Welcome to CBD Marketing Hub’s digital marketing series, created to provide an inside look at powerful CBD customer conversion tools. This week’s focus is email marketing. At pennies per unit and current CTRs averaging 2 to 3.4 percent, emails represent one of the most cost-effective ways for CBD brands to reach consumers today.
The only thing getting opened more than refrigerator and pantry doors in homes these days are its digital screens.
At the epicenter of everything — from homework, homeschooling and home health to home shopping — our dwellings have become digital gateways to what global management behemoth McKinsey labeled America’s new “homebody” economy.
It seems as if absolutely everything has moved online. In some households, it nearly has.
Home has become the digital command center — and the shift from offline to online has been dramatic.
“That (shift) makes eCommerce the new battleground,” says Bethany Gomez, the managing director of the Brightfield Group, a consumer insights and market intelligence firm that serves the CBD and Cannabis industry.
There will be casualties, according to Gomez, who predicts the CBD market will consolidate from 3,500 to 1,800 companies by year-end.
Now that consumers are in month three of COVID-19 related mandates, it will be harder than ever to hit the off button.
As digital muscle memory improves, it’s only logical that consumer practices morph and become more deep-seated consumer patterns.
With eCommerce growth estimated to exceed 18 percent in 2020 (eMarketer), it’s critical for growth-oriented CBD companies to get behind the demand for click-and-collect, curbside pick-up, and online shopping services, and a growing audience of online shoppers 65 and older.
Getting there will require finesse, as well as a longer-term view of the market.
The bottom line for CBD brands is “ be in it to win it.”
CBD marketing, which has been more fluid and dynamic, will require more patience and persistence.
Homebound consumers have had time to do their homework and are becoming more decisive.
Our proprietary CBD trend tracking monitor reveals that the shelf life of the average email promotion is shortening.
Consumers are making decisions within three to five days of drop dates, which signals the need for brands to plan additional CBD promotions to stay top-of-mind with top and middle funnel buyers.
Bottom funnel buyers are moving at warp speed.
Our internal performance data confirms that price-sensitive CBD buyers are making decisions more quickly than ever before.
That means brands need to nail consumer messaging and price points.
For younger brands, the market requires more A/B splits, designed to test messaging and price points, as well as a higher placement frequency to stay in front of consumers bombarded with attractive options from CBD companies with greater consumer brand recognition.
More mature brands cannot rest on their laurels either. They need to amp up promotions, tighten consumer messaging and make inroads in untapped consumer markets to defend and grow their market position.
A number of the largest brands need to further differentiate themselves and establish a clear value proposition for multiple product lines and consumer segments.
“Selling CBD to everyone” in this market translates to selling to no one. The generic CBD customer lane leads to a dead end.
Trend lines are becoming more apparent among the top CBD brands and include:
Relevance matters. Consumers are more likely to engage with brands that create a pleasant user experience.
With half of all U.S. consumers reporting that they have spent more time-consuming content than ever before, shouldn’t we make the experience more relevant and engaging?
Editor’s Note: Performance is important. If you would like to learn more about the efficacy of email and other CBD marketing campaigns visit our results page, or contact us at email@example.com.
Disclaimer: The CTRs referenced in this series lead-in are reflective of aggregated 2020 email campaign results collected by CBD Marketing Hub. Individual campaign results may vary based upon offer strength, messaging, and competitive activity.