Panelists discuss how data-driven strategies can optimize pricing and e-commerce for retailers.

"Discounts will hurt your margins, but loyalty points won't," said Lisa Williams, founder of The Toke Agency, at Benzinga's Cannabis Capital Conference on Oct. 9.

Williams was one of several experts discussing how cannabis retailers can use data to not only improve margins but also strengthen customer retention.

The panel, titled "Maximizing Margins: Leveraging Data for Effective Cannabis Retail Pricing and E-commerce Strategies," was moderated by Debra Borchardt, co-founder of Green Market Report.

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Williams said that the real key to maintaining margins in cannabis retail isn't slashing prices -- it's using data to build loyalty. By offering perks such as points or exclusive access to events, dispensaries can entice customers to come back.

"How you build loyalty is you give them rewards for keeping them," Williams noted.

Williams' point was simple: build a brand that encourages loyalty rather than price-driven shopping.

Turning Messy Data Into Actionable Insights

Kris Walker, co-founder of Hoodie Analytics, took the conversation deeper into how data can drive better decisions.

"The trick is not just collecting data -- it's making sure you have the processes in place to leverage it," Walker said. His company provides retailers with real-time data that pulls from multiple sources, including POS systems and wholesale platforms.

What Walker wanted to make clear was that data on its own doesn't solve problems. Retailers need to know how to use it. "We take messy data and turn it into something operators can use to grow their businesses," he added.

Whether it's pricing strategies, product assortment, or even timing sales, the right data can guide retailers to make smarter choices, allowing them to adapt to fast-moving market trends.

Combining Data Sources For A Full Picture

Jackie Gonzalez-Becerra, vice president of revenue at Weedmaps, echoed the need for retailers to take data seriously -- but stressed that internal data isn't enough.

"It's not enough to just look at your sales. You need to bring in external data -- whether it's from Hoodie, Headset or BDS -- to get a complete view of what's happening in the market," she said.

Gonzalez-Becerra explained how Weedmaps works with dispensaries to help them integrate 17 years of consumer shopping data into their operations.

This kind of deep data integration can reveal market trends that retailers wouldn't otherwise see. With the holiday season coming up, she pointed out how critical it is to start planning promotions early and anticipate consumer behavior changes.

Proactive Planning with Data: Fluent's Strategy

Robert Beasley, CEO of Fluent, brought in a real-world example of how data helped his company stay competitive in Florida. Back in 2022, Fluent forecasted a 20% price compression in the market, forcing them to plan ahead and cut costs.

"We realized we needed to be 20% more efficient in two years if we wanted to maintain our margins," Beasley said.

Instead of waiting for market conditions to shift and reacting too late, Fluent took a proactive approach. They used data to optimize everything from cultivation to product pricing, staying ahead of the curve rather than playing catch-up. Beasley's message was clear: it's not enough to just respond to market changes -- businesses need to see them coming.

Creating A Data-Driven Culture

One of the key takeaways from the panel was the need for a data-driven culture in cannabis businesses. Beasley shared that many cannabis companies still make decisions based on gut feelings or anecdotal evidence.

"Humans are incapable of making anecdotal decisions on large data sets," he said, pointing out that without the right data and tools, businesses risk missing key trends.

Walker added to this by noting that companies need to ensure their teams are equipped with the right KPIs and data access. "If you don't give your team the tools and accountability they need, data can become overwhelming," Walker said.

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Photo: Benzinga Cannabis Capital Conference 2024, photo by Wendy Davis

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