Chaos is a part of any business. You can embrace it or you can ignore it, but you can’t change the fact that you have competitors out there just waiting to steal your customers.
This is true for any industry but in a highly competitive cannabis market, it’s even more so. Lack of any action on your part to grow your company is akin to putting your business on the line. But you probably know that already.
What you probably don’t know is how cannabis consumer behavior research can help you get back on track and serve as your guide in developing your pricing policies, deciding on distribution channels, and creating sales promotion strategies.
This article discusses the importance of studying consumer behavior in your cannabis business. To do that, let’s first define what consumer behavior is.
What is Consumer Behavior
Consumer behavior is a psychologically-based study of how people make purchasing decisions and what motivates them to do so. It is influenced by a variety of factors including societal factors, psychological factors, and even personal characteristics.
How Consumer Behavior Research Impact Your Cannabis Business
Consumer behavior research is important in increasing your cannabis retail sales and growing your business. It can:
1. Identify Consumer’s Needs
Identifying consumer needs is crucial in addressing your potential customer’s concerns and strategically positionng your brand in the market.
Some of the methods you can use to identify your customer’s needs are surveys, focus groups, personal interviews, observation, and field trials.
2. Improve Marketing Campaigns
Because consumer behavior examines consumer reaction patterns on a constant basis, you can easily learn about market changes, which you can then base adjustments of your campaigns on when needed.
3. Predict Industry Trends
The study of consumer behavior can also help you predict and anticipate cannabis trends. When you know the direction the cannabis industry is going, you can plan ahead of time to take advantage of new possibilities and find solutions to potential problems.
4. Help in Obtaining and Retaining Customers
Brands that develop their cannabis products based on consumer demands frequently discover a ready market for them. Your products are easier to sell and you develop a strong customer base because you’re matching the consumer’s demands and expectations with your offerings.
5. Help in Gaining Competitive Advantage
By identifying your competition through your consumers, you’ll be in a better position to build the right competitive framework for your business and create appropriate marketing methods and strategies that reach your target audience, position your product against the competition, and target the users of your competition.
6. Assist in Creating New Product
Create innovative products and be at the forefront of industry trends by conducting consumer behavior research. Research can tell you the demands and desires of your customers and how you can use them to create a new product.
7. Help in Achieving Business Efficiency
Consumer behavior research aids businesses in directing company efforts toward customer-centric programs. It ensures that resources are used precisely in order to achieve optimum efficiency.
8. Assist in Making Marketing Decisions
Consumer behavior research is used to make a lot of critical marketing decisions, such as sales promotion, packaging, discounts, and so on. By conducting research, you’ll learn the reason for the customer’s purchase and use that information in advertising to pique their interest in making a purchase.
Your Next Step
You can conduct cannabis consumer behavior research yourself or hire a market research company to do it for you. Collecting and analyzing all the data can be tedious, and if done incorrectly can lead to wrong conclusions.
So as long as you’re going to conduct the research, make sure you’re doing it correctly. Check out ISA Group and find out how they can help you ensure your research expenses are worth every penny.
Interviewing Service of America has been conducting cannabis market research and providing research solutions to cannabis businesses like you for many years. Contact them today.