preferences I would avoid strong messaging about certain products and product categories. If you have a great deal on Raw Garden, but only 20% of your consumers have ever purchased or care about Raw Garden products, the 80% you message about Raw Garden are going to get annoyed and either opt-out or simply ignore future messages.

We see this strongly in our data, where blanket messages that don’t mention specific products can get much higher conversion and engagement than blanket messages that advertise specific products.

Using Polaris however, I would start off by following our guided campaigns. This can help you see quickly who your lost customers are, who prefers flowers, who is overdue for an order of edibles, etc. From there you can leverage our Advance Targeting by going after folks with specific preferences around brands, order sizes, and importantly, geo-fenced delivery zones. That way your messaging is powerful and tailored appropriately to the diversity of your consumers. Our customers who use our tool in this way see by far the highest ROI, with some customers seeing as much as $10 per customer engagement in sales.

Q: In a few words, how would you define a successful text-based marketing campaign?

AW: One that drives $3.50 or more of sales per customer engaged, and or one that recaptures over 20 lost customers. The best campaigns we see are most often the ones tailored to a specific brand, order timing, and product category preference. These go out to a few hundred consumers at a time, but 5 campaigns for 500 consumers will easily see 2-5x the returns that 1 campaign to 2,500 consumers drives.

Q: What would you say are the top 3 factors behind a great text messaging campaign?

AW:

  1. Take the time to really carefully segment your customers. Look at customers based on their behavioral attributes, not using generic demographic data like age or gender. I feel like the focus on customer recapture isn’t as strong as it should be. Customers that drop off are still customers that have been sold at one point. They already get you and your brand. They don’t need to discover you. And oftentimes, if the incentive is there, they want the exclusive offers of a loyal customer. Get specific with their attributes; whether customers are overdue for the order, have completely dropped off, prefer extracts/flower/specific brands, etc. Communicate with them strategically, using their relevant brands and products, so they feel like you’re looking out for them.
  2. Text messages are meant to be short and to the point. When sending an SMS blast, you need to be efficient with your language and prioritize what you say, so state your offer upfront. Provide a clear call to action. Without this, recipients will most likely opt-out, or simply leave you on read.
  3. As with any marketing campaign or platform, it is important that you analyze key metrics. Are you gaining a return on your investment? What’s resonating with customers? How can these observations feed your communication strategy? Every campaign is a learning experience, and a great campaign is a gift that keeps on giving. It not only generates revenue through a single promotion, but it informs continual strategic, data-driven communications.

Q: What are the most common mistakes you see cannabis operators make in terms of marketing – specifically on text message marketing?

AW:A lot of the most common mistakes are easily avoidable ones. Some campaigns are not explicit in the action they would like the recipient to take- is your call to action clear? If a text blast is indiscriminate enough, users will sense that the message isn’t genuine, and they certainly won’t be compelled to engage. Another item that will place you in a customer’s blocked contacts is reaching out too often. Try to limit reaching out to your customer no more than once a week. We often see the most successful customers fall in the one text every two weeks category. But the most important of all these is to pick the best segment of customers. Are they relevant to the promotion you have on hand? Are they dropping off from their frequency of contact? Are they loyal to specific brands or products? And you really don’t need to get much more specific than that. If you stick with simple parameters, you lessen your chance of hyper-targeting and correlating groups that don’t really have much in common. 


Q: In the breadth of experience with your customers, what is the ultimate value of data analytics and insights you can get from text-message marketing campaigns?

AW: Humanizing your consumers and understanding the trade-offs and relationships between brand and retailer. We as an industry have a lot of myths about how consumers purchase cannabis and what information they respond to. By pairing analytics and data with text messages we effectively build a virtuous feedback loop to constantly experiment with what actually drives consumer behavior.

For example, a recent trend we have found is that when you mention a specific brand in a text message (such as Raw Garden) yes it will drive more folks to purchase the brand, but on average even our most successful branded campaigns only get 10-20% of the consumers who order to actually purchase the mentioned brand. That being said if you take 500 customers who have bought Raw Garden before and mention there is a sale on Raw Garden, they will convert at 2x the rate of mentioning Raw Garden to consumers who have not bought it before (but still prefer extracts and vapes). Of those consumers who bought Raw Garden before though, very few of them might actually buy it again, they’ll buy something else like Select or F/ELD.

Understanding these nuances is what you get from intelligent experimentation. This is what Instagram does when they serve you an ad on the story, what Netflix does when they sort your recommended shows, what Lyft does when it gives you a notification about discounted rides. All major retailers both digital and in-store are constantly testing their consumers. They make no assumptions about consumer behavior and let the data decide what to market, when to market, and how to market. This is the value of the data in cannabis, which is far richer than most retail data in the traditional industry. We as an industry should expect this level of automation, customization, and precision in our marketing. We at Happy Cabbage Analytics are taking the first steps to empowering our retailers with the tools to get them there.

Q: What are a few resources you can share with our audience? What are some of your favorite books, podcasts, software, etc. that have benefited your personal and professional growth in the industry?

AW: Check out our blog, https://www.happycabbage.io/blogz, where we try to publish a lot of our findings and recommendations. 

In terms of understanding consumer behavior better and what tools and techniques we use to create intelligent marketing campaigns, I’d suggest reading the book Thinking Fast and Slow by Daniel Kanhamen. This book goes over some of the fundamental premises of behavioral economics, consumer psychology, and buying behavior. Another good book in this realm that’s a bit lighter is Nudge by Richard Thaler and Cass Sunstein.

To keep up with cannabis-specific trends and updates I subscribe to a lot of the various newsletters. Although short and mixed in relevance, the MJ Biz Daily newsletter is a great source for industry tidbits to keep you informed.

Honestly though, I, like many people, generally feel as if there is a gap between folks on the ground doing business in California and the reporting and pomp around the more established cannabis news and investment newsletters. I really appreciate what WebJoint and some others are starting to do in terms of getting more of the on-the-ground perspective, particularly as it relates to California (which is a larger market than Canada). 

Q: Lastly, where can our audience find you?

AW: We can be found at:

www.happycabbage.io

You can find me on LinkedIn here: Connect with Andrew Watson on LinkedIn
You can reach me via email at andrew@happycabbage.io

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Building Cannabis Brands with Justine Bastida of OB Solutions

I had the opportunity to sit down with Justine Bastida, the founder and CEO of OB Solutions, a cannabis consulting firm for cannabis brands and manufacturers. In this interview, we discuss Justine’s introduction into the cannabis industry and the plethora of issues she and her team solve for brands across the state of California.


OB Solutions, a consulting firm focusing on cannabis brands.
Justine Bastida (left) and Chris Milot (right), OB Solutions' Co-Founders.
Justine Bastida (left) and Chris Milot (right), OB Solutions’ Co-Founders.

Q: What can you tell us about the origins of your interest in/experience with cannabis?

JB: 2008 brought a lot of challenges and uncertainty across the world with the economic crisis.  I was going to university, dealing with my father’s newly diagnosed prostate cancer, and beginning a professional career.  I was introduced to the cannabis industry by a cultivator who noticed it was not experiencing the economic disruptions of other industries.  I was able to witness the pitfalls and challenges of starting a business from the ground up.

We began attending trade shows, industry events and focused on building relationships and collaborations to extend our cultivation, equipment, and distribution network. We met emerging leaders and technical experts that helped provide more legitimacy to an industry rooted in a “stoner” image.  Yet, the best leaders we met were the most genuine, down to earth, quality product focused individuals out there.  We, as up and comers, set 24/7 hours and I worked harder with that business than I had ever worked in my entire life.

I wanted to enhance my business capabilities to shift away from selling and distributing products to learn about ad networking, marketing, and website development along with management, team building, and financial management.  In 2014 to put my degree into use in the accounting world.

In 2017, my mentor approached me with a new opportunity with MCIG as a regional sales director specializing in packaging of cannabis products.  While I was comfortable with sales, I didn’t have experience in manufacturing methods or understanding custom packaging, so I sought out industry experts in that field.

Eventually, I met my now COO who has extensive technical experience in packaging.  She knew the ins and outs of making anything imaginable from cell phone cases to custom molded bottles and tinctures.  She took ample time to help me understand the industry like we both do now for our clients.  We decided to take a leap of faith and teamed up to form a consulting firm.  With our designers, industrial engineers, support staff, and sales team we have grown from seed to tree just like our clients.  We understand the challenges that cannabis and CBD companies face and can hold our clients hands each step along the way!

Q: Can you briefly share with our readers what your firm specializes in, what part of the supply chain you service, and what problems you solve for cannabis brands?  

JB: OB Solutions is the brainchild of multifaceted professionals uniting the cannabis industry with mainstream and pharmaceutical branding and packaging solutions.  What differentiates us from other firms is our attention to solutions that make sense and are consumer-friendly as our team has been involved in growing, extracting, and filling various cannabis products.  We help accentuate the quality of the product employing the power of marketing to provide differentiation.  We help our clients concentrate and capitalize on a perfect match of quality and brand presence to become homerun brands.

In terms of problem-solving, we focus on increased profitability while decreasing frustrations and supply chain traffic jams.  We act as an embedded resource and extension of each brand we take on.  We jump into the product strategy process regardless of where the client is in the planning process prior to meeting us.

Q: What would you say are some of the most pressing issues cannabis brands are facing right now?

JB: The industry, as a whole, has a stigma against it.  The lack of proper education in the general populous has driven many companies – especially CBD companies – to become snake oil salesmen with claims that cannabinoid products can be used to treat everything or give a generic enjoyable experience.  To be taken seriously, there needs to be more regulated testing of product quality and content, tracing from seed to store shelf, and more clinical trials to prove efficacy.  While many producers are taking steps to achieve this, others cut corners and even falsify documentation to get their products to market.  A sanctioned trusted review board and qualified seal of certification can help consumers know what to purchase and how the product should work for them.

COVID-19 has affected the industry and cannabis brands in ways we couldn’t imagine.  Distribution Challenges with increased sales:  As the medical-marijuana business has been deemed “essential”, the industry has been active manufacturing and selling products.  However, recreational marijuana commerce, not designated as “essential,” has had mixed responses with sales halted in many states while others are allowing delivery services and curbside pick up.  As a result of the stay-at-home orders, many marijuana companies set sales records for 4/20 and the last two months while more users were working privately from home increasing usage.

Concerns of COVID & cannabinoid interactions: Questions on the safety of usage coinciding with the virus has left some consumers on the “edge” of purchasing, staying away until further safety information is available.  Some advocates have focused on the healing properties of the product including anti-inflammatory, anti-viral, and immune-modulating properties, but not enough information is clear or even available on the usage making it a challenging time.

Potential COVID spread?:  Additionally, uncertainty on potential exposure to the virus during manufacturing, packing, and distribution drives concern by users,  impelling producers to ensure measures are being taken to protect the product and the end consumer from the COVID virus.

To add further complexity to the industry, financial investment firms are entering the industry, often putting demands on streamlining the business with a focus on financial results.  Private equity is needed until federal funding becomes an option and SBA loans are even available.  As the market is still considered risky, many of these loans have extremely high-interest rates for the businesses forcing them to sell more to pay off their debt sooner rather than later. Some operators are making shortcut decisions sacrificing quality in growing and manufacturing to get the products to the shelf and into consumer’s hands faster.

Q: What would you say are the top 3 factors that make cannabis brands great?

JB: Quality Product: Hands down the emphasis on the quality of the product is the most important.  Taking the time to grow or find a tested top quality grower can make or break a company.  We often see companies use multiple sources for their products and the taste and quality drastically changes batch by batch.   Even for “value” cannabis brands, ensuring you have testing to ensure an enjoyable experience every time is the foundation; we can build the skin around it.

Consumer Messaging and Identification: A lot of times cannabis brands have not targeted a specific audience and simply assumes anyone and everyone will pick it up.  There’s a lot of competition out there on the store shelves and the best brands resonate and attract the appropriate consumer through effective marketing/branding.  Identifying and building brand standards consistent with the target consumer can become the next homerun hitter.

Educated Caring Advocates: Ensuring you have a knowledgeable staff, not just users who say “this product rocks,” who can articulate the story behind YOUR product (how it is grown, processed, and manufactured, as well as the benefits and anticipated experiences) brings credibility and clout.  Education and training of all people handling your product at every learning opportunity, trade shows, dispensaries, messaging, make an impact that can last and resonate with the consumer for years to come and bring them back as a loyal consistent user.

Q: What are the most common mistakes you see brands make?

JB: Many producers rush brands to market.  One of the biggest issues we encounter is the lack of a cohesive look between different products of the same brand, especially in packaging,  jars, boxes, and pouches with different labels and materials.  Consumers can identify and recognize a brand and lack of cohesion can prevent them from recognizing various products are from the same producer.  We often end up doing a relaunch with new branding for our clients to help them be identified.

Second, many cannabis brands tend to have limited understanding of lead times, beyond manufacturing the product, as packaging is often assumed to be off-the-shelf, ready to buy or turned around in a week or two while custom products done in top factories can take upwards of 8-10 weeks.  While the lead times can be challenging with additional required work such as generating art or molds, we are often able to build a short-term solution strategy while getting the requested results long term.  We can jazz up stock packaging should we need to and still bring a powerful presence.

New manufacturers frequently do not have a clear understanding of the packing and distribution flows they will have to follow.   We can help level expectations on the process flows they will encounter, the unanticipated slow down packers find when the packaging they are expected to use is not ready for quick filling.  Boxes may need to be opened or assembled prior to filling, or extra steps may be needed for unpacking products before packing.  Label applications can become a challenge without proper equipment making jars look homemade and uneven.  Additional steps may be required for shipping pack-outs to send to the end-user and stores.  We address these types of supply chain slowdowns in advance, offering solutions to help make loading and prepping products easier.

Q: For our readers who want to start a cannabis brand from the ground up, what kind of advice would you give them? Where would you recommend they start?

JB: Successful cannabis brands plan well in advance. Create a detailed business plan with targeted goals and timeline, and a financial road map.  If you are new to business planning, you might want to work with an experienced mentor.   The best sources for data are experienced growers/processors/chefs depending on the products, brand consultants, packaging experts, and staffing specialists.  Understanding realistic timelines is critical before you start selling a product that doesn’t exist and miss unrealistic timing.  The best brands are a trifecta of quality products and ingredients, appeal and targeted marketing appearance, and appropriate distribution channels.

Q: What are 3 concerns that you have as the industry continues to grow?

JB: Many of the concerns our industry will face are the same speed bumps and detours we faced in California and other legalized states.

  1. The need for regulated assurance quality and efficacy testing of all products.  Too much bad product is being produced as demand increases.  
  2. Legitimate banking and insurance availability are urgently needed.  Recognizes legitimacy, ensures business transparency, and makes economic sense.
  3. As demand increases, the big business takeover of sources like farming may challenge the ability of new small businesses.  The industry will change.  
 
 

Q: What are you excited to see as the California cannabis industry continues to evolve?

JB: I am looking forward to the day when individuals thinking of entering a shop or ordering a cannabis product, do not hesitate because of the worry about what others might think.  I am excited to see more public support in favor of adult-use marijuana. 2019 was a record year with more open minds across broader demographics and psychographics, towards the industry, culture, and where the real mission lies. Seeing studies that show two-in-three Americans believe that cannabis should be legal gives me hope, supporting the ability to medicate as openly as a prescription and not be shamed. It is exciting to see more universities opening career fields in the cannabis industry with experts in cultivation, science, licensing, distribution, business, finance, laws, and being able to share corporate knowledge with academia.

Another thing I look forward to is restaurants having an option on the menu for CBD and THC infused food. We have some of the most amazing underground chefs in our industry who have identified creative delicious vehicles for CBD and THC.  For example, Chef Matt is at every Lit event demonstrating the demand for his culinary craft.

Again, with legalization, I am excited about new subscription boxes with cannabis available in all states, This will result from more studies on products and quality assurance methods for manufacturing across the board. We have arrived in the Weed Evolution, with strength in e-commerce and facilitating online sales of all cannabis-related products.

Last, but not least, when banks and insurance companies create legitimate vehicles supporting cannabis businesses with financial accounts and risk coverage, the industry will take a major step forward.

Q: What are a few resources you can share with our audience? What are some of your favorite books, podcasts, software, etc. that have benefited your personal and professional growth in the industry?

JB: One of my favorite leadership inspirational professionals is Emilie Aries.  What started as a TED Talk listen blossomed into reading her blogs, and books about self-empowerment and setting healthy boundaries while achieving goals.  We emulate much of her leadership boss principles at OB Solutions.

The software we like to use and to share with each of our clients is the Asana project management platform.  We use this to build out individual projects and set tasks for our clients as well.  It allows anyone at any time to review where we are in the production process and sets appropriate deadlines so we can stay on forecasted timelines.  We can even send approval requests for proofs and the next steps in the building of a component.

In terms of industry growth, our team attends many of the industry trade shows and conferences where some of the most impactful speakers are artisans focused on improving the health benefits, targeting specific ailments with products.  One such influencer was Adam Jacques, a grower and geneticist focused on the science behind growing.  Growers like Jacques are focused on breeding quality plants, pinpointing specific phenotypes to express, and developing specific cannabinoid compounds and terpenes.  The next generation of products will result from the innovation and practices of teams focused on helping more patient-specific profiles.

Industry inspirational books include Ed Rosenthal’s Marijuana Grower’s Handbook, The Cannabis Grow Bible, Weed the People, High Times Cookbook, Breaking the Grass Ceiling, and Women’s Guide to Cannabis.

Other inspired reading/audio:  Many Ted talks have been very informative for medical expression and aid, kicking out the stereotype of the “stoner”, and detailing the reality of productivity that surrounds the cannabis plant.

Blair Brown’s “The Cannabis Mirror”, focuses on education from AD to BC history on the use of cannabis and breaking through Cannabis prohibition.

A piece from Zachary Walsh, “Making Peace With Cannabis”, helps provide an understanding that times are changing as we continue to frown upon this issue (Cannabis) in the world.

On a more focused note, Matt Hill, Ph.D.’s, “Your Brain on PTSD: The Impacts of Cannabis,” shares multiple studies on how the brain is impacted by cannabis and how it can be an aid for PTSD patients.

  • Making Peace with Cannabis | Zachary Walsh | TEDxPenticton
  • Stoners Coming Out – Beyond the Marijuana Monster Myths | David Schmader | TEDxRainier
  • The Cannabis Mirror | Blair Brown | TEDxSunValley

One of my influential and fierce producers and hosts is Krishna Sai Andavolu of Viceland’s, a focused cannabis show.  You can find it as Weediquette. The show’s purpose is to inform the public of the planned and actual timing of legalization in the cannabis industry and the various states. Many of the episodes are targeted to education on the benefits of medical cannabis for cancer treatment and PTSD.

My all-time favorite actor and cannabis activist is Seth Rogan.  We have all seen him in movies like “Pineapple Express” and “This Is The End”. Always making cannabis a fun and playful experience through his movies, he is so involved in the forward movement and expansion of educating about the plant with his cannabis association, Houseplant, education about plant strains, how to meditate, and how to make your own product and process, making it really fun where to and how-to guide.

Q: Lastly, where can our audience find you?

JB: We can be found at:

www.obsolutionsconsulting.com

Email: justineb@obsolutionsconsulting.com // chrism@obsolutionsconsulting.com

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Digital Cannabis Payments with Ian Rassman of Chosen Payments

I had the opportunity to sit down with Ian Rassman, the Deputy Director of LA NORML, Merchant Specialist at Chosen Payments, and a close member of the WebJoint family. In this interview, we talk about Ian’s experiences in the cannabis industry and where he thinks the future of cannabis payments will end up.

Ian Rassman, Deputy Director CA NORML
Ian Rassman, Deputy Director CA NORML

Q: What can you tell us about the origins of your interest in/experience with cannabis?

Ian: I grew up on the Big Island of Hawaii during the late 1970’s through the mid-80’s and I was definitely aware that it was around me with some regularity. We called it Pakalolo which is the Hawaiian slang word for cannabis. By the time I was in high school I knew many people who were using it, but in all my years in Hawaii I never tried it. Looking back, like most of America I was influenced by much of the media on TV during the failed War on Drugs; “This is your brain on drugs,” “Gateway drug,” that sort of thing. In the mid 90’s I was fortunate enough to get a job in Europe as a traveling software engineer. My boss said I could live anywhere I wanted as long as I had quick access to a large International airport. So, within weeks I moved from Los Angeles to Naarden, just outside of Amsterdam. One of my software partners was a retired police officer from the famous Red-Light District in Amsterdam. I learned a lot from him about Holland’s long standing, sensible, and non-criminal approach to cannabis. From my local Dutch friends, I came to understand more of the cultural and medical aspects surrounding cannabis during the several years that I lived there. By the time I returned to California in 1999, Proposition 215 had been enacted and California’s approach to cannabis was picking up speed. The culture was coming out of the closet and becoming more mainstream in California.  Fortunately, I had just moved within a 10-minute rollerblade of Venice Beach where dispensaries and script-writing doctors seemed to outnumber Starbucks.

Q: You’re involved with a lot of different things within the cannabis industry. Can you share with our readers what organizations you’re affiliated with and what you do?

Ian: I wear a few hats within the industry but I hadn’t originally set out with that as my plan. Going back a bit, in 2012 I received a patent for a software platform that automated communications between livery companies providing town car services. I became entrenched in the limousine industry and developed a relationship with Chosen Payments who was rising to become the dominant credit card processor for that industry. I honed my payment expertise in the limo industry, and rapidly expanded my client base out to other retail merchants and verticals such as bars, restaurants, attorneys, automotive, CPAs and plastic surgeons to name a few traditional businesses that frequently receive payment via credit cards.
In 2017, sensing the wave of impending legalization of recreational cannabis in California, I decided to go deep into the cannabis vertical. Not realizing how truly different the cannabis industry is when it comes to financial services, I was in for a quick awakening. Banking and payments for cannabis is a frustrating process for nearly every business in the industry. Every business owner has horror stories about having their banking or merchant services shut down, funds seized, or a myriad of other financial issues. My entrepreneurial instincts made me realize that I needed to spend more time and energy to help change the things that I thought needed addressing within the industry. I also felt it was important to volunteer my time and pay it forward to support the business community from which I expected to make a living. With its national effort to reform some of the banking issues we were all facing in the industry, NORML became that vehicle for me. I found that NORML’s mission aligned very well with my core values. I learned everything I could about consumer activism, safe access, social equity, expungement policy, employment protections, and education. I ramped up my time and effort within the organization and realized that Los Angeles, where I have lived for over 34 years, is a perfect microcosm of the industry as we are undoubtedly the largest cannabis-friendly city on the planet. With a mature medical marijuana market, a plethora of cannabis companies basing themselves in Southern California, a liberal government and a county population larger than 42 U.S. states, Los Angeles is where consumers, industry and policy makers come together to define how cannabis will become integrated into our communities. This is a great opportunity, and grave responsibility that I believe most Angelinos and policy makers take seriously. The War on Drugs was particularly fierce on our streets and our minority communities suffered from it. There is much work remaining to be done and I am extremely proud to be part of Los Angeles NORML.

Q: What problem does Chosen Payments solve for the cannabis industry? 

Ian: Retail cannabis merchants and cannabis delivery services have mostly operated in cash. Issues of storing, transporting, depositing, auditing, theft and safety are all amplified for CRBs operating heavily in cash. Chosen Payments provides Point Of Banking (POB) services to retailers and delivery services allowing them to accept safe, secure, auditable and compliant digital cannabis payments from their customers while also increasing the average ticket price per sale. Chosen Payments helps minimize cash and increase digital cannabis payments that fund directly to your bank account. For cannabis delivery services Chosen Payments provides 4G mobile terminals for secure, compliant digital cannabis payments.

Q: Cannabis delivery services are subject to robberies and other hazards on the field. How can digital payments make deliveries safer?

Ian: The new normal brings health and safety concerns to both customers and drivers alike. First and foremost, on everyone’s minds these days is the current COVID-19 pandemic. No one wants to touch cash anymore, so digital payments via a Cashless ATM with limited contact is a much safer alternative for everyone. Eliminating the cash also makes drivers less of a target for robberies. Mobile terminals providing digital payments can enable safe home delivery and curbside pickup. Cannabis payment processors have always been a shaky part of the cannabis industry. There are horror stories of accounts getting shut down and assets being frozen. How has Chosen Payments ensured the safety of their retail accounts? Well, if your bank throws you out for being a cannabis business, your merchant services account dies along with it. However, there was a time when some CRBs and processors, to get around restrictions put in place by the Card Brands (Visa/MC/Amex, etc.), would mis-represent who the merchant was by coding the dispensary as a “pharmacy” or a “florist.” Eventually it would become clear that there were no aspirins or roses being sold and that account would be shut down. Misrepresentation was a common contractual reason for closing a merchant services account. It should have been the responsibility of the processor to lead their customer down the road to compliant solutions, rather than the many work-arounds (crypto, blockchain, stored value, etc.) that exist to undermine the Card Brand policy of not accepting credit cards for cannabis. No matter how much everyone wants it, there are simply no air-miles for your cannabis purchases. Transparency is critical in this process. For our cannabis clients at Chosen Payments, we only utilize Point Of Banking (POB) where all transactions are PIN-based and through your ATM card. Our solution utilizes the ATM rails. In the simplest possible terms, a payment rail is any form of digital infrastructure that transfers money from one individual or business to another. These are a completely different set of payment rails than the ones owned and operated by the Card Brands. At this time, there is no Visa/MC/Amex for cannabis. 

Q: Can you give us a quick breakdown on the difference between ACH transactions and the cashless terminals Chosen Payments uses?

Ian: ACH payments are electronic payments that go through the Automated Clearing House (ACH) Network. Funds move from one bank account to another with the help of a centralized system that directs funds to their final destination. Most people are already familiar with ACH payments either from Direct Deposit from their employer or when they pay bills electronically from their checking account.  Customers need to know their bank Routing and Account numbers to transmit funds. The cashless ATM (point of banking) terminal supports PIN-based card transactions: ATM/debit cards. When the customer inserts their debit card, a digital transfer is initiated. This gives your customers the ability to pay with their cards at the point of sale, increasing customer throughput and average ticket price. The secure countertop and 4G mobile terminals that we use are easily updated with the latest software, and on the first day that the card brands allow for it, we will patch the terminals to accept those cards. Customers must have their card present and know their ATM PIN number to transmit funds.

Q: What are the benefits cannabis retailers can experience by using digital payments? Do customers spend more? 

Ian: Yes. Retailers typically experience increased average ticket price as compared to cash payments. Other benefits include:
  • Eliminating the liability of having cash at the counter.
  • Safe, Secure and Compliant.
  • No processing fees to your business.
  • Quick and easy approval process with only a cannabis license, a driver’s license, and a voided check. 

Q: What are 3 concerns that you have as the industry continues to grow?

Ian: I am concerned that we are not doing enough about expunging criminal records for non-violent cannabis convictions. We can’t leave a single person in prison for selling cannabis while our regional governments are handing out licenses to sell cannabis. I am concerned that we need to do more on social equity, especially here in Los Angeles. As well, we need expanded licensing for those social equity applicants and faster timelines on that approval process. I am concerned that the Federal Government has not taken more decisive action on legalization when 66% of Americans believe cannabis should be legalized, and only 32% oppose legalization. The last decade has seen a steady increase in support for legalization and the disparity between these numbers continues to widen. The path towards Federal legalization and de-scheduling (not re-scheduling) is critical for enabling additional banks and credit unions to determine their own risk assessment and willingness to bank CRBs, without the threat of being afoul of Federal KYC and AML issues.

Q: What are you excited to see as the California cannabis industry continues to evolve?

Ian: Again, one of the most exciting things is a better banking infrastructure surrounding cannabis. California has been proactive on this issue to protect the industry and in late 2019, regulators issued guidance to state-chartered financial institutions regarding banking relationships with CRBs as more banks and credit unions choose to bank the industry. This will be significant for everyone involved. Federal clarity would come with the passage of the Safe Banking Act, the MORE Act, or the STATES Act.  I am excited to see cannabis become more mainstream and start to shake off the harmful stereotypes, propaganda, and stigma directed at consumers for nearly 90 years and continue to haunt our nascent industry nationwide. I am excited to see the science pushing forward on this versatile plant so that we may better understand it and our own endocannabinoid system. I am also excited to see the potential of industrial hemp and look forward to seeing it replace some of the petroleum and other non-sustainable materials we currently use for plastics and building materials. Hemp can be made into paper, biofuels, food, energy storage, and thousands of other products. Hemp plants also help with water and soil purification, and I look forward to seeing industrial hemp become part of our global solution for climate change. 

Q: What are a few resources you can share with our audience? What are some of your favorite books, podcasts, software, etc. that have benefited your personal and professional growth in the industry?

Ian: Ha, well it’s funny to hear you ask that because actually WebJoint is one of my favorite social media companies to follow in the industry; I appreciate all of the social equity issues that you champion and shine a light on here in LA. You bring out the local stories and your media team produces top quality content. Beard Bros. Pharms publishes one of my favorite weekly newsletters with their take on all the latest cannabis news. My own California Cannabis Event Newsletter has been a lifesaver for my own time management to know which events I plan to attend and who I am going to see there. Some of the best opportunities for education come from our very active event scene in California with a few of my favorite locally repeating industry events being CannaGather, Blunt Talks, & SCCBIG. Great education also comes from our regional and local associations such as NORML, NCIA, ASA, NCAB, CCC, LPP, CCIA and many others. It is very important to support the associations that support our businesses.

Q: Lastly, where can our audience find you?

LinkedIn: https://www.linkedin.com/in/ianrassman Email: ian.rassman@chosenpayments.com www.chosenpayments.com www.lanorml.org
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