Messages that click with your customers meet them at the right time and place—nowadays, that’s mostly on their smartphones. With 7.2 billion smartphone users worldwide and people checking their phones approximately 352 times a day, the message is crystal clear: you need a solid online presence to engage consumers effectively. So, how do cannabis dispensaries tap into this? While conventional brands might rock it on social media, it’s not as easy in the cannabis industry. We can’t rely on those platforms alone. 

Filled with policies and regulations, platforms like Instagram and Facebook aren’t the most cannabis-friendly. Although LinkedIn and X appear more tolerant of Mary Jane content, they still risk flagging it as inappropriate, leaving you wondering, “How the hell do I market my dispensary?”

Enter Loyalty Programs: Text and email campaigns reach opt-in customers. Why are they more effective than social media? First, A staggering 347 billion emails are sent daily, with 270,000 texts sent every second, demonstrating insane reach. Second, they boast higher open and click-through rates compared to other methods. Finally, you can say what you want without worrying about all those rules and algorithms that mess with social media.

What Is a Loyalty Program?

A loyalty program is your dispensary’s VIP club, where each customer gets the red carpet treatment. Through SMS and Email marketing, dispensaries send exclusive perks and updates directly to their customers. This communication method keeps customers engaged and coming back for more, offering customized rewards matching their preferences and shopping habits.

Say What You Want—The Power of Text & Email 

Did you know that 78% of consumers are more inclined to purchase from brands offering loyalty programs? This stat alone tells you all you need to know about the effectiveness of text and email. We could stop the blog here, but we won’t—because this goes beyond numbers. 

Marketing in the cannabis industry is heavily regulated, making compliant communication channels like SMS and email clutch. Social media platforms are loaded with restrictions, making it challenging to discuss cannabis-related content freely. While social media is great for broad visibility, it often comes with the risk of content being flagged, shadow-banned, or removed.

Challenges on Social Media

• Tougher Standards for Brands: Cannabis brands face stricter scrutiny than most. It’s not just about what you post but how it aligns with each platform’s rules and regulations.
• Advertising No-Gos: Platforms like Facebook, Instagram, and Pinterest ban cannabis advertisements, regardless of the legality in your state. So, things like boosting your posts for more reach? That’s off the table.
• Content Restrictions: Making bold claims? Think again. You can’t make false promises, show people consuming cannabis, or tout health benefits without risking your content being flagged or taken down.
• You Can’t Say What You Want: Unlike text and email marketing, social media platforms impose heavy restrictions on what can be said about cannabis,  limiting your ability to communicate with your audience freely.
• Risk of Getting Banned: One slip-up, and you might be banned for good. Losing your account means losing all your followers and engagement, a big risk for cannabis brands trying to build an online presence.
• Compliance Must-Haves: Detailed social media policies, community management guidelines, and legal advice are essential for complying with state and platform regulations—you must know and adhere to them all. 
• Organic Content Hurdles: Even unpaid posts can be flagged if they seem too commercial. Competitors and users can report your content, making organic growth just as challenging.

On the other hand, text and email marketing offers a more controlled environment where you can communicate directly with your audience without the same level of scrutiny. These channels allow for more personalized and unrestricted messaging, enabling cannabis brands to connect more authentically and effectively with their customers. By delivering tailored experiences, brands can boost visibility and foster lasting customer relationships, driving sustained business growth.

Benefits of Loyalty Programs

• High Open Rates and Engagement: Text messages have an impressive open rate, so your customers see your message instantly. Email marketing is just as powerful, generating top ROI for every dollar spent.
• Say What You Want: Unlike social media, SMS and email allow you to discuss your products and offers with fewer restrictions. 
• Enhanced Customer Loyalty: Loyalty programs are a total game-changer. Seventy percent of people decide where to shop based on loyalty programs, and 84% stick with a retailer because of them.
• Personalization and Targeting: Use data-driven strategies to craft messages that resonate with your audience, driving those conversion rates.
• Instant and Direct Communication: Most people are glued to their phones, making text & email perfect for delivering timely promotions and updates directly. 
• Enhanced Customer Education: Because emails allow you to speak freely, they are perfect for educating customers about products, usage, and benefits, building trust and loyalty while keeping them informed.
• Increased ROI & Reduced Marketing Spend: Although loyalty program members are less than 10% of customers after 12 months, they are responsible for 74.6% of a retailer’s total spending. This substantial spending shows the high return on investment that loyalty programs can bring.

Loyalty programs give you a platform to speak freely, leading to better customer education, increased loyalty, and bigger basket sizes. You build trust and keep your customers in the know by offering detailed information about products, usage, and benefits. This kind of transparency creates a strong bond, making customers feel confident in their choices. The result? Shoppers who come back often and spend more with each visit boost your overall sales and profitability.

There Are Some Limits to Loyalty

Navigating Carrier Filtering with Finesse

Avoiding the dreaded carrier filters and keeping your text messages from being flagged or blocked takes some finesse. Carriers are like the gatekeepers, ensuring only the good stuff gets through. To get on their good side, start by keeping your contact list fresh and only sending messages to those who actually want them. Make your texts personal and engaging to dodge that spam label. Ditch the spammy trigger words and over-the-top punctuation. Always stay up-to-date with the latest carrier rules—keeping things smooth and compliant ensures your messages hit their mark every time.

Groove with Compliance & Regulations

Playing by the rules isn’t just smart—it’s essential. Ensuring your messages comply with regulations like the CAN-SPAM Act means you won’t face hefty fines and can keep building trust with your audience. This law wants you to make opting out easy, quickly respond to requests, and include a real address in your messages. Make sure your team knows these rules inside and out and keeps your campaigns compliant. Regularly check your strategies to catch any issues before they cause trouble. By following the rules, you’re not just staying safe—you’re showing your customers they can trust you, which is priceless.

TOKE Does Loyalty

Here’s a glimpse of an actual loyalty program at work. Partnering with the up-and-coming dispensary, CODES, The TOKE Agency worked its magic to completely transform its digital marketing and loyalty programs. Our mission? To make CODES a household name in the cannabis market. By zeroing in on brand awareness, fostering customer loyalty, and driving impressive ROI, we crafted strategies that genuinely connected with their audience. We built a rock-solid brand-to-customer bond by quickly navigating compliance and infusing CODES’s unique personality into every message.

The Results

• Loyalty program subscribers increased by 61%, reaching 35,000.
• Campaign engagement hit a 39% open rate and a 25% click-through rate.
• TOKE’s loyalty campaigns achieved a 300x ROI, highlighting the power of tailored marketing strategies.

Schedule a call, and let us work the same magic for your brand! From boosting engagement to achieving impressive ROI through loyalty,  our tailored marketing strategies can elevate your cannabis business. Let us craft a loyalty program that resonates with your audience and drives real results. Ready to transform your brand? Puff, puff, pass it to TOKE!

Key Takeaways

• Engage Customers & Stay Compliant: Text and email marketing provides direct, compliant channels essential for the regulated cannabis industry, offering personalized messaging free from social media restrictions.
• Boost Loyalty & ROI: Loyalty programs via SMS and email drive significant customer retention and sales.
• Freedom to Communicate: Text and email allow cannabis brands to discuss products openly, enhancing customer education, trust, and sales growth without the limitations of social media.