4 people planning a dispensary loyalty program in front of a whiteboard

Four types of loyalty programs that work best in cannabis

Loyalty programs are one of the best ways to keep customers coming back to your business. An effective dispensary loyalty program rewards customers for bringing their business to you and creates value for both your brand and your loyal customers.

In this article we’ll go through some of the most popular dispensary loyalty programs and why they are so effective.

Why loyalty programs matter 

two handsThere are a variety of ways dispensary owners can structure a cannabis rewards program run to gain an advantage over the competition. Loyalty programs are designed to encourage customers to shop at your dispensary. This offers them valuable rewards and incentives in return. These programs can include things like creating a referral program to reward customers who refer new customers. You can have special promotions for repeat customers, or implement a tiered loyalty program that offers exclusive perks based on the total amount spent or the number of purchases made.

Effective cannabis loyalty programs will increase customer retention and build customer loyalty. Customers taking part in a loyalty program can account for up to 60% of sales. They consistently outperform other customers regarding total sales and the average amount of sales. Essentially, this group of customers creates the lion’s share of your revenue. This makes a loyalty program a worthwhile investment for any dispensary.


This is one of the most common loyalty programs dispensaries have and for a good reason. Essentially, customers get rewarded with points for every purchase they make and are rewarded for those points. These rewards can vary from special discounts to a pre-roll. These points accumulate and give customers the incentive to keep coming back to your dispensary.

Point programs can also be used in a variety of ways, in addition to regular point rewards dispensaries can have special promotions where customers get for example double points for their purchases. Promoting exclusive deals can help you clear out inventory and boost revenue on slow days.

Also, you can offer more points when customers make large enough purchases. This can be a great way to encourage customers to have larger basket sizes and spend more on a single purchase.

Integrating your loyalty programs with your POS will allow you to reward loyalty program members based on their purchases rather than simply on customer visits. For the cannabis industry, this type of rewards program works better, as your dispensary stocks a variety of different products, and an average purchase might vary. Rewarding consumer spending behavior based on each dollar spent makes more financial sense to cannabis retailers.

Birthday rewards program

happy birthday balloons

Undoubtedly everybody loves to celebrate their birthdays. So why not show your customers some extra love in the form of a promotion on their special day. Birthday promotions have become some of the most popular loyalty programs in the industry. According to the data, customers are more likely to redeem these promotions compared to other promotions.

You should consider offering birthday specials such as discount codes, promotions, or even a free gift. This will surely make your dispensary’s loyal customers feel appreciated. You can even create a customizable promotion that takes into account the customer’s product preferences and offer special deals customized just for them.

Friend referrals

A loyalty program is not only a great way to increase customer retention but can also help with customer acquisition. A friend referral program rewards customers for having their friends either sign up for your loyalty program or for simply making a purchase. This reward can be for example loyalty points or a gift. You can also offer potential customers an initial discount for their first purchase.

Happy Team members by laptop

Customers referred by their friends are way more likely to make purchases and spend more compared to other customers. Since people tend to trust their friends or family’s recommendations a referral program can help you grow your customer base through your existing customers. Promoting customer loyalty can help multiply the value of just one loyal customer exponentially as they bring in more customers.

Dispensary referral programs like Budz allow you to integrate referral programs with your POS and make the process convenient for both you and your customers.

Loyalty tiers

Once your customers have enrolled in your loyalty program it’s important to encourage them to move up to higher levels. Tiered loyalty programs reward your customers for coming back to you again and again. Encouraging loyalty program members to move up by offering rewards and perks at each tier. Essentially reward them for spending more at your dispensary.

Studies show that higher loyalty tier members outperform other customers in spending, basket size, and the number of visits. Getting customers to sign up for the loyalty program that creates value for the customer helps you cultivate loyalty and create a customer base that will generate the majority of your revenue.

Offering daily deals and special incentives are just some of the most effective ways to get customers coming back to your dispensary. This keeps customers moving up on your tiered loyalty program. Text message marketing campaigns or email marketing are a great way to keep loyalty customers informed on these deals.

Get started with your own cannabis loyalty program

Essentially, dispensary loyalty programs allow you to give back to your most loyal customers for repeat business. To get started with your very own cannabis loyalty program and get deeper insights on how it can benefit your business, check out springbig’s cannabis loyalty programs and request a demo.

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