In branding we often focus on how exceptional brand experiences, stellar customer service, and compelling narratives can help businesses outperform competitors. Branding is commonly viewed as the keystone to attracting higher-paying customers, fostering loyalty, and increasing profits. Yet, as the story of Green Bits in the legal cannabis industry demonstrates, branding alone cannot solve every problem. Sometimes, simply being first to the market grants a company a foothold that even poor customer experiences cannot shake.
Below, we delve into the insights gleaned from a real-world cannabis tech scenario to understand why a company with a “terrible” brand and product could retain its customers, and what that means for business owners striving to build a strong brand identity.
The Paradox of a Terrible Brand That Still Succeeds
Case in Point: Green Bits
Green Bits is a point-of-sale (POS) system provider that caters to legal cannabis dispensaries. Their software is integral to these businesses, handling everything from sales transactions to compliance reporting. But according to numerous dispensary owners, managers, and staff who’ve used it, Green Bits is far from beloved. In fact, many claim to outright hate it—citing poor customer service, unresponsive support, and feature sets that create more headaches than they solve.
Typically, such negative customer sentiment would spell disaster for a brand. After all, we’re repeatedly told that good branding, supported by a reliable product and excellent customer service, is key to long-term success. But Green Bits defies this rule. Even with widespread dissatisfaction, these dispensaries keep paying monthly fees and continue using the product.
Why? The Roots Run Deep.
Green Bits had one undeniable advantage: they were first to market. By securing an early foothold in a nascent industry—legal cannabis—they integrated their software so deeply into dispensary operations that switching to a competitor became too cumbersome and risky. For business owners already juggling regulatory requirements, compliance checks, and day-to-day operational challenges, uprooting a deeply embedded POS system felt like an insurmountable hurdle.
This “inertia” is what allows a mediocre or even reviled brand to survive. The cost, effort, and potential downtime associated with changing providers overshadow the dissatisfaction with the current solution.
The Limits of Branding
Branding Can’t Overcome Everything
The Green Bits story reveals a fundamental truth: even the most inspiring brand narrative or flawless visual identity can’t guarantee success if a competitor’s product becomes too entrenched in the market. Branding aims to create trust, foster loyalty, and encourage advocacy—but it doesn’t exist in a vacuum. In highly regulated or emerging markets—like cannabis—factors like timing, distribution, and ease of integration can overshadow positive brand qualities.
When Function Trumps Form
While customers appreciate strong branding, at the end of the day, they need a solution that gets the job done. In Green Bits’ case, despite the frustration and dislike, their platform performed the basic function dispensaries required. Once that functionality was integrated into daily workflows, the perceived pain of switching seemed more daunting than tolerating an imperfect system.
Insights for Emerging Brands
- First-Mover Advantage Matters:
For startups and established businesses eyeing new markets, being among the first can grant you a near-unshakable position. Early adopters may stick with your product due to the complexity of integrating a rival’s offering, even if your brand experience isn’t top-tier. - Create Entrenched Value Early:
If you can solve a pressing problem first—and integrate your solution into a customer’s core operations—you may secure long-term customer retention. This approach can sometimes outweigh investments in branding if your primary goal is market share. - Branding Plus Execution Is the Real Gold Standard:
Relying solely on first-to-market status might keep you afloat, but it’s not a sustainable strategy for long-term customer satisfaction and brand reputation. If a competitor emerges with a more user-friendly product and is equally capable of embedding itself deeply, your customers might finally consider switching. Truly great brands offer consistent improvement, responsive customer support, and ongoing innovation—ensuring that staying is always more attractive than leaving. - Seize Opportunities in Emerging Markets:
The cannabis industry is still evolving, with new states and regions legalizing and regulating it. For tech companies and service providers, there are windows of opportunity to become the “Green Bits” of tomorrow—but with a better experience. Leverage both first-mover advantage and strong branding to stand out. Become the go-to option right from the start, and keep investing in improving your product and customer relations so your position remains unbeatable. - Persistent Improvement Over Time:
Brands that care about their customers don’t just stop after initial market capture. They continue to optimize, update, and enhance their offerings to ensure long-term loyalty. Had Green Bits done this, they might have turned disgruntled users into brand advocates, greatly reducing the risk that a competitor could replace them once switching costs lower.
Branding Is a Powerful Tool, Not a Magic Wand
The story of Green Bits underscores that branding, while immensely powerful, cannot compensate for fundamental shortcomings if you’re late to the game or fail to integrate deeply into your customers’ operations. Being first in an emerging market can sometimes keep your business profitable, even if your brand and product leave much to be desired. However, such a position is vulnerable if a better competitor emerges and customers finally reach a breaking point.
For entrepreneurs and marketers, the key takeaway is to combine branding excellence with strategic market entry and sustainable product development. If you can capture the market early, deliver ongoing improvements, and consistently show you care about customer satisfaction, your brand will not only bring in better customers and higher ticket sales—it will endure, evolve, and thrive in the long run.
