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The Effects of Big Data and Technology on the Marijuana Industry

Data is transforming the cannabis industry, and as a result, new tech companies are opening up in the cannabis space. Additionally, traditionally non-cannabis companies are expanding their brands into the industry.

Today, databases, predictive analysis, artificial intelligence, and machine learning have widespread effects on cannabis companies, investors, regulators, and consumers. Through advanced data collection, technology and the application of sophisticated algorithms, actionable data is now available to help cannabis and ancillary businesses:

  • Predict trends
  • Respond to consumer demands
  • Lower the costs
  • Improve efficiency
  • Boost productivity
  • Comply with regulations
  • Improving the effectiveness of medical cannabis
  • To increase the sales
  • Maximize profits
  • And more

Let’s take a closer look at some how data and technology directly impact the industry.

Big Data is improving distribution in the cannabis industry

The process for distributing cannabis products is different from state to state, but it is always complicated due to safety and regulatory compliance issues. When it comes to getting products to the final distribution point – the customer or the patient – ​​big data and technology have significant effects.

You might not instantly think that marijuana delivery and big data go hand in hand, but think again. For example, a cannabis delivery company Eaze captures data related to customer locations, products purchased, time spent viewing each product, how long items were placed in the cart before being removed, and much more. The company analyzes all the data it collects and uses artificial intelligence, predictive analytics and machine learning to put the information into usable formats for its customers.

Many companies use the data collected by Eaze for marketing purposes – to target consumers with specific product messages, to create special offers, to develop new products, etc. The company helps businesses understand who their customers are and how those customers use their products. This data enables companies to develop better products and increase the return on their marketing investments.

Big Data reduces risk by optimizing the decision-making process

Today, big data is essential to decision-making in the cannabis industry. Access to real-time intelligence can mean the difference between success and failure in this rapidly changing market. Technology platforms like Helmet track inventories, consumer data and market trends from millions of data points. Using artificial intelligence and predictive analytics, the platforms turn data into meaningful insights that customers can quickly access.

Companies use the data available on these platforms to analyze inventory trends, restocks, items sold per transaction, number of items sold per budtender, transaction totals, growth cycles, production schedules, packaging needs, staffing needs, product launches, market share, sales projections, wholesale pricing, consumer trends, consumer behaviors, consumer spending, healthcare trends, etc. The data may also be used to analyze competitor brands, competitor product launches and competitor pricing.

Access to this type of data facilitates communications, expenses and decision-making for cannabis companies, but it does more than that. It also helps these businesses stay ahead of the competition and gain measurable advantages in the marketplace.

For example, subscribers to Cannabiz Media License Database can optimize the ROI of their email marketing campaigns using the performance optimization tools powered by data and artificial intelligence.

Big data also plays a role for investors who can use the artificial intelligence of Point of view to predict the cannabis stock market, identify trends, and make less risky investment forecasts and decisions. When it comes to mergers and acquisitions in the cannabis industry, investors can simulate deals using Cannabiz Media’s AI-powered tools. Cannabiz Intelligence™ Platform.

From a business risk perspective, cannabis companies are using artificial intelligence, predictive data and machine learning technology from companies like Membership Compliance to analyze compliance data and predict where marijuana licensees are most likely to fail. This allows them to make critical proactive decisions to mitigate those risks.

RELATED: Listen to Cannabiz Media Cannacurio Podcast with Biotrack’s Justin Mayhall learn how Cannalytic from Helix Biotrack helps cannabis companies make smart business decisions through a combination of data analytics and machine learning algorithms.

Big Data improves efficiency, revenue and customer experience

A number of technology companies are developing solutions to improve operational efficiency, so cannabis companies can streamline and automate processes, increase revenue and improve customer experience.

Several tech companies that provide solutions for growers have garnered a lot of attention over the past couple of years, including METER Groupa company that provides systems and real-time data to cannabis growers, helping them improve productivity, efficiency and grams per square foot per year.

RELATED: Listen to the Cannacurio Podcast with METER Group CEO Scott Campbell

Another example is the GrowLife system, which uses data and artificial intelligence to automatically make changes based on growing conditions to reduce production costs and the risk of oversupply for cannabis growers. To urban-grobig data is processed at scale, and with the help of predictive metrics, growers can make faster and better decisions that improve crop results.

Creating positive customer experiences starts with providing products that people actually want and need. To reach this goal, Wana Brands uses data as part of its research and development process thanks to a collaboration with The Effects Lab by budboard. The Effects Lab is an R&D partner for cannabis product development that uses complex cannabis data, artificial intelligence and machine learning to improve and accelerate the R&D process.

Key Takeaways About The Effects Of Big Data And Technology On The Cannabis Industry

Data and technology can predict where the industry is headed and what consumers will want next. However, not all data is equal. The challenge is to collect, standardize and analyze highly reliable and relevant data.

Additionally, people accessing data to make critical business decisions need to know what questions to ask in order to fully utilize the data at their disposal and leverage the power of artificial intelligence and machine learning. It all starts with quality data.

Ultimately, companies that have access to real-time business intelligence and reliable predictive information are better positioned to mitigate risk from all sources and increase revenue and profit. This data-driven intelligence will allow companies investing in it to gain valuable insights into what consumers really want and need from cannabis brands. Ultimately, big data and technology can improve the overall customer experience, leading to sustainable growth for any business savvy enough to start prioritizing, collecting, and using it today.

Originally published 6/18/18. Updated 6/28/22.

#Effects #Big #Data #Technology #Marijuana #Industry

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