Marijuana Business Magazine November December 2018

ANCILLARY BUS¬NESS STRATEG¬ES J oel Milton avoids running in place. The CEO of Baker Tech- nologies has engineered two dramatic changes that launched his Denver technology company on an entirely new trajectory than when he founded it four years ago. For starters, Milton transformed Baker from a consumer-facing company into a business-to-business venture that provides cannabis companies with customer relationship management (CRM) technology. The logic: B2B offers far more revenue potential than B2C. More recently, Baker was one of four marijuana businesses from the United States and Canada that agreed last spring to merge into a multinational company specializing in cannabis technology, cultivation and support solutions. Operating as TILT Holdings, the combined revenue of the four- some is forecast to total more than $200 million in 2019, with the new venture slated to trade on the Cana- dian Securities Exchange. “We’ll be part of a much bigger entity and able to offer more than we could on our own,” Milton said of the deal. He also believes the mar- riage will make it much easier to raise money from investors. From B2C to B2B Studies show it is anywhere from five to 25 times more expensive for a retail store to find a new customer than to retain one it already has. That might be why business has been good for Baker. The CRM company works with more than 1,000 dispensaries in 24 states and Canada. Baker’s platform, among other things, allows dispensaries to: • Communicate with custom- ers, including zapping targeted messages to specific consumers based on their shopping habits and preferred products. • Offer discounts, promotions and a customized loyalty program. • Provide online ordering. • Offer kiosk ordering to minimize lines and allow browsing. • Offer a website banner to attract new customers. “I want to provide (our customers) with the tools they need to stay competitive in a growing market,” Milton said. EXECUTIVE SUMMARY Denver-based Baker Technologies has undergone a dramatic metamorphosis since it was founded in 2014. Joel Milton, Baker’s founder and CEO, transformed the company from a consumer- facing venture into a business- to-business company that offers dispensaries customer relationship management (CRM) technology. Here are some highlights of the evolution: • An early stage venture fund and seed accelerator in San Francisco, 500 Startups, helped Baker raise money and gave Milton new insights into successful fundraising. • Recently, Baker was part of a four-way merger that created TILT Holdings, a multinational company specializing in cannabis technology, cultivation and support solutions. As part of TILT, Baker will continue to offer its B2B services. • The combined revenue of the four companies is forecast to total more than $200 million in 2019, with TILT slated to trade on the Canadian Securities Exchange. Ready to Pivot Baker Technologies morphed from a consumer-facing company into a B2B venture – and is now in a four-way marriage By Amanda Baltazar Baker Technologies' check-in software was designed for cannabis dispensary businesses. Photo courtesy of Baker Technologies 144 • Marijuana Business Magazine • November/December 2018