Proving that Search Engine Optimization is the Most Effective Marketing Tool For Local Businesses.

The following blog consists of real-world data from an isenselogic.com client on the effectiveness of an SEO campaign for their local Recreational Marijuana dispensary. The same data can be applied to any local business whether you are a law firm, restaurant, plumbing business, or Doctors office. The goal of this blog is to show local business owners the effectiveness of search engine optimization versus other marketing channels. Isenselogic specializes in SEO for recreational and medical marijuana dispensaries because the owner has over a decade of experience in the cannabis and information technology sector.

Being a local business owner and calculating marketing costs can be a challenge, especially when you are paying for multiple mediums. TV, Radio, Bill Boards, Magazine Ads, and search engine optimizations are your available channels. First, let’s look at how potential customers find a local business.

 

As you can see close to 70 percent of all customers use there smartphones or search engines to find a local business and that makes sense, that’s how I find a local business when I’m in a new area or my current location. Most businesses spend 2 to 5 percent of their gross revenue on marketing, Of course, you are not going to spend that amount with your current revenue but even with a tiny percentage investment it can pay you back many times over and over the initial investment.

The problem you have is how to know if your advertising costs are bringing customers to the door. With TV, Radio, Magazines, etc. there is NO WAY to make that calculation unless you question every customer who comes to the door and keep track. The beauty of SEO is that Google provides you meaningful statistics and data they can give you a basic idea of your progress.

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The first chart that we will use is the Google Analytics Active Users Trending overtime report listed below.

1. 

 

1. Is the trend of active users per month on your site from Jan 1 until around early March when I begin doing SEO? Of course, you got a percentage bump because of COVID-19 but if that was the only cause of the increase the upward increase would have flattened out months ago. The more monthly links we build the more content we add the higher that number and your position will go.
2. Is the when I started the link building packages
3. Is the current upward trend on active users per month

On March 2020 you were averaging 17,000 users per month currently you are averaging 56,000 users per month an increase of 232 percent. The question we need to figure out is how many of those 39,000 extra users translate to customers coming to your door and making a purchase.

4. 80% of local searches convert (SEW)

In case you aren’t tired of overwhelming numbers yet, this stat is enough to convince a lot of business owners to start an SEO strategy immediately.

Whatever your goals are — whether you’re an eCommerce company or a masonry specialist — an average of 80% of the local searches that arrive on your website will convert. All you have to do is make sure that those searchers can find you.

There are a lot of possible reasons why the conversion rate for local search is so much higher than the norm. It’s possible that people looking for local results on their mobile phones are more serious about buying something right now. It could also be because searchers want to get what they need quickly and move on since mobile devices can imply multi-tasking. Then again, maybe people who search locally are just more serious about buying.

Although for those of you who don’t care about the “why,” you can just sit back and enjoy your conversions.

 

https://www.google.com/amp/s/www.webfx.com/blog/marketing/10-stats-you-need-to-know-about-seo/amp/

Next, we calculate what is your average profit for one sale and assume the customer never comes back for a second sale. At a 5 dollar profit per sale times 80% of 39,000 extra monthly users 31,200 * 5 = 156,000 per month in profits. Let’s take 10 percent of that number for shits and giggles; it STILL comes out to $15,600 per month.

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So now we are at the problem of how do you know what Google is reporting is translating into actual sales. There is only ONE way to that and that is to have your security question ever new customer and ask them how they found out about your business. You only need to do this for two weeks and then average. You need to do this for two weeks because paydays skew the numbers.

In reality, the value of a new customer is much larger than 5 dollars, especially if they become loyal long time customers. The question you need to ask yourself do you want that new customer going to your competitors or to your store.

Read over for me and check for accuracy since you have more experience in the Recreational side. I want to see how this blog matches up with my experience in Medical marijuana.

https://isenselogic.com/much-new-dispensary-customer-worth/

Multi-City Search and the Behavior of Marijuana Customers and Return on Investment

Currently, you have awesome brand name awareness. I good chunk of your searches are coming from a customer who types in The name of your business somewhere in the search term. What SEO does are capture customers who do not know about your brand name. It is important to get a sense of what users are typing in to find your business.

 

In this Google Analytics report between January 1, 2020, and March 1, 2020, the report states that 63.3 percent of all Google searchers were Organic and 34.5 percent were from branded searches, I.E. searches with your business name in it.

Since I have started my SEO process the percentage of Organic Search has increased to 71.3 percent, which shows the effectiveness of the campaign to bring in NEW customers who have never heard of your recreational marijuana dispensary.

 

 

 

 

Because Google uses the location of the searcher called the (CENTROID) to determine where a customer is searching to produce the results. It is not a bad idea to target local cities that have Marijuana dispensary bans, like Lakewood, Federal Way, University Place, JBLM, South center ETC. For example, if I am in the military and I just got stationed at JBLM and I’m from a state that is dry the first thing I’m going to search on my phone is dispensary near me or a similar search. If you do not optimize for these cities all of those potential customers will go to your competitors.

How would any of those potential customers searching in Lakewood, JBLM, UP find your business if you are not in the top 3? They won’t and as you can see my SEO work is still paying my former client Green Collar Cannabis dividends to this day even though I haven’t worked on their site in over two years.

 

 

Let’s take a look at the actual searches that are coming in from Google for your Seattle Location

1	Brand Name	6,647
2	Brand Name menu	2,179
3	dispensaries near me		1,725
4	cannabis		1,617
5	dispensary		1,518
6	cannabis store		1,366
7	cannabis   Brand Name, 4th avenue south, seattle, wa	1,320
8	cannabis Brand Name	1,224
9	sodo   Brand Name	1,194
10	dispensary near me		719
11	marijuanas store near me		374
12	dispensaries		336
13	cannabis near me		282
14   Brand Name	menu	275
15	diego pellicer		253
16	dispensary seattle		242
17	dispensary	235
18	menu sodo	235
19	seattle dispensary		226
20	dispo near me		209
21	seattle dispensaries		185
22	seattle	170
23	dispensary in seattle		138
24	cannabis dispensary		132
25	Seattle cannabis		120
26	dispensaries in seattle		118
27	cannabis store near me		115
28	indigo pro		112
29	Seattle dispensaries		107
30	near me	100
31	diego pellicer seattle closed		97
32	cannibis		95
33	sodo dispensary		95
34	seattle menu	93
35	recreational dispensary		89
36	cannabis seattle, wa	89
37	hours	80
38	cannabis shop		74
39	cannabis	71
40	dispensaries in seattle downtown		68
41	cannabis		67
42	cannabis stores		66
43	seattle dispensaries open		64
44	diego pellicer menu		62
45	diego pellicer seattle		59
46	rso oil		58
47	cannabis seattle		55
48	seattle washington dispensary		55
49	mfused carts		53
50	mfused battery		50
51	cannabis cigar		49
52	dispensaries in seattle washington		49
53	dispensary downtown seattle		46
54	cannabis	42
55	seattle	40
56	seattle washington dispensaries		39
57	recreational dispensary near me		36
58	dispensary	36
59	cannibus	34
60	cannabis restaurant seattle		33
61	cannibus		33
62	dankwoods near me		33
63	cannabis	33
64	recreational		32
65	locations	32
66	online menu	32
67	recreational cannabis		31
68	airopro battery		30
69	closest dispensary to me		30
70	dispensary seattle wa		30
71	king pen		30
72	downtown seattle dispensary		29
73	marijuana shop		28
74	cannabis store		27
75	cannabis dispensary near me		27
76	oleum extracts		27
77	stores near me		27
78	cannabist shop		26
79	dispensary in seattle washington		26
80	dispos near me		26
81	open dispensaries		26
82	cbd near me for pain relief		25
83	marijuana		25
84	pax pods		25
85	store		25
86	cannabis store near me		24
87	recreational marijuanas store near me		24
88	cannibis	24
89	cannabis near me		23
90	cannibis store		23
91	dispensary near me open		23
92	to cannabis store		22
93	diego pellicer dispensary		22
94	washington dispensary		22
95	cannabis cigar		21
96	seattle dispensaries downtown		21
97	wax pens		21
98	cannabis accessories		20
99	cannibas		20
100	oleum extracts near me		20
Total	26,362	14,185	12177
		54%	46%
		Branded Searches	Non Branded Searches

 

As you can see 46 percent of searches are DISCOVERY searches, without the brand name, actually the percentage is higher because I only added the Top 100 searches. And these numbers are for a three month period. So if we use the same calculation of 80 percent of local searches turning to conversions we get. 12,177 dived by 3 months = 4059 non branded searchers per month * .80 = 3247 * 5 dollars per sale = $ 16,235 profits per month and that’s one store.

Now lets take a look at Tacoma.

1	Brand Name	14,602
2	dispensaries near me		5,331
3	menu	4,110
4	dispensary near me		3,281
5	cannabis	2,999
6	dispensary		1,953
7	tacoma	1,636
8	cannabis, south 72nd street, tacoma, wa	1,463
9	cannabis store		1,131
10	cannabis		1,110
11	marijuanas store near me		1,025
12	cannabis near me		576
13	near me	540
14	cannabis tacoma, wa	494
15	cannabis store near me		366
16	dispensary	347
17	72nd	322
18	dispensaries		288
19	tacoma dispensary		284
21	Brand Name	272
21	dispensary tacoma		206
22	recreational dispensary		205
23	cannabis	189
24	Brand Name in tacoma	166
25	zips hours	161
26	dispensaries in tacoma		155
27	cannabis tacoma	150
28	stores near me		145
29	cbd near me		133
30	dab pen		125
31	tacoma wa	117
32	recreational marijuanas store near me		116
33	on 72nd	111
34	recreational dispensary near me		107
35	tacoma dispensaries		105
36	cannabis		102
37	cannabis	101
38	cannibis	99
39	cannabis shop		97
40	cannabis stores		95
41	cannabis tacoma		93
42	72nd menu	92
43	stores open near me		88
44	cannibus	85
45	cannabis	79
46	cannabis stores near me		78
47	dispensaries tacoma washington		78
48	cannabis tacoma wa 98408	77
49	dispensary in tacoma		76
50	dispensary tacoma	75
51	tacoma dispensary open		74
52	tacoma dispensaries		73
53	dab thought		72
54	nearest dispensary		67
55	cannabis , tacoma, wa	64
56	cannibis		61
57	Tacoma cannabis		61
58	dispensary	60
59	dispensary tacoma wa		58
60	dispo near me		58
61	cannabis dispensary near me		57
60.	Brand Name	56
63	online menu	56
64	dispensaries in puyallup		55
65	best dispensary in tacoma		54
66	cannabis dispensary		53
67	dispensaries near me tacoma wa		53
68	cannabis shops		52
69	recreational		51
70	tacoma dispensary deals		51
71	cannabis near me		49
72	cannabis shops near me		49
73	cbd		48
74	CBD oil near me		48
75	Brand Name	48
76	phone number	43
77	cannabis shop near me		41
78	locations	41
79	slab mechanix		39
80	what time does close	39
81	cannibus		38
82	$ 50 ounces near me		36
83	cannibis near me		35
84	cbd lotion		34
85	dankwoods near me		34
86	stores		34
87	tacoma washington dispensary		34
88	cannabis store		33
89	lakewood dispensary		33
90	what time does open	32
91	Cannabis Deliever		30
92	Wax Pen		29
93	Cheapest Dispensary in Was		28
94	dispensaries open near me		28
95	weed store near me		28
96	$40 ounces near me		27
97	Cannabist Shop		27
98	dispensaries near me		27
99	Marijuana		27
100	medical marijuana dispenary near me		27
		28,726	19162
Total Top 100	47,888	48%	42%
		Branded	Non-Branded

 

As you can see 42 percent of searches are discovery searches, without the brand name, actually the percentage is higher because I only added the Top 100 searches. And these numbers are for a three month period. So if we use the same calculation of 80 percent of local searches turning to conversions we get. 15,329 dived by 3 months = 5,109 non branded searchers per month * .80 = 4087 * 5 dollars per sale = $ 20,439 profits per month and that’s one store this does not include data from your store located on 32^nd.

 

In conclusion, I believe that I have presented enough statistical real-world data to prove that SEO provides an ROI of greater than 4 to 1 and beyond. Increasing your sales and ranking on Google depends on more link building and content creation which is what we provide. Also, keep in mind that you will never get clients from those other cities with bans if you do not focus on them. How much is it worth? Hard to say, but what I will do for you is optimize for one extra city for free and you can figure out the value by doing a hard count or by using Google My Business Metrics like the one listed below.

 

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Other Great Articles By Isenselogic.com On Local SEO For Websites and Small Businesses.

How Long does it take your business to reach page one?

The importance of your business centroid and Google search.

Why local search is importance to your business.

How much is a new dispensary customer worth?

How much do Leafly and WeedMaps charge to advertise in 2020?

Top 10 mistakes recreational marijuana dispensaries and local businesses make with their website.

8 ways your employees can help your business gain more revenue through SEO.