Thanks to the legalization of hemp-derived CBD products, CBD oil and other CBD based products have experienced a huge jump in sales. This has also led to an increase in the number of people in the US who use CBD. A Gallup study found that 14% of US adults use CBD hemp products. That is a large amount of people you can potentially target if you are thinking about running your own CBD shop. The same study found that 35% of people aren’t familiar with any CBD products. This means you also have another 35% of the US adult population that you can potentially reach out to and educate on CBD products. So, how do you go about finding your target market?
Analyze What You’re Selling
The first thing you should do before trying to find out your target market is analyze what you are selling. What are you selling? Are you selling CBD oils, tinctures, topicals, etc.? When you find out what you are selling, you can begin to focus on identifying your target market.
The Demographic That Needs Your Product
After finding out what you’re selling, you can start to figure out who is the demographic you want to market to in order to tailor your marketing strategy to them. Are your products catered to people who like using topical solutions? Or are they better suited for people who’d rather ingest them? Another Gallup study found that most consistent CBD users range from the ages of 18-29. The numbers start dropping as the ages go up. This could be because of generational views. However, these usage numbers start doubling after the first use of CBD!
Although young adults comprise most CBD users, that doesn’t mean you should ignore the seniors. Seniors have largely been against the usage of any form of CBD for the longest time, but recently, they have started to turn to using it. It has been our experience that when senior CBD users begin to feel results they tell their friends and word spreads quickly among this age group.
Let’s not forget about people who have never tried a CBD product! If they are curious, try and reach out to them and answer any questions they may have regarding your product. Knowledge is power and people feel more at ease when they know more about a product. When they feel comfortable with using CBD, they may turn to your CBD shop, which can lead them to becoming loyal customers!
Psychographics of Your Target Market
Psychographics help tell you why your buyers are buying CBD. These can include their lifestyles, values, and interests. All CBD buyers have different interests and values, so it is important that you target the ones who will connect with your CBD shop.
One of the most important psychographics you should look out for when finding your target market is their lifestyles. Where do your targets live? How are they spending their time? Once you find out more details you can make more personalized suggestions and direct them toward CBD products that will help them meet their individual goals.
Another important psychographic is your target market’s interests. What are they into? What do they enjoy doing? Are they athletic and need post exercise topicals? Are they stressed out and seeking relaxation? Finding out what their interests are can help you connect with them through your content.
The third psychographic you should be on the lookout for are the values of your target buyers. Don’t worry; this doesn’t mean you have to confirm your own personal/political views to match your customers. It just means that you should be aware of the “feel” of your community for marketing purposes and product placement. The bottom line is to get to know the characteristics of your target market, so you work with them instead of frustrating yourself unknowingly working against it.
Who is Your Competition? Who Are They Going After?
You have to be able to identify who your competitors are in the CBD market. Conduct some market research to see who is selling a product that competes with what you are selling. From there, you will be able to look more closely at their product and how they are marketing it. With that knowledge, you can create a different strategy that will get prospective buyers to come to your CBD shop.
After you find out who your competitors are, find out who they are going after. Determine if they are after your target market and if you will be competing against them. Or, if they are not after your target market, then take that opportunity to focus all your marketing efforts on attracting your target market and increasing your brand awareness. Read more on how to market your CBD business here.
The CBD Target Market
The CBD target market is a bit confusing as it is entirely subjective. According to Gallup, 14% of adults in the US who use CBD, most of them are people who fall within the 18-29 years old range. You can go ahead and target them with your marketing strategy, or you can also check out another target market. 35% of US adults aren’t familiar with any CBD products. This gives you an opportunity to educate them and convert them to potential buyers. This is why there are different target markets in the CBD business.
Will you just go ahead and market to the 14% of adults who already use CBD, or will you spend some time educating those people who are curious about CBD in hopes of eventually turning them into a loyal customer? Will you target them both? Ask yourself these questions to find out what makes the most sense for your CBD shop.
Finding your target market in the CBD industry is a bit different than in regular markets as it is relatively new. Make sure to take advantage of any opportunities the market presents to you.