text message

Text message marketing, also known as SMS marketing, is extremely powerful and has been rapidly growing in popularity in not only the cannabis industry but in other retail industries. Why? Well, that’s what we are here to answer today. What makes it so powerful?

In short, text message marketing is so powerful because it can help you reach many of your dispensary’s goals all at once by acting as not only a form of communication with your customers, but also as a marketing channel, a newsletter, and even a point of leverage if you’re using it in tandem with springbig’s other cannabis marketing services and tools.

That’s right, not only does text message marketing pose a number of benefits by itself, but springbig can help you take it the extra mile with our suite of cannabis marketing tools including things such as our autoconnects, our compliance solutions that ensure you’re text message marketing strategy is compliant, and even our other platforms like springbig’s brands which rely entirely on text message marketing.

So, what are the benefits of SMS marketing? How can you make the most of it? And furthermore, what can springbig do to add to these? In this article, we will be talking about all of this and more.

So, let’s dive in a look at what benefits SMS marketing has to offer your dispensary.

Benefits of text message marketing

It’s fast

We all know the saying “time is of the essence,” which holds true especially when it comes to marketing. Luckily, with SMS marketing, messaging your customers has never been faster. With text message marketing, an SMS message can be delivered in seconds!

Customers actually open them

Text message marketing has a 98% open rate, with 90% of those being opened within the first 3 minutes of being sent. For context, according to Mailchimp, the average open rate across all industries for emails is only 21.33%.

This insanely high open rate makes sense when you put it in the context of yourself. Just think about it: if you get a message on your phone, you’re more than likely going to open it at least so that it no longer shows up as an unread on your phone.

Easily integrates into dispensary operations

Another benefit of springbig text message marketing is that it is directly and integrated into your POS, delivery, digital signage, etc… creating an integrated marketing communications strategy.

Multifaceted

Like we said above, text message marketing can not only act as a form of communication between you and your business which makes the company-customer relationship more personal, but it can also act as a newsletter, a marketing channel, and a way to update customers on things such as their point balances.

Potential for HUGE ROI

Especially when paired with springbig’s SMS marketing tools like Brands by springbig, text message marketing’s potential is taken to a whole other level. For example, in a soft launch of Brands by springbig, one of our marketing platforms that allows brands to sponsor a dispensary’s text message marketing campaign(s), just one message boasted an ROI of 1,713%. Now that’s BIG.

Benefits of SMS marketing with springbig

  • Loyalty
  • Trackable effectiveness
  • Customer join forms and compliance solutions
  • Automation and autoconnects
  • Brands by springbig

to learn more about the benefits of text message marketing and how springbig can add to them, check out our full article on the benefits of text message marketing!

Laws and compliance

That being said, you won’t be able to realize all the benefits of text message marketing if you’re always in legal trouble. This is why understanding the legal guidelines to text message marketing is crucial before you jump in and start marketing.

While text message marketing allows cannabis companies to comply with the laws and regulations related to cannabis marketing, text message marketing is governed by its own set of Federal laws and regulations known as the Telephone Consumer Protection Act (TCPA).

With how much time and energy it takes to run a cannabis company, you don’t want to further burden yourself by getting yourself with a lawsuit that you could have avoided had you familiarize yourself with the laws and regulations related to SMS marketing.

There are various levels of regulations that cannabis businesses will need to familiarize themselves with when messaging their customers, so for your convenience, we separated them into three different levels of compliance: State, Federal, and Carrier.

While this is not a comprehensive list, the following are some of the most important laws that as a cannabis retailer, you’ll want to familiarize yourself with. But be mindful, laws and regulations may vary depending on the state you operate in and the carrier your messages are being sent to.

To learn more about each of these specifically and more bout how to stay compliant with all of these with the help of springbig’s compliance suite: 360 permissions, read our full article on text message marketing laws and compliance!

Text Message Marketing Best Practices

Once you’ve got a grip on the laws and regulations regarding text message marketing, you’re ready to start putting together your campaigns and messaging customers, but how do you do this? In this section, we’ll talk about the best practices for creating and sending text message marketing campaigns.

In order to have an effective cannabis SMS marketing strategy, you have to have customers to market to. And In order to know how to get more customers to join, and how to keep the ones that you already have, then you need to know why they joined in the first place. What are they looking to get out of these text messages?

Here, we’ll be talking about exactly that: Why do consumers opt-in to receive text messages from dispensaries? With this, we’ll also briefly look at why customers opt out and how to avoid that in the future.

To start: Why do customers opt-in to dispensary text message marketing? 

Why customers opt-in to receive dispensary text messages

Coupons and deals 

According to recent studies, The top reason, unsurprisingly, that people opt-in to receive text messages from dispensaries is for the coupons and deals. 

That’s right, 77% of people said that they’re there because they expect to be rewarded, so in order to keep them around, you need to reward them and give them what they want. 

Personal alerts

The next most influential reason for joining a dispensary’s text message marketing listserv is to receive personalized alerts. According to the survey, 50% of people who opt-in to receive text messages from dispensaries do so to receive personalized alerts.

To stay up-to-date

After discounts and personal alerts, 48% of people said staying up-to-date with the dispensary was another one of their main motivations in joining a dispensary’s text message marketing campaigns. 

Access to meaningful content

Last but not least, 33% of people said that gaining access to meaningful content was the purpose for joining the text message listserv. That means that they’re looking for important information and they don’t want to be bombarded with needless messages.

Why customers opt-out

Now that we know why customers opt-in to dispensary SMS marketing campaigns, let’s talk a bit about why customers opt-out of them. 

Disruptive and meaningless

According to the same survey, 52% of people said that they opted out or would opt out of a retailer’s text message marketing campaign if they found it disruptive.

With this, 41% of people said that they opted out of a text message marketing campaign because it didn’t provide meaningful content. This goes back to what we discussed above when we talked about providing them with meaningful content. Customers want meaningful content and they don’t want to be spammed with needless information. So, before messaging your customers, ask yourself: “What value does this message bring?”

For a more in-depth look at this, check out our full article on why customers opt in and out of dispensary text message marketing here!

Effective text message marketing campaigns 

Now that we understand why customers opt in and out, let’s look at some examples of effective SMS marketing campaigns.

To attract customers of all segments and interests, try sending any (or all) of these five examples of effective promos/offers for dispensary rewards:

  • Dispensary promotions/offers for new customers
  • Thank your VIPs
  • Minimum purchase specials
  • Daily deals
  • Happy hour

Each of these campaigns will give you customers what they’re looking for in a loyalty program. To learn more about each and for some examples, take a look at the full article on effective text message marketing campaigns!

When should you text your customers? 

We took thousands of text message campaigns and looked at what time they were sent. We then looked at how many visits each campaign produced to get the visit rate for messages sent at each hour of the day. From this, we were able to deduce the optimal time to send out your text message campaigns that encourages the most customers to come in.

Of our findings, the most prevalent were the following: 

  • Best time to send text message campaigns: 4pm – 5pm
  • Best day(s) to send text message campaigns: Thursday, followed by Wednesday and Friday. 

For more on the best times to send SMS text message marketing campaigns, check out our full article on the timing of your text message marketing campaigns!

How to improve effectiveness with targeted marketing

Targeted marketing campaigns, and targeted marketing in general, is marketing tailored to an individual or section of customers that allows you to advertise products or send your target audience promotions on things that they have already shown interest in. In this way, you eliminate wasting any time or money sending out mass marketing campaigns that may only stick out to a small percentage of your customer base.

Collecting customer data as a retailer can be tricky, but springbig can help you collect the customer data needed to execute these targeted text message campaigns both effectively and compliantly. 

How? For starters, through springbig’s loyalty platform, customers are prompted to identify their interests in order for you to be able to use this information for targeted marketing. On top of this, other customer data paired with spring’s autoconnects allows you to do things such as automatically send a customer a special discount on their birthday, segment customers based on interest, reward customers for big purchases, and much more.

So, what kinds of targeted marketing campaigns should you be focusing on?

  • Campaigns based on customer interests
  • Campaigns based on customer demographics
  • Campaigns based on customer actions

If you want an in-depth look at each of these types of campaigns with full explanation and examples, check out our article on targeted marketing campaigns here!

Cannabis marketing in the post-COVID world

For better or worse, we can’t talk about SMS marketing best practices without mentioning the COVID-19 pandemic.

One of the industries that has been especially resilient to the impact of the pandemic is the cannabis industry. Customers have shown that even with the pandemic, they still want their cannabis.

That being said, significant changes have taken place in the cannabis industry. Due to the pandemic, many customers have been opting to take advantage of e-commerce to purchase their cannabis and either choose to have it delivered or available for pick-up.

So, how can businesses meet demands and communicate with customers while also adhering to the specific COVID guidelines for their respective states? Text message marketing. How?:

  • Ease your customer’s concerns about COVID
  • Tell customers about delivery or pick-up options
  • Keep customers updated on the status of their orders
  • Keep customers up-to-date with store operations 

For more on how text message marketing can help cannabis retailers adapt to the post-COVID world, check out our article on the topic here!

How brands can leverage text message marketing

Why do the biggest brands in CA like Kiva, Wyld, Cann, CannaCraft, and Indus all use springbig? The short answer: springbig has the first digital ad network dedicated to brands called Brands by springbig. But that’s not it. Springbig also has the marketing tools brands need to push their brand and stay compliant while doing it.

What is Brands by springbig

Brands by springbig is a cannabis product marketing platform that allows you to tap into springbig’s clients’ customer bases, consisting of over 23,000,000 customers who have shown their intent to purchase cannabis products. Through this cannabis marketing software, you’ll be able to partner with springbig client dispensaries in exchange for the ability to market to their customer bases via SMS marketing.

This cannabis marketing software has already shown its ability to drive sales and loyalty redemptions. In its soft launch, it was able to 1,713% ROI for our client dispensary Elevate Lompoc (which we’ll discuss below) when they partnered with the cannabis brand Lime. Since this, Brands has made big waves in the cannabis industry and has even been featured in Forbes.

Other ways springbig can help brands

So, there’s no question that Brands has proved its effectiveness, but we aren’t done there. Brands by springing aren’t the only way Brands can utilize springbig’s platform.

Like we said above, while we generally focus on cannabis dispensaries in our articles, Brands can also take advantage of the rest of springbig’s offerings including our loyalty platform. In this, having a sleek user-friendly interface for your loyalty program and utilizing QR codes on products and join links on social media platforms among other things will all be crucial. Luckily, springbig has all of that and more for your cannabis brand.

Want to learn more about how your brand can utilize springbig? Check out the full article here!

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