gary allenThe budtender follows the grand tradition of bartenders, sommeliers, and other tastemakers guiding consumers toward positive and memorable experiences. But in today’s omnichannel world, brands need to prioritize mobile as the foundation of an omnichannel mix.
Mobile has led the way in consumer engagement for more than a decade, and the patchwork U.S. cannabis marketplace relies on mobile devices even more. Online and in-store promotions offer more ways to engage consumers, and the brands that deliver consistent, targeted messages across as many channels as possible can lead. As markets evolve quickly, brands continue to emerge and consumer behavior keeps shifting, marketers must engage consumers across the right channels at opportune times.
Consider recent increases in the number of Americans using cannabis, their likelihood to buy from legal sellers, and how much they spend:
- 11.7% of U.S. adults now use cannabis monthly, up from 8.8% in 2018 (2021 Cannabis Consumer Evolution)
- 56% of U.S. cannabis consumers now source their cannabis from brick-and-mortar stores or delivery services, up from just 35% in 2018 (2021 Cannabis Consumer Evolution)
- 59% of U.S. cannabis consumers spend $100 or more per purchase, and 60% consume at least once/week (Equio).
Multi-channel = Omnipresent
An omnipresent strategy applies multi-channel marketing to deliver the right messages with the right media to attract the right consumers at the right times and can help brands rapidly generate the return on ad spend they seek. These principles have guided marketers of everything from apparel to office products and more for years, and cannabis marketers need to engage consumers where and when opportunities present themselves in much the same way.
A growth-oriented, omnichannel model includes:
- Spend 50% of your media mix on proven marketing channels that deliver the best ROI
- Spend 30% on emerging channels projected to be future top-performing channels
- Spend the other 20% on experimental investments that could surprise and delight
Omnipresent strategies work
Consumers respond well when brands interact with them across an array of channels. When marketing campaigns integrate three or more channels, compared to single-channel campaigns, for example, they generate:
- A 287% higher purchase rate (Omnisend, 2020)
- 250% more engagement (Omnisend, 2019)
- 90% more customer retention (Omnisend, 2019)
Different channels for different objectives
For cannabis brands and dispensaries to build market share, increase the likelihood of positive consumer experiences, and drive sales, they should commit to using consistent messages across a broad omnichannel approach that includes:
- Online channels: Digital marketing, digital out of home networks, connected TV, and others help marketers introduce brands and generate consideration.
- Mobile channels: Listing services, customer and fulfillment order queues, mobile advertising, and other channels reach consumers around the clock, during downtime, when actively shopping, etc. Marketers use these channels to educate consumers in every stage, from discovery to post-purchase.
- In-store resources: Budtenders, point of sales promotions, interactive kiosks, and television and drive-thru menus can reinforce messages and convert prospects into buyers. On average, consumers spend 20.5 minutes/visit (dwell time) in dispensaries, and brands have much to gain from these in-store branding opportunities.
- Loyalty programs: text, email and other promotions encourage repeat visits and purchases.
Start with multi-channel inputs
Effective omnipresent campaigns start with insights related to cannabis sales, consumer behavior and more, and marketers should insist on having multi-channel inputs in place at the top of the funnel to inform their media mix and marketing investments. Relying solely on point of sales data from retail dispensaries alone, for example, can misinform educational efforts and even lead to misunderstanding some of the most basic details required to get the right messages to the right consumers through the right channels at the right times.
Consumers seek out information, products, brands and more, and marketers who understand what information is needed, where and when are well-positioned to be there for them. When successfully choreographed, these omnichannel education campaigns are not only rewarding for brands, they also create positive experiences for consumers and retailers.
Gary Allen is CEO of New Frontier Data and is well known for his accomplishments in marketing technology. Gary has led development of technologies over the course of his career that were later acquired by Google, DoubleClick, Kantar Media and other leading technology businesses. Contact Gary’s team at [email protected].
