The crowded cannabis retail market has elevated loyalty programs into critical strategies for maintaining customer interest and repeat sales. Yet the success of these programs hinges on effective communication—and two channels dominate the conversation: SMS and in-app messaging. Determining which of these channels drives more conversions is key for dispensaries seeking maximum ROI on loyalty initiatives.
The Power of SMS: Reach and Immediacy
SMS has long been considered the workhorse of direct marketing. Its greatest advantage is reach: nearly every customer has a phone capable of receiving text messages, and SMS doesn’t require them to download an app or enable push notifications. Studies show SMS open rates consistently hover around 98%, with response rates averaging 45%. In cannabis retail, where timely promotions can move perishable inventory or spotlight new strains, the immediacy of SMS can deliver an undeniable boost in conversions.
Moreover, SMS can bypass app fatigue—a common barrier in cannabis retail, where customers often resist downloading multiple dispensary apps. By reaching customers directly in their native messaging app, dispensaries can cut through digital clutter and ensure loyalty offers get seen.
However, SMS has clear downsides: limited space for personalized content, lack of interactive features, and regulatory restrictions on cannabis-related messages in some states can lead to delivery issues or compliance risks.
In-App Messaging: Precision and Personalization
In contrast, in-app messaging offers cannabis retailers a more immersive and targeted communication channel. Once a customer downloads a dispensary’s app and opts into notifications, dispensaries gain access to powerful data on browsing and purchasing behaviors, allowing them to craft personalized loyalty messages. Features like in-app pop-ups, banners, and interactive surveys can make loyalty engagement far richer than the static text of an SMS.
In-app messaging also supports richer media—images of new products, videos highlighting cultivation stories, or dynamic menus—that can deepen brand connection. Conversion rates from in-app messages can reach 30% or more when content is timely and relevant, according to mobile marketing benchmarks.
The primary challenge with in-app messaging lies in adoption: convincing customers to download and regularly use a dispensary’s app. Without an engaged app user base, in-app messaging can struggle to match the sheer reach of SMS. Additionally, app users must enable push notifications for messages to be delivered, introducing another potential bottleneck.
Data-Driven Comparison: Conversions in Practice
When it comes to conversions, cannabis retailers often see SMS excel in immediate response campaigns—flash sales, daily deals, or time-sensitive offers—where speed and urgency are critical. Meanwhile, in-app messaging shines for loyalty strategies focused on long-term engagement, such as rewarding specific behaviors (e.g., reviewing a purchase) or personalized product recommendations.
A recent analysis by retail analytics firm Headset found dispensaries leveraging SMS experienced a 20-35% lift in same-day sales during promotions, while those investing in in-app messaging saw up to 50% higher spend per customer over time due to enhanced personalization.
Conclusion: A Hybrid Approach Wins
Ultimately, it’s not about choosing one over the other. Leading cannabis retailers achieve the highest loyalty conversions when they deploy SMS for broad, time-sensitive communication and in-app messaging for ongoing, personalized engagement. Together, these channels create a holistic strategy that leverages the strengths of both immediacy and depth—driving conversions and deepening customer loyalty in an increasingly competitive cannabis market.
Is SMS safe communication? Read more on it here.