Understanding your customer base is crucial for the long-term health and growth of a business. This is especially the case for cannabis dispensaries, where inventory can be expensive and buyers' patterns can change with each passing trend.
Having accurate and real-time analytics reporting can give dispensaries an edge over their competitors, a better idea of what products are on trend, and increased forecasting abilities based on customers’ buying patterns.
According to one report, “Data-driven organizations are now 23x more likely to acquire customers, 6x as likely to retain customers, and 19x more likely to be profitable.” That said, here are five ways that owners can implement and benefit from analytics reporting in their cannabis dispensaries.
As any retailer knows, too much of one product can be costly and, similarly, too little of another can mean a loss of sales. With real-time analytics, dispensaries can better understand what products are selling well and which ones are taking up space.
This information can then be used to streamline inventory management in accordance with customer demand.
Additionally, data-driven analytics can help predict customer buying patterns, allowing dispensary owners to more competitively stock their stores throughout the year.
In other words, if one product sells well in the summer while another sells well in the winter, store owners can use that information to ensure their dispensaries are well-stocked with the former in the summer and the latter in the winter.
With POS (point of sale) software specifically designed for dispensaries, owners can take advantage of automated dashboards that provide key performance metrics. Comprehensive inventory reports can also be used to inform in-store marketing efforts.
Detailed and real-time analytics can also be consulted to better understand the business’s operations, customers, and overall performance.
Imagine aspiring to become a successful author and setting goals to achieve that dream without first understanding how, for example, publishing works. Successful publishing—being able to sell the desired number of books—requires, for one, an understanding of the reader/customer base.
In the same way, dispensary owners can’t expect to be successful without a proper understanding of their customer base. With that said, having clear and accurate analytical reporting is the key to understanding the customer and allows owners to set attainable, clear, and informed goals.
With the ability to predict customer buying problems and optimize the inventory accordingly, dispensary owners can see an increase in cash flow. Overstocking and understocking will be reduced, and the products that sell well will be readily available.
This, in turn, results in a more streamlined operation, leading to greater profits and cash flow. Plus, with greater cash flow, owners can quickly pivot and tailor their operations to emerging trends.
Analytics reporting is critical and can mean the difference between a dispensary being competitive in the market or losing its customer base to another dispensary that is more attuned to the ever-changing market.
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