According to Statista, Cannabidiol (CBD) will reach $1.8 billion in U.S. consumer sales by 2022. The non-psychotropic compound derived from hemp or marijuana can now be added to products ranging from lotions and essential oils, to your favorite power smoothies and ice cream.
Advocates of CBD claim the substance can be used to relieve anxiety, inflammation, and even wide-spread pain. The industry is becoming so popular that retail chains like CVS, Walgreens, and Kroger are planning to add topical CBD products to shelves across the country this year.
The CBD industry grew by nearly 40% in 2017 and experts believe that it’ll only continue to grow. Considering that the market didn’t exist five years ago, competition is heating up. With hundreds of companies producing thousands of different products, is it possible to stay competitive?
Breaking Down Sentiment – 95% Isn't Always What You Think
We’ve created a dashboard demo to showcase that companies in breakout industries need to understand the importance of positive and negative customer sentiment. At this time, vendors within the CBD industry can’t sell products through a mass retailer like Amazon, making it extremely difficult to manually collect fragmented data points scattered across the internet.
As a result, we ingested more than 18,000 publicly available data records from four different CBD distributors to analyze sentiment around their products. Our platform revealed extremely high sentiment across each brand, ranging from 80% to 97%. After drilling into this sentiment, our world cloud revealed bigrams and relevant word clusters around topics like customer experience and fast shipping. While this sounds great, it reveals that customers are largely providing feedback focused on the brand, rather than the product.
If 82% of all customer reviews are positive, it’s important to take a deeper look into that 18% of negative feedback. In a breakout market like CBD, 18% may only equate to 1,000 reviews. However, the issues within that feedback is likely to effect tens of thousands of customers who aren’t providing feedback.
We took a closer look into the sentiment that were rated one to three stars, and we discovered negative terms such as didn’t notice difference and waste money appeared. This type of negative sentiment sheds light into the quality of the product. This is a great tool for young companies that are still developing a core line of products.
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<p><a href="https://vimeo.com/355358419">Stratifyd Helps Relieve Customer Analytics Stress For CBD Companies</a> from <a href="https://vimeo.com/stratifyd">STRATIFYD</a> on <a href="https://vimeo.com">Vimeo</a>.</p>