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Should Dispensaries Use SMS Marketing?

With our instincts telling us to ignore online ads and mass delete promotional emails from our inbox, it’s no wonder that text message marketing is becoming more popular among dispensaries. It’s a preferred method of communication among customers and allows dispensaries to utilize smart targeting for more personalization and effectiveness.  

Even when someone clicks on a marketing email you’ve sent, the chances of them following through are quite low. For a typical email, the call to action (CTA) conversion rate is only 0.9 percent.

Additionally, everyone has grown accustomed to recognizing online ads. More often than not, once they realize it’s an advertisement, they will try to skip it or switch to a different page. The average person sees 350 advertisements a day, so it’s easy for your ads to get lost in the shuffle. If you want to market your dispensary successfully, there is a more effective, personal and preferred option: SMS and text message campaigns. 

Texting has a conversion rate of approximately 12 times higher than emails, which makes it a much more efficient way to market your products and promote your business. Let’s dive into some different strategies and tactics you can follow to use this modern marketing miracle!

texting customers is more efficient in reaching your customers than email

Why Is SMS Marketing Such a Great Strategy for Reaching Your Customers?

Whether you want to engage your customers or sell a product, SMS marketing is an excellent option. This software allows you to target your text messages and get customers to look at them. Unlike emails and print ads, they are more intimate, making each text feel like a personal message from you to the customer.

Just about everyone has a mobile phone with them at all times. Mobile phones are glued to our hip –  68 percent of us even keep our cell phones next to us while we sleep! This is especially true for millennials. Since Americans send and receive billions of texts each day, you can easily capitalize on this popular form of communication.

 

Just about everyone has a mobile phone with them at all times.

 

Unlike emails, most people read their text messages within a matter of minutes or even seconds. If you want your message to be seen, this technique is one of the most popular ways to communicate with your customers in a way that’s fast and convenient for them. SMS has an impressive open rate of 98 percent, and 90 percent of those people will actually read the message in the first three seconds.

This technique allows you to engage your audience in a personal and relevant manner. Your messages are more likely to be seen, and your customers are more likely to engage with your message. As a result, you will drive more conversions and revenue to your business.

SMS Marketing and the Cannabis Industry

Text messages are a particularly important medium for the cannabis industry. While every business can benefit from SMS marketing, cannabis businesses specifically should incorporate it as a core component of their marketing strategy because many other traditional marketing tactics are not feasible. Some dispensary owners have concerns about SMS marketing because they feel customers won’t want to be messaged on their personal devices. However, they are always surprised by how many of their customers want to opt in and receive these messages. To ease their anxiety, remind your customers that you cannot share their information with anyone and it will only be used to communicate personalized offers at your dispensary. You can use SMS marketing to promote your business, increase customer loyalty, and market new products. Depending on local and state regulations, as a cannabis business, you likely cannot advertise on vehicles, billboards, at state fairs, in shopping malls, or in arenas. In California, you can only advertise marijuana products if more than 71.6 percent of the viewers are 21 or older.

 

Use SMS marketing to promote your business, increase customer loyalty, and market new products and remind your customers all the information they provide is private

 

Your advertising options might be limited...but luckily, you can enjoy an 11.8 percent call-to-action conversion rate with texts. Plus, your dispensary text campaigns can help you discover which products your customers are interested in as you target the right message to the right client.

Different Types of SMS Campaigns

There are a number of SMS campaigns that can work for your business. From advertising promotions to product restock notifications, you can tailor each campaign to the customer's unique needs.

Personalized Product Notifications

When customers are deciding where to buy their cannabis products, one of the biggest deciding factors is whether you have the products that they’re looking for. The average dispensary gets more than two dozen calls about inventory each day, which can quickly cut into your labor hours.

More importantly, these calls are an inefficient way to handle questions for you and your customer. You can try using social media to get the word out, but most of your clients will not see the alert due to the overflowing amount of content on their feeds. 

A personalized product alert allows you to send details about new products to the customers who actually care about it and ready to buy it as soon as it’s back in stock. With text-message based product notifications instantly tell clients when their favorite edibles, concentrates, and strains are back in stock.

 

Send your customers personalized product alerts so they know exactly if want they want is in stock

Filtered Messages

Another benefit of SMS campaigns using software like Baker is that you can filter each message to the proper list of customers that the message will be most relevant and effective for. If you are marketing a CBD concentrate, you can make sure you aren’t wasting your time (and marketing dollars) by sending the promo to somebody that only likes high THC products. This reduces your chances of customers unsubscribing because they only get messages about promotions they actually like.

 

Use filtered SMS messaging to send your customers content they want to hear about

 

Whether you send out a text to everyone in your customer list or target it to a single group, there are many options available. You can schedule messages for upcoming product releases or holidays or send an impromptu message just because it’s snowing!  With the right techniques, you can make sure your SMS campaigns boost sales, grow revenue, and boost customer engagement.

Best Practices and Tips for Your SMS Campaign

As you develop your SMS marketing messages and campaigns, focus on paying attention to your customers' product and communication preferences and even hobbies and interests. For example, someone who likes going to music festivals might be looking for a pre-roll or disposable vape pen that they can take with them on-the-go.

Targeting your messages can instantly increase your results. Native Roots, a popular dispensary chain in Colorado, managed to increase its revenue by a whopping 10 percent through a single targeted message. You can target your promotions based on loyalty rewards, visit history, or even purchasing history. For example, someone who expresses interest in outdoor activities might prefer edibles or cartridges that are easy to take on-the-go. To figure out if your campaign is a success, you need to start by setting a quantifiable goal like boosting average transaction amounts or increasing Checkins and foot traffic. Then, measure your results to see if your performance met or exceeded your goals and adjust your strategy based on what you learned.

 

target promotions to your customers based on their personal preferences

 

No matter what message you send, make sure there is a clear call to action in each text message. You want the reader to know exactly what they should do next if they are interested in your product. This could be a link to a marketing video, your online ordering menu, or a suggestion the client should come in today for double loyalty reward points.

 

Learn More About Using SMS Campaigns for Your Dispensary

For your business to be successful, you need to transform your casual visitors and first-time customers into repeat clients. Effective communication and strategic marketing help you create a loyal customer base. With an SMS campaign, you can boost your revenue through this simple, low-cost marketing technique.

 

Effective communication through SMS will help you create a loyal customer base.

 

Now that you know why you need to use SMS for your dispensary, let’s focus on the execution. Here’s an SMS messaging tool on the Baker CRM platform, called Connect, that you’ll need in order to take the next step towards improving the communication you have with your customers.

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