Market analysis is not unique to the cannabis industry. Providers of both nondurable and durable consumer goods benefit greatly from market analysis, everywhere around the world, year in and year out.
Cannabis market analysis, like market research in general, can benefit your business in a variety of ways, some of which can’t be predicted without the insight gathered from the analysis.
That said, here are some of the top ways that market research can provide insight for your business, how your business can benefit, and some key figures we’ve gathered from CANNApinion and the GreenTime Polls over the last few years.
How Cannabis Market Analysis Can Benefit Your Business
Cannabis market analysis can offer so many potential benefits that it’s hard to succinctly categorize them, but here are some chief benefits of investing in market research.
It can help you identify new customers through targeting. Cannabis market analysis can offer insight into segments of the market that are interested in cannabis products but may not be using them or aware of them.
It can help you learn more about your existing customers and maximizing customer lifetime value and loyalty. Ongoing targeting and segmentation based on demographic and geographic factors can influence your product positioning and refine your marketing.
Market research can identify key consumer purchasing behavior or uncover interest in products or categories in which you don’t currently invest or which you don’t offer.
Cannabis market analysis can potentially help you refine your product catalog by doubling down on top sellers while shifting resources away from low performing categories with little interest.
It can also help you gauge the potential behind new businesses decisions, such as the prospect of opening up a new dispensary in a removed location in the United States, launching new product lines, or rolling out new services, such as delivery services. It can also help you determine where the fastest growth is within key market segments.
Cannabis market analysis can help you refine your branding. For instance, if you believe your brand positioning is aligned with the expectations of single males in your area, of a certain age and income bracket, but you determine that most of your purchases come from elsewhere – well, that is self explanatory.
Market research can also help you keep tabs on the pulse of key players in the competitive landscape, by determining where, if ever, customers are getting their cannabis products or accessories.
Additionally, market research is a cost-effective way to test the waters before making important strategic decisions. It’s helpful to know as much as you can about new products, product lines, services and offerings and how customers might receive them – before you put money into them.
Cannabis Purchasing Behavior Trends to Keep Your Eye On
To the credit of all of the potential benefits for cannabis market research we have offered so far in here, the following are some specific insights we’ve gathered over the past few years through our CANNApinion and GreenTime Polls:
●35% of respondents currently use cannabis delivery services. 30% who had not used one only did not because it was not available in their area.
●Rapid market growth rates associated with cannabis use for recreational purposes are not only promising for dispensary owners. 81%(!) of respondents indicated that they would like to patronize a cannabis bar.
●Cannabis use is not just a personal thing. Many users reported that they would give cannabis products as gifts, with 69% indicating they would prefer to give edibles.
●Staff matters. 63% of respondents indicated that knowledgeable budtenders were a key factor in the experience offered at a dispensary. Also – 68% stated that they had a preferred dispensary, so users can be loyal.
●Does your dispensary currently offer a rewards program? Perhaps it should be: 71% of respondents stated that loyalty and rewards programs were an important factor in choosing a dispensary.
●Lots of your customers probably use cannabis products to relax, right? It’s probably not all of them – 45% of respondents reported use of cannabis for energy or to help stay awake – that’s nearly half.
●Cannabis use is not necessarily income bound: From one poll, 41% of respondents worked in C-level positions.
●Delivery routes are expanding in unexpected ways. Since the outbreak of the COVID-19 pandemic, users reported a 44% increase in topical cannabis products, and 76% of respondents to another poll stated that they had consumed a cannabis-infused beverage within the last 12 months.
Get the Most from Cannabis Market Analysis
Whether or not the figures above apply to your specific niche is not at the heart of the issue: they could be. The only way to glean specific market reports is by investing in purpose-driven cannabis market analysis.
Take a look at our CANNApinion Poll and the GreenTime Poll to learn more about how we administer them and then get in touch with us at 818-989-1044 or at Hello@ISACorp.com to invest in market research to furnish your organization with the cannabis consumer insights it needs to thrive.