Predictive Analysis Is Giving Cannabis Companies Renewed Consumer Insights

Big data has always been crucial for businesses to scale.  This is especially the case to the cannabis industry where U.S. sales in 2018 were between $8.6 billion and $10.8 billion (that’s more than U.S. spending on e-cigarettes, the video game Fortnite, and Goldfish crackers).  With U.S. cannabis sales in 2019 estimated to be nearly 35% higher than last year and reach $30 billion by 2023, cannabis retailers are looking to grab a bigger piece of the industry pie by any possible means.

 

This is where having access to real-time information means the difference between fading into the background or growing into a multi-million dollar per year marijuana enterprise.  Predictive analytics derived from big data is a powerful tool for cannabis businesses to use not only to understand what customers want next, but also which way the industry is heading.  Let’s review how cannabis businesses can gain valuable insights into their customers by drawing conclusions from big data predictive analyses.

 

Put on your Hard Hat. It’s Time to Data Mine.

 

Reliable predictive insights and real-time business intelligence has given companies from nearly every industry the ability to eliminate risks and increase their revenue potential.  The cannabis industry is no different.  Businesses are already leveraging big data powered via machine learning and artificial intelligence (AI) technologies to gain the upper hand on which trends to follow within the industry.

 

One of the greatest challenges the cannabis industry currently faces isn’t about the data that it accumulates from its consumers, products, or sales.  Instead, it’s about pulling something useful from the data they’re already collecting via data mining and predictive analysis.  Although these two tools are often confused for each other, they offer different specialties that can be used for different purposes altogether.

 

It’s important to realize that even if you have access to massive amounts of data, it’s only useful to your business if the data is relevant enough to where you can derive actionable insights from it.   This is where data mining is incredibly valuable and critically important to understanding your customers needs.  Once you’ve gained the actionable insights that you need on your customers, your business can structure your product offering to ensure they get their pick of the products that they want.

 

Acquiring Actionable Insights From Cannabis Customers

 

The great thing about data mining is that it does more than just learn about what their favorite cannabis products are.  If you structure your platform the right way, you can also learn how much your customers are likely spend to get the products that they want which will influence your pricing model.  If you’re able to accumulate the right data points, you can use predictive analytics to help you market your business to the right audience at the right time at the right place with the right message.

 

For example, Miner & Co Studio reported the following demographics based on a survey of 800 cannabis users:

 

  • An average age of 30 years old
  • 35% are female
  • 65% are male
  • 63% are either living with a significant other or are married
  • 84% are working in a full-time capacity
  • 65% earn a household income of at least $75,000
  • 42% are parents with children under 18
  • 49% are Democrats
  • 45% are Republicans

 

Now, this data might not all be pertinent to your cannabis business, but if you’re able to map out trends over the course of months or years on these measurables, you can begin to predict which customer niches to focus your marketing on.  This can help you address any low-hanging fruit opportunities that will surely give your business a leg up against competing cannabis retailers.

Recent Posts

rolled joint on counter
Education
Smoking Weed for the First Time? Tips & What to Expect

Everybody’s got their first. Whether unexpectedly getting passed the joint at a party or trying your first hit off a vaporizer as a medical marijuana patient, the first time smoking cannabis can be both exciting and a bit nerve wracking. Marijuana is a substance with a lot of unknown factors – Each hit can be

Read More »
muffin in plastic container
Education
How to Store Edibles

Knowing proper food storage is important for any home cook, and the unique recipes involved in making cannabis edibles require a few special bits of know how, both in preparation and in keeping your edibles fresh. In today’s article we’ll be delving into some food science to talk about different types of cannabis edibles, their

Read More »
hemp plant with sunset
Education
Cannabis vs Hemp

“Hemp” and “Cannabis” are both terms we use to describe the same type of plant, a genus of the phytoecological family Cannabaceae. The plants these terms describe are similar yet not, and though marijuana and hemp may both look alike appearances can be very deceiving. In today’s article we’ll talk about the differences between hemp

Read More »
Food & Drink
Cannabis Infused Thanksgiving

This holiday season is looking a little different than usual. Gatherings may be smaller and lower key than years past. You may or may not have had your eating pants on since March (no judgement here!). Still, there’s lots to be thankful for. For one, this month, huge strides have been made toward cannabis acceptance

Read More »
oil dropper of cbd oil
Education
What Does CBD Feel Like?

CBD, also known as cannabidiol, is one of the active ingredients found in cannabis. It’s the second most prevalent ingredient and has become really popular recently because of changes in laws. Despite being one of the components of cannabis, CBD by itself doesn’t have any psychoactive components and won’t get you high. Because cannabidiol doesn’t

Read More »
girl vaping weed
Education
How to Vape Weed

Smoking vs. vaporizing weed – Two of the most common methods of taking a puff of marijuana, but are there really that many differences between them? In a word: Yes. Smoking weed is a completely different experience from vaporizing it, and in today’s article we’ll be going over all the basics needed to vaporize cannabis:

Read More »

Join the Cannabis Friendly Social Network

You've got more friends than you think.

Sign up for more

Stay up to date on news, education and updates to the app

Welcome!

You need to be 21 or older to access the content on this website

Are you 21 or over?