people reading text message

Why use text message marketing for your dispensary?

Cannabis companies, rest easy! Springbig is here to provide the ultimate guide to dispensary text message marketing and its benefits!

Text message marketing, also known as SMS marketing, is extremely powerful and has been rapidly becoming the most popular form of marketing in cannabis retail.

Not all software services are created equal and exploring the industry providers is essential. Springbig, being the industry-leading texting and loyalty platforms provider to the cannabis industry, is not a bad place to start.

Table of Contents

In this blog post, we’ll discuss how cannabis dispensaries can begin text messaging their cannabis customers to increase sales and grow their business. We’ll also talk about some of the best practices for dispensary text messaging, and incorporating loyalty and we’ll provide tips for getting started. Additionally, we will display how to avoid ‘opt-outs’ and develop marketing texts that resonate well with your engaging customer base. Let’s dive in.

Text message marketing is one of the most effective ways to reach your target market, with open rates of 98% and springbig messages having an average Click Through Rate (CTR) of 10%. It’s incredibly easy to get started building your database and now is the time to start.

How do I manage a CRM database?

Managing your own would be very difficult but having a CRM marketing platform like springbig, that can leverage your subscriber’s data to; accelerate sales, and customer visit frequency and ultimately boost brands’ recognition and revenue can be easily set up and maintained. Which is vital to compete with alternative brands.

Cyber Security

Springbig is HIPPA compliant and SOC2 certified for cyber security, so you can rest easy knowing your consumer data is protected.

How can I measure my campaign’s success?

All with near real-time access to conversion statistics, cannabis retailers can see the system and campaign success of each text messaging initiative through the springbig dashboard. Monitor customer spending, time of day they are shopping and multiple other relevant details to understand areas of improvement.

So if you’re ready to start reaching more customers with text messages, keep reading!

Are Cannabis Brands Banned from SMS Marketing?

Cannabis companies have long been struggling with the issue of telecommunications companies filtering their text messages and blocking deliverability. This has been a major problem for the cannabis industry and cannabis businesses trying to use text message marketing. Without the proper platform and guidance, your deliverability can struggle.

With springbig, we enable the cannabis industry to be compliant with both federal law and the usage terms and conditions of the wireless communications industry.

If you consistently produce cannabis content that violates the specific telecommunications companies’ terms and conditions, you can certainly be suspended or even banned from sending text messaging through their platforms.

10DLC

T-Mobile, Verizon, and ATT have also launched their own new regulations regarding A2P (application-to-person) messaging over toll-free numbers. This new set of rules is referred to as “10DLC” because it governs the us of 10-digit long codes.

All business using a business application/software to send messages must be vetted and registered with the Mobile Network Operators new Campaign Registry.
Business will be vetted along the following parameters:

Compliance Violation TypeExplanationCost of Violation
Text EnablementIf a complaint is filed with T-Mobile alleging that a business is using 10 digit long-code numbers before receiving verification and a letter of authorization from the campaign registry$10,000 pass-through fee
Grey RouteAttempting to mask A2P messages as being sent from P2P routes.$10 fee per message (This has been waived until further notice)
EvasionAttempting to evade program rules using any of the following methods; snowshoeing, dynamic routing, unauthorized number cycling.$1,000 pass-through fee
Content ViolationSending messages containing content in violation of the T-Mobile Code of Conduct such as SHAFT related content.$1,000 per content violation

That being said, using mass text message marketing effectively is still very much possible for any cannabis dispensary, and from the perspective of sustainable business growth complying with 10DLC is the right call. Navigating 10DLC guidelines it is important for cannabis dispensaries to be aware of 10DLC and how adapting it will impact their marketing strategies to make sure your text messaging campaigns are as effective as ever. As it seems 10DLC is here to stay, here are a few tips on how to navigate the new rules while staying compliant Including links that direct customers to your website can be a great way to provide customers with more information about for example upcoming events or products. However, make sure that the links landing page is also compliant with the guidelines, instead of sending links directly to cannabis websites. By ensuring your SMS marketing platform complies with the 10DLC regulations to avoid any unwanted fees. Using evasion techniques such as dynamic routing (grey routing) to go around 10DLC regulations can come with severe sanctions. In a heavily regulated field like the cannabis industry compliance is key, so avoid using platforms that try to evade regulations. Taking risks by not complying can hurt your business in the long run. While utilizing 10DLC might require some changes in your text message marketing, it remains an incredibly effective and convenient addition to your cannabis dispensary marketing strategy. Keeping up to date with regulations and improving your content will ensure you can reach your customers by text as effectively as ever before!

TCPA

judges gavel

The Telephone Consumer Protection Act (TCPA) is a law that was enacted in 1991 to protect consumers from unwanted telemarketing calls and texts. The TCPA has been amended several times, most recently in 2013, to include stricter penalties for companies that violate the law. Text marketing for dispensaries falls under the purview of the TCPA, and there are a few steps that dispensary owners need to take in order to stay compliant.

  • Opting In

First and foremost, text messages can only be sent to cannabis consumers who have already completed the ‘double opted in’ requirement to receive them. This means that you cannot simply add someone’s phone number to your list and start sending them texts, cannabis marketing compliance requires them to opt-in.

  • Double ‘Opt In’

Compliance regulations dictate that customers must have explicitly given you permission first, also known as an ‘opt in’ through two methods, a signature, and an explicit join button.

If you’re looking for a full breakdown of text message marketing law and regulation as it relates to cannabis dispensaries, and how you can make your dispensary complaint, click here!

Teach your team

Educating your budtender team on politely inviting your customers to fill out a loyalty form, while outlining the benefits the customer can receive, is another vital setup process to establish value for your business.

Opting out and respecting privacy

Cannabis retailers must include a way for consumers to opt out of receiving SMS from your brand, and you must respect their wishes if they do so. Otherwise ignoring an opt out and continuing SMS marketing could incur legal liabilities like listed below.

Violations and Penalties

Violating the TCPA can result in significant fines – up to $16,000 per violation – so it’s important that dispensary owners understand the legal requirements and take steps to ensure that their SMS marketing campaigns maintain compliance.

Text message marketing can be a great way to reach your target audience, but it’s important to do it the right data driven way. Following the guidelines set forth by the TCPA and springbig will help you stay compliant, avoid costly fines and ensure your messages maintain the highest deliverability.

Enrolling your customers

Springbig provides numerous painless methods to ‘opt in’ for customers to enroll into your database including; directly in-store with over 30+ POS and E-Commerce Integrations, NFC chips, drive them to fill out a website form (directly on your website, with your brand), Text-to-Join codes and many more.

Once your cannabis consumers become springbig subscribers, you can begin to monitor how your cannabis service aligns with your cannabis clients purchase buying patterns and demands.

5 Tips for Crafting your perfect text message

If you want to create an SMS campaign that will really engage with your new customers and retain them into lifetime customers, there are a few things you should keep in mind.

Here are five tips for creating and delivering the perfect SMS message:

Audience Segmentation

Segment your database and always avoid the mass texts. Text messages are most effective when they’re targeted to a specific audience. Make sure you segment your list so that you’re sending relevant messages to the right people, using the right medium {Backlink Targeting Post} at the right time while avoiding filtered keywords.

Personalize your messages

When it comes to dispensary marketing, personalization is key. Having a first name appear, with an exclusive offer is much more inviting than “our dispensary is having a sale, come on by”.

Personalization demonstrates that you are aware of the needs of the industry, the demand for cannabis services and the expectations of your clients,

– It shows that you care about your customers and their needs.

– It allows you to focus on specific demographics or interests.

– It helps you stand out from the competition.

Clear, concise and creatively aesthetic

Make sure your message is clear, concise and avoids any spam keywords. Your customers are reading your text on their phone, so make sure your message is short and to the point.

Also explore MMS messages if you have the time and marketing know how to produce these eye-catching ads.

Include a timely Call to Action (CTA)

To drive successful campaigns your marketing messages should have a clear purpose, and you should include a call to action to clearly notify customers of what you are offering.

Examples include a discount on a popular product, with the CTA driving customers to make a purchase, resulting in your business making more sales.

A/B Test your campaigns

Businesses in this industry should always test your SMS campaigns before you launch them. Use springbigs live preview to see what your SMS campaigns will look like and our campaign caddie {Backlink Webinar} to ensure you have the best data to make actions right on your system dashboard.

If you’re looking for ideas on what types of campaigns are right for your dispensary check out this post!

Conclusion

There are many cannabis retention and revenue platforms that offer a cannabis text marketing service. Evaluating each service can help you reach more customers and increase your sales. If you’re looking for a way to stay within legal regulations and increase your revenue, consider springbig’s cannabis text marketing and loyalty platform. It’s a great way to reach more customers and boost your bottom line.

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