colorado case study
The state of Colorado is another state in the United States at the forefront of the fight to legalize cannabis nation-wide. Since it was legalized in 2012, recreational cannabis has become an important part of Colorado’s economy. By 2019 Colorado had grown its annual cannabis sales to over $1 billion, and for a state that size that’s no small feat. Cannabis has become such a crucial part of Colorado that it has become somewhat of a tourist attraction, with 25% of people who traveled to Colorado between 2013 and 2018 listing cannabis as a reason according to CNBC.
As the first state to legalize recreational marijuana, it’s no wonder that Colorado has been leading the cannabis industry by example. The people of Colorado have been enjoying cannabis’s recent legalization seeing that per-person legal cannabis sales in Colorado are the highest sitting at $280 worth of cannabis per year according to CNBC compared to $220 in Washington and $180 in Oregon.
In 2019, the states total cannabis sales hit a record $1.75 billion in 2019, up 13% from 2018 which is impressive considering that Colorado is the most mature cannabis market in the US. This led to a record high in tax revenue as well topping out at $302 million for the state of Colorado. Speaking more than the pace at which the market is developing, according to CNBC it took three and a half years to pass the $500 million mark in total cannabis sales, and only two more years to double that figure. Numbers like this should be music to anyone’s ears looking to get in on the market.
In this lively cannabis market, it will be extremely important to have a fully functional loyalty program that makes your dispensary stand out from the rest. Keeping a customer is much less expensive than marketing to a new one, and in an industry as expensive as the cannabis industry you’ll want to save wherever you can.
On the other hand, seeing as Colorado is a state known notoriously for cannabis, leveraging this and gearing your marketing towards “cannabis tourists” will be another important part of your marketing strategy in Colorado. Making sure you get tourists who have brought cash just for the purpose of buying cannabis in your doors is a must, so make sure you’re doing your share of PR and advertising to get your name out to them too!
Your cannabis marketing strategy for Colorado should also be text message marketing which will allow you to abide by any state laws and restrictions while also allowing you to effectively communicate with your loyal customers. Letting your customers know about any sales you're having and staying in touch with them is key to getting them back into your doors. Plus, seeing as the Colorado consumer spends the most, you’ll want to be keeping them around.
In order to show you just how effective text message marketing can be, we analyzed the marketing performance of Igadi, a dispensary chain in Colorado. 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.
increase in spend on days when a text message campaign is sent
ROI for every 1 cent spent on text messages
to gain a ROI on