Covid-19 has sent shockwaves through the economy on a scale not seen since the Great Depression. Due to a lack of foot traffic, social distancing guidelines, not to mention outright fear, cannabis dispensaries have seen a decrease in customers coming into the store.
Markets strongly linked to tourism, such as Nevada and Massachusetts, suffered even as they were deemed essential businesses. However, sales of cannabis have increased, with sales for 2020 predicted to outpace 2019 sales. Customers have just learned to purchase differently. According to a Brightwood Group, 45% of CBD consumers have moved their purchases purely online.
Although the potential for growth is increasing, the CBD market is oversaturated. In 2019 CBD was a 600 million dollar industry, and it’s predicted to reach two billion by 2022. Smaller companies could face extinction unless they do something to compete. With customers less likely to just wander into your store, how do you attract new customers and retain the ones you already have?
Cannabis dispensaries will need to have a well-recognized brand and a strong digital marketing platform to fare well in the challenging post-Covid-19 world. However, there are limitations when it comes to promoting cannabis and cannabis products. Many advertising platforms, including Facebook Ads and Google Ads prevent cannabis from being mentioned in ad copy.
Currently, the best way to advertise on these platforms is with the euphemistic term “plant-based.” Facebook only approves a few ads that are geared for topicals, without CBD or cannabis as a keyword, and Google only allows ads with “hemp” as a keyword.
However, building an online presence is a key component of your marketing strategy. “But I don’t know how to create an online presence!” Take a deep breath. You can build an online presence by:
Advertising in new places, like Menu Monster, gives your brand exposure without playing games with advertisers.
“Menu Monster helped me get started with other marketplaces and my sales grew almost overnight. It’s worth the investment!” – Michael Pierce
The cannabis market is oversaturated already, so you need to come up with something that sets your business apart. For example, the sale of gummies is increasing, and expected to rise 25.8% CAGR (Compound annual growth rate) by 2030.
That’s a lot, but you’ll still need to stand out. Do your gummies come in a flavor no one else has? Flavor-of-the-month? Vegan? Organic? Gluten-free? Anything that can set you apart from the many other retailers will be to your advantage. What about adjacent products, like cookbooks for cannabis infused treats?
Another key component is a digital marketing strategy. You can do this by establishing a direct-to-consumer presence through:
Another thing you can do to support your new digital focus is use Menu Monster to sync your menus effortlessly across all marketplaces. This cuts down on administrative tasks and human error, providing a consistent experience with your brand across multiple platforms. With Menu Monster, you can amplify your digital presence to make it easier for customers to shop, and stay organized while freeing up time for you to do other things.
Covid-19 has sent a seismic shift in how the cannabis industry does business, now and in the future. Demand is skyrocketing, but foot traffic at brick and mortar locations is flagging. Act online now to secure your share of digital traffic, and use Menu Monster to shift your presence to where your customers are now spending their time.