Cannabis customer segmentation helps your cannabis business efficiently target specific groups of customers and cannabis users. Cannabis customer segmentation helps your cannabis business efficiently target specific groups of customers and cannabis users.
The cannabis industry has a highly competitive landscape with new cannabis companies sprouting everywhere. Without customer segmentation, coming up with marketing strategies that are tailored to meet the demands and objectives of your business so it can compete in the legal cannabis world won’t be easy.
So what is customer segmentation and what is its impact on recreational and medical cannabis brands and businesses? We discussed that below.
What Is Customer Segmentation?
Customer segmentation is the process of breaking your consumers into segments and subgroups based on demographics, priorities, shared interests, and other psychographic or behavioral characteristics relating to their purchase and use of cannabis.
You can use the data in improving your product, sales, as well as creating effective marketing strategies.
Why Is Cannabis Consumer Segmentation Important?
Customer segmentation is essential for optimizing marketing strategies, maximizing a customer’s worth to your company, and improving customer experience.
It’s critical to understand your target market in order to ensure that your messages are attractive, timely, and relevant.
The segmentation process starts with grouping your customer base and potential customers into customer segments with similar characteristics so that you can communicate with all of the people in that segment quickly and effectively.
This way, your marketing strategies will become more successful and efficient, saving you time and money while also increasing sales and revenue from your cannabis product.
Benefits of Cannabis Markets Segmentation
There are three more benefits of having well-segmented customers in a cannabis dispensary or cannabis retail store.
With the recreational and medical marijuana market growing increasingly crowded, it’s more important than ever for you to stand out and establish yourself as the best provider for your consumers’ demands.
You can implement feedback into your products or services to guarantee that they fulfill the ever-changing needs of your customers.
With market segmentation, you’ll be able to adjust to and meet individual demands better because your customer’s comments and feedback are grouped according to your consumer segments.
Retain High-Value Customers
Attracting and retaining a loyal customer who makes regular or high-value purchases will be more beneficial to your company than getting a customer for a one-time sale.
Beyond great customer service, proper segmentation allows you to focus your marketing efforts on these higher-value potential sales.
By making your marketing efforts more targeted and relevant to those customers who are more likely to buy cannabis in bulk or make larger purchases and remain a customer for a long time, you will be able to increase the return on your marketing investment.
A good customer experience will be defined differently by different people, just as not every customer has the same needs. When you understand your various consumer segments, you’ll be better able to provide them with the experience they want.
Customer experience is a key factor in deciding who to do business with, and being able to provide some level of personalization right away will make potential customers feel understood and appreciated, preventing you from alienating them due to misunderstandings or inappropriate communications.
Need Help Conducting Cannabis Customer Segmentation Research?
Customer segmentation research can be very complicated because you’ll need expertise not just in data gathering but also in analysis.
Contact ISA Group for cannabis customer segmentation research and other market research you need for your cannabis company. They specialize in cannabis research and have been in the business for many years.
Contact them today for a quote or any questions you might have. You can also follow them on their Facebook, Instagram, Linkedin, Twitter, and YouTube to stay connected.