As legal cannabis becomes more and more mainstream, the previously black market industry is seeing ever increasing access to services that were formerly unavailable. Along with numerous other niche markets, companies operating in the data analytics (DA) sector are now starting to offer services to help cannabis entrepreneurs grow their businesses.
Before we discuss how DA does this for legal weed companies, let’s define exactly what data analytics is. In the broad sense, data analytics is the process of combing through and examining large sets of data and then making plans of action after that. Commercial organizations use this information to make more informed business decisions. Data analytics protocols can help companies increase revenue, optimize efficiency and productivity, redefine marketing efforts as needed and spot emerging industry trends. There are obviously different uses for big data analytics – some good, some not so good. For the purpose of this article, we will stick to discussing the former, as it applies strictly to business development.
One company that has begun offering services to cannabis entrepreneurs is Patira Data Science. Located in Ohio, Patira Data Science has also done business with organizations in the real estate, marketing and insurance industries. One of their initial service offerings has been for dispensaries seeking a price analysis and competitor comparisons.
This data can also be used to gauge customer satisfaction. Using the information collected, data analysis companies will provide advice such as projected popularity of any given product, competitive pricing in the current market, covering the predicted popularity of certain products, and also provide strategies to appeal to different customer demographics.
This data is compiled and corroborated along with competitor company information that is made publicly available through their websites. The data sets often also include profiles found on cannabis business directories, like Weedmaps or Leafly. As with any other sector in the legal cannabis industry, data analytics will only continue to grow and improve. As we’ve stated in the past, cannabis entrepreneurs tend to be forward thinkers who are very interested in applying cutting edge technology to their business practices.
The way data is collected has been a topic of concern for privacy, for good reason. Perhaps the biggest area of concern is the way social media websites, like Facebook, collect user’s data. As with any other sector, businesses in the cannabis industry should always ask permission before compiling data on customers – although this isn’t always the case. As a rule of thumb, if you give your information out on the Internet, you should expect to receive some type of marketing or correspondence.
This article is for entertainment and discussion purposes only and is not intended to provide business advice. Neither the author nor The Marijuana Times holds any position with any of the companies mentioned herein.