In the newest episode of the Cannacurio Podcast from Cannabiz Media, my co-host, Amanda Guerrero, and I focus on year-to-date cultivation licenses, Tennessee hemp, and extra. We additionally converse with Jeff Harris, CEO of Springbig, a hashish dispensary advertising and marketing, CRM, and loyalty platform.Press the Play button under to hearken to the podcast.
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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 completely happy and excited to have them on in the present day’s present.
But, as is a customized to our typical podcast right here, we’ll test in with Ed and see what he is 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 principle classes of licenses to see how they’ve grown because the starting of the yr. So we dug into cultivation licenses, and what we discovered is to date the nation has added 2,382 cultivation licenses this yr.
And as we have now seen via the opposite months of the yr, over 90% of these are in California and Oklahoma, 92% to be precise. California is up yr to this point 26% whereas Oklahoma is up 20% and Michigan was a really, very distant third with 88 licenses added via May.
Amanda Guerrero: We’ve coated a lot of… So a lot of our yr to this point license wrap-ups have been targeted round California, Oklahoma, and Michigan, Ed. I do know you’ve got observed this as effectively. Are there every other 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 usually, there’s that entire course of of getting this system voted on and up and working, which takes a very long time. And except it is a huge market, you are not going to see huge shifts in licensure. So the final one we had was approach again in December, January when Missouri got here on-line they usually began issuing licenses.
Amanda Guerrero: That’s proper.
Ed Keating: But they primarily issued all of them in someday. All proper, here is the individuals who bought the cultivation licenses. We’re good. And here is the dispensary individuals. We’re good. And that is it. So we’ve not seen so much.
So, till we get one other state program rolling out, it is unlikely that we’ll 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 it, you’ve got bought a thousand growers in some of these states.
Amanda Guerrero: Ah, do not you’re keen on licensing packages for each hashish and hemp? Crazy. All proper. Well, Ed, thanks for the info replace right here. As I discussed, we’ll be joined by Jeff Harris of Springbig once 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 crew have been subscribers of the Cannabiz Media platform since 2018 and what we might take into account one of our Cannabiz Media energy customers. With that, I’d like to open it as much as share slightly bit extra about your self. So how lengthy have you ever been within the business?
Jeff Harris: Sure. So we truly pivoted to the hashish business in late ’16, early 2017. Prior to pivoting to simply give attention to 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 amazing alternative to simply give attention to hashish. So I’d say beginning January of ’17, so about three and a half years, we have been solely concerned in hashish.
Amanda Guerrero: And so what industries had been you concerned with previous to the hashish business?
Jeff Harris: So I launched a loyalty advertising and marketing company within the late ’90s. The title of that enterprise known as Inte Q, that’s primarily based outdoors of Chicago. It’s a nonetheless energetic enterprise. It’s truly being run by a crew that I put in place a number of years in the past. And it has been a tremendous expertise as a result of it actually knowledgeable the creation of Springbig. We truly had been in a position to perceive precisely how loyalty advertising and marketing works and the way it performs out there.
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, primarily based 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 simply 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 simply noticed, why did you determine to get into the business?
Jeff Harris: What I discovered so superb concerning the business was that there was actually a whole ecosystem being constructed for this business. And clearly hashish being the vanguard, such a brand new business, I felt it was unbelievably thrilling to take part in it. How many occasions do you get to take part in an business that is 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 have not had a boring or a foul day working on this business. There’s all the time issues throughout the day that you simply desire occur in a different way, however on the entire, it has been a tremendous expertise to take part in an business that actually was being constructed from the bottom up. And needed to recreate all the things, all of the providers which are wanted to assist companies on this business from the get-go, from the bottom. So it has been fairly superb.
Ed Keating: Well Jeff, I could not agree extra as a result of that is actually once we began rolling out Cannabiz Media round that very same time. And you are completely proper, watching this enterprise kind and this business be created is mostly 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 got 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 are signing up with us. So our key constituency group is the hashish retail group. So we have now near, someplace simply shy of about 700 shoppers, in all probability about 1400+ shops, areas or licenses on the platform.
And the way in which 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 knowledge after which we might assist them leverage that knowledge to be a lot smarter about the way to talk with their clients digitally, through textual content, through electronic mail, issues of that nature.
And attributable to that, so much of shoppers come alongside with them as a result of we have been lucky that we have now so much of the bigger retailers, not all of them, however so much of the bigger retailers. And I believe it is as a result of we created a very simple to make use of, however full-featured product. And we perceive the element of service on this business. And we’re a really excessive contact service group that basically helps our shoppers.
So I believe the mix of a extremely nice product that continues to get higher and evolve and an amazing service orientation has helped us convey on retailers. And when retailers come they carry 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 in a position to function, to illustrate over the past 90 days. What we discovered and one of our gross sales individuals despatched out a be aware 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 via 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 is also been nice for our retail shoppers as a result of they actually use our platform to be sure 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 aside from for supply. So there have been some markets the place exercise fell off slightly bit, simply because there simply was not as a lot retail exercise occurring in that market.
But for anyplace the place there was retail exercise occurring, 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 via this time, which was loopy to consider. We’re one of the few industries that basically had the chance to actually work via this, and hopefully, we’ll maintain popping out of it in a wholesome approach.
Ed Keating: Excellent, glorious. Now, one of the issues that we examine right here via the questions that we ask license holders helps us perceive the software program stack. Like, what sort 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 techniques 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 business’s point-of-sales. And that is truly one of the weather of our secret sauce. We’re very, excellent. Our technical crew could be very, excellent at creating these integrations and ensuring that they are stable, that they work, and we’re pulling in all the info that is obligatory.
One of the large variations that Springbig has in comparison with different gamers within the business is with the vary of knowledge that we pull in. They actually do not want one other gadget on the counter in any respect. They might actually simply leverage our software program by the mixing with the point-of-sale. We pull the knowledge 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 have not 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 truly shifting to the second evolution of our integrations, the place we’re now enhancing these integrations to provide the retail employees member on the retailer extra energy on the way to leverage Springbig inside the POS. And not solely is the POS sending us knowledge, however we’re sending the info again to the POS. So the retail employees member can actually handle all features 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 crew, it sounds such as you’ve bought a superb 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 stored 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 truly opened up a possibility that we noticed the place we had been making an attempt to resolve two completely different units of issues.
On the model facet, we had been making an attempt to resolve an issue of how will we assist manufacturers get linked on to shoppers to get their message out? Because there’s only a lot of noise on this business, 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 and marketing that was occurring, they continued to see their bills go up, their advertising and marketing bills go up. So they’re searching for methods the way to get some of these bills co-op’ed.
So we put collectively a manufacturers platform the place manufacturers can truly create direct messaging to shoppers. The approach they get these messages delivered is they’ll 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 value, so it helps them scale back their value. And the manufacturers pays a payment to get their message into the smartphone of the buyer. Because via the textual content feed, they’re getting their message immediately into the smartphone of the buyer.
So we noticed a possibility to resolve each points and the platform’s off to an amazing begin. We’ve signed on with some nice manufacturers and we proceed to take action.
Ed Keating: All proper, that is an amazing enlargement. I really like that. There was a CEO that I used to work with who preferred to make use of a time period “land and expand.” And it seems like that is what you’ve got been in a position to do with utilizing that channel and the platform to succeed in a broader viewers that may also profit from what you guys convey to the market.
Yeah. And what’s superb is, pay attention, no sale is simple. Every sale is troublesome as a result of you have to actually work with the corporate you are working with to verify it really works for them. If it would not work on your shopper, it simply would not work. But in comparison with different gross sales, this sale just isn’t as arduous, just because the manufacturers are actually excited concerning the alternative.
Now, as I discussed, we have now over 19 million hashish shoppers on our database via our retail companions. So we all know who the energetic hashish shopper is and when a retailer messages their database, they’re messaging energetic hashish shoppers. So for manufacturers to have the power to truly have the ability to affect the conduct of a shopper by partnering with the retailer is like, they are 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 and marketing packages round this software 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 slightly gears right here, Jeff, and simply study slightly bit extra about some of the ways in which you and your crew make the most of Cannabiz Media. Because it seems like your platform goes to have the ability to tackle 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 and marketing technique. And the instruments that you simply guys present firms like us have been actually, actually useful. Your day by day replace is learn by a number of individuals right here daily. Literally, the minute it comes out they’re trying on the new license updates that you simply guys ship out and we’re in a position to leverage that. And we’re in a position to get a bounce on alternatives that you simply guys are uncovering for us and for others.
We leveraged some of the alternatives to have the ability to leverage the record that you simply guys have created to do distinctive advertising and marketing campaigns. So it’s a core half of our expertise stack, of our info stack. And I can inform you it is one of probably the most extensively used items of software program and data that we have now 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 truly compares very well and it truly works in live performance with a pair of different instruments that we use. So, what we’ll do is we’ll leverage your software first, after which we’ll truly incorporate a pair of different instruments to get some extra info to spherical out the knowledge that we’re searching for. So once we begin making an attempt to succeed in out and speak to some of these, both retailers or manufacturers, we even have the power to actually have an clever dialog with them. So, I believe we have 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 really like that. I actually do take pleasure in this half of the Q&A with our subscribers, particularly these which are 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 software is simply nearly as good as the worth it brings. And I can inform you 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 simply guys are providing, the brand new alternatives to leverage the info that you simply guys have compiled. It’s clearly not simple work, what you guys do, as a result of there is no nationwide database of these things and you’ve got actually bought to dig in state by state and see what’s actually occurring. So, we admire the work that you simply’re doing and the way it helps us.
Ed Keating: Well, thanks. As a man who runs an information crew, 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 is humorous, however it’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 knowledge they do make accessible to the general public. So it is getting more durable to get the place we have now to truly be in contact with the regulators themselves, not simply going to some web site to go get info. Which is what others within the business have tried to do, to say, “Oh yeah, we cover the industry.” Well, you actually do not as a result of some locations, it is simply not accessible.
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 on your phase of the business which reaches shoppers via textual content messaging?
Jeff Harris: Yeah, so I believe it is positively a difficulty that is been gearing up over the past yr truly. And what’s actually, actually necessary, we have now the instruments that assist our retailers be sure that they get true specific consent from each buyer that they wish to market to through textual content.
And pay attention, we are the platform. We’re not those who’re truly 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 top of the day, it is our job to coach. It’s our job to verify they perceive the foundations, they perceive the dangers. And we do present them with the instruments as effectively. So it isn’t like we’re saying, “Hey, here’s what you have to do. Go figure it out.” We truly 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 understand, as you’ve got seen that that is changing into a difficulty.
And we work arduous 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 be sure that they’ve all the things in place to achieve success. And as I wish to say, our shoppers pay our wage. So, due to this fact, we have got to be sure that they’re armed with all the things 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 and marketing facet, which is one of the ways in which so much of clients use us is we have needed to educate individuals on what works greatest and what would not. Because some individuals might, previously, have relied on a sprig and pray strategy pondering that if I simply get my message out to extra individuals I’ll do higher. And in truth, typically the other is true. If you’ll be able to goal and phase who you are making an attempt to succeed in with a extremely good message, you are going to have a significantly better response. And I believe that is in all probability true of your clients as effectively.
Jeff Harris: Yeah, no, for certain. I believe the difficulty, whether or not it is electronic mail or texting, particularly electronic mail, texting is costlier than electronic mail so it isn’t 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 are proper. At the top of the day, no matter it prices, it is nonetheless you are spending cash that you simply needn’t spend when 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 is humorous, as a result of we attempt to educate our shoppers on not texting the identical factor to all people, though we in all probability would generate much less income by instructing 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 quick run. We’re in it for the long term, so we have to be sure that our shoppers are profitable.
We consider if our shoppers win, we win. And if meaning educating them on the way to do it proper, even when meaning we make much less cash on them this month, I’m completely okay with that. Because crucial factor to us is for them to achieve success, as a result of we will not be if they don’t seem to be.
Amanda Guerrero: I believe that is an amazing spot for us to finish this interview phase, Jeff. Education is essential. And particularly once you’re trying on the SaaS gross sales cycle and also you’re trying on the hashish business 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 precise route 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 business consultants that know what is going on on 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 long run outlook. Ed.
Ed Keating: So a pair issues to spotlight. One is we simply revealed a weblog put up on Tennessee Hemp. The state supplied us with an amazing deal of knowledge on over 8,000 develop areas within the state, that are distinct from the licenses. So one license might 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 have seen is they have about 50,000 acres underneath cultivation and a few farms have near 2,000 acres underneath cultivation for hemp. So that is an enormous deal. And it is particularly important in that in some states, we’re seeing a decline in license acres farmed as a result of final yr so much of the companies weren’t in a position to 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 are connecting to Metrc and LeafData techniques. So we have got about 29 classes of software program, and we present which firms actually are probably the most linked and in addition which of them have probably the most licenses they’re in a position to get in entrance of as a result of they’re in sure states. So we’re very enthusiastic about this, and it has been a protracted course of to compile the info.
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 count on this to be accessible?
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.