How Professional Cannabis Consumer Insights Can Help Guide Strategic Decisions

States across the country have taken steps in the direction of cannabis legalization and decriminalization. Some states have legalized sales and; depending on the source you trust, as many as two-thirds or up to 68% of Americans believe that cannabis products and their associated consumption should be legalized. Consequently, the legal cannabis industry has consistently grown.

Whether you operate a successful dispensary and have been in business for years or you’re just looking into the financial implications of running one, there is value in cannabis consumer insights. Business leaders base much of their strategic planning around forecasts developed from extensive consumer opinion polling and other objective research.

But how can it benefit your business? Much of it comes down to how well you understand your consumers, what they do, why they do it, and what they want.

When historical sales data is insufficient, sometimes the answer lies with gathering the data proactively. Here are some of the key questions that cannabis consumer insights, consumer polling, and market research can help you answer.

How Do Customers Prefer to Buy?

Though this question, on the surface, looks like a high-level “cash or credit?” type of question, its implications run much deeper. Consider the shifts in purchasing habits that have taken place over the past two years or so.

More and more online and local shoppers are increasingly desirous of free shipping that is also stipulation-free; that is, customers who buy online want free shipping or free local delivery. Is your dispensary prepared to handle that?

For example, our research indicates that 33% of cannabis users in select markets relied heavily on delivery services during coronavirus lockdowns. Is that trend going to continue or will it falter? Past sales figures can’t tell you – only current polling and other research.

The bigger question is: is your dispensary poised to adapt to changing consumer preferences such as these?

What Are Customers Cannabis Consumption Habits?

Does your dispensary sell only flower? Or does it sell a range of different cannabis products, such as edibles, tinctures, concentrates, cannabis drinks or other unique products? More importantly, does this matter to your customers?

If your target buyer smokes flower, then you’re set for success. But what if your buyers only purchase flower incidentally, then decarb it themselves in order to make their own edibles? You might serve them better by expanding your product portfolio. Consumer data can yield insight into this consumer data.

Conversely, a product line expansion might be a wasted expense if it doesn’t result in sales and conversions. How and what your target buyers consume can help you grow strategically, making informed decisions that can justify that growth with sales – not just with a larger, costlier enterprise.

How Frequently Do Your Target Consumers Partake?

The prices you set and the type of buyer you want to attract will both affect and be affected by the consumption habits of your target market. Profitability will be affected by sales, and you might need to adjust prices accordingly to reflect projected sales forecasts.

As a very simple, high level, but reasonable example, if your target market only partakes occasionally, you might want to sell in larger or bulk quantities in order to meet that demand and expand profitability at the same time. Selling in smaller quantities might not make sense.

It all comes back to what your buyers do and when they do it – how often do your target consumers use cannabis, and can your dispensary meet that demand?

What Type of Budget Does Your Target Customer Set?

Similarly, you need to understand your target buyers’ budget as closely as possible. Other questions such as those related to price sensitivity are equally important to answer. If your branding appeals to a price-insensitive audience, a price scale or adjustment might be in order. The same could be said if your brand was not well-aligned with the actual visitors that came to your dispensary.

The key takeaway is that your price model might be inefficient, but you wouldn’t know it unless you can answer some key questions about how much your target audience intends to allocate to discretionary purchases of cannabis products.

What Types of Incentives Will Your Target Buyer Respond to?

Another basic but surprisingly relevant question revolves around strategic growth. It’s been shown time and time again that effective loyalty programs can improve customer satisfaction, boost customer engagement and retention, and increase sales. The operative word in that statement is “effective.”

What type of loyalty program will appeal to your target buyer? Why? What other strategic positioning incentives can you undertake in order to reach more consumers more effectively? Our consumer research shows that over 70% of dispensary shoppers would spend more if the dispensary offered a loyalty program.

What other questions about strategic growth do you need to be answered before you can justify the expense associated with rolling out new programs? You may be the only one to be able to ask those strategic questions, but our cannabis consumer insights can help answer them.

Basic Cannabis Consumer Insights: Your Buyer Persona

Reflect on what you’ve read so far. You’ll notice that we used the terms “target audience” and “target buyer” several times throughout this article. Before you can answer any of the other questions we posed with cannabis consumer insights, you need to define your target buyer – surprisingly, target buyers are not just the people that come into your dispensary to purchase. These are just buyers. Target buyers fit a profile defined by habits, preferences, and demographics that you must define in order to launch successful marketing campaigns.

Luckily, cannabis consumer insights can also help you define your target audience. To learn more about how you can get started making wiser marketing moves, visit our pages on Cannabis Market Research and CANNApinion Polling, or get in touch with us directly at 818-989-1044 or at hello@ISACorp.com.

SoapBoxSample Announces Exciting Partnership with WeedWeek

Industry leaders collaborate to provide research and insights in the cannabis space

WeedWeek, the go-to media company for diverse cannabis news, announced a collaborative partnership with market research firm, SoapBoxSample, creating a council consisting of thought leaders and influencers in the cannabis space. The council will provide insight into the fast-evolving landscape allowing followers to keep their fingers on the pulse of the industry.

SoapBoxSample continues to expand its leadership and position within the cannabis space not only as a research provider, but as a collaborative influencer for brands, ancillary businesses and anyone looking to grow and build a cannabis business or brand.

“It’s so exciting working in a space driven by belief and passion. The opportunity to help businesses survive and thrive in such an explosive industry is not only fulfilling, but exhilarating.” said SoapBoxSample COO,  Jacqueline Rosales. “Every day is something new – a new challenge and a new opportunity. It’s exciting to see the immediate impact of our work helping clients.”

WeedWeek and SoapBoxSample came together on the heels of NECANN, the largest Cannabis Convention on the East Coast with more than 100 speakers, 300 exhibitors and approximately 10,000 attendees. Jacqueline Rosales’ session entitled, “When Patients Become Customers: How Understanding Consumer Types Can Help Your Cannabis Business Survive the Green Rush”, explained how business owners and decision makers can better understand consumer needs and wants through the use of research.

The WeedWeek Council’s responses and ideas will appear in a dedicated section of the WeedWeek newsletter. The council will be comprised of 25-30 people from various backgrounds and expertise in the green space and members are selected based on a competitive application process.

WeedWeek was founded in 2015 by Alex Halperin when he saw a need for a media company covering the many facets of the cannabis industry. Helperin, a successful journalist who has written for Washington Post, LA Times, Huff Post, Hightimes and Business Insider also runs ReCharge Events as well as a podcast. WeedWeek covers politics, law, culture, health and business as they relate to cannabis.

“WeedWeek Council is an exciting new way WeedWeek will share exclusive insights on the green rush with our thousands of readers,” said Alex Halperin.

SoapBoxSample has been actively conducting cannabis research since 2016 and continues to expand its offerings. Most recently, SoapBoxSample launched the CANNApinon poll, a national bi-weekly survey of cannabis consumers whose insights enable industry-specific details on consumer needs and wants for dispensaries, growers, media companies, food and beverage producers, distributors, and the cannabis beauty industry.

WeedWeek and SoapBoxSample are now accepting applications for membership to the WeekWeed Council. For information on how to join, click here.

To learn more about SoapBoxSample’s cannabis offering, visit SoapBoxSample.com/cannabis

About WeedWeek: Founded by award winning journalist Alex Halperin, WeedWeek’s free newsletters aggregate the latest developments in cannabis politics, business, health and science, law and culture. And the podcast features interviews with the most interesting voices in the space. Smart, credible and free, WeedWeek is the best way to keep up with the green rush. Subscribe at WeedWeek.net.[/vc_column_text][/vc_column][/vc_row]

SoapBoxSample Launches the CANNApinion Poll — A Cannabis Consumer Feedback Offering

To meet the growing needs of cannabis businesses, SoapBoxSample launches bi-monthly poll of cannabis consumers

SoapBoxSample announces its newest research solution for cannabis businesses, the CANNApinion Poll. With the rapid growth of the cannabis marketplace nationwide, brands need reliable consumer feedback to thrive in a crowded market. The CANNApinion Poll meets this need by providing a platform for the cannabis industry to ask their target audience relevant questions, allowing them to discover emerging  trends and areas of growth opportunity.

“As we’ve seen with other emerging industries, the brands who understand consumer segments and how to market to them are the ones who will become legacy brands. The CANNApinion Poll is a way for brands to gain direct access to their target market, and understand the why behind consumer purchasing habits,” said Jacqueline Rosales, SoapBoxSample COO.

Market experts predict that cannabis brands will soon compete for finite retail space in prime locations. Dispensaries and delivery services will be forced to make choices about their inventory. The CANNApinion Poll will help brands respond quickly to the needs of their customers, ensuring that their products are the ones that stay on the shelves.

A new wave of the CANNApinion Poll runs every two weeks to allow clients to get timely answers to their most urgent business questions. With each new wave, clients are given the opportunity to submit questions as they look to gain actionable insights into growing pains and growth barriers that are present within the cannabis consumer experience. Each wave consists of 8-10 questions to ensure cannabis consumers are actively engaged within the poll and contribute robust data. Clients can submit multiple choice questions, open-ended questions, and display product images or videos.

The CANNApinion Poll is the first cannabis-specific service within SoapBoxSample’s portfolio of products. SoapBoxSample is an early thought leader embracing the cannabis space, and has been actively conducting cannabis research since 2016. Clients rely on SoapBoxSample to develop new products, crowdsource ideas, test ads and branding, test products and concepts, track consumer habits online, and gather in-the-moment feedback.

Emerging Thought Leadership from USCC Reveals Urgent Need for Consumer Research in the Cannabis Space

SoapBoxSample Announces the Launch of a New Cannabis Consumer Research Service

As competition heats up in the cannabis market, what factors will determine whether brands can survive “the green rush”?  One clear takeaway emerged from thought leaders at the US Cannabis Conference (USCC) in Phoenix last week – know your customers; they may not be who you think they are.

Business owners, investors and experts gathered at the USCC for an event focused on the new era of cannabis. SoapBoxSample led a session in partnership with Jupiter Research and ProGrowTech titled, “Will You Survive the Green Rush?” The session focused on how consumer research can help companies get the right message to the right audience at the right time. At the start of the session, Jacqueline Rosales, SoapBoxSample COO, took questions from the audience that were sent out to respondents in real time, providing attendees with immediate feedback from real consumers.

SoapBoxSample presented data collected from cannabis consumers – much of what they uncovered contrasted with current assumptions. One example was the startling statistic that while 1/3 of cannabis consumers are purchasing in dispensaries, only 12% trust dispensary employees as a source of information about new products. Companies that distribute their products in dispensaries left the event with a clear directive that opportunities to educate consumers are being left on the table.

To demonstrate their commitment to cannabis research and their passion for the cannabis industry, SoapBoxSample announced the launch of their new product — a bi-weekly survey of cannabis consumers built around the research needs of growing cannabis businesses. Clients will be able to tap into a custom-built resource, ask questions, and access insights – all at a low cost.

Kaila Strong, Dir. of Marketing for Jupiter Research, a vaporizer technology company, urged business leaders to take a more conscious approach in their marketing. “This type of research is useful for product testing, product development, allocation of budget and also our own internal understanding,” said Kaila. “The golden rule of marketing is that you don’t assume that you are your consumer.”

Andrew Myers, CEO of ProGrowTech, a company that builds high-end lighting solutions for large-scale grow operations emphasized the importance of research for his company as they move into direct-to-consumer sales and unveil new products for 2019.

Brands that are able to gather feedback from their customers in order to improve their products and marketing are the ones that will survive and emerge as leaders in the industry. “People are invested in this space because they believe in it, and they’re passionate about it,” said Jacqueline Rosales.

Read Another Cannabis News Release – Age, Gender Play a Role in Cannabis Consumer Habits

In the Cannabis Market, Big Spenders Plan to Be Bigger Spenders

New research from SoapBoxSample reveals cannabis spending will increase even faster than expected, as new products attract big spenders in higher income brackets

 

Consumer spending on cannabis products is on the rise with no signs of slowing. A nation-wide poll conducted by SoapBoxSample uncovered that users intend to spend more on cannabis this year than last year, and even more next year. The study focused on a range of cannabis consumer types, their shopping habits and the motivations behind their purchasing decisions.

How do cannabis consumers currently get their supply? 52% buy their supply from a friend, 37% go to a dispensary and 18% shop online for cannabis. (This data includes people who shop in multiple outlets.) By narrowing in on the preferences of cannabis users with the spendiest habits, SoapBoxSample uncovered some trends unique to this group. Those who spent more than $101 dollars last month use cannabis products to relieve stress (65%), and also for enjoyment (50%), but not necessarily for social reasons (29%).

Not surprisingly, the biggest spenders are likely to buy in dispensaries, where they can browse through an array of different products. An unexpected finding is that 47% of users in this high-spending group rely on recommendations when deciding which dispensary to visit, compared to 32% of those in the lower-spending categories.

While big spenders are throwing down for premium products, they are also looking for deals. 44% of users in the high-spending group look for special offers for new users when choosing a dispensary to visit (compared with 31% of users who spend $51 – $100 per month, and 29% of users who spend $1 – $50).

The survey also revealed that the highest-spending group is looking forward to trying new products. Among respondents who have not tried them, edible baked goods or candies, topical ointments, vaporizers, and cannabis-enhanced beverages are a few of the products likely to be sampled in the next six months.

To predict trends in the cannabis maket, SoapBoxSample also looked at the preferences of users in high income brackets. Those with incomes of $100K+ are more likely to purchase cannabis products through a dispensary than those with lower incomes. Additionally, users who make over $100K per year are more likely to choose vaporizer or edible products that those who make between $50K and $99K.

As new dispensaries pop up, and competition tightens, consumer preferences will determine which locations will survive. SoapBoxSample revealed that when it comes to in-store cannabis buying, everyone wants a good price, but women are more concerned with the friendliness/helpfulness of dispensary employees (59% of females say they look for this quality when choosing a dispensary compared to 45% of males.) Another interesting finding — 20% of men say they look at advertising when choosing a dispensary, compared to 12% of females.

Every generation of dispensary shoppers say they look for price, location, and friendly employees. Baby Boomers are more likely than Gen Xers or Millennials to state that they look for friendly employees when finding a dispensary. Baby Boomers and Gen Xers are more interested in the dispensary location than Millennials.

The survey results presented in this press release are part of a larger study of cannabis users (N=1,003) and non-users (N=502), fielded between June 28, 2018 and July 2, 2018, with a margin of error of +/- 3%.

To learn more about SoapBoxSample’s cannabis research, visit SoapBoxSample.com/cannabis