In the newest episode of the Cannacurio Podcast from Cannabiz Media, my co-host, Amanda Guerrero, and I talk about year-to-date cultivation licenses, Tennessee hemp, and extra. We additionally communicate with Jeff Harris, CEO of Springbig, a hashish dispensary advertising, CRM, and loyalty platform.

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Cannacurio Podcast Episode 14 Transcript

Amanda Guerrero: Welcome to the Cannacurio Podcast powered by Cannabiz Media. We’re your hosts, Amanda Guerrero and Ed Keating. On in the present day’s present. We’re joined by Jeff Harris, CEO of Springbig. Springbig had joined the Cannabiz Media platform in 2018 and we’re so comfortable and excited to have them on in the present day’s present.

But, as is a customized to our typical podcast right here, we’re going to test in with Ed and see what he’s realized this week from the Data Vault. Ed.

Ed Keating: Thanks Amanda. So, as we do periodically and ideally on a month-to-month foundation, we check out some of the primary classes of licenses to see how they’ve grown because the starting of the 12 months. So we dug into cultivation licenses, and what we discovered is thus far the nation has added 2,382 cultivation licenses this 12 months.

And as we’ve got seen by the opposite months of the 12 months, over 90% of these are in California and Oklahoma, 92% to be actual. California is up 12 months thus far 26% whereas Oklahoma is up 20% and Michigan was a really, very distant third with 88 licenses added by May.

Amanda Guerrero: We’ve coated a lot of… So a lot of our 12 months thus far license wrap-ups have been targeted round California, Oklahoma, and Michigan, Ed. I do know you’ve seen this as nicely. Are there another runner-up markets to notice, or is most of the licensing coming from these three markets?

Ed Keating: Yeah. You nailed it, Amanda. Unless a brand new state or market comes on-line, we’re not going to see any onslaught of new licenses, as a result of sometimes, there’s that complete course of of getting this system voted on and up and working, which takes a very long time. And until it’s an enormous market, you’re not going to see huge shifts in licensure. So the final one we had was manner again in December, January when Missouri got here on-line they usually began issuing licenses.

Amanda Guerrero: That’s proper.

Ed Keating: But they basically issued all of them in sooner or later. All proper, right here’s the individuals who bought the cultivation licenses. We’re good. And right here’s the dispensary individuals. We’re good. And that’s it. So we haven’t seen so much.

So, till we get one other state program rolling out, it’s unlikely that we’re going to see so much of motion there. And clearly that contrasts with hemp the place they introduced this system, they begin kicking out licenses, and earlier than you realize it, you’ve bought a thousand growers in some of these states.

Amanda Guerrero: Ah, don’t you like licensing applications for each hashish and hemp? Crazy. All proper. Well, Ed, thanks for the information replace right here. As I discussed, we’ll be joined by Jeff Harris of Springbig after we come again. So all people keep tuned.

All proper. Welcome again all people. As I discussed, in the present day we’re joined by CEO of Springbig, Jeff Harris. Welcome to the present, Jeff. How are you?

Jeff Harris: Thank you a lot. Doing nice. It’s nice to be right here. I actually admire it.

Amanda Guerrero: We’re so excited to have you ever on the present. As I discussed earlier, you and your group have been subscribers of the Cannabiz Media platform since 2018 and what we might contemplate one of our Cannabiz Media energy customers. With that, I’d like to open it as much as share just a little bit extra about your self. So how lengthy have you ever been within the trade?

Jeff Harris: Sure. So we really pivoted to the hashish trade in late ’16, early 2017. Prior to pivoting to simply deal with hashish, Springbig was targeted on offering loyalty and digital communication software program to the small enterprise group. And as we noticed increasingly more hashish dispensaries taking benefit of our platform, we appeared into it additional and thought it was an important alternative to simply deal with hashish. So I’d say beginning January of ’17, so about three and a half years, we’ve been solely concerned in hashish.

Amanda Guerrero: And so what industries had been you concerned with previous to the hashish trade?

Jeff Harris: So I launched a loyalty advertising company within the late ’90s. The title of that enterprise is known as Inte Q, that’s based mostly outdoors of Chicago. It’s a nonetheless lively enterprise. It’s really being run by a group that I put in place a number of years in the past. And it’s been an incredible expertise as a result of it actually knowledgeable the creation of Springbig. We really had been capable of perceive precisely how loyalty advertising works and the way it performs available in the market.

Jeff Harris: And from there we launched Springbig, and initially we launched Springbig, as I discussed, for the small enterprise group, the pizza retailers, the yogurt retailers, the nail salons, the hair salons. And then over time as we began our buyer base, we felt that we might have extra traction and have extra focus if we simply targeted on one market, and we selected the hashish market. And it appears, based mostly on the efficiency of our enterprise over the previous couple of years, it was a sensible choice.

Amanda Guerrero: Yeah. It positively sounds prefer it, particularly getting in across the time that you just did. There was a lot alternative in 2016 in phrases of capturing the varied markets. But out of curiosity, Jeff, outdoors of simply the enterprise alternative that you just noticed, why did you resolve to get into the trade?

Jeff Harris: What I discovered so superb concerning the trade was that there was actually a whole ecosystem being constructed for this trade. And clearly hashish being the vanguard, such a brand new trade, I felt it was unbelievably thrilling to take part in it. How many instances do you get to take part in an trade that’s actually being born in entrance of your eyes?

And I believe that pleasure, alongside with the chance that we noticed, actually drove it. And once more, trying again three and a half years, I haven’t had a boring or a nasty day working on this trade. There’s all the time issues in the course of the day that you just desire occur in another way, however on the entire, it’s been an incredible expertise to take part in an trade that actually was being constructed from the bottom up. And needed to recreate the whole lot, all of the providers which might be wanted to help companies on this trade from the get-go, from the bottom. So it’s been fairly superb.

Ed Keating: Well Jeff, I couldn’t agree extra as a result of that’s actually after we began rolling out Cannabiz Media round that very same time. And you’re completely proper, watching this enterprise type and this trade be created can be a as soon as in a lifetime alternative, I believe to be there on the very starting. So I’m proper there with you.

Now, from what I’ve realized about Springbig, you’ve bought so much of shoppers on the platform. You signed up so much of shops. So, inform us what makes your organization distinctive? What’s attracting each the purchase and the promote facet onto your platform?

Jeff Harris: Yeah. So the shoppers are a consequence of the shops which might be signing up with us. So our key constituency group is the hashish retail group. So we’ve got near, someplace simply shy of about 700 shoppers, in all probability about 1400+ shops, places or licenses on the platform.

And the best way our platform works is as a result of we’re serving to these retailers design and handle the software program, helps them design and handle their loyalty program. And then we pull in all their information after which we might assist them leverage that information to be a lot smarter about tips on how to talk with their clients digitally, through textual content, through electronic mail, issues of that nature.

And on account of that, so much of shoppers come alongside with them as a result of we’ve been lucky that we’ve got so much of the bigger retailers, not all of them, however so much of the bigger retailers. And I believe it’s as a result of we created a very simple to make use of, however full-featured product. And we perceive the part of service on this trade. And we’re a really excessive contact service group that basically helps our shoppers.

So I believe the mixture of a extremely nice product that continues to get higher and evolve and an important service orientation has helped us deliver on retailers. And when retailers come they bring about their shoppers with them.

Ed Keating: Ah, very good. And one other parallel I’d say with Cannabiz Media and Springbig is, I’m guessing, the way you had been capable of function, let’s say during the last 90 days. What we discovered and one of our gross sales individuals despatched out a observe to his clients again in March or early April saying, “I don’t know about you, but I just woke up and found out that my next four trade shows are canceled.” We use Cannabiz Media to succeed in the individuals that you really want attain on the B2B hashish facet.

So I’m curious for Springbig, what occurred throughout quarantine? If I used to be working a dispensary in a state the place it was deemed non-essential, had been you my solely conduit to succeed in these individuals and maintain them pondering fondly of my retailer?

Jeff Harris: It’s fascinating. So in most markets the place the shops had been open, we noticed elevated exercise by our platform throughout that point. Because they actually, along with all of what I’ll name the traditional communication that retailers had been doing with their shoppers, they had been doing extra communication relating to retailer hours and openings and closings, and issues of that nature.

So we positively noticed elevated exercise. And that elevated exercise has not essentially slowed down. We’ve seen a pickup in exercise which has been nice for us, and it’s additionally been nice for our retail shoppers as a result of they actually use our platform to ensure that they’re staying in fixed communication with their clients.

There had been a pair of markets the place issues had been both closed down. So for instance, in Nevada the place they closed down apart from for supply. So there have been some markets the place exercise fell off just a little bit, simply because there simply was not as a lot retail exercise happening in that market.

But for anyplace the place there was retail exercise happening, we had an elevated quantity of exercise. And then there have been a pair of markets the place that exercise dropped. But on the entire we grew by this time, which was loopy to consider. We’re one of the few industries that basically had the chance to essentially work by this, and hopefully, we’re going to maintain popping out of it in a wholesome manner.

Ed Keating: Excellent, glorious. Now, one of the issues that we examine right here by the questions that we ask license holders helps us perceive the software program stack. Like, what form of software program are these shops and companies utilizing? So I’m curious, how do you interface or how do Springbig interface with point-of-sale and seed-to-sale? Is that simply a straightforward API connection or how do these programs work, or do they even have to speak to one another?

Jeff Harris: Yeah. So we’re extra targeted on integrating with the point-of-sales versus the seed-to-sales. So we combine with over 15 of the trade’s point-of-sales. And that’s really one of the weather of our secret sauce. We’re very, excellent. Our technical group could be very, excellent at creating these integrations and ensuring that they’re stable, that they work, and we’re pulling in all the information that’s mandatory.

One of the large variations that Springbig has in comparison with different gamers within the trade is with the vary of information that we pull in. They actually don’t want one other system on the counter in any respect. They might actually simply leverage our software program by the combination with the point-of-sale. We pull the data after which they will go onto their Springbig dashboard and use it.

So, point-of-sale is the important thing for us, and we began integrating. We had our first integration with Greenbits in November of 2017, and we haven’t stopped since. And I believe we’re as much as 15 or 16, all of the main point-of-sale gamers we’re built-in with.

And now, we’re really shifting to the second evolution of our integrations, the place we’re now enhancing these integrations to offer the retail workers member on the retailer extra energy on tips on how to leverage Springbig inside the POS. And not solely is the POS sending us information, however we’re sending the information again to the POS. So the retail workers member can actually handle all facets of a buyer’s loyalty program on the POS whereas they’re leveraging Springbig.

Ed Keating: Wow. Well, provided that leverage all these partnerships and that tech group, it sounds such as you’ve bought a great juggernaut going right here. So what ought to we be trying ahead to listening to from Springbig in phrases of new product launches or enhancements trying ahead?

Jeff Harris: Yeah. So our huge announcement that we made a couple of week in the past, every week and a half in the past, so getting collectively with you guys is de facto the right timing, is we launched a platform for manufacturers.

So as I discussed, our key buyer group has all the time been retailers. However, we saved getting calls from manufacturers about, “Oh, can we use your platform to communicate with consumers? How do I get connected to the retailers to communicate with them?” And it really opened up a chance that we noticed the place we had been attempting to unravel two totally different units of issues.

On the model facet, we had been attempting to unravel an issue of how can we assist manufacturers get related on to shoppers to get their message out? Because there’s only a lot of noise on this trade, and types wish to attempt to talk immediately with shoppers. And then the retailers had an issue the place, as a result of they had been bearing the brunt of the advertising that was happening, they continued to see their bills go up, their advertising bills go up. So they’re searching for methods tips on how to get some of these bills co-op’ed.

So we put collectively a manufacturers platform the place manufacturers can really create direct messaging to shoppers. The manner they get these messages delivered is they may serve them as much as the retailer. And when the retailer sends out their subsequent communication, presuming through textual content, they would come with that model’s message both through an MMS picture or a hyperlink. And once they try this, the retailer will get a reduction on their message price, so it helps them cut back their price. And the manufacturers can pay a price to get their message into the smartphone of the patron. Because by the textual content feed, they’re getting their message immediately into the smartphone of the patron.

So we noticed a chance to unravel each points and the platform’s off to an important begin. We’ve signed on with some nice manufacturers and we proceed to take action.

Ed Keating: All proper, that’s an important enlargement. I like that. There was a CEO that I used to work with who favored to make use of a time period “land and expand.” And it seems like that’s what you’ve been capable of do with utilizing that channel and the platform to succeed in a broader viewers that will even profit from what you guys deliver to the market.

Yeah. And what’s superb is, hear, no sale is straightforward. Every sale is tough as a result of it’s worthwhile to actually work with the corporate you’re working with to verify it really works for them. If it doesn’t work in your consumer, it simply doesn’t work. But in comparison with different gross sales, this sale isn’t as exhausting, just because the manufacturers are actually excited concerning the alternative.

Now, as I discussed, we’ve got over 19 million hashish shoppers on our database by our retail companions. So we all know who the lively hashish client is and when a retailer messages their database, they’re messaging lively hashish shoppers. So for manufacturers to have the power to really be capable to affect the habits of a client by partnering with the retailer is like, they’re going gaga. They’re so excited.

So firms like PAX or Jetty or Coda Signature, some huge manufacturers are actually beginning to get enthusiastic about this. And are beginning to construct their advertising applications round this device to have the ability to actually get their message into the smartphone of the client.

Amanda Guerrero: Well, talking of getting your message to your audience, I wished to modify just a little gears right here, Jeff, and simply be taught just a little bit extra about some of the ways in which you and your group make the most of Cannabiz Media. Because it seems like your platform goes to have the ability to deal with the shoppers and we assist to attach you to these license holders.

Jeff Harris: Yeah. So Cannabiz Media has been a core half of our enterprise growth technique and our advertising technique. And the instruments that you just guys present firms like us have been actually, actually useful. Your day by day replace is learn by a number of individuals right here each day. Literally, the minute it comes out they’re trying on the new license updates that you just guys ship out and we’re capable of leverage that. And we’re capable of get a soar on alternatives that you just guys are uncovering for us and for others.

We leveraged some of the alternatives to have the ability to leverage the record that you just guys have created to do distinctive advertising campaigns. So it’s a core half of our expertise stack, of our data stack. And I can let you know it’s one of probably the most broadly used items of software program and knowledge that we’ve got right here on the enterprise.

Amanda Guerrero: We love to listen to that. In phrases of your expertise, Jeff, using different gross sales instruments, how does the Cannabiz Media platform evaluate?

Jeff Harris: No. So it really compares very well and it really works in live performance with a pair of different instruments that we use. So, what we’ll do is we’ll leverage your device first, after which we’ll really incorporate a pair of different instruments to get some extra data to spherical out the data that we’re searching for. So after we begin attempting to succeed in out and speak to some of these, both retailers or manufacturers, we even have the power to essentially have an clever dialog with them. So, I believe we’ve been utilizing it for a pair of years now, and there’s no finish in sight to us wanting to make use of it. We actually get so much of worth out of it.

Amanda Guerrero: Oh, I like that. I actually do get pleasure from this half of the Q&A with our subscribers, particularly these which might be acquainted with utilizing the platform. Because it actually, I believe it helps to place the performance of Cannabiz Media into perspective for our present subscribers, in addition to future potential shoppers. So, thanks. Thank you for these insights, Jeff.

Jeff Harris: No, we admire it. We actually get… Listen, the device is simply pretty much as good as the worth it brings. And I can let you know that individuals are actually, they search for that day by day electronic mail that comes out from you guys and that day by day replace. And they search for the instruments and the brand new issues that you just guys are providing, the brand new alternatives to leverage the information that you just guys have compiled. It’s clearly not simple work, what you guys do, as a result of there’s no nationwide database of these things and also you’ve actually bought to dig in state by state and see what’s actually happening. So, we admire the work that you just’re doing and the way it helps us.

Ed Keating: Well, thanks. As a man who runs a knowledge group, I’m glad to listen to that. We are the nationwide database. I’ll say that.

Jeff Harris: Right, you guys are.

Ed Keating: [crosstalk 00:18:58].

Jeff Harris: You guys are. But it’s humorous, but it surely’s not simple to get. You’ve actually bought to go state by state by state. It’s not simple to compile in any respect.

Ed Keating: Yeah, and what we’re discovering now could be many states, as a result of of privateness points, are beginning to dial again on the data they do make obtainable to the general public. So it’s getting tougher to get the place we’ve got to really be in contact with the regulators themselves, not simply going to some web site to go get data. Which is what others within the trade have tried to do, to say, “Oh yeah, we cover the industry.” Well, you actually don’t as a result of some locations, it’s simply not obtainable.

But talking of what’s taking place on the regulatory standpoint, one of the questions I wished to ask you is, I’ve seen that there have been some lawsuits round tech spamming in Colorado and Florida. And we see the identical factor on the e-mail facet with CCPA popping out of California with the Privacy Act. So I’m simply curious, what does this imply in your section of the trade which reaches shoppers by textual content messaging?

Jeff Harris: Yeah, so I believe it’s positively a difficulty that’s been gearing up during the last 12 months really. And what’s actually, actually vital, we’ve got the instruments that assist our retailers ensure that they get true specific consent from each buyer that they wish to market to through textual content.

And hear, we’re the platform. We’re not those who’re really sending out the textual content, however our objective is to information each one of our shoppers on how to verify they get specific written consent to have the ability to market through textual content to clients.

And there’s some of our clients that began actually early on that weren’t as involved about it, that we’re now changing and ensuring that they get that specific written consent from each one of their clients. And some of our shoppers are far more conservative, extra aggressive in getting that. Some of them are rather less conservative, rather less aggressive.

At the tip of the day, it’s our job to teach. It’s our job to verify they perceive the principles, they perceive the dangers. And we do present them with the instruments as nicely. So it’s not like we’re saying, “Hey, here’s what you have to do. Go figure it out.” We really present them with all of the instruments they should get specific consent. And we hope, and most of the people are actually as a result of they notice, as you’ve seen that that is turning into a difficulty.

And we work exhausting to assist them, as a result of on the finish of the day, we’re solely going to be as profitable as our shoppers are. So we have to ensure that they’ve the whole lot in place to achieve success. And as I wish to say, our shoppers pay our wage. So, due to this fact, we’ve bought to ensure that they’re armed with the whole lot that they should do issues proper, to allow them to proceed to achieve success.

Ed Keating: That makes so much of sense. And what we discover on the e-mail advertising facet, which is one of the ways in which so much of clients use us is we’ve needed to educate individuals on what works finest and what doesn’t. Because some individuals could, up to now, have relied on a twig and pray method pondering that if I simply get my message out to extra individuals I’ll do higher. And actually, usually the alternative is true. If you may goal and section who you’re attempting to succeed in with a extremely good message, you’re going to have a a lot better response. And I believe that’s in all probability true of your clients as nicely.

Jeff Harris: Yeah, no, for positive. I believe the problem, whether or not it’s electronic mail or texting, particularly electronic mail, texting is costlier than electronic mail so it’s not the very same factor. But individuals have a look at electronic mail and say, “Oh my God, it’s so inexpensive. I just might as well email everybody.” But you’re proper. At the tip of the day, no matter it prices, it’s nonetheless you’re spending cash that you just don’t must spend in case you’re emailing individuals that aren’t going to reply.

Ed Keating: Exactly.

Jeff Harris: So, I’m completely with you. And we attempt to, it’s humorous, as a result of we attempt to educate our shoppers on not texting the identical factor to all people, despite the fact that we in all probability would generate much less income by educating them that. But on the finish of the day, as I wish to say right here at Springbig, we’re not in it for the brief run. We’re in it for the long term, so we have to ensure that our shoppers are profitable.

We imagine if our shoppers win, we win. And if which means educating them on tips on how to do it proper, even when which means we make much less cash on them this month, I’m completely okay with that. Because an important factor to us is for them to achieve success, as a result of we will’t be in the event that they’re not.

Amanda Guerrero: I believe that’s an important spot for us to finish this interview section, Jeff. Education is vital. And particularly if you’re trying on the SaaS gross sales cycle and also you’re trying on the hashish trade as an entire. We’re continually requested and requested to pivot and to vary on the drop of a hat. And so I believe to have companions like Springbig on board with the retailers, it actually goes to assist them to proceed to develop in the fitting path and in addition maintain the shoppers in thoughts. So thanks a lot for becoming a member of us in the present day, Jeff.

Jeff Harris: No. And thanks guys very a lot for having me. I actually admire it. It’s all the time enjoyable to be speaking to trade specialists that know what’s happening and proceed shifting the ball ahead.

Amanda Guerrero: Thank you. Well, now let’s have a look forward and see what updates Ed has for us with reference to Cannacurio and the longer term outlook. Ed.

Ed Keating: So a pair issues to focus on. One is we simply revealed a weblog submit on Tennessee Hemp. The state offered us with an important deal of information on over 8,000 develop areas within the state, that are distinct from the licenses. So one license could have many develop areas. I believe the quantity of licenses is about 3,400, 3,500, however 8,000 develop areas.

So far, what we’ve seen is that they’ve bought about 50,000 acres beneath cultivation and a few farms have near 2,000 acres beneath cultivation for hemp. So that’s an enormous deal. And it’s particularly important in that in some states, we’re seeing a decline in license acres farmed as a result of final 12 months so much of the companies weren’t capable of make so much of cash.

The different factor that we’re engaged on is placing the ending touches on our white paper which covers the businesses which might be connecting to Metrc and LeafData programs. So we’ve bought about 29 classes of software program, and we present which firms actually are probably the most related and in addition which of them have probably the most licenses they’re capable of get in entrance of as a result of they’re in sure states. So we’re very enthusiastic about this, and it’s been an extended course of to compile the information.

Amanda Guerrero: Oh, I do know. And we’re so excited to obtain this white paper, Ed. Now, when ought to myself and our subscribers anticipate this to be obtainable?

Ed Keating: End of the month.

Amanda Guerrero: Oh, how thrilling! Okay, cool. Well, we’ll positively look to you for these updates, Ed. Everyone, thanks a lot for becoming a member of us on in the present day’s podcast. We’re your hosts, Amanda Guerrero and Ed Keating. Stay tuned for extra updates from the Data Vault.

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