In the highly competitive and rapidly evolving cannabis industry, success often hinges on more than just great products — it’s about making informed, strategic decisions based on accurate data. In 2025, this capability will be the difference between merely surviving…and thriving.
So, if you’re looking to develop a valuable competitive advantage in the new year, leveraging insights from various data sources will be crucial! These sources could include the end-of-year (EOY) financial data you just gathered, as well as ongoing testing lab results, consumer feedback, and more. These insights can help you effectively navigate changing regulations, maintain critical compliance, align with modern consumer preferences, and increase your profit margins.
To understand how, let’s dive into the details in part two of our three-part blog series with ACT LAB Chief Revenue Officer, Austin Stevenson (and if you missed part one, you can catch up on the conversation here).
The Importance of Applying Data Insights for Cannabis Operators
From optimizing cultivation processes to enhancing customer experiences and staying compliant with evolving laws, leveraging accurate, actionable data can be the key to staying ahead of the competition. By transforming raw data into meaningful insights, cannabis operators can uncover new opportunities, mitigate risks, and make informed decisions that drive long-term success in this competitive and highly regulated landscape.
However, knowing where to start in this process can feel overwhelming. That’s where ACT LAB comes in!
Meet ACT LAB’s Chief Revenue Officer, Austin Stevenson
In this three-part blog series, we’re chatting with our CRO about the importance of data-backed decision-making — and how the partnership you have with your testing lab can play a crucial role in your success.
Austin Stevenson possesses more than 15 years of experience in high-impact, diverse leadership roles in venture growth, private equity, and Fortune 500 companies across multiple industries including biotechnology, consumer goods, enterprise software, and finance. Notably, he was named to the FORBES Magazine 42.0 list and is a San Francisco Business Times “40 Under 40” award recipient.
Austin joined the ACT LAB team as our Chief Revenue Officer in 2024 and is dedicated to delivering products and solutions that enable our clients to perform at the highest level, helping them grow, innovate, and succeed in an evolving cannabis market. As you gear up for the new year, let’s see what Austin has to say about tapping into insights from your EOY financial data, lab testing results, and more to gain the competitive edge you need.
Q&A: Applying Data-Backed Insights in the New Year
Differentiating Your Cannabis Business Through Data-Backed Insights
Q: How can cannabis businesses differentiate themselves by showcasing quality and safety through their lab results?
A: Transparency is key. By openly sharing detailed lab results, you demonstrate a commitment to quality and safety that sets your brand apart from competitors. One effective way to do this is by utilizing consumer-friendly Certificates of Analysis (COAs) with QR codes—an innovation we offer at ACT LAB.
When you include a QR code on your product packaging, consumers can easily scan it to access comprehensive and understandable information about your products. This includes both quantitative data like cannabinoid and terpene profiles, plus qualitative insights into what makes your strains unique. By providing this level of transparency, you educate consumers about the quality and safety of your products, building trust and confidence in your brand.
This approach not only differentiates your business in a crowded market but also positions you as a leader in quality assurance. Consumers appreciate and are more likely to remain loyal to brands that prioritize openness and integrity. By showcasing your commitment to quality and safety through accessible lab results, you enhance your reputation, foster customer loyalty, and ultimately drive sales.
Q: What role does this consumer trust in product testing and quality play in customer retention and revenue growth?
A: Consumer trust is foundational for loyalty and revenue growth. Not working with a reputable and agile lab can jeopardize this trust.
- Risk of Inconsistent Quality: Labs that are not agile may provide inconsistent results, leading to variations in product quality that consumers notice. This can erode trust and lead to lost sales.
- Negative Brand Impact: If a lab fails to detect contaminants due to outdated methods or slow processes, the resulting product issues can damage your brand’s reputation significantly.
- Mitigating Risks and Protecting Revenue: Accurate and reliable lab testing reduces the risk of product recalls and negative publicity due to inconsistencies or safety issues. This protection not only safeguards your revenue but also strengthens consumer confidence in your brand.
By prioritizing consumer trust through rigorous testing and transparent practices, you create a solid foundation for sustained customer loyalty and revenue growth.
Growing Your Cannabis Business With The Help of Data Insights
Q: How can a company leverage lab testing data to understand consumer trends and preferences better?
A: Lab testing data is a valuable resource for gaining insights into consumer trends and preferences. Companies can leverage this data in the following ways:
- Analyze Product Attributes: Detailed cannabinoid and terpene profiles from lab tests help identify which product characteristics are most appealing to consumers. Understanding these preferences allows you to tailor your products to meet market demand more effectively.
- Utilize the Customer Insights Portal: Tools like ACT LAB’s Customer Insights Portal enable you to analyze testing data alongside sales figures. This integration helps identify correlations between product attributes and sales performance, revealing trends that inform product development and marketing strategies.
- Guide Product Development and Innovation: Stability testing data, particularly for products like beverages, infused pre-rolls, and gummies, provides insights into how products perform over time. In states where stability testing is required before product launch (e.g., MI, PA, NY), this data ensures compliance and informs improvements in formulation and packaging to meet consumer expectations.
- Enhance Marketing Messages: Lab testing data can highlight unique selling points, such as specific terpene profiles that contribute to desired effects or flavors. Sharing these details in marketing materials educates consumers and aligns your products with their preferences.
By effectively leveraging lab testing data, companies can make informed decisions that align with consumer desires, leading to increased customer satisfaction, market share, and profitability.
Q: How can cannabis businesses use insights from their lab testing to expand into new markets and attract new customers — resulting in increased brand visibility and revenue?
A: Lab testing plays a pivotal role in expanding into new markets by ensuring your products meet the regulatory standards specific to each state. Partnering with a testing lab that has a multi-state presence, like ACT LAB, provides continuity and consistency in your testing results across different regions. We’re currently operational in six major markets including New York, Pennsylvania, Ohio, Illinois, Florida, and Michigan.
This broad footprint means that brands overlapping in these markets can offer consumers consistent product quality and trustworthy lab results, no matter where they are. Just like buying a Coca-Cola in New York and expecting the same taste and nutritional information in Los Angeles, consumers in different markets expect the same reliability from their cannabis products. Consistency in Certificates of Analysis (COAs) builds trust with customers who enjoy your products in multiple locations.
By working with ACT LAB, you ensure testing continuity, which not only helps in meeting regulatory requirements smoothly but also strengthens your brand’s reputation. This consistency attracts new customers who value reliability and quality, aiding in successful market expansion and increased sales.
Elevate Your Business Operations Through Data-Backed Insights With ACT LAB!
If you’re looking to grow and thrive in 2025, ACT LAB is here to be your partner for critical lab testing compliance and beyond. Whether you’re looking to develop new products, reach more markets, or better satisfy your current customer base, our reliable results and consultative solutions help cannabis brands expand and accelerate.
Our expert team of scientists and business development executives are here to ensure you can trust your testing — and transform your results into actionable insights. Find ACT LAB in your state to learn more, or request testing today to take the first step towards more data-backed operations throughout your supply chain!