Anyone who has ventured into the commercial world of cannabis should be aware of some key cannabis metrics and KPIs to track for their company. Managing a dispensary requires you to juggle a ton of moving pieces, but by tracking certain metrics, the fight to improve bottom lines and retain relevant data can be much easier. The trick however, is figuring out how to accurately keep track of this data. Dispensary POS systems and CRMs are usually the way to go to make tracking smooth and efficient.
Now, with KPIs surging in significance, here are some cannabis business tips to help you manage, monitor, and adjust the most important metrics.
Cannabis Business Planning With KPIs
In your cannabis business planning, KPIs (key performance indicators) should help you determine your cannabusiness’s strategic, financial, and operational achievements on a daily basis. These metrics will need to support a clear cannabis business strategy and should cover anything from transaction times and trends to inventory and sales data. While many KPIs and metrics are valuable in their own right, here are five top KPIs that all cannabis retail operations should be tracking to properly forecast overall long-term performance.
Top KPIs For Cannabis Operations
1. Transaction Times
This metric is arguably the most important since it has a direct impact on customer experience, therefore directly impacting sales. Tracking transaction times can help identify any bumps or roadblocks in the sales process or the workflow of an operation. If this metric gets too long, an operation may be subject to long lines that have a negative impact on overall customer experience. Transaction times can also help determine staffing when figuring out ways to better shape these metrics.
2. Sales Per Transaction & Customer Trends
It’s important to track the amount of items purchased and the average value accumulated from these sales. This metric weighs heavily into customer trends and buying habits, as well as location-based factors that go into general product value. If a dispensary is in a heavily-trafficked area with multiple other companies nearby, this ease of accessibility may lower overall value and average amounts per sale. Dispensaries found in more remote areas may find higher values in their products. Knowing where you are and what works for your location is an essential metric to track, as these sales indicators are critically important.
3. Traffic Flow
Understanding the peak hours of operation for a cannabis business can help inform when staff increases are necessary, or when more products may be required from a vendor or grow operation. Scheduling fewer staff during downturns can keep a bottom line healthy and sustainable. It’s really just a matter of getting a feel for the flow of traffic, and using this data to make the necessary adjustments.
Any operation can benefit from properly tracking key inventory metrics such as how much cash flow is tied up in inventory, how quickly products are moving, additional product processing times, par levels, and identifying individual product suppliers that may cause logistic issues. Fortunately, an adequate cannabis POS system can track all of these things for you, and this data is significant as it directly impacts all other facets.
5. Airflow, Lighting & Temperature
Specific to an actual grow operation, these metrics are vital to the overall quality of the product itself. Monitoring proper airflow for trimming can ensure that no microbial growth occurs, and that each plant is drying as it should be. There should also be some method established to track light performance, and to monitor photosynthetic photon flux density (PPFD). The PPFD is the total amount of light that reaches the surface of the plant, and has a big say in its quality. Growers should also consider using thermal imaging cameras to gain greater transparency into their heating and cooling performance, as even the slightest change of temperatures can heavily impact a grow operation.
365 Cannabis Seed-to-Sale Software
Tracking metrics and KPIs is essential to managing a better dispensary and for reaching short and long term business goals. Through better informed decisions, these metrics shape the entire process and provide a coherent understanding of where things need to be adjusted. One of the best ways to achieve this is by using a seed-to-sale or POS system.
The 365 Cannabis ERP system is an optimized solution for bringing more green to a business, with functionality specifically tailored to the unique requirements of proper cannabis business planning. Our mission is to provide a comprehensive software solution designed specifically for cannabis cultivators, producers, distributors and dispensaries that allows users to maximize efficiency, promote growth, and ensure compliance. With seed-to-sale tracking and solutions, 365 Cannabis is making reporting & analytics easy to understand and digest.
See for yourself why cannabusinesses around the world trust 365 Cannabis to bring their accounting, operations, and data together in one solution. For any questions or for more information, contact 365 Cannabis today to request a demo.