The sheer variety of cannabis and cannabidiol products as well as the many different emerging user demographics is why consumer sales are skyrocketing:
Total U.S. Cannabidiol (CBD) consumer sales 2014 – 2022
Dispensaries and direct to consumer online stores are all angling for a piece of the market. How do you get your fair share of available revenues? The answer lies in differentiation.
Differentiating your marketplace has four steps:
Who is your target, and why do they consume? Understanding the reason people do or don’t choose to purchase and use cannabis products can help you narrow down a niche customer base.
Nearly two out of three cannabis consumers say they want to relax and have fun. Nearly as many point to a health reason for consuming, ranging from various medical issues to pain management or sleep aids.
Reasons people buy and use cannabis-related products
The Farm in Boulder, Colorado, prides itself on catering to pet owners, putting out bowls of water and even providing treats for good boys. With the CBD market expanding into pet-friendly products, this is a smart move – 64% of cannabis-using pet owners say they would be interested in safe CBD products for their pets.
Is your target demographic worried about:
Online dispensary CannaKoru targets would-be users who are wary of chemically treated or GMO crops by offering products created from organically cultivated, pesticide free hemp.
While bud and vape products still top the list, many niche demographics are seeking other ways to harness the power of cannabidiols. Are you giving these users what they need to create their ideal cannabis experience?
Compassionate Cultivation in Manchaca, Texas, exclusively sells high-CBD tinctures and sprays, and targets parents of children with epilepsy. People drive hours to visit the tiny dispensary headquartered just southeast of Austin.
When you deliver extra benefits along with your product, you set yourself apart and show you are committed to over delivering on your promises. Extra value can come in many forms:
Loyalty programs can increase customer lifetime value (LTV) by increasing retention – returning clientele spend 31% more than new customers. RISE, which has dispensaries across eight states, created a points-based program that allows High-Risers to earn three cents on every dollar they spend.
Clarify why your cannabis offerings are ideal for chronic pain patients, tailored for women, or geared to avoid triggering a positive drug test. Point to third party lab results or showcase products rated “best for” alongside consumer testimonials.
You don’t have to bash your competitors, but you can subtly tell your consumers why your products are the best. This clarification will make your business magnetic, attracting those who seek the ideal experience you offer. You’ll earn increased revenues, and gain an enhanced reputation in your niche!