Connected Strategies in the Cannabis Industry: A Guide to Building Lasting Customer Relationships
In the ever-evolving landscape of the cannabis industry, businesses are constantly seeking innovative ways to stay ahead of the curve.
One such approach is the concept of a "Connected Strategy," a term popularized by the insightful book “Connected Strategy: Building Continuous Customer Relationships for Competitive Advantage” by Nicolaj Siggelkow and Christian Terwiesch.
Let’s dive into what this concept entails and how it can revolutionize the cannabis industry.
Understanding Connected Strategy
At its core, a Connected Strategy is about creating a seamless, continuous loop of interaction with your customers.
It involves using technology and data analytics to anticipate and meet customer needs in real time, thereby fostering a deeper and more enduring relationship.
Key Takeaways from the Book
Four Pathways to Connectivity
The book identifies four pathways to build connected customer experiences – Respond-to-Desire, Curated Offering, Coach Behavior, and Automatic Execution. Each path offers a unique way to engage customers and fulfill their needs proactively.
Technology as an Enabler
Leveraging technology like AI, machine learning, and data analytics transforms how businesses understand and interact with customers, moving beyond transactions to continuous engagement.
Competitive Advantage
By adopting these strategies, companies can create a significant competitive edge, cultivating customer loyalty and driving long-term profitability.
Expanding on the Four Pathways to Connectivity
1. Respond-to-Desire
Definition: This pathway is about reacting swiftly to customer needs as they arise. The focus is on being reactive in a way that feels almost proactive to the customer.
Application in Cannabis: In the cannabis industry, this could involve using customer feedback or inquiries to quickly update product offerings, provide information, or resolve issues. For instance, if a customer is looking for a specific strain that helps with anxiety, your business could respond by offering recommendations or even sourcing that particular product.
2. Curated Offering
Definition: Curated offering is about personalizing the customer experience based on data and insights. It involves anticipating customer needs based on their preferences and past behavior.
Application in Cannabis: Utilize customer purchase history and preferences to recommend new strains, edibles, or accessories. For example, if a customer regularly purchases a particular type of edible, the business might suggest a new flavor or a related product.
3. Coach Behavior
Definition: This pathway involves guiding and influencing customer behavior in a positive way. It's about providing customers with information and advice to help them make better decisions.
Application in Cannabis: Educate customers about different cannabis products, their effects, and safe consumption practices. For example, offering guidance on dosage for edibles or information on the benefits of different strains can help customers make informed choices.
4. Automatic Execution
Definition: Automatic execution is about creating a seamless, automated process for fulfilling customer needs, often before they even have to ask.
Application in Cannabis: Implement subscription models or automated reorder services for regular customers. For instance, if a customer regularly orders the same product every month, the business could set up an automatic delivery schedule, ensuring they never run out.
Applying Connected Strategy in the Cannabis Industry
The cannabis sector, with its rapidly growing customer base and evolving regulatory landscapes, stands to benefit immensely from implementing a Connected Strategy.
1. Personalized Product Recommendations (Curated Offering)
Cannabis businesses can utilize customer data to tailor product recommendations. By analyzing purchase history and preferences, companies can suggest products that align with individual needs, enhancing the customer experience.
2. Responsive Customer Service (Respond-to-Desire)
Implement a responsive, on-demand customer service model. Utilizing chatbots and AI-driven support can ensure that customer inquiries and issues are addressed promptly and efficiently.
3. Educational Content (Coach Behavior)
Educate your customers about various cannabis products, their uses, and benefits. Create informative content that guides their choices and usage, helping them make informed decisions.
4. Subscription Models (Automatic Execution)
Introduce subscription-based models for regular customers. This could include automated delivery of favorite products, ensuring convenience and fostering customer loyalty.
5. Leveraging Technology
Invest in technology that supports these strategies. This includes CRM systems, data analytics tools, and AI-driven platforms that can help predict customer needs and automate service delivery.
Conclusion
Adopting a Connected Strategy in the cannabis industry is not just about staying ahead of competition; it's about creating meaningful, lasting relationships with your customers.
By understanding their needs, preferences, and behaviors, and responding in real-time, your business can offer unparalleled value and service.
It's time to think beyond traditional customer interactions and embrace the future of customer engagement.