california case study

The state of California has been at the forefront of the fight for cannabis legalization along with other states like Colorado, which was the first state to legalize recreational marijuana use. Since the state legislature approved proposition 64 which legalized marijuana for medicinal and recreational use was passed in 2017, the California cannabis market has exploded. After its legalization in 2017, cannabis sales hit roughly $3 billion but slipped to $2.5 billion in 2018. Despite this slip, the market is predicted to see huge growth according to MJBiz Daily who predicts the market to pass 7.4 billion in 2024. Seeing as California already has the biggest legal cannabis market in the world, the fact that numbers are predicted to continue increasing despite the state regulating the industry heavily speaks to the ever-increasing demand and opportunity for cannabis producers and dispensaries in California.

In 2019, California’s cannabis market put up some big numbers. According to BDS Analytics, sales from dispensaries approached $3 billion and grew 18% in 2019. Stats from Eaze, an online cannabis marketplace and delivery service based in California, showed that 32% of cannabis sales from that same year came from vaping products on Eaze’s platform, while flower accounted for 25% of sales, showing that cannabis users in California are moving away from traditional methods of consumption. This just goes to show that just having a couple different strains won’t do it for the California consumer, you’ll need multiple different types of product like concentrates and topicals.  

Not only is California the world’s biggest legal cannabis market, but it is also the most populous state in the US. With all these people coming into your dispensary, customer appreciation and communication will be key. The cannabis market in California has also been said to be heavily saturated, making customer retention that much more important if you’re thinking about getting into the California cannabis industry. 

Making your dispensary or brand stand out in California is key to your success, and to do that you’ll need an effective loyalty program that keeps your customers feeling appreciated and coming back. Offering rewards and incentives to get them back in and refer others to your store goes a long way, especially in the biggest legal cannabis market in the world. 

When you’re talking about a market this size, text message marketing is a must. Text message marketing not only allows you to automate the texts you send out on a daily basis to thousands of customers, but it also allows you to be compliant with the many state laws and regulations California has in regard to cannabis. 
 

In order to show you just how effective text message marketing and loyalty programs can be, we analyzed the marketing performance of A Green Alternative in San Diego, California. We looked to see the increase in spend on days when text messages were sent, the ROI and how long it took to gain ROI.

a green alternative logo.jpg

12.56%

increase in spend on days when a text message campaign is sent

24,197%

ROI for every 1 cent spent on text messages

1 day!

to gain a ROI on

monthly subscription 

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