Dispensary Customers Spend More When You Text Them

Most customers don’t come back to the same dispensary twice. Many dispensaries end up spending time and money attracting one-time visitors who never return. You want customers who come back more often, spend more when they do, and respond to your promotions without a lot of guesswork. Text message marketing is one of the most reliable ways to make that happen.

Texting reaches your best customers directly and consistently drives higher revenue per visit. Loyalty members who receive texts tend to spend up to four times more than those reached through other channels. 

Why is Texting the Best Marketing Channel?

Text message marketing (SMS/MMS) is exceptionally effective for dispensaries, far outperforming other channels. In our experience, texting drives immediate customer action and loyalty in ways other channels can’t. Here’s why SMS stands out:

• Near-Immediate, High Open Rates: Unlike an email that might sit unread for days (or forever), text messages are usually opened within minutes, often within the first 3 minutes of receipt​. SMS open rates are about 98%, meaning almost every message gets seen. For your store this means announcements, deals or new strain drops will reach customers in real time.

• Loyalty and Personalization: Texting is personal, it’s a message sent directly to their phone. This gives you a chance to build loyalty through one-to-one communication. You can send personalized offers (e.g. a birthday discount or a reminder about a favorite product) and make customers feel like VIPs​. In our experience, when customers receive tailored texts that speak to their interests, they keep coming back. Many dispensaries report that loyalty members who receive texts end up shopping more frequently and spending more over time (up to four times more) than those who aren’t engaged via text. By rewarding loyalty and making customers feel valued, SMS marketing can significantly boost customer lifetime value.

Is it Legal to Send Cannabis Marketing Text Messages?

Yes, it is legal to send marketing text messages about cannabis to customers – provided you follow the rules. There is no law outright banning cannabis businesses from texting customers. However, dispensary texting must comply with general telemarketing laws and cannabis-specific regulations. As long as you operate within these guidelines, text marketing is a very effective outreach method.

Here are the key legal considerations:

• Federal Communications Law: Text messages for marketing are governed by laws like the Telephone Consumer Protection Act (TCPA). The TCPA requires that you obtain prior express written consent from consumers before sending them promotional texts, and that you always provide an option to opt out​. (We’ll cover opt-in rules in detail shortly.) You also must honor any Do-Not-Call requests. These rules apply to all industries. Cannabis texts must follow them just like any other industry.

• Cannabis Advertising Regulations: Beyond telecom law, cannabis businesses must obey state and local marketing rules. Most states prohibit advertising cannabis to minors and have standards to ensure ads only target adults of legal age. In practice, this means you can only text customers who are 21+ and have a way to verify age. Implement age-gating on your sign-ups and landing pages.

• Carrier and Platform Policies: Even though texting customers about cannabis is legal in compliant states, mobile carriers have their own content rules since cannabis remains federally illegal. Telecom carriers (Verizon, AT&T, etc.) and SMS service providers may restrict or scrutinize messages that contain obvious cannabis-related terms or images. To improve deliverability, many dispensaries avoid blatant cannabis keywords in text content​. It sounds odd, but using slang or more generic terms (“products” or strain names without saying “cannabis”) can help messages get through carrier filters. The bottom line: it’s legal to text about cannabis promotions to consenting adults, but you must do it carefully within the boundaries of both the law and your messaging provider’s policies.

If you check all those boxes – only texting adults who opted in, following texting laws, and minding content guidelines – you can absolutely run cannabis text message campaigns legally. Many dispensaries already do so successfully. In the next section, we’ll dive deeper into those important rules and regulations you need to know and follow for compliant text message marketing.

Important Rules and Regulations

Compliance might sound daunting, but it boils down to protecting consumer consent, verifying age, and registering your campaign properly. Here are the most important regulations dispensaries must follow for text marketing:

• Age Gating or Walled Garden: You must ensure that all your SMS subscribers are adults of legal age. This can be done by requiring age verification at opt-in, for example, having customers enter their birthdate on a sign-up form. Only customers 21 or older should be on your texting list. When you send a text message, the recipient gets a link to view the promotion online where they will either enter a PIN they created or confirm their age again to view the content.

• 10DLC Registration: In the past couple of years, mobile carriers have implemented A2P 10DLC requirements for business text messaging. A2P 10DLC (Application-to-Person 10-Digit Long Code) is essentially a registration system for businesses that send texts via standard phone numbers​. Dispensaries must register their brand and campaign with the carriers’ 10DLC system through an approved messaging provider. This registration includes detailing the type of messages you send and certifying you follow all rules. The purpose is to legitimize your texting traffic and reduce spam. If you fail to register, carriers will block your messages. During registration, cannabis companies are typically flagged as higher-risk. Carriers will vet your traffic for any rule violations.

• Opt-In Consent & Opt-Out Compliance: Perhaps the most important rule in SMS marketing is obtaining explicit customer consent. Customers must opt in before you send any marketing texts​. This consent should be in writing (for example, the customer checks a box agreeing to receive texts, or they text a keyword to a dedicated number as a form of consent). In our experience, good opt-in practices include making it crystal clear what subscribers are signing up for – e.g. “Get deal alerts via text (max 5 messages/month). Reply STOP to unsubscribe.” Transparency about message frequency and content sets proper expectations​. Equally important, every marketing text you send must include an easy opt-out mechanism, usually by replying “STOP.” This is required by law (the TCPA) and by carrier guidelines​. Failing to honor opt-outs can lead to serious penalties. Fortunately, most SMS marketing platforms automate the opt-out process.

• Content Guidelines and Restrictions: Text message content must steer clear of anything that’s not compliant with both general decency standards and cannabis advertising rules. Carriers maintain content codes of conduct often referred to as SHAFT guidelines (sex, hate, alcohol, firearms, tobacco – categories of content that are sensitive or prohibited)​. Cannabis isn’t explicitly in “SHAFT,” but because it’s federally illegal, many carriers treat it similarly to tobacco or alcohol in terms of restrictions. Avoid excessive use of cannabis-related keywords or imagery that might trigger carrier filters​. For example, instead of blasting “💥🔥 BIG WEED SALE – 30% OFF ALL CANNABIS FLOWER!!! 🔥💥”, a compliant approach would be: “Big Sale – 30% off top-shelf strains today [Link].” Subtlety can improve deliverability..

It may seem like a lot, but a good cannabis-focused marketing agency will handle much of this compliance-heavy lifting for you.

What’s the Difference Between SMS and MMS?

As you plan your text message marketing, you’ll encounter two formats: SMS and MMS:

SMS (Short Message Service)

SMS refers to standard text-only messages. These are limited to 160 characters per message (longer messages can still be sent; they’ll just segment into multiple SMS parts). SMS cannot include multimedia content directly – no pictures, videos, or graphics – just plain text (though you can include hyperlinks to online content). The vast majority of texts sent are SMS. They are quick, light, and supported by every mobile phone. A simple alert like “This weekened only: 20% off all gummies. Reply STOP to opt out.” would be an SMS. SMS messages are ideal for announcements, flash deals, and any time you need to get a short message out to as many people as possible. They also tend to be slightly cheaper per message than MMS.

MMS (Multimedia Messaging Service)

MMS allows you to send multimedia content: images, GIFs, short videos, or audio, as well as longer text. With MMS, you can include eye-catching photos of a new product or even your logo to add personality​. These messages don’t have the 160-character limit – you can typically send up to several hundred characters of text along with the media. You might send an MMS with a picture of a new strain or product display and text like “New Arrival: Blue Dream 🔵🌿 – Check out this gorgeous flower now in stock! [Link]”. The visual can make the message far more engaging. The trade-offs: MMS messages often cost more per message, and not every customer’s phone plan supports MMS (though most do nowadays, especially smartphones). They also require a data connection to download the media. Despite these, MMS can significantly boost engagement by making your texts more visually appealing and informative.

So which should you use? It depends on the message and context. If you have a compelling image (a product photo, a promotional flyer, etc.) or need more text space, MMS is great for grabbing attention. Many dispensaries leverage MMS for big campaigns. This shows that a portion of marketers find MMS worth it for special occasions. On the other hand, if your update is very simple (e.g. “We’re closing early at 5 PM today”), SMS alone is sufficient and cost-effective. A mix of both can work well: use SMS for regular weekly deals or quick alerts, and reserve MMS for your most important announcements or when a visual will make a difference (like a new product launch or event invite). Always test what your audience responds to best.

How Do I Get Customer Contact Information?

Building a robust SMS subscriber list is essential – you can’t market via text if you don’t have anyone to send to! But how do dispensaries gather those customer phone numbers and, importantly, get the proper permission to text them? List growth requires a mix of in-store and online tactics. Here are effective ways to get customer contact info and opt-ins for your text marketing:

Website Sign-Ups

Leverage your online presence. Add an opt-in form on your dispensary website where visitors can enter their phone number to subscribe to text updates. This could be a prominent sign-up box or a pop-up that offers an incentive. If you have online ordering, include a checkbox at account creation or checkout for customers to opt in to text messages. For example, “Yes, I want to receive special deals via text.” Also, clearly state that by providing their number they consent to receive automated promotional texts and agree to the terms (this covers your legal bases for consent). Website sign-ups are great because they can run 24/7 and capture not only current shoppers but also interested browsers who haven’t visited in person yet.

In-Store (Point-of-Sale) Enrollment

Your physical store is one of the best places to sign people up, since you interact with many customers daily. Train your budtenders and cashiers to invite customers to join the text loyalty program at checkout. Aafter a sale is complete, a budtender might say, “Would you like to get a text when we have big deals or new strains? We can sign you up in our system – it only takes a second.” Often, customers are happy to opt in, especially if you mention the benefit (“you’ll get $5 off your next purchase for joining”). You can collect their phone number right at the register (many POS systems for dispensaries have a field for customer phone). Make it quick and easy. Also, consider placing a sign-up sheet or QR code by the register for those who prefer to do it themselves. In-store signage like “Text JOIN to 123-456-7890 to get VIP deals!” can catch the eye. Every satisfied customer walking out your door is a potential loyalty member – don’t miss that opportunity by letting them leave without asking.

Pro tip: After someone signs up, send a welcome text fairly soon. Thank them for joining and perhaps send a one-time welcome discount. This confirms that their opt-in was successful. For example: “Thanks for joining GreenCanna’s VIP Text Club! You’ll be the first to hear about new products and discounts. Reply STOP to unsubscribe.”

Let DispoJoy Handle Your Text Message Marketing for You

Running a compliant and effective texting program takes time, a resource most dispensary owners don’t have. Between customer service, inventory, compliance, and day-to-day operations, managing SMS marketing on your own often means inconsistent results or missed opportunities. That’s where we come in. At DispoJoy, we take the entire process off your plate: we handle 10DLC registration, campaign planning, and copywriting. We also ensure that your content stays compliant and is actually delivered, avoiding costly mistakes and wasted effort.

Texting is just one part of what we do. We also manage email campaigns, display advertising, and mobile apps, so you can keep all your customer touchpoints in one place. Our team develops coordinated campaigns that increase customer retention and revenue, using performance data to continuously optimize what we send and when. If you’re ready to turn texting into a reliable growth channel without the headache of doing it yourself, we’re ready to help. Schedule a call with our team to get started.