It is the worst market to sell to. Deals of any substance take years at a minimum. There's no accountability, either -- your deal can get canceled for no reason at any time. The sales cycle is astronomically expensive, and the required SLAs are incredibly extensive and costly. There's a reason governments rarely, if ever, do business with small startups without massive amounts of cash.
As far as happiness goes, this are already measured in its most relevant form as approval ratings, and it's done so with varying degrees of accuracy by professional polling organizations.
If you've been following FiveThirtyEight, you'll know that polls have become exceedingly difficult to conduct with accuracy. People just don't respond to them like they used to, and it's very hard to reach certain segments that are vital to having a representative sample (e.g. low-income Latinos in the US).
And besides all that, why would a government want to analyze citizen happiness? It's very naive to believe that career politicians are working to make people happy. They have many complicated personal reasons for doing what they do, along with some combination of desire for fame, influence, or money.