Chapter 4:
Cannabis Data Analytics
The Importance of Cannabis Data Analytics
Due to the fact that cannabis is a relatively new industry, many cannabis businesses don’t have complete business models that include accurate market segmentation or product strategies. The result is a lack of differentiation with many competitors trying to compete along the same lines. Those that learn to rise above the noise and stand out will be the ones that survive.
Cannabis data analytics can help cannabis businesses accurately determine which products to develop and segments of the market in which to position them. They can also tell businesses whether it’s worth pursuing another line of capsules or brand of beverages.
Consumer behavior research and point-of-sale data can help brands fine-tune their product portfolios and emphasize key product and branding points. This leads to highly valuable differentiation and brand strength—which is shown to consistently lead to higher returns across industries.
The importance of cannabis data analytics cannot be understated. While trial and error in product development may have worked in the past, as more competitors enter the market, brands will simply have to leverage cannabis data analytics or risk falling behind.
