It’s an exciting time for companies in the cannabis industry. What was once a fringe industry has stepped into the spotlight, and the industry is seeing unprecedented growth.
Many cannabis companies are now turning to analytics solutions to give them insight into their data and help them make smarter business decisions. But an analytics platform is a big investment for a small business trying to find its footing in the industry. How do you know you’ll get a return on that investment that makes it worthwhile? Here’s what you need to look for in a cannabis analytics solution.
Market analytics
In many senses, the cannabis industry is a different kind of business. The fact that it is not federally legal, along with the fact that each state where it is legal has different regulations, complicates some of the analytics that go along with it. But it is just like every other business in that with the right data, you can measure your success amongst your peers.
It is important that the analytics solution you choose is flexible. First of all, regulations can change, and rather than start all over again and invest in something new when that happens, you’re going to want your solution to change with those regulations. But you also want to be able to choose the market metrics that apply to your business, showing you what you are doing well along with where you might need to do better, and even opening your eyes to information you didn’t even know you needed to have.
Insight into your own work
Some cannabis companies are so new they aren’t even looking at where they measure up against other companies; they’re still sorting out their own standing. For those companies, a solution needs to be able to give them the information that will help them make better business decisions, covering everything from inventory to sales staff performance.
Some solutions use artificial intelligence (AI) to offer insights into customer behavior. They use sales information to predict future performance, helping companies identify where they should be marketing certain products. Again, solutions should be scalable, so that the analytics can continue to serve an organization’s needs as the organization continues to grow.
Growth metrics
Speaking of growth, a good cannabis analytics solution doesn’t just focus on the business side; it also helps analyze the data surrounding the product’s growth. That is to say, marijuana horticulture – its literal growth.
Just like any product that needs certain conditions in which to thrive, there are many different aspects to consider for different strains of marijuana. The right analytics solution can help your business track the “just-right” conditions as the product is developed. It can also bring data from different sources together to paint the picture of the entire process of cultivating your cannabis, so if you are already using one of the many apps that helps marijuana growers collect data from the field, you should focus on a solution that can handle a variety of data sources.
The bottom line
When you are looking for a cannabis analytics platform, it is worth your time and effort to thoroughly explore the companies offering solutions. Look at their track record and make sure they have that ability to cross into another industry. If a company can offer any of the services listed above, you’re on the right track. If it can do all of it, you’ve found your solution.
To learn more about what goes into choosing the right analytics software for your cannabis business, check out our white paper—”Cannabis Technology Landscape—Bridging the Gap with Analytics.”
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