Table of Contents
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.
- 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.
- Is the when I started the link building packages
- 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.
- 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 32nd.
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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