The competition in the CBD industry is growing fearsome. More and more states are legalizing medicinal and recreational CBD product use. According to data, South Dakota and Nebraska are the only states where CBD use is illegal. This is why the global cannabidiol market size is expected to grow at a CAGR of 47.49% between 2021 and 2028 to reach a whopping $55,791.3 million by the end of the forecast period.
As the CBD industry continues to grow, competition is becoming increasingly fierce. As more businesses enter the market, standing out from competitors and succeeding can be challenging. But if you follow the right strategies and have some guidance, growing your CBD business is possible even in fierce competition.
This article will explore identifying and capitalizing on opportunities, creating a unique brand, and using effective marketing techniques to grow your CBD business. By following these steps, you can gain an edge over your competitors and build a successful CBD business.
Industry Research Is the Key
Industry research is essential in growing a CBD business cannabis delivery edmonton as it provides insight into market trends, consumer behavior, and competition. Gathering and using such information can offer insights into building on new market opportunities, developing robust strategies, and making informed decisions. Additionally, understanding regulations and compliance requirements is crucial for a legal and successful CBD business.
Conducting industry research can also help a CBD business stay ahead of the competition by identifying areas where it can differentiate itself and offer unique value to customers. This can include focusing on specific target markets, developing new products, or implementing innovative marketing strategies.
When conducting industry research, it’s important to look at the broader CBD market and the specific sub-segment your business operates. This can include researching the different CBD products available, such as oils, capsules, topicals, and edibles, as well as the various delivery methods, such as tinctures, vapes, and transdermal patches.
Additionally, it’s crucial to study the different consumer segments, such as health-conscious consumers, athletes, and older adults, and understand their unique needs and preferences.
Another important aspect of industry research is staying up-to-date on the CBD industry’s latest regulations and compliance requirements. This can include researching the laws and guidelines governing CBD products’ production, distribution, and sale and ensuring that your business complies with all relevant regulations.
You can use social media platforms for market research. You can use these platforms to do competitor research, brand positioning, content messaging and design, and get industry insights. You can also use other ways, such as surveys, interviews, field trials, etc.
Leverage CBD Marketing
Leveraging CBD marketing can grow a CBD business by increasing brand awareness, building customer loyalty, and driving sales.
- Establishing a solid online presence: Establishing a solid online presence involves building your online reputation. You can do this with many things. For instance, you can pitch your brand’s story in a popular publication. Or you can use social media and create engaging content to attract more users so that they can know about your company.
- Creating educational and informative content: This includes creating blog posts, videos, and infographics that educate consumers about the benefits of CBD, how it works, and how to use it safely. This can help to build trust and credibility with your target market. Hence, around 73% of B2B and 70% of B2C marketers use content marketing.
- Email marketing: Email is one of the most effective ways of one-to-one communication with your existing and potential clients. The messages you send across other platforms like social media or blog posts have to be general, considering your targeted market segment. But in emails, you can go more personal by referring to clients by their names and striking a conversation that is dedicated to engaging a particular customer.
- Influencer marketing: Influencer marketing can help to expand your reach and tap into an existing customer base. Influencers usually have a dedicated following. For instance, if there’s a fashion influencer, the followers will be those interested in fashion. Likewise, a CBD influencer’s followers will be CBD enthusiasts. Hence, they will already have a good knowledge of CBD products. This means you won’t have to try hard to convert them into your customers. According to a PR from BusinessWire, around 61% of people trust recommendations from friends, family, and influencers.
If you don’t have a marketing expert on your team, you can hire a marketing agency specializing in CBD marketing. The industry is booming rapidly. Collaborating with a CBD marketing company can make the most out of it. Such an agency can help you promote your brand and products smoothly and quickly to ensure a robust online presence.
Take a Customer-Centric Approach
Taking a customer-centric approach is essential for growing a CBD business. This approach focuses on understanding and meeting your customer’s needs rather than just promoting your products or services. The following are some ways to take a customer-centric approach to grow your CBD business:
- Understand your target market: Conduct market research to understand your target market’s demographics, pain points, and preferences. This will help you create products and services that meet their specific needs.
- Engage with your customers: Create opportunities for customers to provide feedback, such as through surveys, social media, or email. This can help you understand their needs and preferences and improve your products or services.
- Personalize your approach: Use customer data to personalize your marketing, sales, and customer service efforts. For example, segment your email list and target specific groups of customers with personalized offers. Technologies like Artificial Intelligence (AI) can help you with personalization. AI can help you with customized content, marketing, ad targeting, recommendation systems, etc. For instance, McDonald’s leveraged AI technology to personalize the menu at 700 drive-thrus across the USA. The menus recommended hot tea during rain, icecreams on sunny afternoons, and many other recommendations.
Growing a CBD business in a competitive market can be a daunting task. However, it is possible to succeed if you take the time to do your research, create a comprehensive business plan, and establish a solid online presence.
Additionally, staying up-to-date on industry trends and taking advantage of available resources can help you stay ahead of the competition. You can create a successful and profitable CBD business with the right strategy and dedication.