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  • Writer's pictureLeafbuyer Technologies

The ROI of Cannabis Text Campaigns and Loyalty Programs

Updated: Jun 15, 2020



The marijuana industry is a competitive market full of potential. Crafting a niche and developing a unique audience is not as easy as some may think though. An overabundance of marketing and advertising restrictions make it challenging for cannabis businesses to stand out from the rest. Clever entrepreneurs must adapt to cutting-edge marketing tools to stay afloat. Of the services available to the cannabis industry today, marijuana text campaigns and loyalty programs are the simplest and most effective solution for attracting, tracking, and retaining loyal consumers.


It's remarkable just how many cannabis businesses do not utilize a texting and loyalty platform. Not only is it an easy solution for consumer engagement; it can deliver a remarkable return on investment (ROI) compared to most other marketing channels. The questions are: how do you calculate that ROI, and how effective are text campaigns and loyalty rewards for getting cannabis consumers to spend money at your business?


How to Calculate the ROI for Texting and Loyalty Programs


Measuring the ROI for your various marketing channels is crucial to make sure you are not wasting your marketing budget. Technically, the calculation is simple. For every dollar you put into this channel, how much revenue will it bring to your business?


If possible, you should work hard to calculate the exact ROI for your business. You should also do your research and listen to the advice of marketing professionals who have spent years diving into the ROI of text marketing, comparing it to social or email marketing. Their verdict is clear: SMS and MMS marketing delivers. Over 65% of marketers say that SMS marketing is "very effective" for them. 


That's not surprising given these texting facts:

  • SMS messages have 10x the response rate of print coupons

  • The average person checks their phone 150 times a day

  • 98% of texts are opened within 3 minutes

Utilizing marijuana text campaigns seems like a no-brainer, but what about a loyalty rewards program? Does an increase in consumer loyalty lead to an increase in overall cannabis sales?

Take a look at these loyalty program facts:

  • Engaged customers buy 90% more often and spend 60% more per transaction.

  • Having a loyalty program makes consumers 80% more likely to shop with you.

  • If a company can get customers to return to the shop 5% more often, it can increase total profits by 95%.

Brands often spend up to 80% of their marketing budget on acquiring new customers. but as the above statistics show, there is huge value in focusing on loyalty. 



Marijuana Text Campaigns and Loyalty Programs Work Hand in Hand 


A modern dispensary or product company could just send mass texts to their list, but the campaign is far more effective when connected to a loyalty platform. These programs work together in harmony to create a sustainable and well-rounded marketing solution that attracts, tracks and retains loyal consumers.


Top marketing experts agree that utilizing marijuana text campaigns for consumer engagement and loyalty programs for customer retention provides a high return on investment and leads to greater profits. Companies that use these powerful tools will realize that loyal consumers are the best way to create a sustainable business in this industry. Now is the time to experiment and stay ahead of the market trends with text campaigns and quality loyalty programs!


The Leafbuyer Loyalty Program provides the easiest way for you to reach your consumers. From in-store kiosks to traceable promo codes, Leafbuyer Loyalty is the future of cannabis marketing.

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