Lead Nurturing in Cannabis: Metrics That Matter

In the cannabis industry, mastering lead nurturing is crucial due to unique challenges like legal restrictions, social stigma, and financial limitations. Here’s what matters:

Key Metrics to Watch: CTR, conversion rates, time to conversion, and CPA.
Marketing Obstacles: Legal hurdles, societal views, and budget constraints.
Performance Indicators: Conversion rates, click-through rates, sales cycle efficiency, and customer acquisition costs.
Insights Integration: Monitoring social sentiment, compliance, and market trends is vital.
Metrics-Focused Strategy: Implement tracking, set KPIs, review metrics, and automate where possible.

This approach, despite the hurdles, can pave the way for growth and success in the cannabis sector.

Legal Restrictions Severely Limit Marketing Options

Since cannabis is still illegal at the federal level in the United States, companies can’t use big advertising platforms like Google, Facebook, or TV. This means they miss out on a lot of ways to reach new customers. They’re mostly stuck with things like email, text messages, and posts on social media. While these can work, they don’t reach as many people or do as good of a job at targeting specific groups.

Also, the rules about what you can say in your ads are really strict and vary by state. It’s hard to make your offers sound exciting when you’re limited in what you can say about deals, prices, and what your product does.

Even though more places are making cannabis legal, some people still have a bad view of it. This can make customers hesitant to buy from cannabis companies or give them their personal info. Building trust is crucial but tough when there’s a stigma.

This stigma also affects how much money investors are willing to put into these companies. With less money, it’s harder to try new marketing ideas.

Financial Limitations Reduce Marketing Spend

Most cannabis companies don’t have a lot of money, especially in places where it’s just become legal. They can’t spend as much on marketing as big companies can. They mostly have to rely on cheaper methods like sending emails, which may not be as effective.

On top of that, because of banking issues, it’s hard for cannabis companies to get loans to help grow their business. They have to be really careful with their marketing budgets, making sure they’re getting the most out of every dollar without spending too much.

In short, marketing for cannabis companies is tough. They have to deal with legal issues, how people view cannabis, and not having a lot of money to spend. To get past these problems, they need to be very focused on planning, checking their results, and making improvements where they can.

Key Performance Indicators for Cannabis Lead Nurturing

In the cannabis business, it’s really important to keep an eye on certain numbers to make sure your efforts to connect with potential buyers are working well. Because selling cannabis comes with its own set of challenges, it’s especially important for marketers in this field to watch how things are going from start to finish. This helps figure out what’s working and what needs to get better.

Here are four big numbers to watch closely:

Conversion Rates Across the Sales Funnel

It’s helpful to see how many people move through your sales process and actually end up buying something.

Look at how many leads become interested enough to consider buying (we call these marketing qualified leads or MQLs) after you first reach out.
Check how many of these interested leads become seriously potential buyers (sales qualified leads or SQLs).
Finally, see how many of these serious potential buyers actually make a purchase.

To get more people to buy, try making your messages more personal, make forms easier to fill out, and use lead scoring to prioritize. For cannabis companies, it’s also key to build trust and show your expertise to get past the stigma.

Click-Through Rates for Email and Ad Campaigns

Click-through rate tells you how many people are actually interested in what you’re saying. For emails, having 20-30% of people open them and 2-5% click on something inside is pretty good. For ads, you want more than 1% of people to click.

To do better:

Try different email subjects and content to see what works best.
Look at how you’re choosing who sees your ads, how much you’re spending, and what your ads say.
Use segmentation and lead scoring to focus on the right people.

Speed and Efficiency of Sales Cycle Funnel

Looking at how long it takes for someone to decide to buy can show you where things might be slowing down.

Have an idea of how long each part of the process should take.
Find out where people are getting stuck.

To make things faster:

Use tools to automate repetitive tasks.
Answer questions quickly.
Make paperwork simpler.
Build trust and show your expertise more quickly.

Customer Acquisition Cost Benchmarks and Reduction Strategies

Figuring out how much it costs to get a new customer is really important for your budget. To spend less:

Compare your costs to what’s normal in the industry.
Find out which ways of getting customers are working best and which aren’t worth the money.

To keep costs down over time:

Focus on keeping customers coming back to make the most out of each one.
Use tools to automate tasks and save on labor costs.
Offer rewards to encourage repeat buys.

By paying attention to these numbers, cannabis companies can fine-tune their strategies for better results. Even with the unique challenges of this industry, sticking to good practices in lead nurturing can lead to steady growth.

Integrating Cannabis Compliance and Market Insights

For cannabis companies, adding more types of data to what they usually track can give them useful tips for their business plans and growth. Keeping an eye on how people feel about cannabis, following the rules closely, and staying up-to-date with market trends can help these businesses tackle unique challenges.

Since it’s tough to advertise cannabis the usual way, listening to what people say online becomes super important. By watching what people say using certain words and hashtags, brands can:

Understand what people think of their brand
Find out what new products people might like
Quickly see and fix any problems, making customers happier
See how they stack up against other companies
Guide what they talk about and how they talk about it

For instance, if a company notices people like their eco-friendly growing methods, they can talk more about that.

Monitoring Compliance Rates

With strict rules around selling cannabis, it’s critical to make sure you’re always following the law. Keeping track of compliance metrics helps companies:

Fix any rule-breaking issues fast
Keep getting better at following the rules
Look out for any new laws coming up

Important things to measure include how often you pass inspections, how accurate your inventory records are, and whether everyone has completed required training.

Tapping into Market Trends and Data

Paying attention to broader trends in the cannabis industry can help companies adjust their strategies. Useful information includes:

How fast the market is growing and changing
What types of products people are starting to like more
How you compare to other companies
How much it costs to make your products
Changes in the price of selling your products wholesale

For example, if data shows that more people want CBD products, a company can plan to make and market more of those.

By mixing in this wider view of the market with their own performance data, cannabis companies can find ways to grow and succeed despite the industry’s unique challenges.

Implementing a Metrics-Focused Approach to Cannabis Lead Nurturing

In the world of selling cannabis, companies run into a lot of roadblocks like tough rules, people’s mixed feelings about cannabis, and not having a lot of money for marketing. Because of these challenges, it’s super important to keep an eye on how well your marketing efforts are doing.

Here’s a straightforward plan to make sure you’re tracking the right stuff and using your marketing budget wisely:

Set Up Tracking to Capture Vital Data

Start by linking your marketing and sales data together. This helps you see the full picture.
Keep track of how people interact with your emails, ads, and social media posts.
Create reports that focus on what you’re trying to achieve.

Choose Key Performance Indicators to Monitor

Pay attention to things like:

How many people click and then take action
How long it takes to make a sale
How much you spend to get a new customer or lead
How well you’re sticking to the rules

Set Realistic Goals and Benchmarks

Look up what numbers are normal for your industry.
Make clear goals to improve your key numbers over time.

Review Metrics Frequently and Make Adjustments

Have regular check-ins on your reports.
Spot areas that aren’t doing well.
Try new things and keep tweaking.

Supplement with Market Research

Use social media to get a feel for what people think about your brand.
Stay on top of trends in the cannabis world.
Let these insights shape your strategy.

Automate Where Possible

Use tools to handle repetitive tasks automatically.
Keep an automated eye on following the rules.
Set alerts for when numbers hit certain points.

Even with limited resources and strict rules, cannabis businesses can still grow by building strong relationships with customers. By focusing on the numbers, you’re setting yourself up for success.

How is lead nurture success measured?

To figure out if you’re doing a good job with lead nurturing, look at things like:

Conversion rate: How many of your nurtured leads actually end up buying something? You’re aiming for 10-30%.
Cost per lead: How much do you spend to get one lead through nurturing? You want this to be low.
Revenue per lead: How much money does each nurtured lead bring in? More money is better.
Time to convert: How long does it take for a nurtured lead to decide to buy? You want this to happen quickly.

By keeping an eye on these numbers, you can see how well your nurturing efforts are working and make them better over time.

What are the statistics for lead nurturing?

Some important numbers about lead nurturing:

Leads that are nurtured buy 47% more than those that aren’t (DemandGen)
Businesses that are really good at nurturing get 50% more sales-ready leads and it costs them 33% less (Forrester)
Just a small 3% increase in conversion rates can boost revenue by about 10% (Aberdeen Group)
Using tools to help with nurturing leads to a 451% increase in qualified leads (Annuitas)

These numbers show that good lead nurturing can lead to more sales, faster deals, and better returns on investment.

How do you measure success of lead generation?

To check if lead generation is working well, track things like:

Cost per lead – You want this to be low
Lead conversion rate – The percentage of leads that turn into customers
Click-through rate – The percentage of people who click on links or calls to action
Bounce rate – You want fewer people leaving quickly
Traffic volume – More people visiting your site
Lead quality – How well the lead fits your target and how much info they give

Set targets to improve these metrics. Look at what’s not working well and make it better.

What is lead nurture scoring?

Lead nurture scoring is like giving points to leads based on what they do and their information to see if they’re ready to buy. Things you might score them on include:

Opening emails or clicking on links
Visiting important pages on your site
Downloading content
Filling out forms
Asking for a demo
How well they match your ideal customer profile

Leads with higher scores are more ready to buy, so you can focus on them. Scoring helps you tailor your messages better and can lead to more sales.