As the THC industry grows, it’s getting extremely important to differentiate your brand from competitors. Finding the right cannabis dispensary branding tactics can be key to success.
However, implementing a new branding strategy isn’t enough. You need to actively measure your branding ROI to improve your company’s performance.
In this article, we’ll dive into some useful tips for measuring your branding ROI. Read on to learn how you can define KPIs, collect data, and examine results to get the most out of your dispensary branding efforts.
What Is Branding ROI?
Short for return on investment, ROI is a commonly used metric in marketing that measures an investment’s profitability. To calculate it, you can use the following formula:
ROI = [(Revenue − Expense)/Expense] × 100%
In terms of branding, ROI refers to the financial efficiency of your branding efforts. The use of branding ROI allows for a relatively objective way to evaluate your performance by comparing your branding costs to the return gained.
How to Measure Your Branding ROI
Now that you know the fundamentals of branding ROI, it’s time to see how you can measure it.
Define Your KPIs
Key performance indicators (KPIs) are quantifiable metrics that assess your progress toward an intended goal. They help you make more informed decisions by highlighting the strengths and weaknesses of your dispensary branding strategy.
Defining your main KPIs is the first step in measuring your branding ROI. You need to find the metrics that reflect the current state of your company and your objectives. If your business is at the initial stages, you might want to rely on brand awareness, social media mentions, or purchase intents as your KPIs. If you already have a customer base, you can turn to conversion rates, customer satisfaction, or purchase frequency.
It’s important to find the right number of KPIs to track. While with too few KPIs you might miss critical information, too many KPIs can result in overload.
Gather Data With the Right Tools
After defining your main KPIs, you need to find the right tools to collect data. If you want to measure the performance of your website or social media campaigns, you can make use of web analytics tools. If you’re focusing on your customers’ awareness and intent, you can benefit from setting up a form.
Regularly Update and Analyze Data
An important part of keeping track of your ROI is regularly updating and analyzing your data. You need to decide how often you want to summarize and evaluate your results depending on your goals. Choosing the best models and statistics to visualize and examine your performance can help you focus on the most important brand ROI metrics and improve the accuracy of future predictions.
Keep Track of Your Branding ROI With HIGHOPES
Measuring your branding ROI is a complex task that requires a broad understanding of the most common THC branding tactics. HIGHOPES is here to assist you in defining the KPIs that matter in achieving your goals.Contact us today to learn how you can differentiate your brand in the cannabis industry.
