Why—and How—CBD Businesses Should Focus on Growth

Congratulations, you’ve started a CBD business. You’ve picked a product that you’re passionate about, you’ve done your homework, and you’ve finally opened your doors. Now is the moment when you reap a consumer windfall—right?

That’s the narrative you’d be led to believe if you follow the breathless coverage of CBD products nationwide (and in several other countries, including Canada, as well.) Seemingly everywhere we look there is another CBD-infused product, from baked goods to muscle balms, that promises to harness the potential of hemp for healing and wellness.

While there is no doubt that CBD is growing in popularity—especially among demographics who previously had little interest in the cannabis industry—the idea of a “gold rush” isn’t the reality for most businesses producing CBD products.

Chances are, your CBD business experience is more like this: you’ve invested in perfecting your product, rigorously tested it for quality control, and developed a basic brand. But despite your best efforts, you’re still in startup mode, selling locally to consumers and unable to tap into the “CBD hype” that seems to be exploding all around you.

So what are you missing? Well, for one, you’re probably not focused on growing your sales through smart marketing and brand awareness. Many CBD businesses have made limited investments in their marketing efforts, preferring instead to try to reach consumers through Instagram, working with social media influencers, appearing on podcasts, or offering Black Friday or other seasonal sales.

While these tactics can be effective, what they often produce is a one-time sales boost followed by a predictable decline back to normal levels.

If you’re struggling to find a long-term customer base, here are a few tips to shift your mindset from one-time sales to ongoing growth:

Stop trying to catch the rocket

As we talked about earlier, everyone seems to be talking about CBD lately. So it seems reasonable that you should be able to hitch a ride on the industry rocket as it takes off.

But look further and you can see that buzz doesn’t necessarily equal business. CBD clearly has captured the attention of the media, particularly for its effectiveness helping many people with chronic pain and other ailments. But that hype doesn’t always translate to increased sales for individual companies like yours.

So rather than trying to jump on the bandwagon and enjoy a sales boost in the short term, change your mindset to long-term growth and start to build your brand and business fundamentals instead.

Know your audience—and answer their questions

Consumers interested in CBD aren’t necessarily the same consumers who have traditionally shopped for cannabis products. In fact, CBD products appeal more to Baby Boomers and Gen X’ers as they face issues with pain, movement, and anxiety than shoppers looking for a recreational experience.

For many of these consumers, they may not have had much experience with cannabis since some hazy years in college. For older buyers, they may never have used cannabis at all. This means that educating consumers about what CBD is, what it can (and can’t) do, and how it works is critical in making your products audience-friendly.

Raise brand awareness

Many consumers have a rough idea of what CBD is, but very few could name a brand name associated with the industry off the top of their head. This shows that there’s a significant gap waiting to be filled on the national level for brands that can articulate what makes their CBD products unique.

One good way to start raising brand awareness is through display advertising. While it was once difficult to find ad networks that would allow cannabis-related ads, there are now multiple avenues where you can reach targeted demographics who have already shown an interest in CBD, while also reaching broader audiences through age and other factors. This can be a great way to reach Boomer and Gen X consumers who are “CDB curious” but haven’t tried it yet.

Too many of your competitors are still struggling with their branding, are running old or inadequate websites, and are relying on word of mouth to generate sales. Using digital advertising techniques can help you increase traffic to your site while promoting brand awareness every time your ad is shown.

Think national

While it’s easiest to sustain a business via local consumers, it’s also easy to exhaust that customer base over time. If you’re concerned you might be reaching a saturation point with your local shoppers, consider going national. Very few CBD brands have made the leap to a national level yet, held back by logistics, cost, or an outdated web presence, so you’ll benefit from a first mover advantage right away.

National sales aren’t easy—you’ll need to focus on smart advertising campaigns across digital channels, as well as having a presence on sites like WeedMaps and Leafly. Your site should also be optimized to handle an increased volume of traffic, which means you’ll need to focus on speed, reliability, and conversion tactics like on-exit pop-ups and newsletter sign-ups to ensure you’re capturing as many potential customers as possible. You’ll also want to make sure your order fulfillment technology is up to the test, with features like recurring orders and subscriptions.

If you can tackle those challenges, you’re ready to go big. There’s a huge upside for CBD companies who can enter the national market effectively, before larger corporate players begin to gobble up real estate. So if you can make the move now—or soon—do it.

Remember you are an e-commerce business

You probably got into the CBD business because you’re passionate about your product and how it can help people. Maybe you were a grower, a budtender, or a medical professional impressed with CBD’s impact. Or maybe you’re entering the industry from an entirely different business.

Either way, you’re probably not an e-commerce expert. Unfortunately, no matter how much care and attention you lavish on your products, they still have to get out the door, reach customers promptly, and be priced, labeled, and sorted accordingly. Neglecting any part of this process will result in slow or missed deliveries, confusing shipping and return policies, and, eventually, lost customers.

On the digital side, your site needs to be optimized for online shopping. If you’re using a platform that is confusing, clunky, old, or slow, your sales will suffer as a result. On the other hand, if you’re using a state-of-the-art e-commerce platform that is too complex to operate efficiently, you’re not doing yourself any favors, either.

Finding the sweet spot of physical and digital operations can take time, but neglecting it will only cause customers to go somewhere else for their CBD needs.

Utilizing the tips above can help you streamline your brand, reach new customers, and, with luck, help your CBD business find the success it deserves. It won’t happen overnight, but with deliberate planning and smart goals, you can help bring CBD to a wider audience than ever before.