As the cannabidiol (CBD) consumer base continues to balloon (across all demographics), the market remains ultra-competitive for investors. Cashing on the CBD boom continues to get more challenging by the day. To stay afloat, CBD businesses must devise marketing strategies that are cost-efficient and will deliver results. In short, CBD businesses need a marketing strategy that allows them to carve out a profitable niche in the space.
Here are a few marketing strategies that fit the bill.
1. Referral Marketing
A few forward-thinking CBD businesses are using referral programs to retain existing customers. This type of marketing allows customers to earn points or money when their referrals (people introduced to the CBD Company) purchase CBD. Customers can use these points to make their subsequent purchases. That’s why it’s crucial to offer points and not cash. What better way to build customer loyalty?
For example, pure hemp CBD offers a 40% commission on each referred purchase. This is higher than the industry average. CBD Pure also offers a 40% commission rate.
That said, building a referral program that works is easier said than done. A top priority is to start with an exceptional CBD product that is easy to sell.
2. Influencer Marketing
With the numerous restrictions on CBD marketing, many CBD companies are turning to influencer marketing. This allows CBD companies to bypass marketing restrictions on popular social media platforms like Instagram and Facebook. Unfortunately, many CBD companies are getting it all wrong.
Before you embark on Influencer marketing, ask yourself what the end game is. Are you merely looking for popularity, or are you looking to build a consistent customer base? This will guide your decision on which influencers to partner with. It may be more productive to work with influencers with smaller but engaged audiences than with large but disengaged audiences.
Popular CBD influencers include Jolene Goring, Chris Lavish, Montel Williams, and Aisling Bea.
3. Podcast Ads
Podcasting has been touted as the “next big thing” in marketing. This is a unique way to target CBD consumers who are aged between 18-44 years. While the cost for podcast ads can be steep ($18-$50 per 1,000 impressions), it is an effective way of targeting a highly engaged audience.
A Note on Retaining Existing Customers
The cost of acquiring new customers is almost five times as much as retaining existing customers. In addition, you have a higher likelihood of closing a sale with an existing customer (60-70%) than a new customer (5-20%). This underlines the importance of fashioning your CBD marketing to attract your existing clientele consistently.