Cannabis Dispensary Marketing: Email or SMS? How to Choose

For dispensary owners operating in today's cannabis landscape, the question isn't whether to use email or SMS marketing but when and how to leverage each for maximum impact.

Our data shows that dispensaries that use the right communication channel for the right message see higher customer retention rates and larger average ticket sizes than those that use a one-size-fits-all approach.

Yet many cannabis retailers still struggle to determine which channel deserves their limited time and resources. Let's break down exactly when to use email, when to use SMS, and how to build a complementary strategy that drives results for your dispensary.

Cannabis businesses face a unique marketing challenge: traditional advertising channels like Google, Facebook, and Instagram heavily restrict or outright prohibit cannabis promotion. This reality makes your owned communication channels—where you control the relationship with your audience—infinitely more valuable.

Email and SMS marketing represent your two most direct communication tools, but they serve distinctly different purposes in the cannabis customer journey. Using them effectively requires understanding their unique strengths and the specific compliance considerations for cannabis businesses.

The Strategic Power of Email for Cannabis Businesses

Email marketing provides cannabis dispensaries with a versatile, content-rich channel supporting relationship-building and sales goals. With fewer regulatory restrictions than social media and a lower cost than traditional advertising, email delivers exceptional ROI when used strategically.

When Email Delivers Maximum Results

Email marketing shines when you need to:

1. Educate and Build Trust

Email provides the space for detailed content, making it ideal for:

• New product education with images and detailed descriptions

• Staff recommendations and product spotlights

• Cannabis consumption guides and best practices

• Brand storytelling and company updates

2. Nurture Long-Term Relationships

Email builds connection through consistent touchpoints:

• Monthly newsletters highlighting industry news

• Loyalty program status updates

• Personalized product recommendations based on purchase history

• Customer anniversary celebrations and birthday offers

3. Drive Strategic Sales with Complex Offerings

Email handles multi-product promotions effectively:

• Weekly specials with multiple featured products

• Themed sales events (holidays, 420 specials)

• Tiered discount structures

• Bundle offers with detailed explanations

The Immediate Impact of Text Message Marketing

SMS marketing directs dispensaries to customers' devices, commanding attention in ways other channels can't match. With average open rates exceeding 95%, text messaging creates immediate awareness, translating to rapid action when correctly deployed.

When SMS Creates Exceptional Results

Text messaging delivers best when you need:

1. Immediate Action and Urgency

SMS creates time-sensitive responses:

• Flash sales (valid for the next 24 hours)

• Low inventory alerts for popular products

• Last-minute event invitations

• End-of-day specials to drive same-day traffic

2. Simple, Clear Offers

Text messages work best with straightforward promotions:

• Single product highlights

• Straightforward percentage or dollar discounts

• Clear calls-to-action with minimal explanation needed

• Simple loyalty point redemption opportunities

3. Time and Location-Based Messaging

SMS leverages immediacy and locality:

• Geofenced offers when customers are nearby

• Weather-based promotions ("Rainy day special")

• Limited-time pickup windows

• Delivery status updates

Use this simple decision framework to determine the right channel for your message:

Choose Email When:

• You need to explain something in detail

• Your message includes multiple products or offers

• You're sharing educational content

• The timeline for action is more than 24 hours

• You want to include multiple images or links

• You're nurturing rather than driving immediate sales

Choose SMS When:

• You need an immediate response

• Your offer is simple and clear

• You're promoting a single product or a simple offer

• The offer expires within 24 hours

• You're targeting customers based on location

• You need to reach customers who rarely check email

Of course, neither channel works effectively without a strategy for building your subscriber lists. Successful cannabis email and SMS list building requires a balanced approach to in-store collection, online signup incentives, and clear communication about the value subscribers will receive.

Focus on quality over quantity, as engaged subscribers deliver significantly higher ROI than large but unresponsive lists. The key is respecting each channel for what it does best. Email builds your brand over time, while SMS drives immediate action. Use them accordingly.

The most successful dispensaries use both channels in a coordinated strategy that respects each channel's strengths while protecting their audiences from fatigue.

Effective Combined Approach:

1. Use email for regular, expected communications - weekly specials, monthly newsletters, educational content

2. Reserve SMS for high-impact, time-sensitive messages - flash sales, limited inventory alerts, special events

3. Coordinate timing - avoid sending emails and SMS on the same day unless implementing it via a waterfall priority

4. Create channel-specific offers - give subscribers a reason to join both lists

5. Track channel performance separately - a measure that drives more in-store visits vs. online orders

Implementing this dual-channel approach requires a robust cannabis CRM system (like Alpine IQ or Springbig) that can segment audiences, track engagement, and manage both email and SMS campaigns from a centralized platform. When choosing a cannabis CRM for your dispensary, look for one that offers compliance features specifically designed to meet the unique requirements of the cannabis industry.

Pro Tip: For major promotions like 420 sales, use email for advance notice and detailed information, then follow up with SMS reminders as the event approaches.

Compliance Errors

• Failing to include compliant unsubscribe options

• Not maintaining proper record of consent

• Sending messages outside of permitted hours (before 8 am or after 9 pm)

• Making prohibited health claims in either channel

Strategic Missteps

• Sending identical content through both channels

• Over-messaging and causing subscriber fatigue

• Under-segmenting your audience

• Neglecting to track channel-specific performance

Audit your current approach

• Review last month's messages across both channels

• Identify messages sent through the wrong channel

• Calculate engagement rates by channel and message type

Implement channel-specific content calendars

• Create separate but coordinated planning for each channel

• Assign explicit purposes to each communication

• Balance frequency to prevent subscriber fatigue

Measure what matters

• Track channel-specific conversion rates

• Monitor unsubscribe rates as a sign of relevance

• Calculate actual ROI by channel

Both email and SMS marketing offer powerful opportunities for cannabis dispensaries to connect with customers in an increasingly competitive market. The key to success isn't choosing one over the other but strategically leveraging each channel for its strengths.

By sending the right message through the right channel at the right time, you'll maximize engagement, drive more consistent revenue, and build stronger customer relationships that translate to long-term loyalty and higher lifetime value.

Need help developing a strategic approach to your dispensary's email and SMS marketing? Our retention marketing team specializes in creating compliant, high-performance communication strategies tailored to cannabis retailers. Contact us to learn how we can help you maximize the impact of your marketing efforts.