CanPay's cold email campaign generated 36 opportunities worth $34,000 from 28.4K emails sent. See how this cannabis payments leader expanded their reach.
June 29, 2025
Past results do not predict future results.
Campaign Overview
CanPay Debit, the payment leader in the cannabis retail market, partnered with Lead Gen Jay to expand their market reach through strategic cold email campaigns. With 400,000 active users and support for 1,200 retail locations across the United States, CanPay recognized a significant growth opportunity in the remaining 8,800 cannabis retail locations nationwide.
The Challenge
Despite being a leader in cannabis payments, CanPay faced two key market expansion challenges:
Untapped Cannabis Market: With 10,000 cannabis retail locations in the United States, CanPay only served 1,200 of them, leaving 8,800 potential clients still relying on cash or ATM payments
Adjacent Market Opportunities: Quick Serve Restaurants and independently owned coffee shops represented an untapped market for cross-promotional opportunities, leveraging the common pattern of cannabis users seeking food after consumption
Campaign Strategy
The cold email campaign targeted two distinct audiences:
Primary Target: Cannabis Retailers
Focused on the remaining 8,800 cannabis retail locations not currently using CanPay, positioning the service as the third payment option beyond cash and ATM transactions.
Secondary Target: Adjacent Markets
Targeted Quick Serve Restaurants (like Taco Bell) and independently owned coffee shops with a unique value proposition: free advertising within the CanPay App through QR code coupons, capitalizing on the natural consumer behavior pattern of cannabis users seeking food after consumption.
Campaign Results
The comprehensive cold email campaign delivered impressive results across multiple metrics:
Overall Campaign Performance
Total Emails Sent: 28,400
Reply Rate: 1.0%
Total Replies: 284
Opportunities Generated: 36
Estimated Value: $34,000
Best Performing Campaign Segment
One particular campaign segment significantly outperformed the overall averages:
Emails Sent: 3,859
Replies: 49
Reply Rate: 1.27%
Opportunities Generated: 17
Estimated Value: $17,000
Key Success Factors
Several factors contributed to the campaign's success:
Market Timing
The cannabis payments market continues to evolve, with retailers actively seeking alternatives to cash-only transactions. CanPay's established presence with 400,000 users provided credibility and social proof.
Dual Market Approach
By targeting both direct cannabis retailers and adjacent markets, CanPay maximized their reach while exploring innovative cross-promotional opportunities that align with consumer behavior patterns.
Value Proposition Clarity
The campaign clearly communicated CanPay's position as the third payment option in a market dominated by cash and ATM transactions, addressing a real pain point for both retailers and consumers.
Results Analysis
The 1.0% overall reply rate demonstrates strong market interest, with the campaign generating 36 qualified opportunities worth an estimated $34,000. The best-performing segment achieved a 1.27% reply rate, indicating that refined messaging and targeting can yield even better results.
With 284 total replies from 28,400 emails, CanPay successfully initiated conversations with potential clients across both target markets, positioning themselves for significant market share expansion in the growing cannabis payments sector.
This case study demonstrates how strategic cold email campaigns can effectively penetrate niche markets like cannabis payments while exploring adjacent opportunities, resulting in substantial pipeline growth and revenue potential.
