Market Authority Explained
In both booming and up incoming cannabis markets it can be a challenge for brands to stand out in the sea of green. It is important for all licensed cannabis businesses including dispensaries, growers, and processors to establish brand and market authority.
Vertically integrated companies do have the leg up in this area, especially if they can operate effectively in multiple states. The United States economy has taken a hit compared to the days before covid-19, but the cannabis industry continues to grow, and many companies are fighting to become an industry leader to claim their share of the multi billion dollar market.
How do cannabis companies dominate like Cookies, Cresco Labs, Curaleaf, and Trulieve?
These groups either have strong brand authority or dominate market authority. The big leagues have mastery over both.
Cannabis entrepreneurs aim to achieve market authority in order to accomplish these goals:
- Grow a profitable brand in order to sell it for a huge return.
- Buy as many profitable brands as possible in order to command the market share.
- Grow a vertically integrated brand that will stand the test of time and impact the world.
There are 3 paths to achieving one or more of these goals.
- Crush the Competition
- Establish Exclusive Partnership Opportunities
- Grow an immense amount of revenue – generate more revenue opportunities
Market authority is in part a combination of 2 building blocks, brand authority and capital. In order to establish the credentials of “industry leaders” a cannabis organization must focus to maximize 5 areas of their business. Let’s dive deep into the 5 elements that will improve the 2 main building blocks for cannabis market authority:
- Public Perception
Let’s start off with the most important element of market authority, public perception. Obviously your cannabis brand’s mission and value is important, but the ideas and beliefs that the public associates with you are more powerful and impactful on your business.
We live in an Uber connected world. People can share and voice their opinions like never before. We have zero control of what others think, but we do have control of our actions.
Make sure your cannabis brand has a positive PR locally, nationally, and globally.
Don’t grow, sell, or process boof cannabis. It will kill your PR. Having a high quality product will help you retain shelf space and fans. This is not an obvious statement. There are a few cannabis executives that really believe that cannabis is a total commodity – meaning the only difference in products is price.
You cannot just pack any cannabis flower up in a desirable package and continue to get sales in the long run if the product in the package is mid.
Make sure your cannabis products are high quality even if you have to sacrifice some quantity. It is important to sell fire, but also have the positive reputation behind the amazing product.
Whether you’re a cultivator looking for retail shelf space or a dispensary providing directly to the cannabis user, it is important to have a system that can deliver the expected transformation or results that your customer expects.
Having a streamlined system will open up more sales opportunities and ensure that your product qualifies and can live up to the PR hype.
You don’t want your cannabis company to be that one group that does not keep up with industry protocols or deliver a premium customer experience.
What is the reason, the “why” of your cannabis company? Cannabis companies have to be able to deliver their core values, mission, and story to their customers. People are loyal to brands that they trust.
Name, logo, colors, and verbiage are all important components of a brand. Cannabis brands must be able to deliver their message through these components. Your company name and logo should represent your story and beliefs.
This area of your business must be optimized and then nurtured to be effective in the long run. Your brand is the glue that holds your PR, product, and system together.
When all of the following areas of your business come together, then you will start to generate a fanbase. Once the public has a positive perception of your brand, system, product, and your loyal following then you’re ready to start nurturing all 5 areas, and cultivating a strategy to take your brand to the next level.
The challenge will be your limited reach due to geography, brand awareness, maximizing word of mouth, and engaging with your fanbase.
How to Establish Market Authority
You may not be surprised where I’m about to take this topic. The quickest, most effective way to get to the pinnacle of market authority is to optimize your cannabis brand online.
The internet has connected humans on a different level. Don’t leave millions on the table by ignoring the fact that technology is king, and will only continue to grow.
In order to establish the capital and brand authority needed to command your market you much grow the the 5 areas mentioned above using these digital marketing strategies:
- Website Optimization
- Content Enhancement
- Sales enrichment
- Data analysis/Strategy
To expand your reach far beyond your physical location, cannabis companies have to get some digital real estate. Having a beautifully designed responsive website will go a long way.
Read more about website optimization here.
Once your website is up and running integrating your website with your inventory and POS will be key if you want to take advantage of “order online pickup in store” services. Hopefully your website was built to be SEO friendly. The big part of website optimization is to continue to improve your SEO campaign.
Reputation management becomes far easier if you add it to your SEO process. Cannabis companies must harness the power of testimonials and the press. Use your website, Google, and social media accounts as a delivery channel to display the positive love the public is giving your products.
Benefits of Website Optimization:
- Expand your reach
- Improve your brand awareness
- Drive qualified traffic to your website
- Convert more sales
- Improve PR
- Optimize your system.
Social media marketing, SEO, and email marketing are a great way to grow and retain your customer base. You have to engage their following with useful or entertaining content in order to nurture them into sales.
Content is the centerpiece of cannabis digital marketing. You will grow your following only if your content is up to par. Digital marketing with bad content is like hanging a joint with no way to light it up.
Blogging, graphic design, video marketing, and podcasts are the most effective ways to engage your customers on digital platforms. Focus on cannabis education, lifestyle, and culture. Add value beyond your products. Show customers how to best use cannabis as a medicinal or recreational purposes.
Customers love to learn about new delivery methods and tips about how to upgrade their cannabis experience.
Benefits of Content Enhancement:
- Increase social media interactions and mentions
- Drive more traffic to your website
- Improve website stickiness
- Convert emails and SMS text into sales
- Generate a following
- Go viral online
- Become a information plug
- Increase brand awareness and authority
In the cannabis industry B2C and B2B sales are essential for producing revenue. Why would you not optimize your sales process? A good plug knows how to use digital and traditional channels to convert leads into sales.
Cannabis brands without retail license have to add value at the point of sales in order to move product and retail shelf space. You can learn more about cannabis B2B sales here.
Vendor days, patient education events, and bud tender training are becoming a must in established cannabis markets. Your brand must be able to effectively sell products through the dispensary to the customers. Make sure to use this time to hand out merchandise and push your digital marketing channels.
Email marketing, text message marketing, and geofencing will improve your cannabis dispensary customer retention rates – which will ultimately increase sales.
Have mastery over these channels and leverage video as much as you can and your sales conversion will always perform well. Influencer marketing is a bonus marketing strategy that can impact sales tremendously.
Benefits of Sales Enrichment:
- Create more revenue opportunities
- Improve customer retention
- Establish exclusive partnerships with vendors and dispensaries
- Increase capital and earnings
- Improve brand awareness
Data Analysis and Marketing Strategy
After you have taken the time to grow your business with these digital marketing strategies you must track and record the data you collect. You will learn a lot of vital information about how and why your customers buy your product.
Use this data to make informed decisions that will continue to grow your cannabis business. Making decisions to unclog your sales funnel by improving user experience and performing conversion rate optimization can be considered the most important element of brand optimization.
Cannabis Brand Optimization Agency
At Dagga Digital Marketing we specialize in helping cannabis brands optimize their brand online in order to help them establish market authority. Our clients use that authority to generate revenue opportunities and establish exclusive partnerships that help them scale their cannabis businesses.
Request a free consultation with a cannabis brand expert to create a custom game plan to take your brand to the next level.