Nearly a decade ago, Washington and Oregon became the first two states in the United States to legalize marijuana at the federal level. Since then, several trends related to cannabis have arisen, and it’s nothing short of remarkable. For one, the number of legal states is steadily increasing. Secondly, cannabis is a big business to the tune of around $20 billion. Finally, cannabidiol (CBD) has become the hot new treat all supplement.
Even as popular as CBD has become, you can’t assume that your products will simply sell themselves. Growing your cannabusiness will take a concerted effort, but the good news is that there’s nothing better at concerting efforts than advanced analytics. Whether you want to grow your customer base, develop the next hot CBD product, figure out the right amount of THC to infuse in your edibles—analytics is the way. Continue reading to learn why your cannabusiness needs advanced analytics and how to apply best practices.
With predictive analytics, you can forecast what’s likely to happen next in your market.
As you read in the opening, cannabusiness has become a large industry in a relatively short amount of time. If you want your CBD company to be able to compete with the biggest CBD merchants in the industry, you must be on the cutting edge of the coming trends or be the one setting the trends.
One of the problems being caught off guard by changes in demand is that you could find yourself over or underproducing, leaving you holding the bag for your CBD business’s losses. By using predictive analytics, you can extrapolate future outcomes from historical data.
With advanced data analytics, you can make accurate predictions about where the market is headed and then develop prescriptions to address the changes. Big data and predictive analytics have come so far that the FBI uses them to stop terror attacks and curtail the growth of criminal organizations. Furthermore, with prescriptive analytics, you can use the power of data science to create innovations and solutions. If America’s top cops can trust advanced analytics to get the job done, your CBD business can as well.
Advanced analytics can help your company identify its target audience.
By now, you’ve probably realized that your search engine knows a lot about you based on the fact that you get a lot of advertisements for your favorite products. The reason large, medium, and small businesses can speak directly to your desires is advanced analytics.
Data scientists have created machine-learning algorithms that use artificial intelligence to learn your preferences based on historical data and market products that are the most relevant to the topics you search the most online. By drawing actionable insights from multiple data sets, the algorithms can pick the consumers who are most likely to be interested in your products.
Advanced data analytics can help you optimize your supply chain.
Whether you sell CBD gummies and tinctures or CBD oils, you must have a supply chain that can facilitate your operations. With data analytics, you get real-time metrics that paint a picture of the efficacy of your supply chain. With interstate commerce being illegal for THC products, can use prescriptive analytics to find the best distribution networks in your local area.
Optimization of your distribution network will allow you to offer better prices and products to your customers. Distribution network optimization will also help to make your CBD brand to be more competitive.
As you can see, there are plenty of use cases for advanced analytics. By properly using big data analytics, you can climb the ranks of the CBD industry and build a stronger, more productive CBD enterprise.