The embryonic cannabis sector has undergone remarkable development, fueled by new legalization that has eased rules and laws surrounding its use and distribution. The industry is ripe for entrepreneurs, with a projected growth rate of 26.7 percent between 2021 and 2028.
However, realizing this potential and optimizing return on investment necessitates a thorough understanding of the industry and the ability to change with the market. Fortunately, the recent legalization of cannabis in several states has resulted in a considerable boost in the amount of data accessible for businesses to make decisions.
Recognizing important market trends
Companies in the cannabis business cannot reflect historical purchase habits when establishing their consumer-facing strategy due to the lack of a mature market history due to the recent legalization of cannabis. Positioning a product in the right market segment is critical to its success.
Organizations can identify which products are being sold and to whom they are being sold by analyzing transactional data based on various characteristics (demographics, seasonality, delivery mode, and so on). There is no one-size-fits-all solution for cannabis due to the many accessible strains and customer demographics.
Furthermore, the cannabis industry's infancy and considerable investment in product innovation have resulted in a very volatile market. If businesses want to remain successful, they must quickly adapt to changing customer trends.
Executive managers can use data to assist them in building long-term corporate plans and set realistic targets by using data in decision-making.
Identify areas where you can improve
Many businesses still make decisions based on hunches and previous experiences, which are prone to inaccuracy and frequently fail to address the fundamental reasons. It can be difficult for organizations, both young and old, to spot flaws in their business without access to the correct measurements.
There are numerous areas for improvement in the data, ranging from product design to customer service. If businesses are to scale successfully, they must turn the potential of their data into actionable insights.
Comprehensive data analytics systems can offer valuable metrics for determining what measures an organization should take to grow its business using automated business rules. Many platforms include built-in KPI measures and self-service tools that allow users to create their own business rules that are specific to their needs. This means that businesses can use analytics to best meet their needs.
Observing regulatory policies
The industry's complicated legal status has resulted in a vast list of regulations and legislation that must be followed to be sustainable in the long run. Regulatory organizations retain tight product quality and delivery criteria even in areas where cannabis has been authorized. Many of these difficulties are exacerbated because each region in which a company operates has its own set of regulations.
Companies must develop a trustworthy analytics platform that can track product data from cultivation to retail, as most of these standards are followed and enforced through data gathering methods. Enterprise data solutions use automated functions to decrease penalties caused by human error and manage information governance on behalf of a company.
Furthermore, organizations can free up time and energy for employees to focus on other company operations by lowering employee labor expenses related to compliance. Sprout Processing developed a compliant credit card processing solution for marijuana dispensaries.
Supply chain processes should be optimized.
Supply chains have traditionally relied on data to direct product transit and guarantee that inventories always match market demand, regardless of industry. The limited shelf life and complicated restrictions around cannabis, on the other hand, have made it even more critical for businesses to use complete analytics solutions.
Due to the unpredictable nature of the cannabis sector, businesses require real-time data reports that allow them to respond swiftly and effectively to changing market trends. Companies must respond quickly to several risks and potential impediments that can occur at any point in the supply chain. The capacity to cope with a minor setback before it becomes a major one can significantly impact a company's short- and long-term performance.
Data analytics can improve broader supply chain activities and raise a company's return on investment in addition to responding to possible mishaps. Companies can save time and money by synchronizing schedules, maximizing loads, organizing inventories, and addressing other potential areas of weakness. Book a demo and learn more about our dispensary payment processing solutions.
