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Cannabis Marketing ROI: Predicting your Returns
Of course everyone wants to know exactly what they are getting in return for handing over their money, from big businesses to the little guys. We want straightforward figures and dependable, secure, guarantees. It makes sense to want to be able to predict growth and make investments based on water-tight data, as few of us have the luxury of spending cash haphazardly. Here’s our guide to predicting cannabis marketing ROI.
The cannabis and CBD industry could very well be the fastest growing industry we’ve seen, and with so many obstacles in the way making it a more costly industry to market, it’s even more important to keep an eye on CBD marketing spend and making it work harder for less.
When it comes to guaranteeing cannabis marketing ROI (Return on Investment), however, those that are in the know are all too aware of how difficult making such guarantees can be. That is not to say that creating methods for gauging and estimating ROI is futile; on the contrary, it is a crucial aspect of running a business and entirely necessary. Instead, what needs to be addressed, is the reality that if you are being guaranteed a specific ROI, you are either being misled, or your marketing hook-up is a legitimate clairvoyant; ultimately, there is always a plethora of variables outside of one's knowledge and control.
The Strategic Element
In other words, marketing ROI is not a simple X+Y=Z predictive formula, but it is a fundamental (and we think very exciting and interesting) aspect of the business world that relies heavily on employing effective strategies. Actually, the unstable and thrilling nature of ROIs means that it is even more important to work closely with professional marketing experts, who know your industry and your goals and dreams, so you can make investment choices that are based on these intelligent and successful strategies.
Having a strategy in place is key before you can get an idea of a ROI. Time, here, is most wisely spent on allocating budgets to specific channels, so an educated prediction of likely possibilities can be established. Utilising a well-respected marketing company can make all the difference; a good marketing company will provide a transparent service that delivers factual and elegant strategies, based on controlled variables, which can be used to make logical and statistically-sound predictions.
Unrealistic Expectations & True Guarantees
As consumers, we have unrealistic expectations pretty much all the time. We want to be promised that the thing we are spending money on will be exactly the thing that we need/want, and that we are getting good value in exchange. But when it comes to guaranteeing a concrete marketing ROI, this is frankly unrealistic.
Some of the true guarantees that a marketing expert can, and should, make are:
- Expertise and experience
- Building trust
- Being as transparent as possible regarding options, rights, and processes
- Proof via the provision of references of previous customers and documented instances of success
- Provision of an intelligent, responsive, empathetic, and proactive customer service
ROI figures are really only a dead-cert following on from a marketing campaign. They will serve as guides on where the 'leaks' are in a certain campaign and set a benchmark for future improvement. A skilled marketer should be able to predict an estimate ROI prior to a campaign, once the allocation of a set budget, the target audience, and the type of marketing channel being used is known. Using a nifty ROI calculator like this one will help you work out your ROI when all your spend and investment figures are to hand.
Know What You Are Working With & Work It
As we've covered, it is no simple task to generate an estimate for revenue based on marketing campaigns, as ROI also depends on how well your website works, how appealing your offering is, and the conversion strategy you want to use, along with how well you communicate with your target audience.
Marketers understand the finer points of ROI, and an especially talented marketeer, when they know exactly what they are working with, will be able to join all the dots in order to be able to provide fairly sound insights into a company's ROI and locate the areas that are worth pushing and the ones that aren't.
More From the C Word...
The UN calls for a ban on cannabis advertising in all member states. Canna-brands are seeing it as a kind of death knell for the industry…
The Novel Foods Regulations 2018 are a set of rules introduced by the EU to protect consumers from potentially dangerous foods and ingestible substances. What do the rules require of CBD companies?
Thanks to the nominations and the judging panel at Global Health and Pharma, we’ve been awarded the Best Cannabis Digital Marketing Specialists – UK, for 2020!
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