Royal CBD Marketing Case Study
How Royal CBD Grew to an Estimated $8,674,479 Per Year In 5 Years
Royal CBD is a brand in the cannabis industry that has quickly risen to success since its founding only five years ago in 2017 by Justin Hamilton. Conservatively we estimate organic traffic growth alone; Royal CBD is annually converting 78,858.9 customers resulting in $8,674,479 in annual revenue and $46,369,033 in new lifetime revenue. In this royal CBD marketing case study, we will outline step by step how Royal CBD grew rapidly and how you could do the same.
Inside Look at Royal CBD’s Marketing Strategy
The foundation of financial success for any company is in the long-term high-level marketing strategy; this is where 99% of companies fail to focus. To generate revenue today, CBD companies will overlook building their brand for the long term, resulting in an unhealthy hamster wheel cycle of needing to generate more revenue to sustain growth and profitability. Most companies turn to paid advertising for short-term revenue growth; however, over time, paid advertising costs only go up, resulting in a higher cost of acquiring a customer and lower profit margins.
Paid advertising is an excellent source of short-term revenue growth when paired nicely with long-term brand-building advertising tactics and a strong foundational marketing strategy. Royal CBD stands out by utilizing a strong foundational marketing strategy with short-term revenue drivers and long-term brand-building advertising tactics that are sustainable. Before diving into their short-term and long-term revenue drivers, let’s look at the foundation for these revenue drivers. The foundation has allowed them to hurdle over the strict advertising and marketing restrictions on the cannabis industry online and offline.
Successful founders do business marketing research before starting a new company, and Royal CBD is no different.
A CBD brand strategy is a long-term plan focused on producing a successful CBD brand. CBD companies use the brand strategy to create the desired image among their current and potential customers. Royal’s brand strategy is broken up into six parts:
Royal’s Audience Description:
Defining the audience is key, so you target a specific demographic that will repeatedly buy your CBD. Remember, “being something for everyone means you are nothing for nobody.” Specializing is more important for your CBD brand in the early stages, and over time you could expand to focus on a new audience description to capture more market share.
Royal CBD Oil’s audience is focused on the 34.5% of CBD consumers that make $75,000 a year or more who would like a premium, high-quality CBD product they could trust. Royal CBD products company does a fantastic job of targeting the 22% of people who do not trust the CBD manufacturer and 22% that believe CBD will not help them. They chose demographics that most of the CBD industry is not focused on, which gives them a competitive advantage and a smoother journey for standing out among the many CBD options for consumers. Their CBD is only offered online, so they focus on the 49.6% of CBD customers who only purchase CBD online.
RoyalCBD’s Customers’ Current Thoughts and Behaviors:
Defining how your ideal customer thinks and behaves allows you to create a CBD brand that relates to your ideal customers.
The consumer may be thinking the following:
- “Can I trust this company?”
- “Can I trust a royal CBD product to be effective?”
- “How do I know their full spectrum CBD oil actually works?”
- “Why should I buy this CBD oil instead of going into a store?”
They may be behaving in the following manner:
“I have tried other companies’ CBD, and it did not work for me, and I am skeptical of trying CBD again.”
What is in it for the CBD Market Customer?
Clear selling points are key to removing cognitive dissonance and building trust with your ideal customer so they have no hesitations about purchasing your CBD.
Royal CBD provides a premium-grade CBD oil bred from local California farms with a strain selected specifically to have a rich terpene and cannabinoid profile. They use a unique extraction method for extracting the CBD using a whole-plant solventless CO2 extraction, resulting in no harsh chemicals and preservation of the precious cannabinoids and terpenes, which make the CBD highly effective.
Their manufacturing process is unique because they adhere to the national Current Good Manufacturing Practices (CGMPs). This means they test each batch individually before it goes out using state-of-the-art extraction technology and hiring only the best of the best. Every product goes through a third-party certificate of analysis before being sent out.
Why Should CBD Customers Believe Their Company?
Every ideal customer who comes across your CBD brand will ask themselves why they should believe what you are saying. Defining why they should believe you increase the believability and trust of your brand while removing any doubts your ideal customer may have.
They are so confident in their premium royal CBD full-spectrum CBD that they offer a 30-day money-back guarantee. Even if you use half of the product, you could still receive a refund within 30 days. If their products did not perform for you, they would refund you. Most customers who did not find their CBD effective were recommended to try a higher dosage. Once they tried a higher dosage, their spectrum oil was effective. If this is the case for you, they will refund your money and give you a discount coupon to try one of their higher dosage spectrum oil’s.
What Brand Personality Do They Want For Their Company?
The hemp brand personality for their company goes beyond average and mediocrity while not sacrificing quality to make money.
Which Desired Thoughts and Behaviors Would the Company Like from Potential Customers?
Potential customers who come across their spectrum oil should have the following thoughts and behaviors:
- “Finally, a CBD brand which goes above and beyond to deliver a high-quality product I can trust is effective.”
- “Their CBD brand stands out above the rest because they have premium spectrum oil of the highest quality.”
- “Shopping online for their CBD oil was way more convenient, discreet, cost-effective, and trustworthy than going into a store.”
Successful founders do product research before starting a new company, and Royal CBD is no different.
Creating a positioning statement allows you to see your competition clearly and how you can differentiate your brand to be positioned as the ideal choice for your ideal CBD customer.
Royal CBD’s positioning statement is a CBD company that refuses to settle for mediocrity, instead prioritizing quality products that are effective and trustworthy. Their CBD is unique in that they only use local farms in California that breed a specific strain of hemp that is more effective than other CBD. A unique extraction process takes place using whole-plant solventless CO2 extraction, so you only get CBD. No harsh chemicals or solvents. The extraction process retains more terpenes that make CBD effective than other companies’ extraction processes.
Last but not least, every product receives a third-party lab test that approves the quality of their products before being listed for sale. The manufacturing process is unique because they adhere to Current Good Manufacturing Practices (CGMPs).
Unique Selling Proposition
The difference between a positioning statement and a unique selling proposition (USP) is that the USP clearly conveys a specific benefit that competitors do not offer that makes your CBD brand stand out. You need a USP to convey a memorable benefit only your company can provide for your ideal customer. When your ideal customer looks at other brands, they will not be able to find that specific benefit they have a strong need for, resulting in your ideal customer choosing your brand over the competition.
Royal CBD’s unique selling proposition is:
“No Room For Mediocrity: Buy Premium-Grade CBD Oil”
The specific benefit is highlighted well in that their CBD brand does not settle for mediocrity, and no other brand is saying the same message as their main USP. However, I think they could make their USP more memorable by changing it to “Don’t Go Average, Go Royal” .
This is shorter, clearer, more catchy, and more memorable than their previous USP. While still conveying the same message that their CBD is not average and you should refuse to settle for average. They are targeting the ideal customer that makes more than $75,000 a year and only wants the best, and does not trust most CBD manufacturers.
Successful founders do customer research before starting a new company, and Royal CBD is no different.
Buying Process and Customer Journey
Creating the buying process and customer journey allows you to map exactly how your customer is going through their journey at each stage. We use data when creating your ideal customer’s journey to be highly accurate and deliver higher ROIs. Creating the customer journey makes it easy for you to choose the marketing and advertising tactics your ideal customer is focusing on. Creating the customer journey allows you to target your customers when they are actively searching to buy CBD.
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Marketing and Advertising Tactics
Royal focused on search engine optimization, affiliate marketing, and email marketing based on the customer journey and the restrictions placed on the CBD industry. They balanced short and long-term revenue-focused marketing and advertising tactics well. While only focusing on marketing and advertising tactics that are not restricted or banned from directly selling CBD. More so, they chose marketing and advertising tactics they own to decrease their brand’s dependence on platforms and reduce customer acquisition costs.
Search Engine Optimization
Search engine optimization for search engines like Google and Bing is the backbone of their marketing which delivers the largest long-term return on investment for the brand out of all marketing and advertising channels. This long-term strategy has a near infinite ROI, best suited for brands that could invest in CBD SEO for at least six months to a year before seeing a return on investment. Here is a visual representation of how SEO stacks up against paid advertising:
Affiliate marketing is their short-term revenue driver that builds trust with their ideal customer and grows their brand over time. Affiliate marketing delivers a fantastic ROI at a cost-effective price. The only downside to affiliate marketing is that you have to nail your foundational marketing strategy and provide a valuable payment structure for your affiliates. Otherwise, affiliate marketing will not be effective for your hemp brand.
Email marketing works wonders for capturing traffic to their website, which does not convert immediately and helps increase retention and lifetime value per customer. No matter what happens to their website traffic from SEO, they will always own their email list, which allows them to sell CBD oil products no matter what happens.
Their products marketing has paid off by generating an estimated $8,674,479 in annual revenue and $46,369,033 in new lifetime revenue from SEO traffic alone. Not including all the annual revenue and lifetime revenue generated from affiliate marketing and email marketing, the numbers are much higher. Here are how some of their products are doing in terms of monthly revenue and monthly lifetime revenue solely from SEO traffic:
Royal CBD Oil
Royal CBD offers CBD oil that generates an estimated $291,960 in monthly revenue and $1,192,170 in lifetime revenue each month.
Full Spectrum CBD Oil
All their CBD oil is full spectrum CBD oil sold at 2,500 mg, 1,000mg, and 500mg per 30 ml. The 2,500mg CBD generates an estimated $16,560 in new monthly CBD revenue and $67,620 in lifetime CBD revenue each month. The 1,000mg CBD generates an estimated $9,000 in new monthly CBD revenue and $36,750 in lifetime CBD revenue each month. Lastly, the 500mg CBD generates an estimated $9,000 in new monthly CBD revenue and $36,750 in lifetime CBD revenue each month.
Royal CBD Dog Products
The royal CBD dog products are not as big of a revenue driver. The dog treats products and full spectrum oil products combined generate an estimated $621 in new monthly revenue and $5,072 in lifetime revenue each month.
Royal CBD Gummies
The royal CBD gummies generate an estimated $33,579 in new monthly revenue and $274,229 in lifetime revenue each month.
CBD Honey Sticks
The CBD honey sticks generate an estimated $352 in new monthly revenue and $2,969 in lifetime revenue each month.
If you do not find this useful we will send you $100 for your time.