How to Handle Email Marketing in the Cannabis Industry?

Email Marketing in the Cannabis Industry
30 Jan 2024

Email marketing has become an essential tool for businesses in various industries, and the cannabis industry is no exception. In fact, with 91% of U.S. consumers using email, it’s a powerful channel to reach your target audience. However, when it comes to dispensary email marketing, it is often overlooked. Many cannabis businesses focus their efforts on social media platforms, but neglect the potential of email marketing. In this article, we will explore the importance of email marketing in the cannabis industry and provide you with valuable insights on how to handle it effectively.

Why Email Marketing?

You might be wondering why email marketing is worth your time and effort. Here are a few key reasons:

  1. Email marketing has a high return on investment (ROI): According to research, email marketing generates an average ROI of $42 for every $1 spent. This high ROI makes it a cost-effective marketing strategy for cannabis businesses.
  2. Your email list is yours: Unlike social media platforms where you are at the mercy of algorithms and changing policies, your email list is a direct connection to your audience. You have control over your subscriber list, allowing you to reach your potential customers directly.
  3. Customers want your emails: When users sign up for your email list, they are expressing interest in your cannabis products or services. They want to hear from you and are more likely to engage with your emails compared to other forms of digital marketing.

Start by Building Your Dispensary Email Marketing List

To kickstart your dispensary email marketing efforts, you need to build a solid email list. Here are a few strategies to acquire emails:

Emails Acquired From Your Website

Your website is a valuable asset for collecting email addresses. Implementing sign-up forms and pop-ups on your website can help you capture visitors’ emails. Offering incentives like discounts or exclusive content can entice visitors to subscribe to your email list.

Emails Acquired from Your Dispensary's Online Point of Sale

If you have an online point of sale system for your dispensary, take advantage of it to collect customer emails. During the checkout process, prompt customers to provide their email address for future promotions and updates.

Emails acquired in your dispensary

For customers who visit your physical dispensary, create opportunities to capture their emails. You can have a sign-up sheet near the cash register or offer a tablet where customers can input their email addresses in exchange for special offers.

By implementing these strategies, you can steadily grow your email list and have a pool of potential customers to engage with through email marketing.

Segment your Audience

Segmentation plays a crucial role in the success of your dispensary email marketing campaigns. It allows you to personalize your messages and target specific groups within your subscriber list. Here are a few ways you can segment your audience:

Geolocation for Targeting

If your dispensary operates in multiple locations, geolocation segmentation can be highly effective. By dividing your email list based on the location of your subscribers, you can send targeted messages about promotions or events happening in their area.

Bring Data from Third-Party Cannabis Platforms

Integrating your email marketing platform with third-party cannabis platforms, such as Cannabiz Media, can provide you with valuable data to segment your audience. You can target customers based on their preferences, purchase history, or specific cannabis products they are interested in.

Example Dispensary Email Marketing Segments

To give you an idea of how to segment your audience, here are a few examples:

  • New customers: Target new customers with a welcome email series introducing them to your dispensary and offering them a special discount on their first purchase.
  • Regular customers: Reward your loyal customers by sending them exclusive offers, loyalty rewards, or early access to new product releases.
  • Inactive customers: Re-engage customers who haven’t made a purchase in a while by sending them personalized emails with tailored offers to entice them back.

By segmenting your audience, you can deliver more relevant and personalized emails, increasing the chances of engagement and conversion.

Personalize your Cannabis Email Marketing

Personalization is key to successful email marketing in the cannabis industry. By tailoring your messages to individual subscribers, you can create a more personalized and engaging experience. Here are a few advanced personalization examples:

  • Dynamic content: Use dynamic content blocks within your emails to display personalized recommendations based on each subscriber’s preferences and purchase history.
  • Personalized subject lines: Craft subject lines that speak directly to your subscribers. Use their first name, location, or previous purchase to grab their attention and increase open rates.
  • Behavior-based triggers: Set up automated triggers based on subscriber behavior. For example, if a subscriber abandons their cart, send them a personalized email reminding them of the items they left behind and offering a discount to complete their purchase.

By implementing these personalization strategies, you can create a more engaging and relevant experience for your subscribers, leading to higher open and click-through rates.

Build Brand Identity with Dispensary Email Marketing

Email marketing is not only about promotional campaigns; it’s also an opportunity to build brand identity and establish a lasting connection with your audience. Here’s how you can use email marketing for brand identity:

Transactional vs. Branding

Transactional emails, such as order confirmations or shipping notifications, are essential for customer satisfaction. However, they also present an opportunity to reinforce your brand identity. Make sure to include your brand’s logo, colors, and voice in these emails to create a consistent brand experience.

Use Email Marketing for Brand Identity

Aside from transactional emails, you can also use regular email newsletters to strengthen your brand identity. Share valuable content, industry insights, and updates about your dispensary to position yourself as an authority in the cannabis industry. Consistency in your design, tone, and messaging will help solidify your brand identity in the minds of your subscribers.

Building a strong brand identity through email marketing will not only enhance customer loyalty but also attract new customers who resonate with your brand values.

The power of email marketing — and why it's worth your time

Email marketing has proven to be a powerful tool for businesses across various industries, and the cannabis industry is no exception. Here are a few reasons why it’s worth your time and effort:

Email Marketing has a High Return on Investment (ROI)

As mentioned earlier, email marketing has an average ROI of $42 for every $1 spent. This high ROI makes it a cost-effective marketing strategy for cannabis businesses, especially those looking for long-term growth.

Your Email List is Yours

While social media platforms can change their algorithms and policies, your email list is a direct connection to your audience. You have control over your subscriber list, allowing you to reach your potential customers directly and build a loyal customer base.

Customers Want Your Emails

When users sign up for your email list, they are expressing interest in your cannabis products or services. They want to hear from you and are more likely to engage with your emails compared to other forms of digital marketing. By providing valuable content and exclusive offers, you can keep your audience engaged and drive repeat purchases.

Email Marketing Campaigns

Now that we’ve covered the importance of email marketing in the cannabis industry, let’s explore some email marketing campaign examples that you can implement for your dispensary:

Welcome to our Dispensary

When a new subscriber joins your email list, it’s important to make a positive first impression. Send a welcome email series introducing them to your dispensary, providing information about your products, and offering them a special discount on their first purchase. This will help nurture the relationship from the start and encourage them to become a loyal customer.

Newsletter and other content marketing

Regular newsletters are a great way to keep your subscribers informed and engaged. Share valuable content, industry insights, and updates about your dispensary to keep your audience interested and position yourself as an authority in the cannabis industry. Here are a few newsletter content ideas:

  • New product releases and updates
  • Educational articles about cannabis products
  • Customer success stories and testimonials
  • Industry news and trends

Customers Want Your Emails

When users sign up for your email list, they are expressing interest in your cannabis products or services. They want to hear from you and are more likely to engage with your emails compared to other forms of digital marketing. By providing valuable content and exclusive offers, you can keep your audience engaged and drive repeat purchases.

Transactional Emails

Transactional emails, such as order confirmations, shipping notifications, and receipts, are essential for customer satisfaction. While these emails serve a functional purpose, they also present an opportunity to reinforce your brand identity. Make sure to include your brand’s logo, colors, and voice in these emails to create a consistent brand experience.

Loyalty and Rewards

Reward your loyal customers by sending them exclusive offers, loyalty rewards, or early access to new product releases. This will not only strengthen customer loyalty but also encourage repeat purchases and word-of-mouth referrals. Here are a few loyalty and reward email ideas:

  • Exclusive discounts for loyal customers
  • Double rewards points for a limited time
  • VIP access to new product releases
  • Referral program incentives for bringing in new customers

Testimonials and Reviews

Social proof is a powerful tool in marketing, and email is a great platform to showcase testimonials and reviews from satisfied customers. Include customer testimonials, product reviews, or case studies in your emails to build trust and credibility. Here are a few testimonial and review email ideas:

  • Highlight a positive customer review and thank the customer for their feedback
  • Share a success story of how your cannabis products have positively impacted a customer’s life
  • Offer incentives for customers to leave reviews or share their experiences with your dispensary

Surveys and Net Promoter Feedback

Gathering feedback from your customers is essential for improving your dispensary’s products and services. Use email surveys and Net Promoter Score (NPS) feedback to collect valuable insights and understand customer satisfaction. Here are a few survey and Net Promoter email ideas:

  • Ask customers to rate their experience and provide feedback
  • Offer incentives, such as discounts or freebies, for completing the survey
  • Share the results of previous surveys and how you’ve implemented customer feedback

Behavioral-Based Emails

Leverage behavioral-based emails to deliver personalized and timely messages based on subscriber actions. For example, if a subscriber abandons their cart, send them a reminder email with a discount code to encourage them to complete their purchase. Here are a few behavioral-based email ideas:

  • Abandoned cart reminders with personalized product recommendations
  • Replenishment reminders for consumable cannabis products
  • Birthday or anniversary emails with special offers

By implementing these email marketing campaigns, you can engage your audience, drive repeat purchases, and foster customer loyalty.

Email marketing vs. SMS marketing

While email marketing is a powerful tool, it’s important to consider the role of SMS marketing in your overall marketing strategy. Here are a few comparisons between email marketing and SMS marketing in the cannabis industry:

Email marketing has better deliverability than SMS marketing

While SMS marketing has its advantages, email marketing generally has better deliverability rates. Emails are less likely to be blocked or filtered as spam compared to SMS messages, ensuring your message reaches your subscribers’ inboxes.

Dispensary email marketing has better metrics than SMS marketing

Email marketing provides more comprehensive metrics, such as open rates, click-through rates, and conversion rates. These metrics allow you to measure the effectiveness of your campaigns and make data-driven decisions. SMS marketing, on the other hand, has more limited metrics, primarily focused on delivery rates and response rates.

Email marketing supports more content than SMS marketing

Emails provide more space for content, allowing you to share detailed information, product images, and links to your website. SMS messages, on the other hand, have character limitations and are better suited for short and concise messages.

Email marketing is more cost-effective than SMS marketing

While both email marketing and SMS marketing have costs associated with them, email marketing generally offers a higher return on investment (ROI) due to its lower cost per message. SMS marketing can be more expensive, especially if you have a large subscriber list or send frequent messages.

Email marketing is not a replacement for Dispensary SMS marketing

While email marketing offers numerous benefits, it should not be seen as a replacement for SMS marketing. Both channels have their strengths and can complement each other in your marketing strategy. SMS marketing is particularly effective for time-sensitive promotions, urgent updates, or reaching customers who may not regularly check their emails. By combining email marketing and SMS marketing, you can maximize your reach and engagement with your audience.

The Takeaways

Email marketing is a powerful tool for cannabis businesses to reach their target audience, build brand identity, and drive long-term growth. By building a solid email list, segmenting your audience, personalizing your messages, and implementing various email marketing campaigns, you can engage your subscribers and drive conversions. Remember to consider the role of SMS marketing in your overall strategy and utilize a comprehensive marketing automation platform like DailyStory to streamline your efforts. With the right approach, email marketing can be a game-changer for your cannabis brand.

Email Marketing For Cannabis Brands FAQs

Yes, Mailchimp allows cannabis businesses to use their platform for email marketing. However, there are certain guidelines and restrictions that cannabis brands need to adhere to. Make sure to review Mailchimp’s terms of service and acceptable use policy for more detailed information.

Advertising cannabis products online can be challenging due to the restrictions imposed by platforms like Google and Facebook. However, there are cannabis-friendly advertising platforms and networks, such as Mantis, that cater specifically to the cannabis industry. These platforms offer targeted advertising options to reach your desired audience.

The best way to promote cannabis online is through a combination of digital marketing strategies. This includes email marketing, social media marketing, content marketing, search engine optimization (SEO), and targeted advertising on cannabis-friendly platforms. By utilizing a multi-channel approach, you can reach a wider audience and drive organic traffic to your website.

ESPs (Email Service Providers) that are CBD-friendly include platforms like Klaviyo, Omnisend, and MailerLite. These platforms understand the unique needs of CBD businesses and allow you to send email marketing campaigns without restrictions.

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