Cobra Developers
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How to market a business that is not allowed to advertise

The short answer

A business that cannot buy ads markets through channels it owns. Build a list of existing customers with a wallet loyalty card, reach them with occasional lock-screen messages and email, reward referrals, ask for reviews without offering anything in return, and cap how often you send. Then measure which messages change sales.

We built Regulars for shops with this exact problem. Smoke, vape, and CBD shops are locked out of most ad platforms. The usual advice for a local business, which is to buy some ads and see what happens, is not available to them.

That constraint is clarifying. When you cannot rent attention, the only marketing left is the kind you own: your relationship with people who have already walked in. It is slower to build. It also cannot be switched off by a platform changing its policy.

The same approach works for any business that is restricted from advertising, or that simply cannot afford to keep paying for it.

How do you market a business that cannot advertise?

You market a business that cannot advertise by turning each customer who walks in into someone you can reach again, then giving them reasons to return and to bring a friend. The work shifts from finding strangers to keeping the people you already have, through channels no platform controls.

Rules on what restricted businesses may say, and to whom, differ by industry and by state, so check the rules that apply to yours before sending anything.

Everything below assumes you have done that and are working inside those rules.

What is an owned channel?

An owned channel is a way of reaching customers that does not depend on a platform approving your message or charging per view. A customer list, a loyalty card in a phone wallet, an email address given willingly, and your own website are owned. A social media following is closer to borrowed.

ChannelWhat you controlWhat limits it
Wallet loyalty cardThe card and what it displaysThe customer must add it
Lock-screen messageTiming and wordingSent too often, the card gets removed
EmailThe list and the contentNeeds permission, and your email provider's terms apply
ReferralsThe reward and the rulesOnly works if customers like the shop
ReviewsWhether and how you askYou do not control what is written
Your websiteEverything on itPeople have to find it

None of these reaches a stranger the way an ad does. That is the trade. Owned channels are good at bringing back people who know you and poor at introducing you to people who do not. Referrals, reviews, and search are how the second group finds you.

Which channels should you set up first?

Set up the channels in the order that builds on the last one. Start by capturing customers at the counter, because every other channel depends on having a list. A message has no one to go to, and a referral program has no one to offer it, until that list exists.

  1. Put a loyalty card in the customer's phone wallet. It gives them a reason to identify themselves and gives you a way to reach them.
  2. Send lock-screen messages sparingly. Use them when there is real news: a new product, a restock, a reason to visit this week.
  3. Collect email with permission. It is the backup channel for longer messages.
  4. Add referrals. Reward the customer who brings someone new, and track who brought whom.
  5. Ask for reviews. Do it in person, at a good moment, with nothing offered in return.
  6. Keep your own website accurate. Hours, address, and what you carry.

The first step is the one to get right. A sign-up process that slows the line will be skipped. Regulars uses a counter kiosk for this, and the shop keeps its existing register. We compare the options in loyalty program software for small retailers.

Why do frequency caps matter?

Frequency caps matter because an owned channel can be lost. Every message is a small withdrawal from the customer's patience. Too many, and they remove the card or unsubscribe, and you cannot buy your way back to that customer with an ad. A cap makes the list last.

When a shop has only one way to reach people, the temptation on a quiet day is to use it. The campaign scheduler in Regulars has a weekly frequency cap built in for that reason. The owner can plan as many campaigns as they like. A customer still only hears from the shop so many times in a week.

A useful test before sending anything: would this message be welcome if you were the customer. A restock of something they have bought before passes. A reminder that the shop exists does not. How these messages reach a phone is covered in web push notifications explained.

How should you ask for reviews?

Ask for reviews directly, from customers who seem pleased, and offer nothing in exchange. A discount for a review turns it into a paid endorsement, which review platforms generally prohibit and readers distrust. An honest request, made at the counter, is slower and worth more.

Make it easy. A small sign with a code to scan, or a link on the receipt, removes the step where the customer has to search for the shop's listing. Then leave it alone. Do not ask only the customers you expect to be generous, and do not argue with the ones who are not. Reply politely to both.

Reviews matter more for restricted businesses than for most, because a stranger deciding where to go has little else to read. With no ads to see, what other customers wrote may be the only thing they see before they visit.

How do you know which marketing is working?

You know marketing is working when customers who received it behave differently from similar customers who did not. With owned channels you can test this directly, by holding a random group out of each campaign and comparing what the two groups spend afterward.

That is an advantage over advertising, where it is often unclear who saw what. Regulars uses holdout groups and tracked links so an owner can see whether a promotion moved sales instead of guessing. A message that produces no difference is worth knowing about. Stop sending it and keep the customer's attention for one that does.

Be patient with the numbers. A small shop has a small list, and one campaign will not tell you much. Look across several before drawing a conclusion.

Frequently asked questions

Does a website count as advertising?

A website is your own property, not a paid placement, so it is usually treated differently from an ad. Content rules for your industry can still apply to what you publish on it. Check them before you write product pages.

What is a lock-screen message?

It is a short notification that appears on a customer's phone without them opening anything. With a wallet loyalty card, it can come from the card itself, so the customer does not need to install an app.

Can a restricted business use social media at all?

Often yes, within each platform's content policies, but treat it as borrowed space. An account can be limited or removed. Use it to send people to channels you own.

Do referral programs work for small shops?

They work when customers already like the shop. A referral reward gives a satisfied customer a small extra reason to mention you. It will not make an unhappy one do it.

How long does it take to build a customer list?

It depends on foot traffic and on how consistently staff offer the card. A shop that asks every customer at the counter builds a list faster than one that leaves a sign by the door.

If ad platforms have turned your business away, tell us what you sell and where and we will show you how Regulars would work in your shop.

Who wrote this

The Cobra Developers team. We are a software studio in Arizona that builds and runs its own products and builds websites, web apps, and automation for clients. This post draws on our work on Regulars. Everything here comes from projects we shipped; see all 30 of them.

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