CBD-Specific Marketing Strategies

CBD Market Insights

Is the CBD business right for you?

There are a lot of moving parts to any business, but to create a CBD business that will weather current and future challenges there are a few important industry-specific considerations to consider. Possibly the most important first step to be successful in the CBD industry is to have a genuine interest in the uses and benefits of CBD and in learning all you can about it.

 

Once you’ve determined that this is the right business for you:

Research, Research, and Then Research Some More

Learn everything you can about CBD and the CBD industry.

  • Know the science of CBD

    Exciting research into CBD’s potential health benefits is taking place. Keep up with the latest studies and research trends. This information can inform your product development and marketing efforts. New information is becoming available on an almost daily basis about health benefits and the pros and cons of various delivery methods.

  • Determine your point of entry into the CBD market

    Calculate startup and overhead costs for various types of CBD businesses. Your lowest cost of entry will be to grow your own hemp and process it into CBD. Alternatively, for a faster startup you can partner with a farmer. Faster yet, find a reputable distributor that has already completed the initial phases of sourcing high-quality hemp and processing it into market-ready CBD extracts.

  • Determine your target market

    CBD can be used by nearly everyone. Decide if you want to specialize in marketing to a particular segment of the population or if you prefer to be a generalist in your product orientation.

  • Know your manufacturer

    learn as much as you can about each manufacturer’s processes and procedures before deciding who to contract with. Find out what services they provide and what services you will have to find elsewhere or make arrangements to fulfill yourself. Make sure you are satisfied that they are following all state and federal regulations.

  • Learn about wholesale purchasing

    Does the manufacturer provide warehousing and offer drop ship services? This saves you a lot of money in not having to purchase or rent your own storage facility and maintain stock.

Want to Become a Partner?

Click here to become a distributor or inquire about how UBIX can assist with developing your CBD products.

Stay Compliant

The 2018 Farm Bill legalized hemp and CBD on the federal level. However, oversight of the industry continues under the FDA, which places the agency squarely in the middle of a regulatory quagmire trying to determine how to regulate CBD in light of incomplete science as well as balance the interests of both the supplement manufacturers and supplement-consuming public and the proprietary drug development aspirations of the pharmaceutical industry.

To prevent inadvertently stepping into regulatory gray areas (and there are a lot of them) Business News Daily recommends avoiding emphasizing specific CBD health benefits in your marketing materials. These are more likely to trigger warnings and punitive actions, at least until the FDA formulates clear regulatory guidelines.

The best way to FDA-proof your business is simply to offer the highest quality products on the market. USDA organic certification and Good Manufacturing Practices certifications are good insurance policies in this regard. Also, use third-party independent lab testing to prove your purity claims. And, to make it easy for consumers to vet your company, provide QR codes on each bottle. This way potential customers can confirm the quality and reliability of your product while they are in purchasing mode.

CBD Marketing StrategiesCBD-Specific Marketing Strategies

Though brick and mortar CBD businesses are beginning to appear in many towns and cities most CBD shoppers do their product research and purchasing online. Having an attractive and well-designed website is key to a successful CBD business.

Maintaining consistent blog and social media posts will raise your visibility and cultivate your customer base. Share your knowledge with your consumer base through educational articles, blog posts, and videos. An educated consumer is a loyal consumer. The educational aspect will help change longheld misconceptions and the added value will foster trust and loyalty in your company and products.

Once your well-designed, user-friendly website is up and running, here is a checklist of ways to make it work for you:

  • Pay attention to who is responding and commenting on your social media and what they are saying.
  • Solicit feedback from your customers. This can inspire loyalty, head off any potential problems, and provide you with valuable data for future marketing endeavors.
  • Share your story and your inspiration for being in the CBD business. Particularly if your decision grew out of a personal experience or the experience of a family member or close friend. Likewise, encourage reader engagement. When people can share their stories they will bond with your company.
  • Be prepared for potential online advertising speed bumps. According to Business News Daily, social media advertising is “virtually nonexistent” and paid ad placements may result in your account being suspended or altogether banned. The main players, such as Google and Facebook, are forming their advertising algorithms around this brand-new industry practically in real time and they make their own rules when it comes to advertising. As a result, even your most well-designed, FDA-compliant ad may or may not pass muster or could be pulled at any given time.
  • Provide world class customer service. There is an inherent anonymity and lack of personal contact in online shopping. Providing a personal touch in an increasingly digital world will make a big impression. Find out-of-the-box ways to make your customers’ experience meaningful and memorable.

Want to Become a Partner?

Click here to become a distributor or inquire about how UBIX can assist with developing your CBD products.