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What to Know About A Dispensary Loyalty Program

Dispensary Loyalty Program

It’s no secret that the cannabis industry is growing at an extremely fast rate. With the stigma largely mitigated and its legality increasing across the globe, one can assume the possibilities are endless in the sector. As a result, many dispensaries should consider a dispensary loyalty program to help drive more business, separating themselves from the competition.

The industry isn’t what it used to be even a few years ago. There are companies beginning and startups launching that make it extremely challenging for dispensaries to distinguish their business. Nevertheless, below will discuss what a loyalty program is, why they’re essential, and how it can significantly benefit your dispensary.

What is a Loyalty Program?

A loyalty program is an advertising system intended to urge clients to keep shopping or utilize the services of a business related to the program. In simple terms, customers who are loyal to your business are then rewarded in some way. There are many ways to develop a loyalty program, all of which vary with their pros and cons.

Some businesses do this with a point system, meaning the amount of money they spend returns with some points. Those points can then be used toward a product. Though this method is one of the most popular methods, there are plenty of other ways to set up and use a loyalty program.

CBD bottles

Why are Loyalty Programs Important in the Cannabis Industry?

The biggest reason we’re discussing loyalty programs has to do with their importance in the cannabis industry. Generally speaking, customer loyalty builds benefits, further develops sales, and promotes growth. Considering repeat buyers is such an imperative aspect of a cannabis business, you want to do everything you can to grow this sector.

An all-around planned and professional loyalty program can assist you with holding existing clients, drawing in new clients, lessening turnover and driving benefits. From a consumer perspective, they love loyalty programs because it gives them a return on spending money they normally would spend.

Think of it like this. If a person wants edibles, they’d instead purchase them from a dispensary that has a reward system they can work toward getting the most out of. It’s a win-win from both perspectives and isn’t the most complicated area for a dispensary to fully establish. Though it does take some work to perfect.

Reasons to Consider a Loyalty Program

There are many reasons to consider a loyalty program, ranging from a dispensary’s want to grow and the appeal of consumer satisfaction. Unfortunately, many dispensaries worry about setting up dispensary loyalty rewards with the fear that it’ll end up hindering their business.

If this is a reason for concern from your perspective, don’t worry in that regard. As long as you set it up correctly, loyalty programs are incredibly beneficial. As a result, below will discuss some of the key reasons you should consider setting up a system for your dispensary. Let’s take a look!

Rewards Loyal Customers

Compensating your client’s dependability is advantageous to the business and the consumer. It’s a matter of showing your customers you’re willing to give them something back and allow them the path to building their loyalty.

Giving out sales and free products might appear as though it’s hindering your income. Still, it pays for itself and then some over the long haul. Consolidate with effective marketing measures to get the most out of the matter and watch it grow over time.

Generates Brand Recognition

Obtaining phone numbers and email addresses is crucial to give deals to consumers through a loyalty program. This implies that you’ll have the option to straightforwardly market to somebody who you definitely know is interested in your products.

More specifically, your brand will turn into an easily recognizable aspect to your client. Customers are more likely to work with a brand they perceive and trust. This relationship can be supported through text and email advertising.

Allows Customer Data Analyzation

The best dispensary loyalty program allows companies to analyze many customer data. This information can likewise be utilized to figure out what products to stock, which vendors to work with, and to assist with setting income targets. Measurements like this assisted larger dispensaries into the success story they are now.

Makes Business Stand Out

Practically every business, regardless of whether it’s in the cannabis industry, wants to stand out. You want a method for creatively showcasing your image so you can be heard across the industry. Offering a loyalty program could be the answer that guarantees your client doesn’t look at the dispensary down the road.

Generates More Business

Furthering the notion of developing a dispensary stands out; much of that has to do with generating more business. Loyalty programs entice customers to return, meaning you’re more likely to see returning business than without one. It may take some time to see the results, but they will come.

How to Communicate Your Loyalty Program

Now that you know the main benefits and reasons to consider a loyalty program, you might want to know how to communicate the program. Generally speaking, an SMS or email campaign is a great way to inform customers and ensure what you’re offering is heard clearly and concisely.

Texting and SMS messaging are even better than an email campaign since people typically respond to texts better than an email. Either way, make sure you follow the laws closely for whatever loyalty program route you go. Though there aren’t a ton of laws to know, there are a few key ones you shouldn’t break. Check online to see what the laws are for where you live.

Different Loyalty Programs to Consider

As great as it is to know the vast benefits tied to loyalty programs, none of that matters if you can’t find a loyalty program that fits your business niche. As a result, below will discuss a few critical loyalty programs to consider. Though there are some other obscure programs, these are the main ones worth mentioning.

Loyalty Cards

Loyalty cards are great for rewarding clients for visits back. They can be something as straightforward as a punch card where each time a client visits, an opening is punched in the card. The card can be recovered for 10 percent off on the tenth punch, etc. There’s a lot you can do with loyalty cards.

Tiered Program

A tiered program operates by placing clients into levels based on their spending at your dispensary. The more cash spent, the higher the level they’re put in. As clients ascend the level stepping stool, more products, deals, and savings are unlocked for the customer.

Cashback Points

Cashback points tend to be the most common loyalty program method, which we briefly describe above. A predetermined measure of points is given to the customer for each dollar spent. Once they hit a certain amount for a free product, these points can be used.

Referral Rewards

Though not as familiar in the cannabis industry, referral rewards are great for getting new customers, specifically with dispensaries. It works by compensating clients for sending new business your way. It’s valuable since it draws in new clients and fortifies the bond with existing clients. How great is that?

Check-In Bonus

A check-in bonus is a more advanced version of the cashback point option. Clients enter their email or telephone number, and the online system tracks their visits. Each visit will procure them rewards that can be reclaimed for in-store purchases in the future once they hit a certain threshold. The check-in method can be altered to fit a specific reward program you want.

Woman Using CBD Balm

Need Help With Your Dispensary Rewards Program? Contact Client Verge

A worthwhile loyalty program keeps your client base happy without having to ruin your profit. Yet, where do you begin in this complicated process? Do you try to manage it yourself? Ask competition? It all surrounds the idea of collecting data and determining the best avenue for your business.

Fortunately, there are digital marketing agencies that exist for this reason. Hence why we at Client Verge are talking about this subject. Our digital marketing skills can save you time and acquire more business, keeping the clients you value continually coming back to support your business.

Besides Setting Up Loyalty Programs, Some of Our Key Services Include:


We hope you enjoyed our discussion on the benefit and use of a loyalty program. Though this concept may seem unnecessary at first, considering how much there is to do with a dispensary, its benefit makes it a necessity. Regardless, be sure to take a close look to see which loyalty program option fits you the best.

If you have any questions about a dispensary loyalty program, reward options, what we offer, or anything else, feel free to contact us today. It’s practically impossible for a dispensary to reach the level of success they want without a digital marketing agency to help them along the way. We’re here to help and can’t wait to hear from you!


Marshan B.

Marshan Beals is a co-partner at Client Verge Inc. With 8 years of experience in digital marketing, his expertise extends beyond digital marketing for cannabis brands. He is also a sponsor of the High Profits ebook, available for download when you sign up for our email list.