After decades of prohibition, marijuana is finally legal in some form in more than 30 states. The industry has made impressive progress, creating thousands of job opportunities and providing states with millions of dollars in much-needed tax revenue. With Democrats now controlling the Senate, House and White House, the country may see lawmakers pass federal cannabis legislation in the next few years, removing most of the roadblocks that have kept the industry from advancing and ensuring its growth.
Aside from access to financial service, one factor that will redefine the industry as it grows and matures is data analytics (“DA”). With the sector still in its infancy, DA presents a great growth opportunity for cannabis companies over the next few years. Industries such as banking, retail and airlines have leveraged data collection to great success, and the state-legal marijuana sector can do the same. But why is data analytics so important, and how can it help cannabis businesses?
Branding is important for any company that wants to carve out a nice market share for itself, and branding is dependent on data collection and analytics. Customers trust and will return to reputable brands, meaning cannabis businesses that want to stand out from the pack and thrive in an oversaturated market will need brand differentiation. DA will allow for trend analysis, helping cannabis businesses to ascertain which products they should produce as well as the market segments they should target, whether it is pre-rolls or high-potency concentrates.
Market segmentation has allowed companies such as Coca-Cola to create different lines of successful products for different markets. Not every product will succeed in every market, and finding the perfect product for each market segment will ensure customers buy your products. By leveraging data analytics, cannabis companies can utilize transactional data, seasonality and trend forecasting coupled with regional and demographic data to find the market segments they are best suited to serve.
Loyalty programs tend to keep consumers loyal to a certain brand, even if the consumers have to pay slightly more. Airlines and the hospitality industry have taken great advantage of this, using a variety of loyalty programs to ensure customer retention and to promote the growth of their brands. To do this, these sectors have invested a great deal in data analytics, and cannabis companies ought to do the same. Especially since the data clearly shows that there are market segments that would love to support a cannabis brand of high quality coupled with a loyalty program.
Thanks to a more liberal government, the cannabis industry is poised for massive growth over the next few years. Cannabis businesses that invest in data analytics from day one will have a greater chance of success.
With five successful brands to its name, Golden Leaf Holdings Ltd. (CSE: GLH) (OTCQB: GLDFF) is a true definition of a marijuana company that is leveraging data analytics to its full advantage.
NOTE TO INVESTORS: The latest news and updates relating to Golden Leaf Holdings Ltd. (CSE: GLH) (OTCQB: GLDFF) are available in the company’s newsroom at https://cnw.fm/GLDFF
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