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Committee Blog: Optimizing the Cannabis Dispensary Experience – An In-depth Look at Terpenes, Cannabinoids, and THC for Superior Customer Service

Image of cannabis retail dispensary

By: Pete Longo, Founder & CEO, The Phinest Kind
Contributing Authors: Larina Scofield, Sweed POS | Nicole Rivers, Northern Light Cannabis Co. | Richard Fleming, Altered State Cannabis Company
Produced by: NCIA’s Retail Committee 

The cannabis industry has experienced rapid growth in recent years, with more and more states legalizing its use for medical and recreational purposes. As a result, cannabis dispensaries are becoming increasingly popular, with many people visiting them for the first time. For dispensary owners, managers, and budtenders, it’s essential to provide a positive customer experience to build brand loyalty and attract repeat business. This blog will discuss the importance of focusing on the customer experience at cannabis dispensaries and how understanding terpenes, cannabinoids, and THC percentages can improve the overall experience for both new and experienced users.

Understanding the Customer Experience

What makes a great customer experience at a cannabis dispensary?  A positive experience can be characterized by:

  • Knowledgeable Staff:

    Budtenders and other staff members should be well-trained and able to provide accurate and easily digestible information on various cannabis products, including their effects and appropriate dosages.

  • Welcoming Atmosphere:

    Dispensaries should be clean, well-organized, and aesthetically pleasing, making customers feel comfortable and at ease during their visit.

  • Product Selection:

    A wide variety of high-quality cannabis products should be available to cater to the diverse preferences and needs of customers.

  • Personalized Recommendations:

    Budtenders should be able to make personalized recommendations based on the customer’s preferences, desired effects, and level of experience with cannabis.

Terpenes, Cannabinoids, and THC: Key Components of Cannabis

To provide an exceptional customer experience, it’s essential for dispensary staff to understand the key components of cannabis, including terpenes, cannabinoids, and THC percentages. These components play a significant role in the overall effects of cannabis and can help staff make tailored recommendations for customers.

  • Terpenes:

    Terpenes are aromatic compounds found in many plants, including cannabis. They give each strain its unique aroma and taste, and they can also have therapeutic effects. There are over 100 different terpenes in cannabis, with some of the most common ones being myrcene, limonene, and pinene. Understanding the terpene profile of a specific strain can help staff recommend products based on the desired flavor and aroma, as well as the potential therapeutic benefits.

  • Cannabinoids:

    Cannabinoids are the chemical compounds found in cannabis that interact with the body’s endocannabinoid system, producing various effects. Many Cannabis products advertise “full-spectrum” CBD, meaning that the product not only contains CBD, but can also contain the other cannabinoids as well as terpenes, essential oils, and up to 0.3% THC. There are over 100 different cannabinoids in cannabis, with THC (tetrahydrocannabinol) and CBD (cannabidiol) being the most well-known. THC is responsible for the psychoactive effects of cannabis, while CBD has various therapeutic effects without causing a “high.” Dispensary staff should be familiar with the different cannabinoids and their effects to help customers choose products based on their desired experience.

  • THC Percentages:

    The THC percentage of a cannabis product indicates the concentration of THC, which largely determines the psychoactive effects of the product. Generally, higher THC percentages lead to more potent effects. However, it’s important to note that the overall effects of a cannabis product are influenced by other factors, such as the terpene profile and the presence of other cannabinoids. Dispensary staff should be able to explain the significance of THC percentages and guide customers in selecting products with appropriate potency levels.

Educating Customers and Tailoring Recommendations

Dispensary staff should prioritize educating customers about terpenes, cannabinoids, and THC percentages to help them make informed decisions about their purchases. By understanding these components, customers can better tailor their cannabis experience to their preferences and needs.

For example, a customer looking for a relaxing experience may be interested in a strain high in myrcene, a terpene known for its sedative and relaxing effects. In contrast, someone seeking a more uplifting and energizing experience might prefer a strain with a higher concentration of limonene, which is associated with elevated mood and increased energy. Additionally, customers with little to no experience with cannabis may prefer strains with lower THC percentages to avoid overwhelming psychoactive effects.

When assisting customers, dispensary staff should ask about their preferences, desired effects, and experience level with cannabis. Based on this information, they can recommend strains and products that align with the customer’s goals while considering the terpene profile, cannabinoid content, and THC percentage. This personalized approach can help customers feel more confident in their purchases and lead to a more satisfying experience.

For HR Professionals: Training and Development

To ensure that dispensary staff can effectively educate customers and provide tailored recommendations, it’s crucial for HR professionals to invest in comprehensive training and development programs. Training should cover a wide range of topics, including:

  • Cannabis Fundamentals:

    Staff should have a solid understanding of cannabis basics, such as the differences between indica, sativa, and hybrid strains, and the various forms of cannabis product, methods of ingestion and their varying timing of effects (e.g., flower, edibles, concentrates, tinctures, and topicals, vaping, eating, and drinking).

  • Terpenes, Cannabinoids, and THC:

    As discussed earlier, staff should be well-versed in the role of terpenes, cannabinoids, and THC percentages in determining the effects of cannabis products.

  • Customer Service Skills:

    Staff should be trained in effective communication, active listening, and empathy to better understand and serve their customers.

  • Compliance and Regulations:

    Dispensary staff should be knowledgeable about state and local regulations regarding cannabis sales, as well as safety protocols and best practices for handling cannabis products.

By providing thorough training and development opportunities, HR professionals can ensure that dispensary staff are equipped to deliver an exceptional customer experience.

The Role of Technology in Enhancing the Customer Experience

As the cannabis industry continues to grow and evolve, technology is playing an increasingly important role in enhancing the customer experience at dispensaries. In this section, we’ll explore several innovative technologies and tools that can help dispensary owners, managers, and staff provide an even better experience for their customers.

  • Point-of-Sale (POS) Systems:

    Modern POS systems designed specifically for cannabis dispensaries can streamline the sales process and improve the customer experience. These systems can track customer preferences, manage inventory, calculate taxes, and ensure compliance with state and local regulations. By investing in a robust POS system, dispensaries can provide a more efficient and personalized service for their customers.

  • Digital Menus:

    Instead of relying on printed menus that can quickly become outdated, dispensaries can use digital menus to display their product offerings. These menus can be easily updated to reflect current inventory, and they can also include detailed information about each product, such as terpene profiles, cannabinoid content, and THC percentages. By providing customers with easy access to this information, digital menus can help them make more informed decisions about their purchases.

  • Online Resources and Mobile Apps:

    Dispensaries can enhance the customer experience by offering online resources and mobile apps that provide valuable information and tools related to cannabis consumption. For example, they can develop educational content about terpenes, cannabinoids, and THC percentages or create interactive tools that help customers determine their ideal dosage based on their preferences and experience level. By providing customers with access to these resources, dispensaries can support them in their cannabis journey and help them make more informed decisions.

Customer Engagement and Community Building

Another crucial aspect of providing an exceptional customer experience at cannabis dispensaries is fostering a sense of community and engagement among customers.

  • Events:

    Hosting events such as product launches, tastings, and guest speaker sessions can provide customers with an opportunity to learn more about cannabis, sample new products, and connect with other like-minded individuals. These events can also help establish a dispensary as a trusted source of information and a hub for the local cannabis community.

  • Educational Workshops:

    Dispensaries can offer workshops that focus on various aspects of cannabis, such as understanding terpenes, cannabinoids, and THC percentages, cooking with cannabis, or cultivating cannabis at home. These workshops can help customers gain a deeper understanding of cannabis and its various uses, ultimately improving their overall experience.

  • Social Media:

    Actively engaging with customers on social media platforms can help dispensaries stay connected with their audience, provide real-time updates on products and promotions, and gather valuable feedback. Dispensaries can also use social media to share educational content, answer customer questions, and participate in industry-related conversations.

  • Loyalty Programs:

    Dispensaries can implement loyalty programs that reward customers for their repeat business, encouraging them to return and further engage with the dispensary. Loyalty programs can include discounts, exclusive promotions, or early access to new products, and can be an effective way to strengthen the customer-dispensary relationship.

Focusing on the customer experience at cannabis dispensaries is crucial for building brand loyalty, attracting repeat business, and maintaining a competitive edge in the growing cannabis industry. Dispensary owners, managers, and budtenders must prioritize educating customers about terpenes, cannabinoids, and THC percentages to help them make informed decisions and tailor their cannabis experience to their preferences and needs. HR professionals play a key role in ensuring that staff receive comprehensive training and development, enabling them to provide exceptional service and create a positive customer experience. By investing in the customer experience, dispensaries can set themselves apart and thrive in the competitive cannabis market.

Committee Blog: Practical Tips for Cannabis Businesses Impacted by Theft and Property Damage

By Stephanie Bozzuto, Jason Horst, Eric Rahn, and Ian Stewart
NCIA’s Risk Management And Insurance Committee

As the country continues to grapple with the murder of George Floyd and its aftermath, we have seen reports that numerous cannabis dispensaries in California, Illinois, Oregon, and elsewhere have been the victims of theft and property damage. A number of shops have been hit multiple times in successive days, with many reports indicating that businesses are being targeted by organized groups not involved in protests.

The owners of these dispensaries, like many of the other business owners around them, are likely asking themselves: Is my insurance going to cover this? The good news is that, for many of them, it is likely that they will have coverage for at least some of the losses that they have suffered. What losses are ultimately reimbursed can depend on a number of factors, including what an impacted business owner does in the immediate aftermath of an incident. Thus, we provide below an outline of the steps that businesses should follow in the unfortunate event that your shop has been damaged:

  • File a police report.
  • Immediately report the loss to the relevant cannabis regulatory authority (check both state and local regulations to ensure full compliance).
  • Get in contact with your insurance provider and file a claim immediately. Once filed, you will receive a claim number and an assigned claims adjuster who you will work with from the very beginning to the end of the claim.
  • Ensure your place of business is well protected (even after the loss). Do your very best to continue to protect what you can after a loss.
  • Document everything. Take photos, save and review your video surveillance. Your insurance company will ask for this when you file a claim
  • Begin taking inventory of everything that has been damaged, destroyed, and stolen. Your insurance company will need this as well.
  • Review your insurance policy again and speak with your insurance professional.
  • Does your insurance policy cover civil unrest, theft, or vandalism coverage? Is it excluded? Is it not listed at all? Many cannabis businesses operate under property insurance policies that will cover losses for property damage and theft that occurs during a public disturbance.
  • Some insurance policies, however, contain “protective safeguard” endorsements creating certain requirements that the cannabis business owner must follow or a claim can be denied. Many of the requirements include a central burglar alarm, cameras, an approved vault or safe room, and other similar risk mitigation measures. Pay special attention to these protective safeguard requirements, and ensure that all are met. This can be particularly important for businesses that have already been the victims of crime. If the safety systems in question have been damaged or are otherwise inoperable as a result, make sure to put your insurer on notice of this fact and, ideally, get them to approve a temporary accommodation relieving your business of the relevant protective safeguard.
  • Policies may also be “sublimited” for certain types of property coverage, meaning that limits for particular types of loss are lower than the overall policy limits. Impacted businesses should look for a page entitled “Property Optional Extension Endorsement.” The types of coverage that might be sublimited include:
    • Employee Dishonesty;
    • Money and Securities;
    • Outdoor Property (Fences, Radio/TV Antennas/Satellite Dishes and Signs Outdoor Property (Trees, Shrubs or Plants);
    • Personal Effects and Property of Others (relevant if a dispensary has not taken title to product): and
    • Valuable Papers and Records (Other Than Electronic Data).

In addition to taking these actions, dispensary owners in cities where civil unrest is ongoing should give consideration to reducing their store hours or even closing entirely until conditions change in order to keep their staff safe. For those concerned about leaving product in their stores and having it stolen, some states, including California, allow for licensed cannabis dispensaries to remove product from a licensed facility in the face of a public disturbance or emergency. Nonetheless, businesses should always consult their state and local regulations and/or consult with an attorney before removing cannabis products from their facilities in any way that would normally be impermissible under applicable laws.

In sum, while cannabis dispensaries unfortunately appear to be attractive targets for opportunistic criminals, there are a number of steps these businesses can and should take right now to help them begin to pick up the pieces.

Member Blog: Common Interior Design Mistakes that Dispensaries Make

by Christina Casile, Owner of Design 710

As the legalization of cannabis spreads rapidly throughout the United States and across the globe, new medical and adult-use dispensaries are opening just about every day. The progression of architecture and design within dispensaries has expanded just as quickly as the legalization of their products. 

The saying, “never judge a book by its cover,” has been ingrained into our brains since our adolescence. The truth is, consumers are first drawn to a product or location simply by the look of it. That is why your space must stand out from your competitors. From choosing the right location to conceptualizing layouts, here are a few major mistakes to avoid when designing a dispensary. 

Layout

The foundation of any dispensary design should be rooted in the customer experience. A poor layout can interfere with traffic flow, lead to security issues, and cause longer wait times, which upsets patients. The goal is to create an effective layout that provides efficiency for patients while encouraging them to spend more time in the store, discussing products and treatments. 

To achieve this goal, designers must have a deep understanding of how a “typical” customer will move within space and in what order. Mastering that concept allows designers to make the best use of the available space.  

Basic Interior Design Features

A dispensary does not have to be a cold, sterile environment; in fact, it shouldn’t be! New patients may already be intimidated; bright and welcoming furnishings and color palettes will contribute significantly to their experience. Additionally, an inviting design will help attract and retain patients.

Interior design can quickly become mismatched and overdone. To avoid your design and layout, looking discombobulated, stick to a style, and keep in mind that less is more. Adhering to an overall aesthetic will ensure your elements flow together and complement one another.

Another major factor contributing to the layout and function of a dispensary is the merchandise display. For starters, all of the displays should be made of the same materials. Whether it be wood or glass, keep it consistent. 

Now, think about the customer experience. Products layered in vertical displays tend to make browsing the selection easier than a flat surface. 

Finally, make sure you build out the appropriate amount of displays. Too much space and the dispensary will look like it’s lacking while not enough space will leave it looking cluttered.

Furniture Selection

To you, the words cheap and inexpensive may be synonymous, but to an interior designer, something defined as “cheap” implies that it is poorly made and, therefore, of low quality. With that said, avoid purchasing cheap furnishings. Opening a retail cannabis location is a costly feat. So, it’s understandable that you would want to cut costs where you can. Know that cheap furniture and furnishings can tarnish a customer’s experience as well as your dispensary’s reputation. Most importantly, buying cheap seating and tables from budget vendors that are not for commercial use can lead to unexpected claims. 

Dispensaries follow the same rules as retail stores

As a store-front business, foot traffic will be consistent. Failing to prepare for the long-term wear and tear of your floors, couches, and tables, etc., can be costly. 

Practicality is essential here. Select flooring and surfaces that require minimal maintenance and won’t show visible signs of deterioration. The furniture should be durable enough to last and comfortable enough to function well for all ages and abilities. 

Lastly, remember that the design of a retail store does not change from year-to-year, if ever. Create a timeless design.  

Location

Location is one of the most important elements that factor into the success of any retail business. Prime locations support long-term success. 

Unfortunately, prospective dispensary owners can not pick any old retail space they want. Due to rigid state laws and local regulations, they are limited in terms of available real estate. Familiarizing yourself with an area’s zoning laws is critical for establishing your business in the best possible location. 

ATMs

Given the current status of the banking laws within the cannabis industry, the majority of purchases still need to be made with cash. Do not overlook an ATM when conceptualizing the layout! If there is nowhere for a patient to withdraw the cash necessary for a purchase, owners are missing out on sales. 

If your budget allows, offer cashless ATM services to enable quick and safe transactions, which not only makes purchasing more convenient for customers but also adds to the security of your dispensary by limiting the accumulation of cash. 

Perpetuating Old Stereotypes

The modern-day cannabis consumer represents a cross-section of the diverse population. Creating an environment that plays into the negative stereotypes will turn off a good portion of consumers simply because they will not want to be associated with the old stigmas surrounding marijuana. Paying homage to Jeff Spicoli will not only offend a majority of potential customers, but it will also draw unwanted attention from the surrounding community and law enforcement. 

Christina is a certified Interior Designer with 20+ years of experience in the industry. Chris received a Bachelor of Science in Interior Design from Philadelphia University and honed her skills as an interior designer with several large architecture firms in Philadelphia. Specifically, while with Ballinger and EwingCole, Chris gained considerable experience in a variety of market sectors including healthcare, research and development, government, education and sports and entertainment, overseeing dozens of multi-million dollar projects. Christina first established herself in the cannabis industry when she was recruited to join a team of experts assembled by Philadelphia-based attorneys and consultants Moriconi Flowers, Ltd. to assist clients in obtaining permits to grow, process, and sell marijuana. Moriconi Flowers intended to coordinate a group of diverse professionals to act as strategic partners to support marijuana permit application projects and identified Christina and Design 710 as ideal to provide building/zoning code analysis, budget and schedule development, and interior design services to their clients. Christina quickly became an integral part of the team.

Design 710’s successes have included designing the project for the winning application and first dispensary to open in Philadelphia, designing the project for a winning grower/processor applicant in the Delaware Valley, and designing the winning project for an additional marijuana dispensary permit holder in the Philadelphia area.

Design 710 was created to help assist both new and experienced businesses to navigate the ever-changing cannabis industry. Christina’s intuition and experience has made her the ideal interior designer for countless projects, including 3 dispensaries she opened with Restore Integrative Wellness Center in the greater Philadelphia area over the last 2 years. Christina’s experience working within the recreational and medical cannabis industry makes her an excellent strategic partner, and her unique vision is complemented by years of experience navigating the ins and outs of opening a dispensary. Having provided design assistance and consultation to projects in Pennsylvania, New Jersey, Ohio, Connecticut, Massachusetts, and Missouri, Christina has a wealth of experience navigating multiple markets.

 

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