The cannabis market is constantly evolving, and there is still a lot of potential for growth in cannabis sales. However, it’s a common mistake to think that a growing market means you can cut back on your marketing budget.
Success in the cannabis industry is not guaranteed, even with increasing business opportunities. So, how can you make the most of this growing market and establish a strong position?
Building your brand and investing in marketing is crucial to thriving in the industry. It will make all the difference between failure and success. While the industry is expanding and regulations are relaxed, it’s a must to establish your presence to navigate future changes and competition.
Marketing Strategies to Better Advertise Your Cannabis Business on a Budget
You can compare the cannabis industry to the wine market. They share a fundamental similarity — both industries revolve around regulated agricultural products. However, there is a significant difference between the two. Wine is dubbed a mature product with a highly educated market. People who enjoy wine are aware of their preference for it.
On the other hand, the cannabis industry has yet to become mainstream. Recreational cannabis offers a more significant sales value than wine, and if industry players just position the product like wine, it can significantly grow the industry. Here are some ways to do this with a limited marketing budget plan.
1. Get to Know Your Target Market
It’s crucial to know your target audience when marketing cannabis. With almost half of Americans having access to legal recreational cannabis, understanding who your customers are and what drives them is essential.
Lifestyle, preferences, interests, gender, and age should be considered when developing your marketing strategies.
You can use a quick online survey to gather important information about your cannabis dispensary. It can help you create a digital marketing budget. Focus your survey questions on understanding:
- How familiar are people with your brand, and how do they make purchasing decisions?
- What factors influence their choice of where to buy cannabis, like price, preferred strains, or membership benefits?
- How does pricing affect their buying habits?
- What are the demographic details of potential customers?
- What valuable insights can you gather about your local competitors, including their revenue?
2. Capitalize on User Experience
Consider as part of your marketing budget allocation the need to improve user experience.
Improving the user experience of your website is crucial, especially when buying items like CBD. Key factors to focus on are ease of use, credibility, and findability. To enhance the user experience, you have several options:
- Conduct an informal website analysis to identify improvement areas.
- Hire a professional firm to conduct the appropriate surveys and provide insights on enhancing the user experience.
- Consider allocating a portion of your average marketing budget to implement website intercept surveys on your site. By engaging with buyers directly, you can inquire about their experience and collect specific suggestions for improvements.
3. Analyze Your Competitors
Recreational use of cannabis has been legalized in the Northern Marianas Islands, Guam, The District of Columbia, and 23 other US states. On the other hand, its medical use has been legalized in 38 states.
These facts and the increasing popularity of CBD and other products like Delta-8 and Delta-10 mean the industry has become a multi-billion dollar market.
Include in your cannabis business funding a budget for competitor analysis. It’s essential to evaluate what your competition is doing well to stay ahead. Ask yourself:
- What are your competitors’ strengths and advantages?
- How do they differentiate themselves from others in the market?
- What marketing strategies are they using successfully?
- How do they engage with their customers and build brand loyalty?
- What are their product offerings, pricing strategies, and distribution channels?
- Are there any unique features or services they provide that set them apart?
- Do they offer other services as part of their cannabis delivery business?
By understanding what your competition is doing well, you can gain valuable insights to inform your business strategies and identify areas where you can improve and differentiate yourself in the market.
4. Be Honest to Your Target Market
A critical aspect of the cannabis industry is to focus on honest advertising. Unfortunately, the industry has a reputation that can make some users hesitant to try the products.
Even in places where it is legal, some bad actors don’t follow regulations and deceive customers. For example, studies have found that CBD vendors often mislabel their products.
This lack of accurate labeling can leave customers unsure about their consumption. It not only harms individual businesses but also undermines the credibility of the entire industry.
5. Educate Your Target Market
Consider it a part of the cannabis business to educate people about the benefits and risks of it. To do this, it is valuable to offer educational resources. These resources can include blog posts, videos, and webinars, which establish your brand as a reliable source of information.
However, remember that marketing your products must be done in accordance with government regulations. For instance, the FDA has set strict guidelines against marketing CBD for its medical benefits. According to the said agency, such benefits have not been proven. The FDA has even issued warning letters to companies that have violated these guidelines.
Therefore, you must ensure that any marketing strategies you employ comply with legal boundaries and regulations.
6. Make SEO Your Ally
Allocate a portion of your cannabis digital marketing budget to SEO. Get your products into the hands of your target market with the help of SEO. Partner with an agency to conduct keyword research, curate original, fresh, and relevant content for your website, and run ads. This strategy can do just a few things to turn your cannabis business around.
You can help your website rank better on search engines with this strategy. Even better, you can position yourself as a credible source of information and quality products with it. It may take time to see the results, but it will be unstoppable once SEO starts working for your business.
Turn Your Cannabis Business Around With the Right Strategies
How you position your brand in the market plays a huge role in getting your products into the right hands. You need to sell, and this task is more complex than merely telling people of its benefits. With many dispensaries opening here and there, your brand needs to keep up.
Partner with us at Clicta Digital and see how we work our signature Clicta magic to bring your conversion rate a few notches higher. We are a reliable partner to big names in the cannabis industry, and we can’t wait to work with you, too.
Talk to us about your marketing budget, and we’ll develop strategies tailored to your needs.