One of the leaders in hemp-based cannabidiol (CBD) products, Canopy Growth Inc, has been working hard to overcome the difficult year that it, just like most cannabis companies, experienced. Many public announcements were made regarding new certifications and acquisitions that demonstrate the changes that the newly appointed CEO, David Klein, wants to accomplish. A new change is coming to reshape the marketing strategy to continue improving, and it will be all about the customer experience.
According to Klein, one of the missing pieces for running a successful business is the connection with the customers, and a new approach must be pursued to better understand the market. Klein said that, by observing the market, it is easier to tackle some of the challenges the company has been experiencing. “If you think about the cannabis space over the past five years,” Klein told BNN Bloomberg, “We haven’t built that connection with the consumer. Once we understand that, we’ll understand where to invest and where we should cut.”
Even though the cannabis industry has great projections and can become a very profitable industry for everyone involved, current struggles turn the business into a challenging one. Because legislation changes and some licenses are slow to get approval for, products can’t be marketed as they come, and prices go down. “It was probably naïve for all of us to assume [legalization] was going to go smoothly, and it was going to roll out and we would see this beautiful revenue curve. That wasn’t going to happen,” said Klein, referring to the beginning of the industry once it became legal. According to the CEO, the best way to go will be to pause the development of more infrastructure as well as paring down the harvest and production to save money in the long term. And, by maintaining close relationships with its customers, Canopy Growth can adapt to more profitable activities in the long term.