Although it often feels we’re still in the infancy of the CBD industry, there are already a lot of companies not putting their best foot forward. Even though this is becoming an incredibly popular industry, that doesn’t necessarily mean it has enough room for everyone’s success, which is why only a few major power players have really taken off. However, for those who have been making the early mistakes, we’ve pointed out a few of the common pitfalls to avoid if you’re aiming to enter the industry. Check them out below:
They Didn’t Invest Into Branding
A massive mistake a lot of CBD companies make is that they don’t invest in branding and in return, fail to pick up traction. As CBD is quickly becoming something sold in your neighborhood health food store as much as it is at the latest music festival, branding has to reach an array of customers in between. Furthermore, as CBD can by-and-large be a premium product, the consumer has to feel as though they’re buying something worth the value they’re putting in. When you package that up with coming up with an original concept for your creation, investing in a CBD brand can sometimes feel a little overwhelming.
The biggest issue that comes with CBD brands is building trust. Despite its popularity, people still are learning who’s in this for the long haul and really cares about delivering a great product. In fact, 91 percent of consumers say they’d rather buy from an authentic brand; for example, Verma Farms has seen a lot of success as their brand resonates with the organic, vegan crowd. A truly great brand should be one that you immediately know what they do; if you can’t trust a CBD brand, they aren’t worth your time.
They’re Not In It For The Long Haul
Another issue among CBD companies is that they aren’t in the industry for the long haul. While it was often heard that with the recent passage of The Farm Bill the CBD Market is expected to $22 billion by 2022, a lot of entrepreneurs looked to cash in on CBD without realizing what they were getting into. Not only do they often fail to understand CBD benefits, but they also don’t understand that this is a business which requires a lot of foundational effort.
When vetting CBD companies, always make sure they have an honest approach to their products, including in the specific things they say their CBD cures. While CBD often has numerous health benefits, it’s not a cure-all drug and often times a lot of people can get carried away in making up benefits. Furthermore, also make sure that whatever product you’re skeptical of has all the ingredients listed on the packaging, as well as the test results readily available. Weeding through companies that haven’t really put the investment into CBD yet not only gets rid of bad actors but helps propel the industry with better products overall long-term.
Not Being Clear Enough On Their Product Benefits
For how much better CBD products are getting, a lot of brands take for granted what their product might do over anyone else in the industry. This is a major key to brand loyalty, which as noted by Sprout Social, 83 percent of consumers stated that brand loyalty came down to trust. Gaining that in this industry has a lot to do with both how you sell your product as well as the consistency in quality that comes out. While it’s not the easy balance to keep up with, it’s also one that will leave you steadily gaining a base.
When looking at the product benefits, ask what a specific CBD product is supposed to do over the competition. For example, CBD for pain relief could be great in an oral treatment for those looking to replace daily Advil, but an athlete might prefer a topical cream. Getting into the gritty details of where a product can be used might seem like overkill, but it can give consumers the power to make a new discovery. All-in-all, empowering your base will bring more customers as CBD grows, and you’ll be thankful for treating them right from the start.
They’re Lack Creativity In Their Sales Strategy
Finally, for how big The Green Rush has been, a lot of CBD companies have a tough time figuring out which market to hit next. This isn’t surprising, because only 17 percent of companies say they have integrated solutions for gathering insights on customer data. Even if you looked at CBD trends for social media and SEO, you’d only be able to guess what industries to target in a pipeline. However, with how quickly this industry has scaled, don’t be surprised if you see CBD sold in unexpected places.
From cocktail lounges to athletic events, CBD is now being sold at nearly every corner it can be. With that being said, don’t be surprised if we started to see CBD accelerate into places already where alcohol was recently permitted to be sold at, such as certain college sports games, movie theatres, or even at concerts. With all the arrays of ways people like to consume CBD, it’s practically becoming the first major step towards full marijuana legalization…and the more places that stock CBD now, the more likely they’ll be established for legal marijuana. Regardless, the road ahead is looking full of green for those who can look outside the box to where CBD can be wildly useful.
What are some common mistakes you’ve been seeing in the CBD industry? Comment with your insights below!