6 Simple Steps to Acquiring the Right Cannabis Customers

Successfully launching a cannabis banking and financial services program means building trust with potential customers. That’s easier said than done, but by taking the right steps, it doesn’t have to be. This guide offers tips for developing a go-to-market strategy that attracts the right kind of customers for your banking program, setting you up for success as you break into this new market. 

1. Identify your target audience

When you’re creating a cannabis program, it’s not enough to just say you want to serve cannabis businesses. Take some time to drill down into the demographics of your ideal potential customers. Consider the following aspects and which align with your team’s capabilities and expertise to determine your target audience:

• Sector: Think about the entirety of the cannabis supply chain and if there are particular sectors you are well equipped to serve. Go beyond plant-touching and ancillary designations to think about the differences between cultivators, manufacturers, and dispensaries, as well as the ancillary support services like security companies, marketing agencies, and software developers, to name a few examples.

• License type: Within the plant-touching sector, determine which type of license holder you want to work with and what percentage of your business should come from these companies. Your institution can work with cultivators, manufacturers, distributors, testing laboratories, retailers like dispensaries, and delivery services. You don’t have to bank all types of plant-touching businesses to participate in the industry.

• Revenue: Consider whether your financial institution is equipped to support businesses with high levels of revenue and whether it’s profitable to work with very small businesses with minimal revenue. Understanding the cost of funds for these businesses, and how you can recoup those expenses through fees and activities like lending, is critical to your long term success. It also helps you understand which types of cannabis businesses you should target with your marketing efforts.

• Banking status: Are you looking for unbanked and underserved businesses, or do you want to convince a business to switch? This will not only impact your messaging, but which businesses you choose to target.

• Funding status: Are you targeting bootstrapped small businesses or companies that have private investment behind them? The way these businesses operate and their expansion plans are vastly different, so understanding which you’re equipped to serve and want to speak to is important when launching your program.

• Location. In many cases, cannabis companies can bank with any financial institution across the U.S., not just the ones in their home state. It’s up to you if you want to work with customers nationally, regionally, or in your community.

2. Conduct market research and competitive analyses

The most prepared financial institutions understand the cannabis landscape inside and out. Begin with detailed market research, getting a sense of who the major players are in the market and the regulatory landscape. Reading economic projections about the growth of the industry is immensely helpful as well. 

For example, is this market open to multi-state operators (MSOs) or is it prioritizing small, independent cannabis businesses and social equity licensees first? Understanding a detail like this can help you determine whether it makes sense to court the business of small companies or whether you might instead target resource-rich MSOs.

Similarly, you should engage in detailed competitive analysis. Determine which other financial institutions are operational in the market and which services they offer. Get a sense of how much market share they already control. If it’s a brand new market, everyone may be starting on an equal footing, but if the market is mature and you’re late to enter, other banks may have an advantageous position.

Knowing the lay of the land will help you refine your target audience and begin establishing the broad strokes of your marketing strategy. 

3. Develop a marketing strategy and launch campaigns

The first step to attracting customers is getting your name out there. Your marketing efforts should encompass several avenues as you figure out what’s most profitable for your financial institution.

Here are some examples of marketing materials and campaigns you might consider investing in:

• Collateral: Create professionally designed brochures and informational packets that highlight your financial institution’s expertise in navigating complex regulatory environments. Include details that help build trust with potential clients, including information about secure transaction processing, risk management strategies, and tailored financial solutions. Ensure all collateral materials include clear compliance statements and demonstrate a deep understanding of both state and federal regulatory landscapes.

• Direct mail: Send targeted direct mail campaigns that speak directly to the specific financial pain points of cannabis business owners. Personalize communications to address the unique challenges of banking in a federally restricted industry, emphasizing your team’s specialized support and comprehensive understanding. Include tangible benefits such as reduced transaction fees, and industry-specific financial products. Develop segmented mailings that speak to different cannabis business verticals, from cultivation and manufacturing to retail and distribution.

• Website: Design a landing page for your website that serves as a comprehensive resource for cannabis businesses seeking specialized financial services. Create a clean, professional interface that immediately communicates the institution’s expertise in navigating complex banking challenges. Include clear value propositions and interactive elements like compliance checklists and immediate consultation booking options. Feature testimonials from successfully banked cannabis businesses and provide downloadable resources that demonstrate your institution’s deep industry knowledge.

• Public relations campaign: Develop a strategic PR approach that positions your financial institution as a thought leader in cannabis business banking. Create a media strategy that emphasizes your commitment to legal, compliant, and sustainable financial services in the cannabis industry. Highlight your banking solutions and successful client partnerships, and offer expert insights into industry financial trends to the press. Your PR efforts extend into speaking opportunities at cannabis industry conferences and banking industry events to build credibility and visibility.

• Email marketing campaign: Implement a segmented email marketing strategy that provides personalized, relevant content to the different cannabis sectors you’re targeting. Build a nurturing email sequence that educates potential clients about the complexities of cannabis business banking and the institution’s unique solutions. Offer advice on compliance challenges, financial strategies, and industry insights to showcase your expertise. Include clear calls-to-action that encourage consultation bookings, resource downloads, and personalized financial assessments.

4. Begin networking

Relationships are everything in the cannabis industry. This is very much a face-to-face business, so attend trade shows and networking groups to get your name out there. Repetition is key; make sure your team appears frequently in prominent industry circles in order to establish your brand as a mainstay in cannabis. This also helps you build relationships with other professional service providers who may have clients in need of banking or financial services.

5. Identify licensed cannabis businesses and get in touch

While your marketing campaigns are creating paths for customers in need to come to you, you should also engage in direct outreach to businesses that may need your services. In the cannabis industry, most states publicly register licensed cannabis businesses. Access these databases to get contact information and addresses for every licensed business in the market, and then launch a cold calling campaign. 

Reaching out to these businesses directly may generate some business early on, giving you a much-needed foothold in your new market. Moreover, even when it doesn’t result in new business, it lets license holders know that your financial institution is active in the market and enthusiastic about working with cannabis businesses. 

Remember, cannabis banking is a volatile space, and some of these companies may soon be in the market for a bank or financial service provider, even if they aren’t at the moment. Plenty more are underbanked but don’t realize it; by stepping into the market and offering superior service, you can still attract new customers away from their current provider. 

How Green Check can help you find banking customers

As you build out your cannabis business banking program, Green Check can support you in multiple ways.

First, our marketplace of verified and trusted cannabis businesses can help connect you with the major players in any market. The Green Check Connect Marketplace features cannabis-friendly financial institutions like yours, a great way to tell the industry that you’re ready and willing to serve them. You’ll be listed among other service providers, potential partners to reach out to as you build your network.

We also provide you with data resources to conduct detailed market research and competitive analysis. Green Check Access, our unified cannabis API, helps you drill down into market dynamics by the numbers. It does more than just keep tabs on your clients for compliance reporting — you can examine data from the more than 11,000 cannabis businesses and financial institutions operational on our network. That gives you unprecedented insight into the industry and a competitive advantage.

Between our network of cannabis businesses and our powerful software, Green Check can support your cannabis banking and financial services in a way no one else can. If you’re ready to get started with Green Check, set up a consultation with an expert.

Green Check makes getting started easy

Launching a cannabis-friendly banking and financial services program isn’t easy, but Green Check makes the process smoother. Let us help you break into a new market the right way with a combination of our software tools, expert guidance, and large network of cannabis businesses and financial institutions. We’re here to help you better serve your clients and grow your business by bridging the gap between cannabis and finance.