Why Should Dispensaries Use Email Marketing?

In an industry with strict advertising limitations, email marketing is a requirement for cannabis dispensaries that want to retain customers, extend lifetime value, and work towards lowering their average cost per order over time. As cannabis email marketing experts working with dispensaries across multiple states, we've seen firsthand how email marketing consistently excels as a low-cost touchpoint to increase customer retention and help retailers maximize the value from their existing customer base.

1. Owned Marketing Channel with No Platform Restrictions

Cannabis marketing channels are notoriously unstable, with social media accounts and advertising platforms frequently suspending cannabis businesses without warning. Email marketing provides a stable alternative where you maintain complete control of your customer communications. Your email list becomes a permanent business asset that grows in value over time, protected from platform policy changes or regulatory shifts that often disrupt other cannabis marketing channels.

Key Benefits:

• Complete control over your communication channel

• Minimal risk of account suspension or policy changes

• Direct connection with your customer base

• Freedom to promote products within compliance guidelines

• Long-term asset building for your business

2. Customer Retention and Lifecycle Management

Email marketing maximizes value from your existing customer base through personalized, timely communications. Well-executed email programs typically increase purchase frequency by 25-30% among active customers by delivering relevant offers and maintaining consistent engagement.

We have several clients that also see as much as 30% higher average ticket values for customers who are both enrolled in loyalty and subscribed to marketing communications. Email is essential for building long-term customer relationships and driving repeat visits.

Key Benefits:

• Increased purchase frequency from existing customers

• Higher average order value through targeted promotions

• Strengthened customer relationships through consistent engagement

3. Enhanced Customer Retention and Loyalty

Email enables you to create customized experiences based on customer purchase history, preferences, and behavior. By segmenting your audience and automating personalized communications, you can deliver the right message to the right customer at the right time. This targeted approach helps maintain customer engagement while avoiding the generic messaging that often plagues cannabis marketing.

Key Benefits:

• Personalized communication based on purchase history

• Automated customer journey management

• Birthday and anniversary rewards

• Targeted win-back campaigns

• Regular engagement opportunities

4. Compliance-Friendly Promotional Channel

Email marketing provides a controlled environment for age-verified promotional communications that satisfy state regulations. Unlike social media or display advertising, email lets you maintain detailed customer opt-ins and preferences records while delivering compliant marketing messages. This makes email particularly valuable for cannabis businesses navigating complex promotional restrictions.

Key Benefits:

• Share promotional content within regulations

• Maintain age-gated communication

• Document customer opt-in

• Control message delivery and timing

• Ensure marketing compliance

5. Data-Driven Customer Insights

Every email interaction generates valuable customer preferences and behavior data, helping inform your broader business strategy. This insight becomes particularly valuable in the cannabis industry, where traditional market research is often limited. Use email engagement data to optimize your product mix, promotional strategies, and customer experience.

Key Benefits:

• Customer preferences and behaviors

• Product popularity trends

• Promotional effectiveness

• Shopping patterns

• Customer lifetime value metrics

Moving from understanding why email marketing matters to implementing an effective program requires careful planning and the right foundation. Here's a systematic approach to building your dispensary's email marketing program:

Step 1: Choose the Right Email Platform

Your email platform choice impacts everything from compliance capabilities to marketing effectiveness. Cannabis businesses face unique challenges that many standard email platforms cannot handle. Look for a provider with experience in cannabis marketing who understands technical requirements and industry regulations. The right platform should grow with your business while maintaining strict compliance standards.

Essential Platform Features:

• Cannabis-friendly policies

• Advanced segmentation capabilities

• Automation features

• Analytics and reporting

• CRM integration options

Step 2: Build Your Email List

List building in the cannabis industry requires a balanced approach between growth and compliance. Your audience acquisition strategy should focus on collecting quality contacts through multiple touchpoints while maintaining proper documentation for regulatory compliance. The most successful dispensaries integrate list building into every customer interaction, making it a natural part of the customer experience.

Implement effective list-building strategies:

• Point-of-sale signup integration

• Website opt-in forms

• SMS program cross-promotion

• In-store tablet signup stations

• QR code signup options

Step 3: Segment Your Dispensary Customers

Effective segmentation transforms generic blasts into targeted communications that drive results. Cannabis consumers have diverse preferences and behaviors - your email strategy should reflect this diversity. By dividing your audience into meaningful segments, you can deliver more relevant content that resonates with specific customer groups and drives higher engagement.

Create targeted segments based on:

• Purchase history and product preferences

• Visit frequency and recency

• Average order value and lifetime value

• Geographic location and local regulations

• Engagement level with previous communications

Step 4: Develop Your Content Strategy

Content strategy in cannabis email marketing requires balancing promotional messaging with valuable information that builds trust and engagement. Your content calendar should reflect business objectives and customer interests while strictly complying with regulatory requirements. Successful email content establishes your dispensary as a trusted cannabis information source while driving measurable business results.

Content Focus Areas:

• New product announcements with an educational context

• Compliant promotional offers based on segments

• Loyalty program updates and exclusive benefits

• Industry insights and consumer education

• Local events and community engagement

Step 5: Set Up Email Automations

Email automation allows you to deliver timely, relevant messages without manual intervention. In the cannabis industry, where customer retention is crucial, automated campaigns help maintain consistent engagement throughout the customer lifecycle. Well-designed automation workflows ensure no customer falls through the cracks while maximizing the efficiency of your marketing efforts.

Essential Automated Campaigns:

• Welcome to the series introducing your brand and benefits

• Post-purchase follow-ups for feedback and reviews

• Birthday and anniversary reward programs

• Strategic win-back campaigns for lapsed customers

• Loyalty tier notifications and upgrade incentives

Compliance Considerations

Cannabis email marketing requires strict attention to regulatory requirements across multiple jurisdictions. A single compliance oversight can have serious consequences for your business. Establishing robust compliance protocols protects your business while building trust with customers and regulators. Regular audits and updates ensure your program maintains compliance as regulations evolve.

Essential Compliance Elements:

• Precise, prominent opt-out mechanisms

• Age verification protocols at signup

• State-specific regulatory compliance

• Detailed record-keeping systems

• Regular compliance monitoring and audits

Content Guidelines

Effective cannabis email content balances engagement with compliance while driving measurable results. Your content should stand out in crowded inboxes while maintaining professional standards and regulatory compliance. Regular testing and optimization help identify what resonates with your audience while improving overall program performance.

Content Best Practices:

• Mobile-first responsive design

• Clear, concise messaging

• Compelling calls-to-action

• Deliverability optimization

• Continuous A/B testing

Performance Measurement

Success in cannabis email marketing requires consistent monitoring and optimization of key metrics. Understanding these metrics helps you identify areas for improvement and demonstrate ROI to stakeholders. Regular analysis ensures your program meets business objectives and customer needs.

Critical Performance Metrics:

• Email open rates (industry average: 20-25%)

• Click-through rates (target: 2-3%)

• Conversion tracking by campaign type

• Revenue attribution per email

• List growth and health metrics

Measuring success in cannabis email marketing requires attention to both standard email metrics and industry-specific indicators. Your KPI framework should align with your business objectives while providing actionable insights for program optimization. Regular monitoring of these metrics helps identify trends and opportunities for improvement.

Email Performance:

• Subscriber Growth Rate: Target 3-5% monthly

• Engagement Rate: Aim for 20%+ active subscribers

• Revenue Per Email: Industry average $0.50-$1.00

List Quality Indicators:

• Monthly Churn Rate: Keep under 5%

• Deliverability Rate: Maintain above 95%

• Spam Complaint Rate: Keep under 0.1%

Email marketing success in the cannabis industry requires a systematic approach combining technical expertise, industry knowledge, and consistent optimization. Start by implementing these fundamentals while regularly measuring and adjusting based on performance data.

Remember that building a successful email program is an ongoing process. Focus on continuous improvement rather than perfection from day one. Are you ready to enhance your dispensary's email marketing program?

Contact our team to learn how we can help you implement these strategies and achieve measurable results for your business.