As everyone watches the infection rate increase, we’ve been watching the impact of the Coronavirus on CBD sales.
First, The Bad News on CBD and Coronavirus
We’ve been keeping a close eye on the impact that the Coronavirus is having on the CBD market.
We believe in data. Our simple approach has been “opinions don’t matter but data does”. We are also, however, entrepreneurs and business owners and understand that fear and uncertainty is rampant.
Our hope is to provide some guidance and highlight some of the opportunities that the current market is presenting.
Now, the Good News Regarding CBD and Coronavirus!
Simply stated, there is a lot of reason to feel optimistic about your CBD Company Sales.
- The Counter Cycle Nature of CBD – History teaches us that when times are bad, the so-called vice industries do better. While not a perfect comparison, we can examine the trend of alcohol sales in up and down markets. Alcohol sales tend to increase sharply as the economy dips. There is plenty of reasons to believe that CBD will follow those trends.
- Anxiety and Sleep – While it is a nerve-wracking time for all of us, those that suffer from chronic anxiety and insomnia will likely be suffering more. CBD can help a lot of people, and I believe that it is more important than ever to get a quality product in the hands of those that need it.
- Pain – Without access to healthcare, people will be looking for alternatives to prescription medication. Let’s say you experience a severely sprained ankle in the next couple of days and are in significant pain. Advil and Tylenol just won’t cut it. Your doctor’s office and your local urgent care have made it clear that they would rather you stay away. What are your options? CBD can and should be an alternative.
- The Move to Online- Retail isn’t 100% closed, but brick and mortar is taking the biggest hit here. The smart people I’ve been talking to agree on two things. First, people will not stop buying stuff. Second, those purchases will be online. The virus will likely represent a sudden and seismic shift to purchasing behavior.
Long story short, more people will buy stuff online, and fewer people will buy things in retail stores.
- Decreased Competition– There is no doubt that there has been a lot of people jumping into the CBD game over the last several years. Competition has been fierce. As we’ve been saying now for over a year, good companies, that are operated well with a solid plan will thrive. The companies that are flying by the seat of their pants will suffer, and some will die.
So What’s a CBD Company to do now?
The first thing to remember is to keep calm! A level head in these situations is what’s going to separate the companies that succeed or fail. Now that you’re breathing… Let’s get a plan together. Smart brands need to get a strategy in place and support that strategy with a 90-day plan, and no, hope is not a strategy.
- Have a plan to drive traffic to your site– While this seems self-explanatory, you would be shocked at how many CBD companies believe in the magic of the internet or worse yet believe that SEO and organic social is the answer. It is more important than ever to understand who your audience is, understand what motivates them to buy your CBD, and understand what messages drive the most conversions. People are not going to stop using CBD if they have found a solution to one of their problems. People will, however, be less likely to try something new so make sure your CBD retargeting ads are on point as well.
- Understand your differentiators and Highlight Them- Gone are the days where people would visit one site and make a purchase. CBD Buyers are shopping around. If you’ve done the hard work upfront of understanding who your buyers are and what motivates them, this should not be a difficult task.
- Test to Convert More Site Visitors- With everything changing each day, it’s tough to say that something that worked last week is going to work tomorrow. Create a series of tests on your site to drive optimization. What happens if you lead with your topical, not your tincture? What happens when you feature a less expensive product vs. a more expensive one? Test each hypothesis and track your conversion rates.
- Communicate with Your Current Customers- While it is no secret that email is the number one converting tactic for CBD companies, now is an opportunity to demonstrate the human side of your brand. Send a personal message to your customers wishing them well.
- Offer a Discount- One of the most hotly debated topics in the world of CDB is whether to discount. If you’re on the fence, now is the time to jump in. Want a few ideas?
- Offer a discount to anyone who is staying inside to stop the spread of the virus.
- Offer a discount to anyone who is stuck with their kids at home for several weeks and could use something to help them cope
- Offer a discount for people who did not buy the local store out of toilet paper.
- Consider a Social Angle – There are millions of Americans that are struggling to make ends meet. Consider making a small donation to a local food bank for every bottle sold. Need has spiked, and our irrational need to horde canned foods have put food banks into a dire situation.
If you’re looking for some assistance navigating these tricky waters of CBD and Coronavirus, reach out to us. We’re here to help everyone we can so we can all get through together.