Direct Mail Marketing for CBD Businesses: What to Know

For CBD brands and businesses looking for new ways to reach potential customers, direct mail might just be the perfect solution to augment a digital strategy.

With the passing of the Farm Bill, CBD businesses are now able to ship their products almost anywhere in the United States – and direct mail is an effective way to engage with new and existing customers in a medium often under-leveraged by competitors in the space.

Benefits of Direct Mail

According to  a recent report by Extrapolate, the global CBD oil market is projected to generate more than $6.77B by 2032 from $580M million in 2022. That's a CAGR of 31.2% during that time period, a huge level of predicted growth similar to quantum computing, podcasting, and IOT security. That translates to a lot of potential customers who are waiting to engage with a new CBD business.

Direct mail can help you take advantage of this booming market, allowing you to reach customers who may not otherwise be aware of your brand or products. While digital strategy is often standard in this space, there are many benefits that incorporating direct mail brings to CBD brands and businesses, including:

Increasing Brand Recognition

Direct mail can help increase brand exposure, as potential customers will be more likely to remember a business if they receive a direct mail piece from them than if they were just to see an ad online or receive an email in their inbox.

Also importantly, it’s crucial to craft the message of your CBD brand carefully. That way, your prospective clients understand what to expect from your products.

Higher Response Rate

Direct mail achieves a  4.4% to 10% response rate compared to 0.1% to 0.6% for email. Also, more than 40% of recipients read, or at least skim over the direct mail they receive.

We can credit some of the better response rates of direct correspondence to the fact that consumers’ physical mailboxes are often less cluttered than their inboxes. Another factor behind the improved response rate is that direct mail pieces are tangible and often creative, making them more likely to be noticed.

Excellent Cost-Effectiveness and ROI

Since direct mail typically has a much higher response rate than other forms of advertising, it can also be a very cost-effective CBD marketing method. Additionally, it has a good average return on investment due to the scalability and enhanced response rate.

While this varies, a study on direct mail across many industries found an average return of  $4.09 for every $1.27 you spend, or roughly a 3.22 ROAS.

Measurable Results

Direct mail can provide valuable insights into customer behaviors as you can track results such as opens, clicks to dynamic QR code links, and conversions from your campaigns. This allows you to understand what works best with your target audience and reiterate your campaigns accordingly. You can also test different taglines and CTAs and take advantage of the insights gained in your other marketing channels.

Expand Reach Beyond Email

As you can see, direct mail can reach clients who may not be active email users or check their inboxes frequently. Moreover, people who buy CBD products still love to shop for them in the real world. That being the case, direct mail marketing can help reach a wider audience. By using physical pieces of correspondence, you can have a better chance to reach more potential customers with your message.

Personalization

CBD mailers allow you the opportunity to create personalized messages for your customers. You can segment your customer list based on their interests or behaviors and craft unique messages for each group, making your direct mail message feel more personal and inviting. What’s more? Marketing solutions like these make it more likely that they will take action.

Lower Competition

Many CBD businesses have yet to invest in direct mail. As a result, you won’t have to compete with as much clutter for your customer’s attention. By utilizing direct mail, you can increase the chances that your message will be heard by those you are targeting.

There is also the high visibility factor. In a nutshell, direct mail pieces often stand out from the rest of a recipient's mail because they’re physical pieces that are addressed directly to them.

Better Compliance

Due to the ever-changing regulations and laws around CBD, it’s important to make sure you are complying with these rules when it comes to your marketing efforts. Direct mail is one of the safest methods of advertising CBD products as there are fewer restrictions placed on it than digital marketing. Plus, you can reach a larger audience without having to worry about compliance issues.

Tips to Success for CBD Direct Mail Marketing

Now that we’ve gone through some of the benefits of direct mail, let’s dig into some tips like augmenting digital strategy and running offers and promotions to help you make the most of your marketing efforts.

Augmenting Digital Strategy

While direct mail marketing often has stellar results, you don't want to get caught in a single channel approach. Savvy marketers know that a varied outreach that combines direct mail with other marketing channels is the key to success.

For instance, you can use direct mail to launch campaigns and drive your audience to digital channels such as email or social media. This helps create a larger impact and allows you to reach more people with your message.

Running Offers and Promotions

People enjoy getting discounts and offers, so leveraging them in your direct mail marketing efforts can help you to draw in potential customers. You can include offers such as discounts, free shipping, or coupons for future purchases on your physical mail pieces. This encourages people to take action and try out your product or service.

For example, include QR codes and scratch-off cards for discounts, or encourage customers to enter sweepstakes for a chance to win something. People enjoy getting something back in return, so taking advantage of this can help you get better results from your direct mail campaigns.

Promote Events and Product Launches

Direct mail outreach is also great for promoting events or product launches. You can design creative mail pieces that draw attention and get people excited about what’s coming next.

Also, you can add a personal touch by including handwritten notes or thank-you cards for customers who have recently made purchases. Everyone loves to feel appreciated, so this is an effective way to build relationships with your customers and keep them engaged.

New Products

Finally, direct mail is a great way to promote new products. You can use it to create buzz and generate interest around product launches or even just get people excited about upcoming releases.

Plus, you can also use direct mail to send samples of your new products so that customers can try them for themselves before making a purchase decision. This is a great way to increase customer engagement and get people excited about what you have to offer.

By utilizing these tips, you can make the most out of your CBD direct mail marketing efforts. With the right strategy in place, you can reach your target audience more effectively and generate more sales for your business.

Elevate Your Cannabis Marketing with Green Leaf Marketing

At Green Leaf Marketers, we believe in elevating the cannabis industry with solid marketing fundamentals and unique cutting-edge tactics. We work with cannabis and CBD businesses across the country in all industry sectors, including dispensaries, growers, finance, and more.

We focus on offering B2C and B2B  direct mail campaigns, cannabis labels and packaging, cannabis printing and signage, promotional products and more.

Our Compliance team stays up to date on the latest in advertising restrictions and leaves no stone unturned - without the risk of pushing the many restrictions inherent to cannabis marketing.

If you are a new or established CBD business and want to take your marketing strategies to the next level, contact Green Leaf Marketers using the form below or email us at info@greenleafmarketers.com.