Did you know that the cannabinoid industry in the US is estimated to reach an impressive $100 billion in sales by 2030? This thriving market underscores the importance of dispensaries and delivery services mastering local marketing strategies.
As a retailer catering to this specialized market, it’s critical to understand these marketing strategies to deliver unparalleled products and services to your customers. In this guide, we’ll talk about how you can amplify your dispensary marketing efforts in a way that speaks directly to your local audience.
Develop An Understanding of Your Local Audience
To wield these marketing strategies effectively, it’s crucial to delve deep into consumer research, enabling you to predict your target audience’s age, desires and needs with precision and insight.
Consumer research reveals intriguing data about age, demographics, and preferences within your local market. For instance, according to a recent CivicScience survey, the primary group shifting from alcohol to cannabinoid products are aged 21-24 (34%), with 25-34-year-olds following closely at 24%.
Rather than seeking cannabinoid products primarily for symptom alleviation, consumers seem to express a heightened inclination towards portable, easily shareable recreational items. Headset’s analysis discovered a decrease in sales for tinctures (-24%), topicals (-8%), capsules (-4%), and flowers (-8%) in 2022. On the other hand, there was a notable increase in the sales of items such as beverages (10%), edibles (+10%), vapes (+5%), and pre-rolls (+12%).
Research-backed insights empower you to craft targeted marketing strategies. For instance, platforms such as Facebook Ads enable precise ads targeting the identified age groups, resonating with their desires and needs. Moreover, it ensures a personalized shopping experience, building trust.
Analyze Your Competitors
Analyzing your competitors involves scrutinizing how businesses allocate their marketing strategies and budgets across various channels to attain market visibility. In the previous year, medical dispensary owners, recreational cannabinoid stores, product manufacturers, clinics, and hospitals collectively invested close to $16 million in digital media, as reported by Vivvix.
Certain brands in this industry, such as Cann, Kiva, and the Brēz drink brand, have significantly increased their financial commitment. Kiva, for instance, has quadrupled its digital marketing expenditure compared to the previous year.
Another entity, the cannabis-focused advertising agency Lucyd, consistently allocates an average of $1.5 million from client advertising funds each month towards Meta advertising. In the case of Cann, last year, approximately 10% of their total marketing strategies budget was directed to digital advertising. However, with the relaxation of social media marketing restrictions, Cann’s CEO reveals a substantial surge in this figure, approaching 30 to 40%.
This analysis unveils current trends and equips retailers with informed marketing strategies to carve their unique market position within this competitive landscape.
Pick The Right Location
Prime locations hold immense potential in attracting walk-ins and enticing new customers, laying the groundwork for sustained business growth. Some of the advantages include:
- Visibility and accessibility: Businesses in high-traffic areas see a substantial increase in foot traffic, resulting in heightened brand exposure. For instance, businesses in central commercial districts or close to complementary businesses see more traffic than those in less central areas.
- Enhanced brand image: Customers often associate credibility and quality with businesses in bustling areas. Around 50% of consumers prefer shopping in physical stores over online platforms. Additionally, a substantial 82% of individuals are inclined to revisit a store if they have a positive in-store experience.
- Increased sales: A strategic location is a magnet for walk-ins and first-time buyers. Businesses in prominent areas have the potential to entice shoppers to pause and explore, resulting in spontaneous buying decisions. Unplanned purchases often occur when customers are in a shopping mindset and have convenient access to your products. This means you’ll experience a higher conversion rate, increasing sales and brand awareness.
Develop Your Local SEO Marketing Strategies
Developing a robust local Search Engine Optimization (SEO) marketing strategy involves optimizing online presence to attract local customers actively seeking products or services offered within their vicinity.
According to a survey of cannabinoid product consumers, 60% of users favor local dispensaries. Additionally, 42% indicated that they first encountered a brand through a Google search engine. Here are a few areas to focus on:
- Revise your Google My Business listing: Verify that your GMB profile (now known as Google Business Profile) is comprehensive and current. Keep your phone number, website link, and other relevant and beneficial information current.
- Keyword research: Through your website content, leverage location-based keywords in your vicinity, such as “Dispensaries in X area” or “Dispensaries near me.”
- Secure relevant backlinks: Aim to feature on local directories, niche-specific websites, and platforms associated with the cannabinoid industry. This strengthens your local business presence and enhances visibility in local search results.
- Boost your online reviews: Prompt satisfied customers to share positive reviews for wider visibility. This extends to various customer review platforms such as Yelp and Weedmaps. Favorable reviews don’t just draw customers to a business; they effectively elevate customer expenditure by more than 30%. Studies show consumers spend 31% more on new products or services that boast exceptional reviews.
Build Relationships with Customers
These marketing strategies center on actively engaging and nurturing connections with customers. 59% of American consumers indicate that once they develop loyalty toward a brand, they remain loyal to it indefinitely. Studies highlight the substantial impact of returning customers on business.
Findings show that obtaining fresh customers requires an expenditure of 5 to 10 times higher than selling to an existing customer. Moreover, existing customers, on average, spend 67% more than those who are newly acquainted with your business.
Here are a few suggestions:
- Personalized customer experiences: Use customer data to understand preferences, past purchases, and behaviors, enabling personalized recommendations and enhanced overall satisfaction.
- Loyalty programs and incentives: Implement loyalty programs that reward repeat purchases. Offering loyal customers incentives, discounts, or exclusive rewards strengthens relationships and incentivizes return visits.
- Exceptional customer service: Addressing customer complaints, queries, and feedback promptly and effectively contributes significantly to a positive customer experience.
- Effective communication channels: Establish open communication lines through various social media platforms. Social media engagement, email newsletters, and interactive websites foster continuous communication.
Are You Looking For Dispensary or Delivery Services?
Are you searching for premium-grade cannabinoid products to cater to the discerning tastes of your clientele? Today, mere product excellence isn’t sufficient to captivate the discerning customer base. You’ll need to get noticed amid the sea of options available to consumers.
THD Wholesale offers a diverse range of high-quality products meticulously curated to meet your dispensary or delivery service needs. Contact us today and discover the difference we can make for your business.