The cannabis industry has seen incredible improvements in its legalization across different states, new product innovations, continued research on its benefits and widespread consumer and public support. This progression has allowed more marijuana brands to sprout and bloom across the world.
With more cannabis businesses making their debut, brands need to find ways to stand out amongst the fierce competition. And one of the best ways to do that is through market research. In an industry like cannabis, regulations can be very strict and geographically fragmented. This fragmentation leads to a diverse set of consumer preferences, product categories and competitive landscapes across states and countries.
The Benefits of Market Research
Lara Fordis, Founder of Fordis Consulting, lists some benefits that market research has on cannabis brands and businesses:
- Identify Customer Needs: Market research can help you understand your customers’ needs, preferences and pain points. This information can help you develop products and services that meet their needs. Product testing can yield enormous insights into what consumers like and don’t like before considering a full scale launch.
- Develop Effective Marketing Strategies: Market research can help you develop effective marketing strategies that resonate with your target audience. This information can help you create messaging that speaks to your customers’ needs and motivates them to take action.
- Reduce Risk: Market research can help you reduce risk by providing data-driven insights into your business decisions. This information can help you make informed decisions that minimize risk and maximize return on investment (ROI).
“One area of market research that has significantly benefited cannabis brands and businesses is the study of consumer preferences,” Fordis says. “This type of research helps businesses understand the trends and patterns in different markets.”
In the cannabis industry, each state represents a distinct market with unique regulations and competitive environments. By staying informed about consumer preferences as they evolve, cannabis businesses can tailor their products to meet the needs of their customers and marketing approaches to motivate consumer purchase drivers, ultimately leading to increased customer satisfaction and business growth.
Staying Up-to-Date on Market Research
The best way to access this market research and stay up-to-date on the latest data is to know the right companies. There are several businesses that specialize in cannabis market research. Fordis suggests these few that have good reputations:
There are also ways to stay up-to-date by staying close to the industry through blogs, listening to podcasts and being on the mailing list of cannabis research data providers.
“The Invisible Shopper”
“The Invisible Shopper” is a term used to describe cannabis consumers who purchase products without leaving a traceable digital footprint. This group of consumers is not accounted for enough in cannabis market research, which can lead to inaccurate data and insights, explains Fordis.
“To address this gap in cannabis data, Fordis Consulting, in partnership with 4042 North Agency, conducted Invisible Shopper® market research by collecting online survey data on 1,229 cannabis consumers across 11 states. We asked a series of questions to ascertain more accurate shopping and consumption habits,” Fordis says. “By understanding the needs and behaviors of the invisible shopper, cannabis brands and businesses can make better business decisions and develop products that meet the needs of this important segment of the market.”