In the competitive landscape of cannabis retail, dispensaries and brands are increasingly turning to loyalty apps to keep customers engaged, informed, and coming back. But as operators refine their communication strategies, a key question emerges: what works better for driving loyalty app engagement—push notifications or SMS? From a technology and user-experience perspective, the answer hinges on understanding how each method interacts with customer behavior, compliance needs, and the rapidly evolving cannabis tech ecosystem.
Push Notifications: Seamless Integration, But With Limits
Push notifications are messages delivered through a dispensary’s branded mobile app. When a user installs the app and opts into notifications, businesses can send alerts about new products, promotions, or loyalty rewards directly to their lock screen or notification tray.
Technologically, push notifications are powerful because they offer deep integration with loyalty app features. They can link directly to in-app experiences—like browsing menus, redeeming rewards, or placing orders. This creates a frictionless user journey where customers can act on an offer or reminder within seconds.
Moreover, push notifications allow for rich media formats (images, GIFs, videos) and interactive elements (such as buttons for “Shop Now” or “Claim Reward”), enhancing engagement. Another tech advantage is the ability to personalize messaging based on app activity, purchase history, or preferences through built-in analytics.
However, push notifications rely on customers downloading the app and keeping notifications enabled. Studies across industries show app notification opt-in rates can range from 40% to 70%, depending on user trust and perceived value. In cannabis, where consumers may be wary of privacy issues or app permissions, opt-in rates may skew lower. And with increasing competition for users’ attention on their mobile devices, dispensary push messages risk being ignored if not thoughtfully timed and relevant.
SMS: High Visibility, Broad Reach—With a Compliance Caveat
SMS text messaging remains one of the most direct ways to reach customers. Texts land in a channel that people check frequently, and cannabis consumers, like most mobile users, tend to open texts within minutes. In fact, SMS open rates are often cited above 90%, making it a highly effective tool for time-sensitive promotions or reminders.
From a technical point of view, SMS doesn’t require app installation or enablement of special permissions. This makes it ideal for reaching consumers who have signed up for a loyalty program but haven’t downloaded the app, or for re-engaging dormant customers. SMS platforms used in cannabis loyalty programs can integrate with CRM and POS systems to segment audiences and personalize messages, but the richness of content is limited compared to push notifications. SMS supports basic links and simple media (like images through MMS), but lacks interactive buttons or embedded app functionality.
The bigger challenge with SMS in cannabis lies in regulatory compliance. Federal and carrier restrictions on cannabis-related messaging—even in legal markets—mean dispensaries must work with specialized vendors who understand how to navigate rules, secure opt-ins, and avoid message blocking. Additionally, SMS can incur higher costs at scale compared to push notifications, which are typically free to send via app infrastructure.
What Drives Engagement and Retention?
When comparing push notifications and SMS in cannabis loyalty apps, it’s clear both have a role—but their effectiveness depends on strategy. Push notifications excel at deepening engagement with app users who have already committed to the brand experience. They’re ideal for encouraging actions inside the app, from reward redemption to reordering favorite products. Meanwhile, SMS shines when the goal is to cast a wider net, ensure high visibility, and drive urgency—particularly for flash sales, new drops, or event reminders.
Savvy dispensaries often combine both methods, using push for nurturing loyalty and SMS for high-impact outreach. The key lies in leveraging data from loyalty platforms and POS systems to personalize messaging and in adhering to privacy and compliance standards. In an industry where customer trust is paramount, balancing these technologies thoughtfully is what truly drives retention.
Discover: What Cannabis Retailers Can Borrow From Big Brands