Since Nevada legalized recreational marijuana in early 2017, the state’s market has exceeded expectations, largely due to tourism to Las Vegas. Since it was made fully legal, cannabis dispensaries in Nevada have benefited greatly from tourism, with sales from and around Las Vegas making up most of the sales for the entire state.
Nevada is an interesting state to look at in terms of the cannabis industry because almost all sales are done in Las Vegas. Despite this, Nevada seems to expect sales to continue to grow state-wide with its 2020 Marijuana Economic & Fiscal Benefits Analysis predicting cannabis sales in the state to reach almost $1 billion by 2024.
Nevada has been able to put up some impressive numbers since marijuana became fully legalized, especially in Las Vegas. In October 2019 alone, taxable sales revenue in Clark County (home of Las Vegas) was upwards of $50.7 million dollars. Up almost $4 million from $46.8 million the previous month according to the Las Vegas Sun. These numbers alone show just how fast the cannabis market is developing in Nevada and especially in Las Vegas.
According to the Nevada Department of Taxation, 80% of cannabis sales in fiscal 2019 were made in Clark County, showing just how reliant Nevada’s industry is on tourism to Las Vegas. This separates Nevada from other legal states and is something to consider if you’re planning to enter the market.
If you’re looking to open a dispensary in Nevada, you’ll want to make sure to take into account the importance of targeting tourists when developing your marketing strategy. In this, you’ll want to make sure you’ve got a loyalty program that can effectively keep your regulars coming around while also targeting the tourist who will likely make up a good amount of your sales every month.
Seeing the nature of the market, utilizing text message marketing will be important in communicating with the customer base you build. Especially when it comes to marketing to tourists or those who are only temporarily in town, text message marketing allows you to remain compliant with state cannabis advertising regulations while reaching your customers with a 98% open rate, making text messages perfect for letting your customers know about daily deals and events.
In order to show you just how effective text message marketing can be, we analyzed the marketing performance of Thrive, a dispensary chain in Nevada. We looked to see the increase in spend on days when text messages were sent, the ROI, and how long it took to gain ROI.
increase in spend on days when a text message campaign is sent
ROI for every 1 cent spent on text messages
to gain a ROI on monthly subscription