Customer segmentation is absolutely critical to the implementation of an effective marketing strategy. Businesses don’t succeed by marketing to potential customers outside of their target market – that just makes no sense.
But even within the target market, customers exhibit preferences in brand mystique, positioning, and in the types of products that appeal to them. Customers can (and should) be segmented and targeted on the most closely defined criteria market researchers can pinpoint – such as age, geographic location, buying habits, product preferences, and more.
On that note, here are several key figures relevant to the cannabis industry we were able to gather from data furnished by ISA Group which may be very helpful for the purposes of cannabis customer segmentation.
1. Consumers of cannabis edibles (regardless of age) may have a sweet tooth.
From the August 11, 2021 CANNApinion Poll, data gathered may indicate that cannabis edibles consumers may prefer sweets – regardless of age.
Among respondents, 63% of Gen Z, 57% of millennials, 62% of Gen X, and 60% of baby boomers all responded with interest in the prospect of cannabis-infused ice cream. It was ranked in the top spot among other frozen goods.
Other highly-ranked cannabis-infused frozen goods included frozen novelties and frozen smoothie mixes.
2. Whether or not interest in edibles is growing, a large portion of the market uses them.
Cannabis retailers take note: From the April 20th, 2021 CANNApinion Poll, 76% of respondents indicated that they had used cannabis-infused edibles in the past year.
One of the highest rates of interest in edibles was among users between the ages of 25 and 44. 68% of those who reported consuming edibles fell between those ages. This may indicate that interest in edibles is not an age-bound factor.
A significant portion of respondents that said they had consumed edibles also divulged relatively consistent buying habits. 38% of them said they spend anywhere between $100 and $249 per month on their edibles of choice.
3. The beauty industry may hold the keys to a lucrative cannabis business model.
From the Cannabis and Luxury Brands CANNApinion Poll, 31% of respondents that said that they’d consumed cannabis in the past year had also bought luxury cosmetics.
On its surface, this is not telling; after all, consumers partake in many different consumer goods, and habits are not necessarily linked.
However, 45% of those same respondents indicated that they had used a topical delivery method for the consumption of cannabis – either a cream, salve, balm, lotion, or some other similar topical route of administration.
Moreover, in the past two years, respondents indicated a fairly marked increase in preference for topical administration of cannabis. Evidently, users have exhibited a 44% increase in the use of topical cannabis products since the beginning of the pandemic.
4. Not everyone uses cannabis products to sleep, unwind, or destress.
A significant number of respondents to the Cannabis and Professionals CANNApinion Poll did indicate they preferred to use cannabis for these reasons, but not all of them.
In fact, some users indicated that they expressly used cannabis products for the exact opposite reasons. 45% of respondents indicated that they consume cannabis for energy or for the purposes of staying awake.
This may indicate that there is a substantial, potential target of the market that will be attracted to radically different positioning within cannabis markets.
Need Data for Cannabis Customer Segmentation? Go Straight to the Source
We gathered these figures and takeaways from CANNApinion Polls administered by ISA Group over the past few years.
If you’re interested in gathering helpful cannabis-specific insights into your current market so that your organization can make better informed strategic decisions, visit ISACorp.com to learn more about cannabis customer segmentation or reach out to them directly at Hello@ISACorp.com.