Category: Cannabis Insights

In the cryptocurrency market, just as in any investment market, nothing can be foretold with absolute certainty. Even the most conservative of investments come with some risk.

But cryptocurrencies, being so new, unregulated, and potentially volatile, are widely seen as some of the riskiest investments of all.

Some investors have made massive sums of money by investing in certain cryptocurrencies like Bitcoin, Ethereum, and Solana – but that doesn’t come without risk.

Instead, risk can be mitigated by following news, listening to investor insights, and conducting cryptocurrency market research. You can’t eliminate risk, but you can arm yourself against it with knowledge.

Here are some of the recent market trends and headlines you should be aware of, along with some questions cryptocurrency market research can help you answer.

●The recent cryptocurrency crash has stifled many first-time investors.

Coinbase, the largest cryptocurrency trading exchange in the United States, recently saw a sharp drop in the price of its stock.

This sharp downturn has cost some investors quite a bit, but all is not necessarily lost. The crypto market has experienced slow periods before, and it’s likely to face them again.

The question is how far the values of cryptocurrencies will fall before they start to rise again, or whether slow performers will be replaced by new opportunities.

●The cryptocurrency market just fell below 1 trillion USD.

By November 2021, the global cryptocurrency market had risen to $2.9 trillion, after relatively fast growth and rapid gains.

However, for the first time since January 2021, the global market has fallen below $1 trillion.

Fluctuations in the market are to be expected, but the pace at which these changes have occurred is atypically quick.

Savvy investors should follow the old adage to “buy low, sell high,” making the current time a typically lucrative period for investment – assuming, only, that the market will rise again in the near future.

●It’s not all doom and gloom – some cryptocurrencies are gaining steam despite recent downturns.

Take, for example, Optimism, a layer 2 protocol cryptocurrency that despite recent losses in the past three months (and in line with most other cryptocurrencies) has risen consistently over the past month.

There are still opportunities for investors that know where to look, and what to look for.

Of course, investing in a cryptocurrency that is currently rising is not necessarily beneficial to the investor. It’s important to have the right information at hand before making any kind of investment decision.

These are the sorts of things that investors need to weigh carefully when eyeing potential transactions.

●The prices of cryptocurrencies can fluctuate drastically.

While recent headlines have focused mostly on losses and SEC investigations, if you read between the lines, you can see that there are many factors driving the overall growth of the cryptocurrency market.

Only a few years ago, cryptocurrency was a “cryptic” term (if you can excuse the pun). Today it is a household word, and investors are showing new interest. Rising ledger transparency and visibility are also driving interest and investor confidence.

That said, the novelty of the market and the lack of regulations can also result in rapid fluctuations in price.

●Despite recent losses in value, certain cryptocurrencies may be poised to experience growth in the upcoming months.

Consider Solana, one of the cryptocurrencies that has been affected by the recent bear market and has lost value in recent months.

Despite these cues, some investors are expecting Solana to grow through August, as they key in on what they call a “Bear Flag.”

The “Bear Flag” occurs during bear markets; it is a technical pattern that occurs when a factor driving the value of a currency gets resolved, allowing the value of the currency to rally.

Will the pattern repeat itself through the next forecast period?

No one can say with absolute certainty, but these are the sorts of patterns that cryptocurrency market research can help you develop an eye for.

How Can Cryptocurrency Market Research Help You (or Your Firm) Make Wise Investment Decisions?

The more you know about the financial institutions that deal in blockchain technology and digital assets like digital currencies, the better you will be positioned to make informed choices about crypto investments.

Cryptocurrency market research can shed some light on the following factors.

●  Projected size of the market

Projects for CAGR (compound annual growth rate) for the cryptocurrency market vary according to the source of reports, ranging from about 7% on the low end to higher than 31% on the higher end.

Regardless, the global market is expected to grow drastically through the remainder of the 2020s and into the 2030s and is driven by the transparency of distributed ledger technology, a rise in demand, general growth in the use of cryptocurrencies as acceptable payment methods, and the low cost of electricity (used for crypto mining operations) in certain investing countries, like China.

● What different market dynamics will affect the cryptocurrency industry

There are numerous drivers affecting the global growth of cryptocurrency in key markets, such as North America (primarily the United States) and the Asia Pacific region (chiefly China and Japan).

Growing numbers of users and potential investors, improved transparency, expanding digital currency exchange platforms and facilities, and enhanced crypto mining machines and methods are key market dynamics influencing not only the value but the proliferation of cryptocurrencies.

● Major challenges for players in the cryptocurrency market

A wide range of challenges faces the cryptocurrency market.

One of the largest is the lack of official acceptance. Cryptocurrencies are not officially backed and therefore lack authority in the eyes of some investors. Also, they are not currently widely accepted as a medium of exchange (although merchants are warming up to them).

The uncertainty of the future regulations of the cryptocurrency market also causes some investors to shy from the prospect of investing with greater confidence. Many others have concerns about control, security, and fraudulent transactions.

Ready to Get Started Investing in Cryptocurrency Market Research?

No market research can entirely remove the aspect of the risk involved in investment, regardless of the market. However, wisely-funded cryptocurrency market research can help investors make informed strategic decisions about investments, when and what to buy, when to sell, and what prices to ask.

To get started putting together a customized plan for cryptocurrency market research, take a look through our services via the previous link or get in touch with us at Hello@ISACorp.com. Let us know about your goals and we’ll work out a specialized research plan for your organization.

Ask any marketing manager or brand manager what one of the biggest challenges in marketing is, and a respectable number of times you’ll get a response related to customer segmentation.

This is true in every market, irrespective of age or of the nature of the products or services integral to the model.

Before you can sell a bill of goods, you must understand the person to whom you’re trying to sell it. That is a precept that will never age or fail to be applicable.

So how does cannabis customer segmentation work, and how can it help cannabis retailers or others in the cannabis industry answer important strategic decisions?

How Does Cannabis Customer Segmentation Work?

Generalizing can be a good thing, and for the purpose of cannabis marketing, we’ve developed a 6-buyer-persona model which accounts for demographic, psychographic, attitudinal and occasion-based factors.

Based on our findings, which we’ve aggregated from extensive first hand research, cannabis consumers can be generally categorized into one of six buyer personas as follows:

• Everyday enhancers: Everyday enhancers tend to be experienced, knowledgeable, and consume to enhance everyday life; everything from work to studying.

• Escape artists: Escape artists, like everyday enhancers, consume to get a buzz, but they tend to do so to unwind at the end of a day, and with their friends.

• Trendy tokers: Trendy tokers tend to be less experienced than everyday enhancers and escape artists, but are willing and eager to try new things.

• Self care seekers: Self care seekers tend to consume alone and as part of their self care rituals.

• Practical partakers: Practical partakers tend to consume alone and for the practices of stress management.

• Mature medicators: Mature medicators are highly deferential to authority and typically consume as an alternative to traditional medications for pain, inflammation relief, and more.

We arrived at this cannabis consumer segementation model by accounting primarily for lifestyle, usage occasions, experience with cannabis, relationship with the law, comfort with shopping for cannabis products, whether users partake in company or alone, and whether users seek additive or subtractive benefits.

For more information on the cannabis consumer insights you can glean from this cannabis customer segmentation, please visit the previous link.

Do All Cannabis Users Consume for the Same Reasons?

No, not all cannabis consumers consume for the same reasons, which was briefly outlined above. But cannabis consumer segmentation and target market research can offer additional insights into consumer usage habits, beyond what generic categorizations can tell a cannabis business.

For instance, our CANNApinion Poll focusing on cannabis and professionals offered some interesting information.

Noticeably, a large number of cannabis users consume cannabis for relaxation, or to manage anxiety or control stress.

But the same figures also showed that a significant number of users (62%) use consume cannabis to have fun, and that 45% of users consume to stay away.

Not what you might expect, but that sort of information should impact how you position your cannabis products, whether they’re infused edibles or pre-rolls.

What Sorts of Data Do ISA Corp Panels (Like the Green Time Poll) Collect?

The cannabis market research panels ISA Corp administers through its Green Time and CANNApinion Polls are instrumental in collecting data on a wide number of metrics, including the following:

• Usage habits according to age groups (such as comparing the differences between the preferences of Gen Z users and Baby Boomers).

• Preferences in consumption/type of products (for instance, edibles vs. flower vs. topical uses)

• Preferences and tastes in styles and flavors of edibles and other consumables.

• How much users typically spend in a given portion of time.

• How much the dispensary experience influences consumer buying behavior.

• How branding/uniforms/labeling influence purchasing decisions.

• The reasons that consumers use cannabis products, and why and when they consume.

• And much more.

How Much Money Do Cannabis Users Typically Spend?

There is no single answer to how much users typically spend, as purchasing habits, volume and frequency are all affected by other user metrics.

However, a cannabis market research poll or panel can help businesses glean insight into average consumer spending habits, including trends and fluctuations.

Are There Opportunities for Expanding into New Markets?

There are always opportunities for expansion; however, what and where those are is subject to location in the country, usage preferences and behavior, whether or not the state has legalized cannabis for recreational use, and the sorts of products a dispensary offers.

Cannabis market research can help dispensaries make strategic decisions about whether or not it is worthwhile to invest resources into opening new locations, stocking unique products, or shifting targeting to take advantage of opportunities in new market segments.

Should I Open a Cannabis Bar or Lounge?

In some areas of the country, it might be practical to consider the possibility of opening a cannabis bar or lounge.

For instance, we determined in one of our CANNApinion Polls that a substantial portion of cannabis users might be interested in the experience of visiting a cannabis bar or lounge. In one poll, 81% of respondents to one poll indicated interest.

That may or may not be the case in your market, but the only way to find out for sure is to conduct research or gather data through the help of a partner like ISA Corp.

What About Delivery Services?

As more and more online and local businesses determine ways to offer delivery services – even free delivery services – this may have become something of a focus topic for select dispensaries.

But the million dollar question to each dispensary is if they should offer them.

Again, it depends on the local market. But a CANNApinion Poll indicated that 30% of respondents only had not used cannabis delivery services simply because they were unavailable in their area.

So the opportunity might be there. Research can help you look into it.

Ready to Learn More?

Cannabis customer segmentation and research can help furnish your dispensary and your strategic team with some of the answers to these questions.

To learn more about the services and research products we offer, visit the previous link or get in touch with us directly at Hello@ISACorp.com.

Consumer research is vital to marketing in literally any industry. You name the industry, we can all but prove that the more you know about your target market, the better you will be positioned for long-term success.

The cannabis industry is no different. Every year, it seems, another state is loosening penalties for the use or possession of cannabis. Others are flat-out legalizing adult use.

This equates to more and more users entering the market, which in turn creates opportunities for investors to open up dispensaries – and so much more.

Of course, for them, customer segmentation, defining buyer personas, and more are all central to targeting and success, as well.

Here’s what we learned about cannabis users from cannabis consumer research along the way – maybe you can put it to use for your business.

The Six Persona Model

Extensive cannabis consumer research has enabled us to more or less define a six persona model. That is, all cannabis users fall mostly within the bounds of one of six different buyer “types” or personas.

Does it mean that all buyers are alike, or that all members of a specific “persona” are unequivocally the same?

It most certainly does not. However, the similarities between them are significant enough that likenesses and trends in purchasing behavior can still be drawn.

What Each of Them “Means”

• Everyday Enhancers: Everyday Enhancers are cannabis users that believe that everything is just a little bit “better” using cannabis as a lubricant. They use it to heighten the senses and fully immerse themselves in their preferred activities. Many of them are male, they tend to use cannabis throughout the day, and they also typically rely on their own experience – and not a budtender’s – to make purchasing decisions.

• Escape Artists: Escape Artists, like everyday enhancers, also tend to be recreational cannabis consumers and consume for the enjoyment of the experience, but they don’t do so throughout the day. Instead, they enjoy the experience at the end of the day to unwind from a grueling day’s hard work. They typically use cannabis with friends, after work, for stress relief and relaxation, but they may also consume alone.

• Trendy Tokers: Trendy Tokers tend to be female, often young, high-income earners, who like to try new things. These are among the most social users and this segment of the market has grown substantially in response to the recent state-level legalizations of cannabis.

• Self-Care Seekers: Self-Care Seekers tend to be young; they also tend to be less experienced with and less knowledgeable of cannabis products than most other buyer personas. These are the types of users that are potentially interested in cannabis products as self-care treatments, such as topical products to use in their skincare or de-stressing rituals. These users might also, for example, seem to try cannabis beverages as an alternative to alcohol. This buyer persona is more likely to consume alone than among company.

• Practical Partakers: Practical Partakers typically fall between the ages of 24 and 34 and, like Escape Artists, are likely to consume later in the evening, after work, or before bed. They typically consume alone, and, as the name might suggest, for a practical purpose, such as for pain or stress relief. They tend to be experienced and knowledgeable but are more willing to defer to authorities on cannabis than Everday Enhancers or Escape Artists.

• Mature Medicators: Mature medicators tend to be older users that are fairly inexperienced and who have come to the scene only in response to recent regional legalizations. They tend not to be knowledgeable, not to consume for the purposes of enjoying a buzz, and are highly willing to defer to authorities that know better, as well as to comply with the law. Most of them are willing to experiment with cannabis for the purposes of managing pain, often as a potential alternative to prescription medications; as such, they are likely to be medical cannabis users.

What Are the Implications for Your Business?

There are seven main criteria we used to determine these catchall personas: Usage occasions, lifestyle habits, relationship with the law, previous experience comfort shopping, usage habits (social vs. solitary), and the seeking of subtractive or additive benefits.

In the latter case, subtractive users seek cannabis for stress or pain relief or some other practical purpose. Users who consume for the additive benefits do so for the pleasure of the buzz.

Again, it is vital to reiterate that while all users are different, being able to establish rational, consistent likenesses within market segments is vital to product positioning and marketing messaging.

Being able to identify who your users are, why they consume, and what their interests tend to be can make your marketing efforts not only more successful but more sustainable.

Sign up for Cannabis Consumer Research and Prepare for a Growing, Changing Market with Actionable Data

Cannabis consumer research gave us the ability to help define the cannabis market more or less according to six different personas. Market research studies can help you understand your users better, too, whether they are recreational or medical users.

Our Cannabis Personas Segmentation Analysis helped us derive this model; we also offer a wide range of other cannabis consumer research panels including our CANNApinion Poll, which follows the use of 1,000 users across the United States, as well as The Green Time Poll, the world’s first cannabis consumer panel.

Wondering how a market research company can help you understand your target market better? Get in touch with us at Hello@ISACorp.com to learn more about our cannabis consumer research programs and how they can help you position your cannabis business for success.