June 2025
Dispensary Marketing

How to Use SMS Marketing to Grow Your Cannabis Dispensary

Andrea Ibbot
June 24, 2025

Want to reach customers faster than a roach burns? SMS marketing just might be your secret weapon. Unlike email or social ads, a text lands straight in your customer’s pocket, with open rates that could make any marketer jealous. While social platforms are cracking down on cannabis content, SMS remains a reliable, personal way to send timely deals, restock alerts, and loyalty perks. This article will walk through how to launch compliant SMS campaigns, build your subscriber list, and measure real impact — so you can turn texts into transactions, without the legal haze. 


Why SMS Works for Cannabis Dispensaries

SMS marketing isn’t just a nice-to-have in the cannabis space — it’s one of the few reliable digital channels left standing. With advertising restrictions on platforms like Meta, Google, and even email providers tightening the reins on cannabis-related content, SMS is emerging as a go-to solution for dispensaries looking to drive real results fast.

A statistic is shown that SMS marketing has an open rate of 64%.

Let's Break Down Why SMS Works for Dispensaries

Sky-High Open Rates: 

The average SMS message boasts a staggering 98% open rate. Compare that to email — where only about 20–30% of messages get opened — and it’s clear why SMS delivers more bang for your marketing buck. Most texts are read within 3 minutes, giving your offers a real-time edge.


No Algorithm, No Problem: 

Unlike social platforms or email inboxes, text messages aren’t filtered or buried by an algorithm. They go straight to your customer’s phone — front and center.


Perfect for Mobile-First Shoppers:

Over 80% of cannabis consumers use mobile devices to browse and shop. Whether they’re checking strain availability or pre-ordering for pickup, SMS aligns perfectly with their behavior.


Ideal for Time-Sensitive Offers: 

Got a flash sale? New strain just dropped? SMS is perfect for urgent updates that drive immediate action. You can’t wait for someone to open their email two days later — SMS reaches them when it matters.


Engagement That Converts: 

Click-through rates for SMS hover around 19%, with conversion rates significantly higher than email in most retail categories. For dispensaries, that can translate into rapid sell-outs and shorter inventory cycles.


In short, SMS marketing gives cannabis retailers the speed, visibility, and direct connection needed to thrive in a tightly regulated — and highly competitive — industry.


How Does SMS Marketing Compare to Email Marketing?

Open Rate

SMS: Around 98% 
Email: Typically 20–30%


Most texts are opened within minutes. Emails, on the other hand, can sit unopened in an inbox for days — or end up in the spam folder entirely.


Click-Through Rate (CTR)

SMS: 10–20% 
Email: 2–5%


SMS messages are short and to the point, often prompting immediate action. Email links are more likely to be ignored unless the content is highly engaging.


Response Time

SMS: Instant (within 3 minutes) 
Email: Hours — sometimes days


Customers respond to texts in real-time, making SMS ideal for flash sales, product drops, or urgent updates.


Compliance and Deliverability

SMS is highly regulated. You’ll need explicit opt-in consent, age verification, and clear opt-out instructions. Email marketing is more lenient, but spam filters often reduce reach.


Content Depth

Email allows for longer, more detailed content — like educational newsletters or product recommendations. SMS is best kept short and punchy (under 160 characters).


Best Use Cases

SMS: Flash deals, restock alerts, loyalty rewards, pickup reminders 
Email: Strain education, long-form newsletters, staff spotlights, event recaps


Is SMS Marketing Legal for Cannabis?

Compliance isn’t optional — it’s essential. Violations can cost $500–$1,500 per text. Key laws and regulations include:

  • TCPA (Telephone Consumer Protection Act): Requires explicit written consent, a description of message types, opt-out instructions, and clear T&C links.  
  • CAN-SPAM Act: Classifies SMS as marketing content; messages must be clearly identified, unsubscribable, and non-misleading.  
  • CTIA (Cellular Telecommunications and Internet Association) & carrier rules: Disallow cold texting from shared numbers, require opt-out mechanisms, and restrict “SHAFT” content — cannabis promotions may need creative non-trigger phrases.  
  • State-level compliance: Check your local rules — California’s CCPA or state TCL laws may apply.


SMS Compliance Checklist:  

1. Use double opt-in, documenting timestamps and consent specifics. 
2. Clearly state message frequency. 
3. Include “STOP to opt-out” in every text. 
4. Link to privacy policy and full T&Cs. 
5. Avoid disallowed terms like “marijuana” or “kush” in carriers’ eyes.


Partner with cannabis-friendly platforms (e.g., SpringBig, Alpine IQ, Happy Cabbage) to automate compliance and avoid tracking issues.

A confirmation text appears on a cellphone, thanking the user for joining the SMS subscriber list.

Building a Compliant SMS Subscriber List

Before you can run high-converting campaigns, you need a subscriber list that’s not just large — but legal. That means collecting explicit, documented consent from customers who genuinely want to hear from you. Here's how to build a compliant, engaged SMS audience for your dispensary.


In-Store Collection (POS)

Your point-of-sale system is prime real estate for gathering opt-ins. Train budtenders to ask:“Want to get text alerts when your favorite strains drop? Sign up for SMS deals!”


Use a tablet, QR code, or integrated POS form to collect the phone number and confirm consent. Make sure the opt-in form clearly states what kind of messages they’ll receive and how often.


QR Codes & Signage

Strategically place QR codes throughout your store — especially near menus, registers, and exits. Use branded CTAs like: “Text 420DEALS to 12345 for 10% off your next pre-roll.”


This not only incentivizes sign-up but makes your SMS list feel like a VIP club.


Online Pre-Orders & Pickup Pages

Don’t miss the digital traffic. Add a simple checkbox for SMS marketing consent on pre-order pages, loyalty account creation, and product reservations. Bonus points if your form auto-populates consent fields and triggers a double opt-in text confirmation.


Loyalty Programs

Link your SMS program with your loyalty system. For example, offer extra reward points or birthday discounts for SMS subscribers. Customers who already love your dispensary will gladly opt in for perks — and stay subscribed if the value keeps coming.


Best Practices for List Building:

  • Use branded keywords and short codes. Example: “TEXT BLAZE to 42000.”
  • Disclose message frequency up front. Set clear expectations like: “You’ll receive 2–4 texts per month.”
  • Give immediate value. First message = instant promo code, early access, or exclusive content.
  • Always require active consent. No pre-checked boxes or automatic opt-ins — it has to be a customer’s choice.
  • Use double opt-in flows. This verifies the number and reinforces transparency.


By making sign-up seamless, transparent, and rewarding, you’ll build a loyal SMS list that not only complies with TCPA and CTIA — but actually drives revenue.


High-Converting SMS Campaigns for Dispensaries

Your SMS list is gold — now it’s time to mine it. The most successful cannabis dispensaries don’t just blast messages at random. They use smart, segmented campaigns that match their customers’ behavior and timing. Here’s how to build campaigns that don’t just get read — they get results.


1. Flash Sales and Limited-Time Offers

Want to clear out overstock or drive a burst of traffic? Flash sales are your go-to.


When to use it: Weekends, product launches, or after slow sales days.
What it looks like: “🔥 Today only — 20% off all hybrid flower. Show this text at checkout.”
Why it works:
SMS is perfect for urgency. These messages drive foot traffic within hours. 

A flash sale text message from a cannabis dispensary appears on a user's cellphone.

2. Restock Notifications

When top strains sell out fast, restock alerts keep loyal customers in the loop — and coming back.


When to use it: Immediately after restocking popular products.
What it looks like: “Your favorite strain is back: Purple Punch just landed. Tap here to reserve yours before it’s gone.”
Why it works:
Loyal customers appreciate early access. Segment by past purchases for even better results.


3. Birthday & Loyalty Rewards

If you’re not texting on their birthday, you’re missing an easy win.


When to use it: On the customer’s birthday or loyalty milestones.
What it looks like: “Happy birthday, Alex! Stop by this week for 15% off your favorite edible. 🎉”
Why it works:
Personalized rewards drive repeat visits — and make customers feel valued.


4. Abandoned Pickup Reminders

Online pre-orders are great — until they don’t get picked up.


When to use it:
Late afternoon on the day of scheduled pickup.
What it looks like: “Reminder: Your order’s waiting at Kaya Dispensary. We’ll hold it until 7 p.m. — swing by when you're ready.”
Why it works:
Reduces missed pickups and helps staff plan inventory.


5. Event & Drop Announcements

Hosting a vendor pop-up? Launching a new line of concentrates? Text it.


When to use it:
24–48 hours before an in-store or virtual event.
What it looks like: “New drop alert 🚨: HashCo’s live rosin hits shelves Friday. First 25 get a free pre-roll.”
Why it works:
Builds buzz and boosts turnout. SMS makes events feel exclusive.


SMS Campaign Tips for Cannabis Dispensaries

  • Frequency: Stick to 1–3 messages per week. Too many texts = opt-outs.
  • Personalization: Use names, purchase history, or location: “Hey Jamie, your favorite sativa is back!”
  • Timing: Send messages in the early evening or mid-morning — avoid early a.m. or late night.
  • A/B Test: Try different CTAs, send times, and offers to learn what works best for your list.
  • Segment Wisely: VIPs, first-timers, and loyalty members should get tailored messages — not a one-size-fits-all blast.

Top Tools for SMS Marketing

Choosing the right SMS platform can make or break your dispensary’s marketing efforts — especially when cannabis compliance is on the line. Here are three cannabis-friendly SMS platforms that are built to help dispensaries thrive:


Recommended SMS Platforms for Dispensaries:

  • Alpine IQ: Combines POS integration, loyalty programs, compliance workflows, and real-time analytics.
  • SpringBig: Built specifically for dispensaries, offering robust TCPA-compliant workflows and campaign automation.
  • Happy Cabbage: Supports multimedia messages, with powerful segmentation and ROI tracking features.

What to Look For in an SMS Platform:

  • Cannabis-specific compliance support (TCPA, CTIA, SHAFT-safe language filters).
  • Seamless POS and loyalty program integrations.
  • MMS (Multimedia Messaging Services) capabilities for richer content (e.g., menus, visuals, product drops).
  • Tools for segmentation, campaign automation, and analytics.

Tracking ROI and Optimizing SMS Campaigns

Launching campaigns is only half the game — tracking and optimizing them is where you really boost your return on investment.


Key Metrics to Track:

  • Delivery & Open Rates: Aim for ~98% delivery and open rates.
  • Click-Through & Conversion Rates: Target 10–20% CTR and 20–30% conversion on promos.
  • Opt-Out Rates: Keep opt-outs below 3% to maintain list health.
  • Revenue per Text: Strong campaigns typically return $4–$10 for every $1 spent.


Optimization Tips:

  • A/B Test Everything: Message format, timing, CTA wording — test and refine continuously.
  • Segment Smarter: Tailor campaigns for VIPs, first-time buyers, or high-frequency shoppers.
  • Timing is Key: Send texts late morning or early evening for best engagement.
  • Frequency Matters: Most consumers prefer 1–3 messages per week — avoid flooding their inbox.
  • Integrate With POS: Use KayaPush to map SMS performance to actual sales, staff shifts, and customer visits.

Well-optimized SMS campaigns aren’t just about messaging — they’re about data, timing, and smart integration.


Text Smarter — Grow Faster

SMS marketing is one of the most efficient, powerful, and direct ways to grow your cannabis dispensary — combining near-perfect open rates with FOMO-driven engagement. But compliance is non-negotiable. With smart opt-in practices, a mix of flash-sale alerts, restock notices, and loyalty texts, dispensaries can build deeper connections and significant ROI.

While your SMS platform drives the message, KayaPush keeps everything behind the scenes running smoothly — from staff scheduling to sales forecasting. Streamline your people management with KayaPush — and let your texts land when your team is ready!

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