Is SMS Text Marketing still legit for dispensaries?

Opinion – Dispensaries will lose their SMS text marketing before the start of 2025 and still have to pay for their contracts

Cannabis companies are increasingly relying on SMS marketing to connect with their customers. The immediacy and personal touch of text messaging make it an ideal channel for dispensary marketing. However, the growing web of regulations around cannabis SMS marketing compliance is creating significant hurdles.

There are a large number of ancillary tech companies that focus on cannabis that are stating that they are having no issues. In reality their deliverability has already dropped and they are staying quiet until the new law forces them to shut down their services. Whether dispensaries will be able to cancel their contract or not is another question that remains to be seen.

Challenges in Compliance

• TCPA and CAN-SPAM Act: These laws impose strict rules on how businesses can communicate via text.
• New Government Regulations: Starting December 1, 2024, all SMS/MMS messages to U.S. numbers will require brand and campaign registration.

Dispensaries that fail to register their phone numbers to enable texting risk losing their SMS marketing capabilities by 2025. This means that if they don’t adapt to these new regulations, they might still be stuck paying for contracts without being able to send a single message.

Key takeaway: By 2025, dispensaries that fail to adapt to new regulations may lose their SMS marketing capabilities altogether.

Exploring Alternative Strategies

Given these challenges, cannabis companies might want to explore other marketing strategies. For instance, PPC for Cannabis Companies could be a viable alternative. While there are a number of restrictions on what can and can’t be promoted through paid ads, PPC can benefit cannabis companies significantly.

Moreover, it’s essential for these businesses to stay informed about the specific regulations that apply to their operations. This knowledge can help them navigate the complexities of compliance more effectively.

As the landscape of cannabis marketing continues to evolve, companies must be proactive in adapting to new regulations and exploring alternative marketing strategies. By doing so, they can ensure they remain connected with their customers while staying compliant with the law.

Understanding the Regulatory Landscape for Cannabis SMS Marketing

Navigating the complex world of cannabis SMS marketing regulations can feel overwhelming. But to stay compliant and keep those messages flowing, it’s crucial to understand the rules set by laws like the Telephone Consumer Protection Act (TCPA) and the CAN-SPAM Act.

Telephone Consumer Protection Act (TCPA)

The TCPA is essentially the main law governing texting regulations in the U.S. It was enacted in 1991 to limit telemarketing calls and unsolicited messages. Here’s what dispensaries need to know:

• Explicit Consent: Before sending that first text, you must obtain explicit consent from your customers. This means they need to actively opt-in, usually by ticking a box or replying with a keyword.
• Opt-Out Options: Every message must include an easy way for recipients to opt out. Typically, this is done by texting a word like “STOP.”
• Penalties for Non-Compliance: If you make a mistake, you could face penalties ranging from $500 to $1,500 per unsolicited message.

CAN-SPAM Act

While primarily focused on email communications, the CAN-SPAM Act also applies to SMS when it comes to commercial messages. Since its introduction in 2003, it has established some basic rules that dispensaries must follow:

• Clear Identification: The message must clearly state it’s an advertisement.
• Sender Information: Your messages should include accurate sender information such as your business name and contact details.
• Unsubscribe Mechanism: Similar to TCPA, CAN-SPAM requires an easy way for recipients to opt out of future messages.

New Government Regulations

Recent government regulations have added another layer of complexity:

• Starting December 1, 2024, unregistered SMS will be blocked by U.S. carriers. This means dispensaries must register their messaging campaigns via The Campaign Registry (TCR) or face their texts getting flagged as spam or blocked entirely.
• Registration involves providing detailed information about your brand and campaign. Once registered, you’ll benefit from improved deliverability and reduced risk of penalties.

Implications for Cannabis Companies

These regulatory challenges present both obstacles and opportunities for cannabis businesses:

Challenges

• Compliance Costs: Keeping up with these regulations isn’t free. There are costs associated with registration fees and potential fines for non-compliance.
• Operational Complexity: Integrating age-verification mechanisms and obtaining explicit customer consent can be cumbersome but necessary steps.

Opportunities

• Enhanced Trust: Complying with these laws can actually build trust with your customer base, showing you value their privacy and security.
• Better Deliverability: Registered numbers have higher chances of getting through to your customers without being marked as spam.

Understanding these regulations is just the first step in ensuring your dispensary’s SMS marketing strategy remains effective and compliant.

To further enhance your marketing strategy beyond SMS, it’s essential to explore comprehensive cannabis marketing strategies that include techniques such as SEO, known for generating consistent traffic and lead generation. Additionally, incorporating video marketing, which continues to generate millions of views every year.

The Role of The Campaign Registry (TCR) in Regulating A2P Messaging for Dispensaries

What is The Campaign Registry (TCR)?

The Campaign Registry (TCR) is an important organization that oversees Application-to-Person (A2P) messaging. Its main goal is to ensure that businesses, including dispensaries, can effectively communicate with their customers through SMS. The TCR serves as a central database where businesses can register their 10-digit long code (10DLC) phone numbers and campaigns. This registration process promotes transparency and trust among carriers, businesses, and consumers.

Benefits of TCR Registration for Dispensaries

Registering phone numbers with TCR offers several advantages:

• Improved Message Deliverability: By registering with TCR, dispensaries can significantly increase the chances of their messages reaching customers without being flagged as spam.
• Reduced Risk of Penalties: Proper registration helps dispensaries comply with regulations, reducing the risk of hefty fines and penalties.
• Higher Throughput Rates: Registered numbers often enjoy higher message throughput rates, meaning texts are sent and received more quickly.
• Increased Security: TCR registration adds a layer of security, protecting against fraudulent activities and ensuring that only verified entities can send messages.

How to Register Phone Numbers for Text Marketing in the Cannabis Industry

Step-by-Step Registration Process

• Access the TCR Portal:Dispensaries can access the TCR portal directly or through a third-party provider specializing in cannabis SMS marketing solutions.
• Brand Registration:Provide detailed company information, including:
  • EIN/Tax ID: This is essential for verifying the business identity.
  • Company Details: Legal business name, address, website URL, and contact information.
• Campaign Registration:After brand registration, proceed to register specific text marketing campaigns. Key information required includes:
  • Campaign Use Case: Clearly define the purpose of the campaign (e.g., promotional offers, customer care).Message Content: Provide examples of the messages you plan to send.Opt-In Mechanisms: Ensure you have explicit opt-in processes to comply with regulatory guidelines.
  • Review and Submit:Carefully review all submitted information for accuracy before final submission. Inaccurate details can lead to delays or rejection.

Information Required for Brand Registration

Accurate data is vital during registration:

• EIN/Tax ID: Essential for validating your business.
• Company Details: Legal name, address, website URL.
• Contact Information: Primary contact person’s details for any follow-up required by TCR or carriers.

Importance of Providing Accurate Campaign Information

Accuracy during registration cannot be overstated:

• Campaign Description: Be thorough and precise about what your campaign entails.
• Message Samples: Include clear examples that demonstrate compliance with opt-out options.
• Compliance Adherence: Ensure all provided information aligns with legal requirements to avoid penalties or message blocking.

Registering through TCR ensures that dispensaries can maintain robust communication channels with their customers while staying compliant with ever-evolving regulations. This proactive approach not only safeguards against potential fines but also enhances customer trust and engagement through reliable messaging services.

Moreover, leveraging expert services like those offered by Dope SEO, which specializes in cannabis web design and SEO, can further enhance a

Best Practices for Compliant SMS Marketing Strategies in the Cannabis Sector

Key Strategies for Effective and Compliant SMS Communication

When it comes to SMS communication strategies for dispensaries, it’s essential to play by the rules. Here are some key strategies to keep your text campaigns compliant:

1. Explicit Opt-Ins

Before sending any messages, ensure you have explicit opt-ins from your customers. This can be done through a web form where users check a box agreeing to receive texts or by having them send a keyword to your number.

Example: “Text JOIN to 12345 to subscribe to our exclusive offers!”

2. Clear Consent Language

Make sure the language used during the opt-in process clearly explains what customers are signing up for. This should include details about message frequency and information on how to opt-out.

Example Opt-In Message: “By subscribing, you agree to receive recurring promotional messages from [Brand]. Message & data rates may apply. Reply STOP to unsubscribe.”

3. Adherence to Regulatory Guidelines

Craft promotional messages that comply with the Telephone Consumer Protection Act (TCPA) and CAN-SPAM Act. Avoid misleading language and ensure transparency in your communications.

Example Promotional Message: “Flash Sale! Get 20% off all products today at [Brand]. Visit [website link]. Reply STOP to opt-out.”

Navigating Age Gating and Consent Requirements in Cannabis-related Text Campaigns

Ensuring that only adults receive cannabis-related SMS campaigns is crucial for compliance and customer trust.

1. Age Verification Mechanisms

Implement robust age verification processes during the opt-in stage. This could include requiring users to enter their birthdate or using third-party age verification services.

Example Age Verification Step: “Please enter your date of birth to confirm you are over 21 before subscribing.”

2. Double Opt-In

Use a double opt-in process where users must confirm their subscription via a second step, such as clicking a link sent via email or responding with a confirmation keyword.

Example Double Opt-In Process: After initial sign-up, send a message like, “Reply YES to confirm your subscription and verify your age.”

Importance of Age Verification Mechanisms

Age verification isn’t just about compliance; it’s about protecting your business and maintaining trust with your customer base.

• Legal Compliance: Many states have strict laws regarding the marketing of cannabis products, particularly when it comes to minors. Failing to verify ages can result in severe penalties and damage your brand’s reputation.
• Customer Trust: By implementing age verification, you show customers that you take their privacy and safety seriously. It builds trust, which can lead to higher engagement rates and customer loyalty.

Incorporating these best practices into your SMS marketing strategy will help ensure that your campaigns remain compliant while effectively reaching your target audience.

Challenges Facing Dispensaries When Implementing SMS Marketing Strategies

Cannabis dispensaries have a lot to deal with when it comes to SMS marketing. The landscape is filled with obstacles that make this channel both difficult and risky to navigate.

Message Deliverability Issues in Cannabis SMS Campaigns

One of the biggest challenges is getting your messages delivered. Regulatory constraints often result in messages being filtered or blocked altogether. This is especially tough for cannabis businesses, as the industry is heavily scrutinized.

Key Issues:

• Carrier Filtering: Carriers like AT&T, T-Mobile, and Verizon are known for their strict filtering mechanisms. Messages not properly registered or formatted can easily be flagged as spam.
• Compliance Risks: Non-compliance with laws such as the TCPA or CAN-SPAM Act can result in hefty fines. For instance, failing to obtain explicit opt-ins from customers could lead to penalties reaching thousands of dollars per infraction.
• Technical Glitches: Even minor errors in message formatting or content can lead to deliverability issues. For example, using prohibited keywords related to cannabis products can cause messages to be blocked.

Registering Phone Numbers to Enable Texting for Cannabis Companies

To combat these challenges, dispensaries need to register their phone numbers through platforms like The Campaign Registry (TCR). While this process is crucial for compliance and deliverability, it’s not without its own set of challenges.

Steps Involved:

1. Brand Registration: Submit detailed information about your business, including EIN/tax ID and company details.
2. Campaign Registration: Provide specifics about your texting campaigns, such as use cases and sample messages.

Common Pitfalls:

• Incorrect Information: Errors in company details or tax IDs can delay the registration process.
• Costs: Registration isn’t free; fees apply whether the registration succeeds or fails.
• Time-Consuming: The vetting process can take up to 10 days, delaying your marketing efforts.

Future Outlook: What Lies Ahead for Cannabis Companies in Terms of SMS Marketing Regulations?

Looking ahead, the regulatory environment is expected to get even more stringent for cannabis companies.

Predictions:

• Increased Scrutiny: As more states legalize cannabis, federal oversight could intensify. This means stricter regulations and more rigorous enforcement.
• Advanced Filtering Mechanisms: Carriers may deploy even more sophisticated algorithms to detect non-compliant messages. This could further affect message deliverability.
• Consumer Behavior Changes: With growing awareness about privacy concerns, consumers might become more selective about opting into text communications. This could impact the effectiveness of SMS marketing campaigns.

Discovering how these changes will play out requires staying ahead of regulatory updates and continuously adapting your strategies.

Navigating these challenges requires a proactive approach. Dispensaries must invest time and resources into understanding the regulatory landscape and implementing best practices to ensure compliance and maximize the effectiveness of their SMS marketing efforts.

In addition to overcoming these hurdles, it’s essential for dispensaries to focus on their overall digital marketing strategy. Leveraging professional services like Dope SEO which offers tailored SEO solutions for cannabis businesses in Texas, New Jersey and Oklahoma can significantly enhance online visibility and customer engagement. These strategies are not just limited to SMS marketing but encompass a broader spectrum of digital marketing avenues including website optimization, content creation and social media management which can collectively drive more traffic and sales for

What will happen next?

Importance of Compliance in Cannabis SMS Marketing

The world of SMS marketing for cannabis companies is changing quickly. Following the rules is extremely important. By registering phone numbers with The Campaign Registry (TCR), dispensaries can not only keep their texting campaigns going but also make sure they’re following the law.

Why Proper Registration Matters

Here’s why proper registration matters:

1. Competitive Edge: Dispensaries that successfully navigate these regulations will maintain a competitive edge. By adhering to the latest rules, your messages are more likely to reach customers without being filtered or blocked by carriers.
2. Avoiding Penalties: Non-compliance can result in severe penalties, including fines and bans. Proper registration helps avoid these pitfalls.

Proactive Steps for Dispensaries

Taking proactive steps now can make a significant difference:

1. Align Text Messaging Practices: Update your SMS marketing strategies to ensure they align with current regulations.
2. Register with TCR: Make sure to register your brand and campaigns with TCR as soon as possible.

Staying ahead of the curve is essential for dispensaries looking to thrive in this evolving regulatory landscape. For instance, digital marketing can play a crucial role in scaling operations and increasing profitability while allowing owners more time to focus on core business activities like cultivation. Furthermore, understanding the nuances between earned media and search engine optimization can provide valuable insights into effectively reaching your target audience and enhancing brand visibility online.

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