CBD Subscription Business Statistics for 2022 – Tips to Boost Your CBD Sales
April 1, 2022
7 min to read
With this kind of accelerated growth, it’s no wonder the competition is intense. Ultimately, your CBD business needs a powerful marketing strategy to increase sales and stay ahead.
This is where CBD business subscription comes into play.
In this blog post, we will focus on statistically-backed hacks to boost your sales and increase the lifetime value of your customers. Let’s dive in!
The Current CBD Statistics in the United States
Cannabidiol products are legal in all 50 states as long as they contain less than 0.3% THC. This is after the US Farm Bill 2018 allowed the production, sale, and usage of CBD-derived products for dietary and medical purposes.
Of all Americans who use CBD products, 64% intend to relieve pain, 69% want to alleviate anxiety, and 42% use it to counter insomnia. This is according to a study by SingleCare.
In 2020, the hemp industry dominated the market and accounted for the largest revenue share (59.6%), according to Grand View Research.
CBD can be used to manufacture a wide range of products for treating chronic pains, depression, and anxiety.
The global CBD market is estimated to reach $47.22 Billion by 2028
An Overview of the Growth of the CBD Industry
The CBD industry growth has experienced a massive spike since Covid-19 struck in March 2020. It’s not hard to see why.
Consumers were looking to reduce the stress and anxiety that resulted from the pandemic, and 39% of people indicated they would use CBD.
Due to this increase in demand, more brands branched out and added CBD products to their catalog. Some even enhanced their products with CBD content.
Currently, there are over 100 products that can be derived from the hemp plant. But, since the industry is new, research is still ongoing and more products will be developed soon.
An Overview of CBD Consumer Trends
A report by High Times indicates that consumers are buying CBD products less frequently but in higher amounts.
This is especially true for people who complete their purchases online.According to the Brightfield Group, 37% of all cannabis products in the US are CBD-based.
There is a widespread mention of CBD on social media, with more than 13,000 social media posts talking about it every month.
The CBD market is primarily driven by increased demand for CBD meant for health and wellness purposes. CBD is becoming popular because it has no ‘high’ and can be legally purchased without a medical card.
The CBD market is expected to expand at a compound annual growth rate (CAGR) of 21.3% until 2028.
Tips and Hacks to Boost Your CBD Sales
If you run a business in the CBD industry, you need to learn how you can boost sales to dominate the competitive market. Here are cutting-edge tactics that you can use to improve your business:
1. Conduct Consumer and Competitor Research
The first thing you ought to do in your CBD marketing is to determine the perfect buyer personas. Are you targeting women? Men? People in a particular age group? Figure out their expectations and needs and develop a product that fulfills them.
A Cross-Sectional Study conducted by the National Center for Biotechnology Information (NCBI) found that 62% of people buy CBD products for medical purposes.
When armed with such information, you can create a CBD product that acts as a pain reliever.
Go ahead and research brands offering similar services. Get insights from their marketing strategies and use them to improve your marketing plan.
In summary, these are the questions you need to find out:
- Who are their target customers?
- Is their CBD marketing strategy effective?
- What is their selling point?
- What are their strengths and weak points?
- You should look at any loopholes in your competitors’ strategy and fill them.
Create a Unique Value Proposition (UVP)
A UVP expresses the core reason why a customer should consider buying from your brand rather than your competitor’s.
Since it bears your brand identity, you should create all the benefits of buying from your brand.
Your UVP should be:
- Easy to understand
Ensure you highlight all the pain points that your product will alleviate, plus the core reason why a consumer should choose it.
Build an Online Presence
As we mentioned earlier, CBD products are going viral on social media. And, in an era where people love to shop online, it would be great if you employed omnichannel marketing strategies.
Here are ways you can elevate your business by going online:
- Start a Blog – Your blog should provide informative content about specific CBD products. Studies show that prospects are 131% more likely to buy from you if you provide them with informative content.
Blogging allows you to leverage SEO and reach more people online. You can also use local Search Engine Optimization tactics to target customers in your local region.
In this case, you may acquire more organic traffic and increase conversion rates by up to 5 times.
- Employ Social Media Marketing – You can employ various paid advertising methods to market your products.
Utilize social media marketing strategies such as Facebook Marketing, where your CBD products can be publicized with Facebook Ads.
- Develop Landing Pages – A landing page is the web page your visitors ‘land on’ after clicking on an ad. You should have a different landing page for each product you advertise on social media.
Visitors are more likely to convert if the product on the landing page solves their needs.
- Run an Email Marketing Campaign – Email marketing is a powerful marketing tool capable of boosting sales and growing your business magnanimously – it has an ROI of $42 for every dollar spent.
With the potential to increase sales up to 4x, email marketing is the most lethal marketing strategy you should consider as a CBD business owner.
Reach Buyers Through Influencers
You can improve the visibility of your CBD products and increase conversions by using influencer marketing.
Influencers boost your business by providing authentic personal reviews about your products to their followers. They also provide backlinks to your website, improving search engine rankings.
Influencers also impact the buying decisions of most consumers directly, with 70% of millennials considering recommendations from their favorite influencers.
Pro tip: Ensure you seek the services of a relevant influencer to launch a more precise CBD marketing strategy.
They provide a scalable ecommerce solution that lets you start small and expand your business as needed without the need to switch platforms.
Use Affiliate Marketing
Bloggers can promote your products to their audiences and earn a commission for every successful sale realized.
This is an effective strategy as the blogger does all the hard work – it’s their job to convince their audience to purchase your product through their affiliate link. This will ultimately boost your sales and grow your business.
How to Increase Customer Lifetime Value
Every customer who buys your CBD product provides value to your business. But, the question is, how much value?
Customer Lifetime Value (CLV) is a metric that represents the total amount of money that a single customer spends on your products throughout their lifespan. It is dictated by overall customer experience and satisfaction.
It is crucial to retain your existing customers to acquire recurring sales and increase their CLV. Keep in mind that existing customers:
- Are more likely to buy
- Are five times cheaper to attract compared to new customers
- Spend more than new customers
Here is what to do to increase customer lifetime value:
1. Offer a Referral Program
The lifetime value of referred customers is 16% higher and 18% less churn. And since 81% of consumers trust referrals from people they know, this strategy effectively acquires recurring sales for your CBD products.
2. Conduct Personalized Marketing Campaigns
In your marketing strategies, speak directly to the target consumer. Address their pain points and show them why your product is the ideal solution.
3. Create Engaging Content
According to Bill Gates, content is king. If you do it correctly, the content will help your audience feel closer and more engaged with your business. It will also help traffic move down your sales funnel and give you better chances of increasing recurring sales.
4. Improve Customer Experience
You can’t retain customers with poor customer service. With 66% of customers using at least 3 channels of communication, it is vital to maintain an active presence on all social sites and your website to provide instant customer support.
Upselling and cross-selling aim at offering improved solutions to customers while increasing their purchase frequency or average order value.
Basically, it means introducing your customers to more of your products through well-thought-out recommendations.
As a CBD business owner looking to increase sales and recurring transactions, you should partner with a company that offers the best CBD subscription products. Your business growth and overall sales depend on it.
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