The Role of Email and SMS in Cannabis Rewards Retention Strategies

In a competitive cannabis market where customers have dozens of options at their fingertips, staying top of mind is critical. That’s where email and SMS marketing step in — not just as communication tools, but as powerful drivers of customer retention and loyalty. For dispensaries and cannabis brands, the strategic use of these channels can determine whether a customer returns — or chooses a competitor.

Building Loyalty Through Personalization

Email and SMS marketing have become essential tools in cannabis rewards programs because of their direct and personalized nature. While in-store experiences matter, a well-timed text or tailored email reminder can rekindle interest and prompt repeat purchases. The most successful dispensaries don’t just blast generic messages — they personalize based on buying behavior, preferences, and loyalty tiers.

For example, a loyalty program member who frequently buys gummies might receive a targeted SMS alert when a new edible product drops or when points can be redeemed for a discount. Similarly, emails may contain birthday rewards, early access to exclusive events, or curated content tied to previous purchases.

This type of communication builds a connection that feels customized and convenient, which is especially important in an industry where trust and customer experience directly impact loyalty.

Compliance-Driven Messaging

Cannabis businesses must operate within strict legal boundaries, including how they market and communicate. Unlike other industries, cannabis companies can’t rely on traditional advertising platforms like Google or Facebook. This makes email and SMS even more vital — they’re among the few direct marketing tools that don’t risk account bans or content takedowns when used responsibly.

To maintain compliance, many cannabis retailers use marketing platforms designed for the industry, like Alpine IQ, Springbig, or Jane Technologies. These systems ensure opt-in practices, age verification, and message content alignment with state laws — a must for avoiding hefty fines or license risks.

SMS: Instant and Actionable

SMS continues to dominate as the most immediate way to connect with cannabis customers. With open rates often exceeding 90%, a well-crafted SMS campaign can result in same-day sales spikes. Retailers often use SMS to promote flash sales, happy hour deals, low-inventory warnings, or reminders when loyalty points are about to expire.

Its immediacy makes it ideal for creating a sense of urgency. However, it’s essential that dispensaries strike a balance between frequency and value. Too many texts, or irrelevant messages, can lead to opt-outs and damage the relationship.

Email: Richer Storytelling and Analytics

While SMS is ideal for short-term impact, email allows for richer storytelling and brand building. Dispensaries use email newsletters to share educational content, blog posts, staff picks, and product deep-dives. When paired with loyalty data, emails can be segmented by purchase frequency, product category, or customer lifetime value — creating higher engagement and return visits.

Email also offers better tracking through metrics like open rates, click-throughs, and conversions. This helps dispensaries refine their loyalty messaging over time and understand what truly motivates customer retention.

A Unified Strategy Wins

Ultimately, the most effective cannabis loyalty programs use both email and SMS in tandem. Email builds the long-term relationship, while SMS drives immediate action. Together, they create a seamless customer journey that keeps buyers engaged and coming back.

As the cannabis market continues to mature and more states legalize, digital messaging will remain a cornerstone of retention strategies. For cannabis brands looking to thrive, the key lies in reaching customers where they already are — on their phones and in their inboxes.