washington case study
The cannabis industry has experienced tremendous growth in Washington as it has become more advanced over the years. Originally, Washington was one of the first states to legalize medical marijuana, so naturally the state, along with Colorado, was among the first to legalize recreational marijuana. Since then the state has served as an example for other states wishing to legalize marijuana both medically and recreationally. Since legalizing marijuana, the state's economy has been booming and the government has been able to collect substantial amounts in taxes. According to the Washington Treasury, in 2019 cannabis revenues were $172 million more than that of liquor sales and the state tax revenue increased $28 million from the previous fiscal year. Nearly half of cannabis revenues go towards Washington's Basic Health Plan Trust Account.
The state of Washington still shows promising numbers and a great demand for cannabis even after eight years of legalization. According to the Washington State Office of Financial Management, they had originally predicted revenues from cannabis to level off, but stats from 2019 show sales increasing at a sharp upward trajectory.
Cannabis sales in 2019 exceeded $1.4 billion and are expected to reach $2.28 billion by 2020 according to New Frontier Data. Despite these predictions, many fear that state’s taxation of the industry may hinder its growth according to the Seattle Business Magazine. Washington state taxes on cannabis are the highest of any other state in the country at 37%, making it hard for some to grow. This is not a problem unique to Washington though, as other legal states also impose harsh taxes on cannabis sales and businesses.
Despite this, demand remains on the rise. Consumer demand is rather interesting in Washington with a majority of consumers opting for flower making up 57% sales in the state followed by vapes at 17% and extracts at 12%. This is much different than in California where we see concentrates overtaking flower in the market.
With unprecedented demand for cannabis, Washington is a hot spot for the cannabis industry and contains some 90 retailers utilizing Springbig for their dispensary marketing needs.
With demand still growing steadily, establishing a loyal customer base and communicating with your customers is essential to standing out in Washington’s cannabis market. According to leafly, in 2019 Washington consumed more cannabis than any other region in the world. With a market like that, you’ll want the best dispensary marketing platform out there. Keeping customers around is much less expensive than marketing to new customers and boasts a higher ROI.
In communicating with these customers, text message marketing is your best bet as it allows you to easily comply with the state’s laws and regulations regarding advertising cannabis. Text messages have a 98% open rate, with 90% being opened in the first 3 minutes of it being sent. With Springbig’s CRM software you’ll be able to fully customize and automate every text message you send to make sure you catch your customers at all the right times.
We analyzed the performance of Clear Choice Cannabis, a dispensary in Washington. 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