CANNABIS ECOMMERCE FUNNEL
Building a High-Converting eCommerce Funnel
The funnel allows marketers to optimize the customer journey from initial awareness to final conversion. The funnel includes stages designed to address the specific needs and motivations of the customer. By structuring the funnel, eCommerce businesses can effectively manage and influence customer interactions, improve user experience, and increase the likelihood of conversions by providing targeted messaging and relevant offers at each stage.
Not sure where to start, jump down to our eCommerce Marketing Funnel Checklist to ensure you have all the pieces you need to nurture customers from awareness to sales, loyalty and beyond.
Understanding eCommerce Marketing Funnel Stages
A well-managed funnel enhances customer acquisition, retention, and overall sales performance. The marketing funnel is the best tool to understand marketing holes and increase sales because it visually maps out the customer journey, highlighting where potential customers drop off. This targeted approach effectively allocates resources to address specific issues, optimizing conversion rates. By analyzing each stage, businesses can identify weaknesses and opportunities for improvement. Here are the stages of the marketing funnel:
01. Awareness
This is the initial stage where potential customers learn about your brand or product. The goal at this stage is to capture attention and create interest through various channels, such as social media, content marketing, and advertising.
02. Consideration
In this stage, potential customers evaluate your product or service against their needs and options. They may research, compare, and seek more information, often engaging with content such as product reviews, case studies, or detailed descriptions.
03. Conversion
This is when a potential customer takes the desired action, such as purchasing or signing up for a service. The focus here is on guiding the customer smoothly through the checkout process and providing a good experience.
04. Loyalty
After the initial conversion, your goal is to build long-term relationships and encourage repeat business. This stage involves post-purchase follow-up, customer support, and loyalty programs to foster satisfaction and retention, turning one-time buyers into repeat customers and brand advocates.
Creating Awareness
Brands create awareness for their products or services by leveraging a variety of strategies to reach and engage potential customers. Top-of-funnel content strategies, such as informative blog posts, engaging social media updates, and eye-catching videos, help attract attention and introduce the brand to a broad audience. SEO tactics ensure that content ranks well in search engines, making it easier for users to discover the brand organically, while social media platforms enable targeted outreach and interaction. Paid awareness strategies, such as display ads and sponsored content, differ from organic methods by providing immediate visibility and reaching specific demographics. However, they often come with higher costs compared to the gradual buildup of organic reach.
01. Awareness (Top of Funnel)
Social Media Campaigns: Leverage platforms like Instagram, LinkedIn, and niche cannabis communities for organic reach and targeted ads.
Search Engine Optimization (SEO): Optimize website content with cannabis-related keywords.
Programmatic Display Ads:
Run awareness-driven display ads targeting broad demographic groups interested in cannabis or wellness.
Use video ads for storytelling and product education.
Google Ad Types:
Discovery Ads: Reach users exploring new products on YouTube, Gmail, or Google Discover.
YouTube TrueView Ads: Promote educational videos to build brand awareness.
Content Marketing: Publish educational blogs, videos, or guides on cannabis products, laws, or benefits.
Influencer Partnerships: Collaborate with cannabis influencers to promote products and brand awareness.
Nurturing Consideration
In this context, "nurture" refers to the process of guiding and influencing potential customers through the consideration stage of the marketing funnel. Brands nurture consideration by building relationships and providing relevant information that helps potential customers evaluate their options and move closer to purchasing.
Brands use email marketing to deliver personalized content, offers, and updates that keep the brand top-of-mind and address specific customer interests or pain points. Retargeting strategies help by showing targeted ads to users who have previously interacted with the brand, reinforcing the message, and encouraging further engagement.
You can gauge if someone is ready to move from the consideration stage to conversion by monitoring engagement indicators such as repeated visits to the website, interactions with product details, or responses to personalized offers. Different conversion levels might include actions like signing up for a trial, requesting a demo, or adding items to a shopping cart, with each step indicating increasing readiness to finalize a purchase.
01. Interest (Middle of Funnel)
Educational Email Campaigns: Share newsletters, product guides, or cannabis lifestyle tips.
Landing Pages: Create dedicated pages for featured products or limited-time offers.
Retargeting Ads:
Use Google Display Retargeting for users who visited your website or specific product pages.
Serve Dynamic Remarketing Ads showcasing products previously browsed.
Google Ad Types:
Display Ads with custom affinity audiences, targeting users with interests in wellness, CBD, or cannabis.
Search Ads for high-intent keywords like "CBD oil for anxiety" or "best cannabis dispensary near me."
YouTube Ads to highlight product benefits or customer testimonials.
SMS Opt-In Campaigns: Encourage users to sign up for SMS updates to receive exclusive offers or product news.
02. Consideration (Middle to Bottom of Funnel)
Personalized Offers: Share tailored discounts via SMS or email based on browsing or purchase behavior.
Loyalty Programs: Introduce rewards for repeat purchases to build trust and encourage commitment.
Cart Abandonment Messages: Send SMS or email reminders for users who left items in their cart, with added incentives like free shipping or discounts.
Google Ad Types:
Performance Max Campaigns: Drive conversions across multiple Google properties with automation.
Shopping Ads (if compliant): Showcase cannabis accessories or products like grinders and rolling trays.
Product Comparisons: Provide clear comparisons to help customers make informed decisions.
Driving Conversion
Marketers drive conversion by implementing strategies that persuade potential customers to take a desired action, such as purchasing or signing up for a service. The primary goal of a conversion is to move a prospect from the consideration stage to the decision stage, thereby achieving a specific business objective.
Optimizing product pages and checkout processes enhances user experience by making product information clear, compelling, and easily accessible, which helps customers make informed decisions. A streamlined and intuitive checkout process minimizes friction and reduces cart abandonment, ensuring a smooth transition from consideration to purchase.
Promotions and discount strategies can significantly drive conversions by providing immediate value and incentives to potential customers. Offering limited-time discounts, such as 20% off a first purchase or buy-one-get-one-free deals, can create urgency and encourage customers to act quickly, while promotional codes and seasonal sales events can attract attention and boost conversion rates.
01. Conversion (Bottom of Funnel)
Exclusive SMS Deals: Share time-sensitive promotions via SMS to encourage immediate purchases.
Seamless Checkout Experience: Simplify the checkout process with secure and multiple payment options.
Compliance and Transparency: Clearly communicate legal and regulatory information.
Google Ad Types:
Local Search Ads: Target customers searching for dispensaries or cannabis products in their area.
Call Ads: Enable customers to directly contact your dispensary or support team.
Fostering Customer Loyalty
Customer loyalty is difficult to establish in the cannabis market because the industry faces high product commoditization. Many products appear similar, leading consumers to prioritize price and availability over brand loyalty. Additionally, rapid market changes and evolving regulations can make it challenging for brands to maintain consistent quality and engagement, further impacting customer loyalty. To combat this market dynamic, cannabis businesses should focus on building a community and engaging with repeat customers through exclusive content, rewards, and interactive experiences, which foster stronger connections and long-term loyalty.
01. Retention Strategies and Campaigns
Effective retention strategies include:
eCommerce Email Automation and Segmentation: Tailoring email campaigns based on customer behavior and preferences to maintain engagement and drive repeat purchases.
Retargeted Ads and SMS: Using targeted ads and SMS messages to re-engage customers who have interacted with the brand but have not recently purchased.
Loyalty Programs: Implementing reward systems that incentivize repeat purchases and offer exclusive benefits to loyal customers.
Referral Programs: Encouraging existing customers to refer new ones by offering rewards or discounts.
Building a Community: Creating a sense of belonging through online forums, social media groups, and exclusive events to engage customers and foster brand loyalty.
02. Retention (Post-Purchase)
Follow-Up SMS: Thank customers and share product care or usage tips.
Cross-Selling and Upselling: Recommend complementary products via SMS or display retargeting campaigns.
Subscription Services: Offer auto-renewal for popular items like CBD oils or edibles, with SMS reminders before renewal.
Exclusive Member Benefits: Use SMS and Google Ads to notify loyal customers about VIP access to new products or events.
03. Advocacy (Beyond Funnel)
Referral Programs: Send SMS invites for referral programs with immediate rewards for referrals.
Social Media Sharing: Use SMS to send links for sharing hashtags or campaigns to amplify word-of-mouth marketing.
Programmatic Display Ads: Target existing customers with brand-centric campaigns encouraging advocacy.
Google Ad Types:
YouTube Ads featuring user-generated content and testimonials.
Display Ads promoting referral programs and community initiatives.
Community Building: Share SMS invites to join exclusive online groups or forums.
User-Generated Content: Encourage customers to share experiences or photos via SMS or social media campaigns.
eCommerce Marketing Funnel Checklist
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Build Your Brand
Regulated Brands Resources
Create a Unique Selling Proposition (USP): Define what sets your cannabis brand apart.
Tailor Branding: Align website design and branding to target audience preferences.
Determine ICPs or Target Audiences: Understand and document customer personas.
Build Your Website
Ensure your branding, creatives, and unique value prop are clearly showcased on your most important asset.
Optimize Site Architecture for SEO: Ensure intuitive navigation, and build out target keywords and metadata.
Create Blog Content: Drive organic and direct traffic while establishing trust.
Examine User Experience (UX): Prioritize mobile-first design and ensure seamless navigation.
Include Trust Signals: Secure payment options, certifications, reviews, and age verification systems.
Develop Product and Collection Pages: Highlight product features and organize products effectively.
Add Product Comparison Pages: Help undecided customers by providing detailed comparisons.
Cannabis Dispensary SEO
On-Page SEO: Optimize title tags, metadata, headers, schema, and internal links to enhance structured data.
Off-Page Optimizations: Build a strong backlink profile, optimize anchor text, and improve domain authority.
Generate reviews and encourage social shares
Backlinking Profiles
Domain Authority
Anchor Text for internal linking
Reviews
Social Shares
Optimized for Mobile
Page Speed
Google Tools Setup:
Google Analytics 4 (GA4), Google Search Console, and Google Tag Manager.
Merchant / EComm Set Up
Content Marketing for SEO:
Produce educational blogs and resources to build trust.
Write value-packed blog posts optimized for keywords.
Dispensary Local SEO Plan:
GMB Profile Set up
Backlink profile, local listings, directories
Location Pages
Focus on "near me" queries.
MSOs - Focus on state pages, strain locators
Cannabis Social Media
Whether or not you plan to post on all social media channels, you should still create handles for Instagram, Twitter (X), Facebook, TikTok, LinkedIn, and YouTube.
Community Building and Posting:
Introduce budtenders and products to convey quality and trust.
Post consistently with a mix of educational, community, and promotional content.
Leverage Story Highlights on Instagram: Feature strain guides and testimonials.
Cannabis Social Media Influencer Campaigns:
Partner with Instagram and YouTube influencers to expand reach.
Focus on user-generated content (UGC) for social proof.
Cannabis Social Media Advertising
Twitter Advertising for cannabis, hemp-derived and CBD products
Run Meta ads for hemp-derived products.
Cannabis Dispensary Email Marketing
Build and Maintain Email Lists: Gather customer data via website forms, popups, and purchases.
Execute Email Campaigns:
Retain customers with promotions, strain drops, and event announcements.
Send abandoned cart retargeting emails.
Utilize latent customer retargeting campaigns.
VIP Customer Loyalty Emails: Offer exclusive rewards for repeat customers.
Collect Your Cannabis Customer First-Party Data
Capture Key Data: Email, phone number, and name for remarketing through email and SMS.
Leverage Data: Create VIP loyalty programs, retarget for promotions, and nurture leads.
Abandoned Cart and Latent Retargeting: Utilize email and SMS to bring customers back.
Ensure Compliance: Follow data privacy regulations (GDPR, CCPA).
Cannabis Advertising
Understand Key Metrics: Calculate CAC (Customer Acquisition Cost), CLV (Customer Lifetime Value), and ROAS (Return on Ad Spend).
Cannabis Google Ads / Bing Ads / DuckDuckGo Ads:
Responsive Search Ads: Target queries like "Dispensary Near Me."
Performance Max: Run campaigns across Google’s properties (YouTube, GDN, Gmail).
Geo-Fencing for Local Campaigns: Target specific dispensary locations.
Cannabis Programmatic Advertising
Start here to learn everything you need to know about cannabis programmatic advertising
Set up prospecting and retargeting campaigns.
Leverage audience targeting data: first-party, second-party enrichment, and third-party data.
Build audiences with our DemoGraph Audience Builder
Run display, CTV, video, DOOH, and native ads.
Geo-targeted mobile display ads to drive in-store visits.
Analytics and Conversion Tracking
- Set Up Conversion Goals: Track purchases, form submissions, and other key actions.
- Event Tracking: Use Google Tag Manager (GTM) for events like "add to cart."
- Heatmaps and Session Recordings: Analyze user behavior on high-traffic pages.
- Attribution Models: Implement multi-touch attribution for deeper funnel insights.
- Use Marketing Attribution Platforms to track campaign ROAS.
Customer Journey Personalization
- Dynamic Website Content: Tailor content to user behavior (e.g., show products previously browsed).
- AI-Driven Recommendations: Suggest products based on browsing or purchase history.
Loyalty and Rewards Programs
- Create Incentives for Repeat Purchases: Offer rewards, points, or exclusive access.
- Gamify Engagement: Use fun mechanisms to encourage customer interaction and loyalty.
Compliance and Legal Considerations
- Ad and SEO Compliance: Follow platform-specific policies for cannabis advertising.some text
- Learn about State By State Cannabis Advertising Regulations.
- Data Privacy: Adhere to regulations like GDPR, CCPA, or other regional laws.
Community and Engagement
- Host Virtual Events: Q&As with experts or live strain reveals.
- Partner with Local Brands: Collaborate on co-branded campaigns or initiatives.
Stay Up-to-Date and Sign Up for MediaJel's Newsletter
To remain informed about the latest trends, legal updates, and cannabis industry insights, subscribing to MediaJel's newsletter is highly recommended. This resource provides valuable information and expert analysis to help you stay ahead in the ever-evolving cannabis marketing landscape.
Conclusion and Next Steps
To further your knowledge and network with other cannabis pros, join us on our next webinar where we will interview cannabis industry and marketing experts, offering firsthand strategies and practical advice. Building connections within the industry is also essential.Follow us on LinkedIn to stay updated, network with professionals, and enhance your understanding of cannabis digital marketing trends and best practices.
Let’s take an in-depth look at each digital marketing channel.
Given the unique position of the cannabis industry, we’re only covering the digital marketing channels that are permitted to use by ancillary businesses, brands, dispensary owners, mobile applications, producers, processors, and websites. There is a legal gray area when marketing cannabis companies, and you should regularly reference the laws within your state before starting any campaign.
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