Why is Text Message Marketing so Important for Dispensaries?
Updated: Oct 24, 2019
text message marketing in the marijuana business
Despite there being many unanswered questions about the future of the cannabis industry, there are two things we can be certain of:
First- the cannabis business is only going to keep growing as more legalization efforts push forward.
Second- the technology of our time places a wealth of knowledge and resources for retailers and consumers at their fingertips.
Taking these into consideration, text message marketing for dispensaries is a critical element of any successful advertising strategy. Not only because of how effective SMS marketing is overall, but also because of some marketing limitations marijuana distributors in certain states currently face.
So why should dispensaries utilize text messaging?
3 words: reach, research, and revenue
Each of these is critical to successful marketing. What makes text message marketing for dispensaries so important is the ability to leverage it to improve each of those areas. Despite the restrictions of marijuana advertising laws, texting can vastly expand your reach. With greater open rates and engagement, you can drive revenue while simultaneously conducting market research. Then, you can use that newfound information to hit an ever-growing audience to create even more revenue.
Let us look at how.
Before we talk about how good the harvest can get, let us talk about planting seeds. After all, it is important for any business to understand the immediate potential for their investment.
Texting still holds the title of #1 for the most popular form of communication for America adults under the age of 50. In fact, this has not changed for about 12 years! So it should come as no surprise that data shows text messages have a 99% open rate. Even more impressive, 90% of texts are opened within 3 minutes of being received. Yes- we talk about these rates a lot because they simply cannot be ignored! Compare that to the competition:
Needless to say, corporations across all industries have caught on. That is why now more than ever you see businesses asking customers to sign-up to receive text messaging for everything from tracking information to daily deals and coupons. Almost anywhere you make a purchase today the cashier will ask for a phone number, which frequently goes hand-in-hand with customer loyalty programs.
Part of the reason text message marketing for dispensaries is so important is that there are so many restrictions in place that prohibit them from advertising in other traditional ways. For instance, cannabis companies in most states cannot advertise on television. Furthermore, social media platforms like Facebook also keep a tight hold on what kind of sponsored ads a business can run.
Meanwhile, text message marketing regulation is overseen by the Telephone Consumer Protection Act (TCPA). The whole purpose of this legislation is to safeguard the privacy of customers, restricting telemarketing via:
This means unless recipients have given their explicit consent, companies can’t bombard the public with unsolicited ads. Additionally, the TCPA requires you to give customers the ability to easily opt-out.
However, a dispensary that effectively utilizes a text marketing platform like springbig can easily remain compliant with TCPA law while still making a definitive impact on their sales. By encouraging customers to opt-in to your dispensary loyalty program, you can quickly gain their consent, which places you in a position to earn more of their trust and their business.
It isn’t always easy to interpret the TCPA rules and regulations around text marketing. Not to mention there are those who exploit the confusion to try and blackmail merchants who don’t fully understand TCPA regulations. Sadly, this causes many cannabis companies to miss out on a remarkable opportunity to connect with their audience and drive traffic to their retailers.
Next, there are regulations in place through the Federal Communications Commission (FCC) on text marketing. One of the biggest barriers to cannabis text marketing is that marijuana retailers are not permitted to use “Short-Code Cannon” software. Thankfully, springbig has developed technology that actually improves the efficiency of “Long-Code Cannon” software, while still being able to provide a 95% delivery rate. That is a huge advantage over our competitors, who only deliver at around 67%.
Remember- a text message campaign essentially creates your own marketing channel that goes directly to those who are most likely to visit your store and spend more. It is a proven way to not only increase overall sales but also to increase dollars spent per visit.
custom cannabis marketing
One major advantage for a dispensary that utilizes text messaging as part of their loyalty program is the power to learn about your audience to improve your campaigns. Springbig’s CRM software can be utilized to analyze customer spending habits and preferences. Not only does this mean you get market research on which ads are most effective, but you can also keep track of the kinds of products people buy and what their average spend is. All of this information is available to retailers through our easy to navigate dashboard.
But check this out- as a result of all this research, you have a better chance of actually influencing consumer behavior.
The text marketing service through springbig gives cannabis dispensaries the ability to personalize each campaign. Our unique SMS messaging software allows you to segment your audience, making sure customers/patients receive information that is relevant to them. Therefore, you can reduce the risk of spending money on ads that people wouldn’t be interested in. By optimizing your text marketing, you can drive a greater ROI on each campaign.
Overall, delivering a personalized dispensary text with a targeted offer and compelling call to action can be a game-changer! When it comes to customer relationship management, customizing each individual’s experience can help them to feel their loyalty is valued. Meanwhile, having them engage in a loyalty rewards program creates a constant archive of information you can use to improve your cannabis marketing strategy. And at the end of the day, better data and better marketing are the most effective way to drive better sales.
If you are ready to create personalized marketing campaigns that help you conduct research on customer purchasing habits, optimize your loyalty rewards, and promote greater average spend per visit, request a demo today to learn how springbig can revolutionize your dispensary CRM.