Big Isn’t Always Better - Especially When It Comes To THC

Does the THC arms race even make sense?

Public perception is that both cannabis flower and concentrates that come in below a certain THC percentage are “less desirable” than products that come in higher in THC percentage. This has focused product development on delivering high THC levels with less focus on other, arguably as important, cannabinoids. Cannabis producers dread reading certificate of analysis (COA) results when a large batch of concentrates, flower or distillate comes in below the expected THC ranges. They know they’ll hear all about it from either purchasing managers or customers directly.

According to a study by CU Boulder researchers, higher THC levels are not necessarily the driving factor in how high cannabis users get. And according to this study published in the Journal of Cannabis Theraputics, cannabis is more of a sum of all of its parts vs one major component in THC. If it’s not just about THC strength, then how do brands develop new products? How does the intended effect coincide with the actual consumer experience?

There have been a number of attempts to collect usage data from consumers, but most have been too difficult to scale. The most common technique used by brands has generally been sampling out different variations of new products to staff and gathering feedback based on desired effect, taste profile etc. This results in a very small data set and a new product that is a “winner” in staff testing, might not work out when it rolls out into the general population

One of the most intriguing value propositions for cannabis brands through the utilization of data platforms like Lucid Green, is the opportunity to do true data-driven product development at scale, that directly benefits the user, as well as potentially allowing the Brand to maximize lower THC yielding crops. 

Lucid Green users get to add their dosage and effects as part of their overall experience with that Brand’s product. It’s not an add-on or a separate step they have to remember to take. Allowing users to record their dosage for future reference, as well as providing them with valuable information on the products they’re consuming, makes it more convenient for consumers to provide this feedback. There’s real value in showing consumers that they have a very similar experience when they consume a high strength vs medium-strength THC Sativa dominant products. It’s also really useful to know that consuming products with more than 4mg/g of limonene leaves some consumers with sensitive skin, whereas their skin feels great when dosages are below 4mg/g. As consumers log more usage, they’re able to dial in what works for them and what doesn’t. Ultimately platforms like Lucid Green may help consumers discover the right blend of terpenes and cannabinoids, as they consider their next product purchase. Having both user documented effects and the detailed chemical composition of the product (COA) consumed, yields valuable insights when analyzing the correlation between dosage/effect and full cannabinoid/terpene analysis. These aggregated insights could prove invaluable for a Brand’s future product development.

There’s a promising new data set for brands and consumers alike, that drives home the goal of providing consistent and enjoyable consumer experiences….. even if that means lower THC numbers!


BRANDS - NOW’S THE TIME TO ACQUIRE CUSTOMERS, NOT JUST MAKE SALES


Cannabis digital marketing was pushed into overdrive thanks to the Covid pandemic. Like traditional retail before it, cannabis retail is moving rapidly towards a more digitally integrated experience and consumer behavior is changing along with it. Thankfully for cannabis brands, there’s a tried and tested brand marketing blueprint to follow in order to build out their Direct to Consumer (
DTC) digital strategy.

Traditional Consumer Packaged Goods (CPG) marketers used to operate much like cannabis Brands do now - focused on shelf-space and managing retailer relationships, but the internet changed that dynamic. With the accelerating digital shift and where two-thirds of consumers now expect to connect directly to the Brands they buy, CPG companies have turned to building and managing direct customer relationships, taking advantage of the efficiencies of the digital landscape to do so, rather than fighting to hold back the tide.  While strong retailer relationships help drive sales for cannabis Brands, it contributes very little to increasing the Lifetime Value of the Customer (LTV), allowing the fickle consumer (and retailer) to switch Brands with alarming regularity and no easy way for the Brand to intervene.

Unlocking a latent, powerful marketing channel Brands never knew they had

What if Brands could change all that by creating their OWN marketing channel using their existing widely distributed packaging?  The digitization of cannabis Brand packaging, which requires a tiny footprint, but creates a highly engaging experience right off of every package, gives that power to the Brand almost instantaneously.  Want to deliver a deep branding experience along with all the knowledge required to have the best, most predictable, and enjoyable Brand experience on every product?  Consumers simply point their camera at the packaging.  No app to download, no registration required, no typing, just point-and-click.  Within one production cycle, a Brand can
create a DTC channel, start building a relationship with those consumers, and drive Brand affinity, loyalty, and ultimately repurchase behavior. 

Building a relationship with consumers is not easy, but this is where it gets really interesting.  An integral part of that same, simple packaging interaction is to deliver a call to action for things like product authentication, Brand loyalty, dosage and product tracking, which, of course, requires consumer registration.  When the consumer signs in to access these details, they connect directly with that Brand.  Successful cannabis Brands adopting this digital strategy have amassed tens of thousands of consumers and add hundreds more every day. They integrate their social media, web site, sales collateral into campaigns that both drive higher sales volume AND capture consumers on their digital platform.

There’s no disputing that digitizing cannabis brand packaging works, but how do you, as a Brand, know how much to spend on these tools, loyalty, and promotion?  This is where many young Brands get stuck, but successful traditional brand marketers have already figured this out.

To LTV or Not to LTV - That is the question

Lifetime Value vs Customer Acquisition Costs.  This simple ratio breaks down the complicated consumer journey by accounting for what you spend to acquire a consumer and what they are worth to you.  Simply stated, a 1:1 LTV:CAC ratio would mean you only earned what you spent over the lifetime of a customer - a questionable strategy. The best marketers figured out the “ideal ratio” of 3:1, which means you sell 3x what you spend to acquire each consumer - that’s Brand-building gold!

This is where digitally integrated cannabis packaging really shines. Brands are regularly seeing LTV:CAC ratios of 10:1 or more, even when accounting for the cost of a digitally integrated packaging platform like Lucid Green and the cost of the loyalty program.

The digital trends in cannabis may seem daunting in a new industry with so many aspects of the business still evolving, but one thing is clear, the post Covid retail landscape has changed consumer behavior forever, leaving it impossible for Brands to ignore digital marketing.  This no-brainer first foray into digital marketing allows Brands to gain an enormous advantage from that direct consumer connection, allowing Brands to take control of their brand affinity, loyalty, and drive up that all important LTV ratio.

If you want to see how these numbers play out with your own assumptions, email info@lucidgreen.io to contact your Lucid Green representative, who’ll help calculate your LTV:CAC ratio.  

 


Greenlane Launches Consumer-Facing Product Verification Program G-Verify Powered by Lucid Green

Greenlane Holdings, Inc. (“Greenlane” or “the Company”) (Nasdaq: GNLN), one of the largest global sellers of premium cannabis accessories, child-resistant packaging, and specialty vaporization products, today unveiled G-Verify, a consumer-facing, scannable verification program that allows brands to communicate product information directly to consumers. Powered by Lucid Green’s Lucid ID platform, G-Verify can be used by brands to confirm product authenticity, share manufacturing certifications, child-resistant compliance details, reviews, dosage, and educational content through unique QR codes.

G-Verify harnesses the power of Lucid Green’s 36,000 registered users and up to 600 daily scans per brand to provide reliable product, safety, and educational information directly to consumers and retailers. Each G-Verify Lucid ID is conveniently printed on product packaging and can be easily scanned with any smartphone camera. Greenlane’s latest offering in partnership with Lucid Green assures consumers that every aspect of their favorite products, from the packaging to the hardware or cannabis itself, is verified and compliant, and provides critical information regarding lab testing and safety.

BRANDS
Greenlane brands that opt into G-Verify will have direct-to-consumer control over their own brand narrative. Each G-Verify brand landing page provides real-time updates regarding product information, compliance testing results, marketing assets, and brand messaging. G-Verify Lucid ID codes seamlessly integrate into existing compliance labeling machinery and easily prints directly within existing compliance labels. In addition, brands will receive monthly consumer data reports that can be leveraged to update marketing content and drive sales. Most importantly, G-Verify proactively verifies that a product is authentic, protecting brands from intellectual property theft.

DISPENSARIES
G-Verify acts as a virtual brand ambassador that can be easily utilized by budtenders to provide product expertise at point-of-sale. In addition to enhancing in-store customer experiences, G-Verify provides comprehensive employee training and guidelines regarding best practices and ongoing product education. G-Verify brands seamlessly integrate with existing retailer POS systems, which allows retailers to verify product authenticity, certifications, and compliance, and even review product testing results in real-time. Upon registration, retailers will gain access to brand marketing assets which can be used to drive sales and customer engagement.

CONSUMERS
Any consumer with a smartphone can access critical product information including dosage recommendations, reviews, ingredient breakdowns, batch information, and certifications. Consumers can even track their personal experience with products without downloading additional applications. G-Verify’s landing page also allows consumers to explore verified customer reviews, industry articles, and related blogs about participating products or brands. Unlike other compliance solutions, the G-Verify platform also acts as a digital wallet that tracks purchases and rewards points, allowing consumers to redeem exclusive gifts and offers.

“The legal cannabis retail environment is still challenging space for consumers, brands, and dispensaries to navigate,” said Aaron LoCascio, Co-Founder and CEO of Greenlane. “The illicit market is actively competing with legal companies for customers, which is a serious threat to consumer safety. G-Verify’s partnership with Lucid Green delivers a vital platform that allows cannabis enthusiasts to buy and sell consumption products with peace of mind.”

About Greenlane Holdings, Inc.
Greenlane (NASDAQ: GNLN) is the leading global platform for the development and distribution of premium cannabis accessories and lifestyle products. The company operates as a powerful house of brands, third-party brand accelerator, and omni-channel distribution platform. Greenlane serves the global markets with an expansive customer base of more than 11,000 retail locations, including licensed cannabis dispensaries, smoke shops, and specialty retailers. Greenlane’s world-class team provides services including product development, go-to-market strategy, sales and marketing support, customer service, direct-to-consumer fulfillment, supply chain management, and distribution. As a pioneer in the cannabis space, Greenlane is the partner of choice for many of the industry’s leading brands, including PAX Labs, Storz & Bickel (Canopy-owned), Cookies, Grenco Science, and DaVinci. Greenlane also proudly owns and operates a diverse brand portfolio including packaging innovator Pollen Gear™, the K.Haring Glass Collection by Higher Standards, Marley Natural™, and VIBES™ rolling papers. Higher Standards, Greenlane’s flagship brand, offers both a high-end product line and immersive retail experience with groundbreaking stores in both New York City’s Chelsea Market and Malibu, California. Greenlane also owns and operates both Vapor.com and VapoShop.com, two industry-leading, direct-to-consumer e-commerce platforms in North America and Europe respectively. For additional information, please visit: https://gnln.com/.

About Lucid Green Inc.
Lucid Green was founded in early 2018 by data veterans Paul Botto and Larry Levy with a singular mission of building a standard for trust and transparency in the cannabis ecosystem. Lucid Green’s revolutionary information platform provides brands a channel to connect directly with both consumers and retail staff; enabling brands, distributors, and retailers to provide the most accurate product information and improve their customers’ experience. Lucid Green's total transparency platform allows consumers to verify product authenticity, understand effects and usage recommendations, view test results, scan reviews, and track their experience – delivering a safe, predictable, and enjoyable experience.