The cannabis industry is rapidly evolving and shows no signs of slowing down. It seems like new laws and restrictions are being passed almost daily. Within the industry itself, new marketing agencies are promoting guaranteed ROI and ‘flawless’ cannabis search engine optimization and marketing plans. New products and competitors have introduced every day and new marketing and advertising channels claiming to have the most targeted audiences.
All of this noise makes optimizing your marketing channels and communicating directly to the consumer difficult. . Luckily, we at springbig give cannabis brands the ability to execute personalized and targeted advertising campaigns through our network of existing customers.
Brand marketing traditionally takes the form of B2B marketing, where brands market their products to retailers, who then market those products to their customers. Essentially, the retailer is the “middle man” here, which isn’t a problem, but wouldn’t it be nice if brands could take advantage of direct-to-consumer (DTC) marketing?
They can with Brands by springbig. As the first direct-to-consumer brand platform in the cannabis industry, brands by springbig is here to help your brand grow. In this article, we’ll be talking about the importance of DTC marketing for both cannabis brands. We’ll also discuss how dispensaries and brands can help each created an integrated marketing communications strategy that not only brings in new customers but boosts daily avg sales.
The first and maybe most important benefit of DTC marketing for brands is the fact that it allows brands to develop a more personal relationship with their customers.
Traditionally, with B2B marketing, developing a relationship with customers can be difficult. Usually, the retailer is the one developing the relationship. That’s not to say people won’t begin to identify with certain brands, but they also won’t really form a relationship with that brand either.
With DTC marketing, brands can get that personal connection with their customers which can help turn them into loyal customers. Not only that, but brands can now do more than just push their products to their customers, they can reward them for their loyalty and collect customer data. With B2B marketing, that’s just not possible.
On the topic of customer data, it is almost essential for doing business in today’s world. The collection of customer data allows you to do many things, all by analyzing customer behavior.
With customer data, you can do things like identify popular products, determine what marketing campaigns work and don’t work, segment your customers, get the real cost of custom acquisition data, and much more. All of this can help you improve your business, retain customers, and stay ahead of your competition.
Collecting customer data isn’t the best marketing tactic to B2B, but it is one of the strengths of DTC marketing.
Another benefit of DTC marketing is the fact that it enables you to increase your sell-through rates if you do it right. Sell-through is important and refers to the rate at which inventory that you send to supplies is sold. As a brand, you want dispensaries to carry and sell your products, so you want a high sell-through rate. With DTC marketing, you can promote your products, as well as let your customers know where they can find them. In this way, you’re helping your sell-through rates at the dispensaries that carry your products increasing ROI for everyone.
On top of this, if you want to cut out the middleman and sell directly to customers you can actually save money, and you can possibly even make more money, in comparison to B2B marketing.
With DTC marketing and business in general, going straight to the customer and cutting out the middle man (who usually upsells the product) means you can give your customers a better deal and make more money yourself for the products you’re selling.
Clearly, DTC marketing is an extremely useful marketing strategy for cannabis brands. From increasing your sell-through rates, to collecting customer data, and developing a deeper relationship with your customers, DTC can make a big impact.
We recognized just how impactful DTC marketing could be for cannabis Brands, which is why we created and launched Brands by springbig. Brand by springbig allows brands access to sprinbig’s 28 million customers already in our dispensary clients crm thousands of brands in which they can market to and with.
Simply partner up with a dispensary, discuss the terms of the partnership, and you’ll have direct access to their customers through the most direct form of DTC marketing possible: text message marketing. The biggest brands are using brands already, so something must be working!
On top of utilizing brands for your DTC marketing needs, brands can also utilize a loyalty program. That’s right, cannabis loyalty programs aren’t just for retailers, brands can use them too. With loyalty programs, cannabis brands can increase customer brand loyalty, reward customers for their loyalty, and create a real community around their brand.
Like we mentioned briefly above, brands and retailers can really help each other through brands by springbig. As a part of brands by springbig, brands essentially partner with retailers in order to gain access to their customer base.
In this way, brands get access to not only DTC marketing, but DTC marketing to customers who have already shown their intent to buy, and that are customers at a dispensary that carries their products.
That means brands have the chance to greatly increase their sell-through rates, and cannabis dispensaries have the chance to boost sales and get a couple of text message marketing campaigns paid for. It’s a win-win.
CEO and Co-founder of springbig