More Revenue for Cannabis by Understanding Your Audience

Understanding your audience is key to generating more revenue in the cannabis industry. By knowing what your customers want and how to communicate effectively with them, you can boost sales and build loyalty. Here’s a quick rundown of what you need to know:

Why Audience Understanding Matters: It helps tailor your marketing, identify your best customers, and stay ahead of trends.
Common Pitfalls: Without audience insights, you risk ineffective messaging and missed sales opportunities.
Demographics and Preferences: Different age groups and locations have unique cannabis preferences.
Segmentation Strategies: Break down your audience by demographics, geographic location, behavior, and psychographics for targeted marketing.
Engagement Tips: Use surveys, monitor social media, and analyze search data for actionable insights.
Loyalty Programs: Reward repeat customers to encourage retention.
Marketing Adjustments: Tailor your strategies to different audience segments for better results.
Event Selection: Choose events that align with your target audience for maximum impact.

By focusing on these areas, you can create more effective marketing campaigns and foster a loyal customer base, ultimately leading to increased revenue.

Ineffective Messaging That Doesn’t Resonate

If you’re not sure what your customers care about, your ads and posts might not hit the mark.
Imagine a store saying their weed is "top-notch" without realizing people actually want quick relief from pain. That’s why sales aren’t picking up.
Making ads that speak to what customers really want can help you sell more.

Low Engagement Rates on Marketing Campaigns

If you try to talk to everyone the same way, fewer people will pay attention to your emails or ads.
A brand talked a lot about fighting for rights, but only a few people on their email list cared about that. So, most people ignored these emails.
Focusing on what certain customers are into can make your campaigns work better.

If you’re not watching how your customers’ tastes change, you might miss out on giving them what they now want.
For instance, a store noticed their regular buyers started liking CBD for stress. They made a special rewards plan with CBD perks, matching this new interest.
Keeping an eye on what your audience likes lets you find new ways to make more money.

The bottom line? Not knowing your cannabis customers means you could be missing out on making more money. Getting to know them better gives you a big advantage.

Key Cannabis Consumer Demographics and Preferences

Understanding who buys your cannabis products is super important for talking to them the right way and selling more. Let’s look at who these customers are and what they like, so you can connect with them better.

Colorado

In Colorado, here’s who’s buying medical and fun-use cannabis:

Medical

Gen Z: 17%
Millennials: 42%
Gen X: 23%
Boomers: 17%
Silent Gen: 1%

Recreational

Gen Z: 17%
Millennials: 48%
Gen X: 21%
Boomers: 13%
Silent Gen: 1%

What this means:

Most people buying are Millennials, especially for fun.
Gen X buys almost the same amount for both uses.
A good number of Boomers are getting medical cannabis.

This tells us we need to talk to all ages but focus a lot on the younger folks, using different ways like online and in stores.

California

Who’s buying cannabis in California looks like this:

Medical

Gen Z: 27%
Millennials: 37%
Gen X: 18%
Boomers: 17%
Silent Gen: 1%

Recreational

Gen Z: 19%
Millennials: 49%
Gen X: 18%
Boomers: 13%
Silent Gen: 1%

What this means:

A lot of young people, Gen Z, are using it for medical reasons.
Almost half the people buying for fun are Millennials.
There’s a difference in who buys for medical reasons versus just for fun.

This shows we need to make sure we’re speaking directly to what people need, whether it’s for health or just to enjoy, and keep focusing on the younger crowd.

The Power of Audience Segmentation for Cannabis

Audience segmentation means breaking down your customers into smaller groups that share similar things. This is a smart move for cannabis businesses because it lets you:

Send messages that really speak to each group
Use your marketing budget more wisely
Build better relationships with your customers

You can split your cannabis audience in several ways:

Demographic Segmentation

This is about dividing customers by things like:

Age
Gender
How much money they make
Where they live

Then, you can reach out to different age groups or income levels with stuff that’s just right for them.

For example, you might show fancy products to people with more money in big cities and great deals to college students.

Geographic Segmentation

This involves grouping customers by:

City
State
Area of the country

Change your messages and products depending on where people live.

For instance, talk up indoor growing to folks in the Pacific Northwest and outdoor growing to those in California.

Behavioral Segmentation

This means looking at how customers act, like:

What they’ve bought before
Their budget
What kind of cannabis they like
How they shop

Use this info to make smart marketing moves.

For example, offer special deals on concentrates to people who always buy them or show newbies good starter products.

Psychographic Segmentation

This is about dividing people by their:

Lifestyle
Attitudes
Beliefs
What they’re into

Connect with different kinds of people by understanding what’s important to them.

For example, promote health products to those who care about wellness or special items for real cannabis fans.

Best Practices

Here are some simple tips for doing audience segmentation the right way:

Keep groups big enough

If a group is too small, it won’t tell you much. Try to have at least 50 people in each one.

Make up buyer personas

Create fake profiles of your typical customers using real data. This helps you figure out how to talk to them. Include stuff like where they live, how old they are, and what they buy.

Be cool about privacy

Always keep customer info safe and don’t use it in bad ways. Be clear about how you’re collecting and using their data.

Check how your campaigns are doing

Use tools to see which groups are really getting into your marketing and buying stuff afterward. Then, tweak your approach as needed.

Breaking down your audience into smaller groups takes effort but really pays off. With the right data, you can create marketing that really hits the mark and brings in more sales.

Actionable Consumer Insights

To make more money in the cannabis business, it’s important to know what your customers want. Here’s how to get the inside scoop:

Conduct Surveys and Interviews

Ask your customers questions online to learn about what they like and what bothers them.
Talk to people in groups or one-on-one to get deeper insights.
Give them something like a discount or a chance to win something if they help out.

"Asking customers directly helps us understand their needs better. Sometimes they share ideas we never thought of." – Store Manager

Keep an eye on what people say about you on websites and social media.
Use tools to see what words and topics come up a lot.

"We noticed a lot of people asking if our snacks were vegan. So, we started making vegan snacks, and they were a hit." – Product Manager

Attend Industry Events

Go to cannabis events to meet customers face-to-face.
Give talks or host events to teach people about cannabis.
Listen to what people say they need or want.

"Talking to people at events helped us come up with new product ideas that really meet their needs." – Business Owner

Analyze Search Data

Use online tools to see what cannabis-related things people search for.
Make content that answers common questions.
Make sure your website and ads use the words people are searching for.

"We got more people to visit our website by making sure our content matched what they were searching for." – SEO Specialist

Loyalty and Retention

Having a loyalty program can make customers keep coming back. Here’s how to make a good one:

Offer Points and Rewards

Let customers earn points when they buy something, which they can swap for discounts later.
Give bigger rewards to people who spend more.
Surprise loyal customers with free stuff sometimes.

Create a Brand Community

Use emails and social media to build a community.
Get customers to share their experiences and talk about your brand online.
Give loyal customers first dibs on new products.

Personalize the Experience

Use customer data to offer deals that match their interests.
Send special offers on their birthdays or based on what they buy.
Remember their names and what they like when they come to your store.

"We’ve kept more customers by making our loyalty program more personal. It’s all about showing them we value them." – Sales Manager

Knowing and rewarding your loyal customers is important for keeping them and making more money in the long run. Tailored programs show customers you care and encourage them to keep supporting your brand.

Tailoring Marketing Strategies to Audience Segments

When we talk about getting our marketing right for different groups of people who buy cannabis, it’s all about making sure our messages and products really speak to them. Here’s a simple guide on how to connect better with various age groups:

Appealing to Gen Z

Talk about how your business does good things for the planet.
Use real, natural pictures and bright colors in your posts.
Make sure you’re active on TikTok and Instagram.
Show them new and creative things you’re doing.

For example, you could share stories about how you grow plants in a way that’s kind to the Earth.

Attracting Millennials

Let them know your products are top-quality and safe.
Talk about the different and new kinds of products you have.
Work with popular people on social media to show off your stuff.
Give points or rewards when they keep buying from you.

You might try teaming up with someone well-known in your area to show off a new flavor or product.

Engaging Gen X

Give them lots of info about your products.
Talk about how your products can help with health issues.
Keep your brand looking smart but not too flashy.
Make buying easy with services like home delivery.

You could create a guide on how CBD can help ease pain and share it online.

Reaching Baby Boomers

Show that you really know your stuff.
Make guides or videos to help them learn.
Think about ads in newspapers or on the radio.
Offer discounts for older folks and make sure your store is easy to get around in.

An idea could be to put an ad in a local paper about a class you’re holding to teach seniors about the benefits of cannabis.

The main point is to figure out what each group likes and to use that knowledge to make your marketing hit the mark. Trying different ways to see what gets each group interested is a smart move. Always keep an eye on which ads or products get the most attention from each group.

Choosing Events to Reach Your Audience

Picking the right events to show up at is key if you want to really connect with the people who might buy your cannabis products. By choosing wisely, you can get your brand out there, find new leads, make business friends, and learn straight from your customers what they’re looking for.

Assessing Event Relevance

To figure out if an event is a good fit, look at who’s going to be there and what the event is all about. Here are some things to check:

Industry composition – Is the crowd more about businesses or everyday buyers? What parts of the market are showing up?
Company size and type – Are big companies or smaller ones attending? Could they be potential partners or customers?
Consumer demographics – Do the people coming to the event match up with who buys your products?

Also, take a look at what’s happening at the event:

Agenda and sessions – Are there talks or workshops that fit with what you’re interested in or offer?
Exhibit showcase – Can you show off what you sell or do?
Networking events – Will you get the chance to meet new people who might want what you have?

Go for events where you’ll have real chances to engage with the right crowd. Avoid going to ones that don’t really match up with your goals.

Defining Success Metrics

Know what you want to achieve, and then decide how you’ll measure success, like:

Valuable connections made – How many people did you meet that could turn into customers or partners?
Leads generated – Did you find any new business opportunities?
Consumer feedback – What did people tell you about your products?
Partnerships initiated – Did you find any potential for working together with other businesses?
Exposure created – How much did people talk about your brand online during the event?

Keep track of these things during and after the event to see how well it went. Use what you learn to make your next event even better.

Maximizing Booth Effectiveness

How you set up your booth is super important. Make sure it lines up with what you’re there to do.

For consumer engagement:

Be creative in showing your products
Offer deals
Make sure people have a great time at your booth

For business development:

Make your services clear
Have a spot for talking business
Stand out by showing what makes you different

For thought leadership:

Share your knowledge through reports or talks
Give out useful info like industry guides

Think about what you want to achieve and set up your booth to help you do that.

ProTip: Give different team members specific jobs like talking to customers, looking for business partners, or showing off your brand to make the most of the event.

With careful planning, picking the right events, and having a solid booth setup, you can really help your cannabis business grow.## Success Stories

To grow a cannabis business, it’s not enough to just offer great products. You also need to really understand who’s buying from you and what they care about. When you nail this, it can lead to big wins.

Here are some real-life examples of cannabis businesses that boosted their sales by getting to know their customers better and tailoring their approach to meet those customers’ needs.

Focused Messaging Lifts Struggling Edibles Brand

Suzie’s Edibles, a known brand in California, was having a hard time keeping up with new competitors. Their sales weren’t growing because they kept using the same old marketing messages.

After they asked their customers some questions and looked at social media, they found out that health-conscious women between 30-50 years old liked their products the most. These customers were looking for tasty, low-sugar snacks that helped them relax.

Suzie’s came out with a new line of low-sugar gummies designed for relaxation. They specifically advertised these to women in that age group on social media, focusing on wellness. Their sales went up by 23% in just 6 months because they finally got their message right.

Dispensary Doubles Revenue Through Local Marketing

Steve’s Dispensary mainly served college students close to their location in Colorado. But the owner noticed that many local adults were shopping elsewhere.

By analyzing customer data and chatting with shoppers, Steve created profiles for local Gen Xers and Boomers. He found out they were looking for high-quality, medical-grade products at a good price that were easy to buy.

Steve offered special deals for locals, improved his range of medical products, and advertised in local newspapers. Within a year, his revenue from local customers doubled because he tailored his offerings to meet their needs.

Partnership Marketing Attracts New Audience

Mary and Jane sold trendy cannabis accessories aimed at young women. However, they found it tough to reach beyond their small boutique customer base.

They decided to sponsor yoga classes at local studios to reach health-conscious women. By surveying these women, they discovered their new customers were stylish, busy moms looking for products to help them unwind.

Mary and Jane then created a line of yoga-themed relaxation products like bath bombs and journals. Their studio partners helped promote these to their email lists, allowing Mary and Jane to tap into this new market and increase their revenue by 29% in three months.

The lesson here? Taking the time to understand who your cannabis customers are and what they want can lead to new ways to meet their needs. Investing in learning about your customer segments can lead to better products, more effective messages, and exciting partnerships that bring in new buyers. Get to know your customers, and you’ll see your sales grow.

Conclusion and Key Takeaways

Understanding your cannabis customers well helps you make better choices that increase your sales. By knowing who your audience is and shaping your marketing just for them, you can:

Send messages that really speak to different kinds of customers
Spend your marketing money more wisely by focusing on the customers who are most likely to buy
Keep customers coming back by giving them what they really want
Find new ways to sell more by discovering what customers are missing

In the fast-paced world of cannabis, the businesses that do the best are those that listen to their customers and give them what they want.

Here are the main points for using what you know about your audience to grow:

Learn about your customers

Use data to figure out who your buyers are, including things like their age, gender, and what they’re into. This info helps you target your marketing better.

Create customer profiles

Make up profiles for different types of customers based on your data. Think about what they like and need. This helps you know what to say to them.

Try out and tweak your marketing

Make marketing campaigns for these profiles and see how they do. Look at things like how many people open your emails or buy something. Change your approach based on what works.

Keep an ear to the ground

Always be listening through surveys, talking to people, checking online reviews, going to events, and keeping track of social media. Keep learning and adjusting your plans.

Take care of your best customers

Find out who your most loyal customers are and make them feel special. Offer them exclusive deals or early access to new products.

As more and more businesses enter the cannabis market, connecting with your customers in a meaningful way can set you apart. Stay up-to-date with what your customers want, and you’ll be in a great position to turn those insights into more sales.

What is a cannabis sales strategy?

A good cannabis sales strategy includes:

Sharing what your brand stands for and why it’s special
Showing off the high quality and realness of your products
Creating trust and strong connections with your customers

Some ways to do this are:

Having a loyalty program to keep customers coming back
Sharing knowledge to show you’re an expert
Working with popular people online to get more people to notice you
Selling in different places like stores, online, and at events

The main idea is to make sure people know what makes your brand different by sharing stories and experiences they care about.

What is the most profitable niche of the cannabis market?

The parts of the cannabis market making the most money include:

Medical cannabis – A big, growing area that helps patients
CBD products – A wide range of health products that lots of people like
Cannabis education/consulting – Helping businesses understand complicated rules
Cannabis tourism – Fun activities and services for people who enjoy cannabis

Picking a less crowded area can help new businesses do well.

What are the advertising strategies for cannabis?

Important ways to advertise cannabis include:

Loyalty programs – Giving rewards for buying again
Text message marketing – Talking directly to customers
Referrals – Encouraging happy customers to tell others
Social media – Creating a community of fans online
Native ads – Paying to blend your ads into the look of where they’re shown
Local ads – Focusing on customers in a specific area

Using a mix of different ways to reach people is best, especially when there are rules about how you can advertise.

What is a good profit margin for cannabis?

Research shows that most cannabis stores make 12% to 15% profit. Stores with a strong brand, loyal customers, and smart spending can make up to 20% profit. But new businesses should aim a bit lower while they’re still getting started. Keeping costs down in a business with lots of rules is important for making money.