The cannabis industry presents some unique challenges for business owners, especially when it comes to taking your share of the retail market. And if you want to compete, you need to have a keen understanding of cannabis data analytics and how you can use them to grow and thrive.
The first step to making the most of your dispensary analytics is determining the sorts of data you should be diving into on a regular basis. This includes things like inventory tracking, product sales, promotional outcomes, and customer purchasing behavior and demographics, all of which play a crucial role in helping you figure out the next steps.
Fortunately, cannabis data companies like ours make it easy, with cannabis reporting software that takes the guesswork out of data tracking. Below, we’re taking a quick look at the analytics that make the biggest impact for dispensaries – plus the benefits of putting this information into action.
4 Cannabis Analytics You Should Be Tracking
Every type of organization relies on data for growth. The secret to making it work for you? Knowing exactly what you should be tracking and reporting on, as well as how this data can be used for the betterment of your business.
Here are four analytics you can’t ignore if you want to succeed in the cannabis retail space.
1. Inventory Data
Inventory reporting is a must, providing you with key insights into what’s selling, what’s not, and profitable opportunities you might be missing. Use data to hone in on your best and worst sellers, and make sure you’re optimizing your purchasing strategy by considering additional factors like product shelf life.
2. Product Sales Trends
Whether you’re running one operation or multiple, you need to be tracking trends in product sales across retail establishments and your business as a whole. In doing so, you’ll have a leg up on planning inventory and promotions. You’ll also be able to plan ahead when it comes to cultivating certain high-value strains.
3. Promotional Activity
A well-managed cannabis POS lets you closely track the outcomes of deals, discounts, and loyalty rewards. Use this data to identify what types of promotions your customers prefer, what keeps people coming back, and what gives you the biggest return on your spending.
4. Customer Analytics
You can’t underestimate the importance of customer analytics when analyzing your data. This includes things like the demographics of your core audience and their buying behaviors, both of which are essential for streamlining your marketing and sales best practices.
Benefits of Putting Cannabis Big Data to Work
You have a lot to gain from the data at your disposal. If you’re wondering whether it’s worth investing in analytics software – or if you’re trying to get more out of an existing tool – these are the sorts of achievements you should keep in mind.
- Compliance monitoring – Statewide compliance reporting is a necessary task for pretty much all cannabis retail businesses. That means you’ll need easy access to sales reports, seed-to-plant production cycles, and more – and the ability to quickly compile that data into a cohesive report.
- Boosted sales – The more you track sales, the more you’re able to optimize them. Use cannabis analytics to identify profitable product spending vs. wasted product spending and to get the clearest picture possible of your business’s highest-performing products.
- Asset protection – Catching losses at their earliest stages helps protect your business from the worst of theft or fraud. By tracking inventory data, you’ll know right away if something is off rather than waiting for the problem to become too big to miss.
- Staff efficiency – Analytics clue you in on what sorts of staffing trends make the most sense for your operations. They also let you track individual employee performance and see who’s doing their part (and who’s not).
Empower Your Business with Cannabis Industry Intelligence
We’re here to help you put data to work for enterprise-wide improvements. Learn more about 365 Cannabis and our cannabis software products, including innovative compliance and regulatory software, cannabis reporting and analytics tools, and more.