
Introduction
In recent years, the cannabis industry has seen a dramatic transformation from a dark underground market to a legal and thriving business industry. There is no end in sight to the industry’s exponential rise. Indeed, the US CBD market is projected to double to $41.5 billion by 2025.
With this transition comes the necessity for effective and responsible marketing tactics that appeal to your target market while delivering the best possible results. The world of cannabis marketing is changing quickly, and so is the marketing strategy to promote it.
But, there are numerous complexities and limitations that make marketing in the cannabis sector difficult, but with the best practices and comprehensive information, you can build a solid presence and take your CBD business to new heights of success. So, for CBD businesses – it is important to know about how to market cannabis business.
And, to make things easier for you, we will be covering the do’s and don’ts of cannabis marketing that you should know about. Let’s get started.
Also Read: Marketing Ideas for CBD Business
The Do’s of Cannabis Marketing
1. Understanding the Legal Landscape of Cannabis Marketing
Selling and marketing cannabis is legal in so many states and countries. But, it is highly regulated, and abiding by the legal landscape is quite important. The first “do” inefficient cannabis marketing is to grasp the industry’s legal landscape and limits. It ensures the success of your marketing campaigns and saves you from any trouble now and in the future.
Some tips to know about:
- Check the regulations in your region: Cannabis is highly regulated and every city and state has different rules and regulations when it comes to marketing. So, before getting started – consult with government officials or any professionals who can guide you on this.
- Check the regulations by the type of advertising: Based on the type of advertising(such as out-of-home advertising, social media, text-based, email marketing, or any other type of advertising) have different rules and regulations based on where your business is located. So, based on your marketing goals, you can review the policies in place by the government and platforms to ensure the best results and ensure no negative consequences.
- General policies: Regardless of the city, state, or type of advertising, there are some general guidelines that CBD businesses need to follow when it comes to cannabis marketing. It includes not targeting minors, staying away from medical claims, exaggerating in advertising, etc.
By following the common grounds of cannabis advertising, you can ensure the best results out of your CBD marketing efforts.
Also Read: How to Get a License to Sell CBD Products
2. Know your Customer (Well)
Another crucial do’s of how to market cannabis is knowing your customers well. You can’t just pull your strings in the air and expect it will reach your target. Rather than targeting every main customer segment, you need to determine what best works for your cannabis business.
You can start by researching and defining your key customer segments—whether they’re medical cannabis patients, recreational users, or wellness enthusiasts. Narrow your focus to two or three segments that align closely with your offerings and curate a marketing plan to ensure targeted advertising and optimum conversions.
For instance, a brand specializing in CBD-infused products might target health-conscious millennials and working professionals seeking stress relief. Create detailed personas for each group, outlining their age, lifestyle, preferences, and motivations. Once you have a clear understanding of your audience, craft targeted marketing campaigns that speak directly to their needs.
Based on what your audience wants from you and what they are most attracted to, you need to personalize your promotions, like offering loyalty programs for repeat customers or discounts for first-time buyers. By tailoring your strategies to the right audience, you can ensure your marketing efforts reach the right people while driving meaningful engagement and conversions.
Also Read: How to Market CBD on Social Media
3. Curate the Foundation
To begin with, how well-prepared is your CBD business? You need a strong foundation upon which to develop your marketing activities.
To successfully audit your foundation, follow these steps:
- Curate Brand identity: Your brand identity is your story – it should convey what you are doing and why you are doing it—all wrapped in a look they won’t forget. It should be done in such a way that speaks to your audience’s lifestyle through logo, fonts, colors, and overall design.
- Look after your business website: Your business is the foundation core of your cannabis marketing that you shouldn’t overlook at all.
- You need to analyze whether your website design accurately represents your current brand.
- Is it compatible with all devices?
- Are your website search engine optimized?
- Does it have all the information you want your potential customers to know about?
If yes, then you are good to go. If not, then do it before getting to cannabis advertising.
- Get leads: Getting people to visit your website is one thing, but getting them to convert is another. To encourage visitors to proceed with their purchasing process, provide compelling call-to-action statements throughout your website. You must offer them valuable material for which they are prepared to exchange their contact details.
A planned, well-thought-out, and fully compliant foundation will set the right for your cannabis marketing that will generate desired results and maximum ROI.
Also Read: Which Bank Supports CBD Businesses
4. Curate the Cannabis Marketing Strategy
After you have laid a strong strategy foundation for your business, you need to curate a solid marketing strategy. A successful marketing plan consists of three basic steps:
- Get in front of your customers
- Engage with them
- Retain them
- Reaching Your Customers
The first step in curating he successful cannabis marketing strategy is effectively reaching out to your customers. To connect with your audience, focus on creating awareness and visibility for your brand.
- Use digital marketing strategies such as SEO and effective content marketing to ensure higher rankings and better reach.
- Leverage social media platforms to stay in front of your customers and keep them updated with the latest product updates, deals, etc.
- Collaborate with cannabis-friendly platforms like Weedmaps and Leafly for targeted advertising.
- Additionally, implement local marketing strategies like optimizing your Google My Business profile or hosting events to connect with your community.
Also Read: How to Market your CBD Business On Facebook
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Engaging with Your Customers
Reaching out is not enough, you need to put in constant efforts to engage with your prospects. Engagement is about creating meaningful interactions that build trust and interest.
- Use educational content, such as blogs or videos, to inform customers about your products and their benefits.
- Engage with followers on social media by responding to comments and hosting Q&A sessions.
- Curate personalized email and SMS campaigns are another great tool for engagement.
- Hosting webinars or in-store events can also foster deeper connections with your audience.
Also Read: Best Ecommerce Platform for CBD
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Retaining Your Customers
At last, you don’t just need one-time customers. Once they come to your CBD business, you need to retain them as well. Retention is about nurturing relationships to encourage repeat business.
According to studies, retaining existing consumers can be 5 to 25 times less expensive than attracting new ones. In addition to being cheaper, increasing client retention by just 5% has been demonstrated to increase earnings by up to 95%.
- Introduce a loyalty program to reward frequent purchases and keep customers coming back.
- Provide exceptional customer service by addressing inquiries quickly and effectively.
- Use email marketing to stay in touch with your audience, sending personalized updates, discounts, and product recommendations.
- Regularly seek feedback through surveys to show customers their opinions matter and to improve your offerings.
5. Educate Your Audience
Despite the legalization and growing popularity of cannabis, there is still a lot of stigma, misconceptions, and taboos around CBD. Due to this, customers are hesitant to try CBD and trust. But, with its growing popularity and reported benefits, more and more customers are curious about trying it.
But, what can you do to prevent the misconceptions or stigma around CBD? The answer to this is educating your audience about the potential benefits and use cases of CBD. Providing clear, accurate, and valuable information about CBD, its benefits, and how your products work can break down barriers and empower customers to make informed decisions.
- Create engaging content like blogs, videos, infographics, and videos that explain the science behind CBD, its potential uses, and its safety.
- Leverage platforms such as your website, social media channels, email campaigns, and event marketing to disseminate this information effectively.
- Focus on user-generated content to build trust and improve the effectiveness of cannabis marketing.
By prioritizing education, you can dispel myths and position your brand as a trusted authority in the CBD space. This boosts your brand visibility and builds confidence while encouraging prospects to explore your products with clarity and trust.
Also Read: Guide to Start a CBD Business
6. Stay Updated to the Changing Cannabis Rules
The cannabis industry is highly regulated. The rules and regulations of cannabis marketing are constantly evolving regulations that vary by region. So, it is crucial to staying informed about these changes to ensure compliance and maintain your credibility.
Monitor updates from regulatory bodies, both local and national, to understand restrictions around advertising, product labeling, and sales. Ignorance of new rules can lead to fines, legal complications, or even the suspension of your business operations.
Also, stay updated to review official cannabis guidelines regularly or subscribe to updates from industry associations. Consider working with legal professionals or consultants who specialize in cannabis compliance to navigate complex regulations effectively. This proactive approach helps you avoid missteps, keep your business legally secure, and adapt your marketing strategies as needed.
The Don’ts of CBD Marketing
1. Don’t Neglect the CBD Marketing Rules(At All)
When it comes to cannabis advertising, there are a few guidelines that businesses must observe.
- Advertising to minors is not authorized, so keep your target audience in mind when curating content.
- Don’t attempt to get around the regulations by using Facebook and Instagram’s advertising platforms, as these sites do not permit social media advertisements.
- CBD businesses are also prohibited from making health claims or any fake claims.
So, whatever are the restrictions – you need to abide by them. Don’t try to overturn it. It is not worth the risk, and the results can be damaging to a brand. This looks to be a simple concept, but violations continue to occur, perhaps leading to a company’s termination.
The good news is that by conducting research and making sure that all content is checked for legality, entirely accurate and genuine, and created with a specific audience in mind, marketers can still effectively spread their message without violating these constraints.
Also Read: How to Start a CBD Business
2. Don’t Over exaggerate
In marketing, brands always want to exaggerate to attract customers and improve their conversions. These seem appealing. But, you should avoid it. There are already so many restrictions around cbd marketing, so you should stick to the truth and provide valuable, and relevant information that helps you boost web traffic, and turn visitors. Exaggerating or maybe lying can damage your credibility and hurt your business – which can lead to serious consequences.
For example, many CBD companies, in an attempt to stand out, might exaggerate the health benefits of their products, claiming that their CBD oil can cure chronic pain, anxiety, or even serious conditions like cancer.
While these claims might seem compelling to consumers, they’re misleading and violate advertising regulations. It can lead to serious consequences, including fines, lawsuits, or being banned from advertising platforms.
On the other hand, reputable companies focus on providing factual, well-researched information, such as how CBD interacts with the body to support general wellness. They can even highlight customer testimonials and scientific studies that show the potential benefits of CBD without making exaggerated or unsubstantiated claims.
Also Read: How to Start a CBD oil Business in 2024
3. Don’t Use Misleading Ads
Using misleading or deceptive language in CBD marketing is another thing that CBD businesses should stay away from. It can seriously damage your brand’s reputation and undermine customer trust. You should add details about what CBD and your CBD products can actually do.
Avoid making exaggerated claims like “instant relief” or “miracle cure” unless you have credible, substantiated evidence to back those statements. It can mislead customers into believing the product works in ways that it may not – which results in disappointed customers, negative reviews, and potential legal consequences.
Misleading language also includes implying that a product is something it is not, such as making a CBD product sound like a drug or pharmaceutical treatment. It’s important to avoid vague or ambiguous terms like “100% effective” or “guaranteed results,” which may suggest certainty when the product’s outcomes can vary from person to person.
To maintain credibility and build trust, focus on the proven benefits of CBD, such as promoting general wellness or providing relaxation, without overstating its effects.
4. Don’t Ever Miss out on Transparency
Last but not the least – you shouldn’t miss out on transparency. It is one of the most crucial elements in building trust with your customers. CBD brands sometimes would like to conceal information. But, hiding, or failing to disclose important information about your products can severely damage your brand’s credibility and legal consequences.
When customers purchase CBD products, they expect to know exactly what they are putting into their bodies. That means you must always be upfront.
Here’s what you should be transparent about:
- Ingredients: Clearly list all the ingredients in your CBD product packaging, including any additional cannabinoids, terpenes, or additives. This transparency ensures customers understand what they’re consuming and can make informed decisions.
- Sourcing: Consumers today care about where and how products are made, especially in the CBD industry. Hiding sourcing information can lead customers to assume the worst, and can lead to unnecessary circumstances.
- Lab Testing: Third-party lab testing is one of the most important aspects of CBD transparency. Always provide access to certificates to verify the potency and purity of your CBD. It improves customer trust and credibility in your brand.
By being transparent about all aspects of your products, you build trust with your customers, they can rely on your honesty, and they are more likely to return, recommend your products, and support your brand in the long run.
Also Read: 10 Best CBD Business Ideas to Start in 2024
5. Don’t Neglect Offline Marketing
In today’s digital age, online marketing is undoubtedly crucial for CBD businesses, but that doesn’t mean offline marketing should be overlooked. In fact, offline marketing remains one of the most effective methods to build trust, credibility, and visibility within your local community and beyond.
While online channels allow you to reach a broad audience, offline marketing helps solidify a personal connection with customers. Some of the popular offline marketing methods that you can follow include:
- Attending industry trade shows
- Hosting local events
- Partnering with brick-and-mortar retailers,
- Print advertising (flyers, brochures, local magazines)
These offline marketing methods allow you to engage face-to-face with potential customers, answer their questions, and provide product samples or educational resources. Offline marketing also offers an opportunity to showcase your CBD products in a real-world environment, allowing customers to experience the product firsthand.
By balancing both online and offline marketing efforts, your CBD business can benefit from the best of both worlds—reaching a wider audience through digital channels while cultivating deep, trust-based relationships through face-to-face interactions and local engagements.
To Wrap Up!
While the cannabis industry is highly regulated and the regulations vary from state to state, it can be difficult for any marketer to know what’s legal, how to market cannabis products and what to avoid so that your brand will not end in trouble.
Now that you’ve learned the fundamental dos and don’ts of cannabis marketing, it’s time to start marketing. Keeping these five DOs and DON’Ts in mind will help you make the most of your marketing efforts and efficiently reach your target audience.
To further solidify your marketing efforts, you can get your hands on a best-in-class CBD-compliant POS system. It helps you streamline transactions and store customer data for targeted marketing.
If you are looking for a POS system, connect with CBD Merchant Solutions. We have a highly compliant, feature-rich, and cost-efficient POS system. To know more about it, book a free demo now.
Frequently Asked Questions (FAQs)
1. What should I include in my CBD packaging to build trust?
Make sure to include clear labeling with detailed ingredient lists, usage instructions, sourcing information, and a QR code linking to the COA in your cannabis product packaging. These elements ensure transparency, guide customers on what they are consuming, and help you ensure compliance.
2. Are there any specific demographics I should target for CBD products?
While CBD appeals to a wide audience, you can target specific demographics like health-conscious millennials, wellness enthusiasts, and older adults who are seeking natural remedies often show higher interest. So, make sure to identify your target market and properly segment your marketing efforts accordingly.
3. Why Choose a POS system from CBD Merchant Solutions?
We have curated the CBD-compliant, highly functional, and best-in-class POS system for CBD businesses.
Here’s what it offers to CBD businesses for targeted marketing.
- Integrated Loyalty Programs
- Easy integrations with your business tools for data-driven marketing
- Helps with seamless social media marketing
- Offers end-to-end statistics and analytics to better align your marketing
- Leveraging customer’s profiles for targeted advertising
- Stay connected with your customers through SMS and email marketing
- And so much more
4. Can CBD businesses benefit from partnerships with other industries?
Absolutely! You can partner with other relevant businesses to increase the visibility and customer base. But, relevancy is a must. You need to collaborate with wellness studios, fitness centers, spas, or health-focused brands. It can help you expand your reach and introduce your products to a like-minded audience. Such partnerships also add credibility to your brand.
5. What is user-generated content and how Can I use user-generated content in my CBD marketing?
User-generated content includes customer reviews, photos, or social media posts that you can post on your social media and website as well. It helps you win customers’ trust, boost credibility, and create authentic engagement. Although, make sure to seek permission before sharing and highlight genuine experiences with your products.