Reaping the Benefits: 5 Steps to Launching a Rewarding Cannabis Loyalty Program

Emily Kho
August 17, 2023

Customer loyalty is the golden ticket to success in today's competitive market. Brands across various industries have realized the immense potential of loyalty programs, with giants like Starbucks and Sephora leading the way. But does that translate well for a cannabis loyalty program?

As it turns out, a well-structured cannabis loyalty program can significantly enhance customer retention, increasing customer sales by up to 15%. Not only that, but 39% of loyalty members are willing to spend more on a product, even with less-expensive alternatives available. 

However, the cherry on top is that the average cost of a loyalty member reward or perk is significantly less than acquiring a new customer, at up to five times the savings.

With these impressive stats in mind, let's delve into the world of cannabis loyalty programs.

What is a Customer Loyalty Program?

A customer loyalty program is a structured marketing strategy designed to encourage customers to continue shopping or using services associated with each purchase. In the context of a dispensary, a cannabis loyalty program would reward customers for their repeated business, ensuring they come back for more.

What are the Benefits of a Loyalty Program?

In today's competitive cannabis market, a well-structured loyalty program can be the game-changer that sets a dispensary apart, offering myriad benefits that extend beyond just boosting sales.

The top three benefits of a customer loyalty program are:

  • Increased Customer Retention: As mentioned earlier, loyalty programs can boost customer sales by up to 15%, meaning customers are more likely to return to your dispensary if they feel valued and rewarded.
  • Higher Cart Size: Loyalty members tend to spend more. With an increase of 12-18% in cart size, this can significantly boost your revenue.
  • Cost-Effective: The average cost of rewarding a loyalty member is much less than the cost of acquiring a new customer, making loyalty programs a cost-effective strategy for dispensaries.

With these advantages in mind, it becomes clear that implementing a cannabis loyalty program is not just a trend but a strategic move to foster lasting relationships with customers and drive sustainable growth for your dispensary.

A dispensary customer is holding up a large coupon card from their customer loyalty program.

5 Steps to Launching a Rewarding Cannabis Loyalty Program

Before diving headfirst into creating a cannabis loyalty program, there are some crucial factors to consider:

1. Get Digital

While punch cards have their nostalgic charm, they're easily misplaced or forgotten. In today's digital age, customers expect convenience at their fingertips. 

This digital approach enhances the overall customer experience by allowing for real-time:

  • Updates
  • Notifications
  • Personalized offers

A digital loyalty program, accessible via email or login credentials, not only ensures customers always have it on hand but also integrates seamlessly with other digital marketing strategies. 

2. Build a Customer Profile

With a digital account, you can track each customer's purchases and preferences, and even their browsing behavior. This data is invaluable. It allows you to make in-person recommendations based on past purchases, ensuring a more personalized shopping experience. 

Additionally, understanding your customer's preferences can lead to the following:

  • Tailored marketing campaigns
  • Personalized coupons
  • Promotions that resonate more effectively

As a result of your efforts, you can anticipate driving both sales and customer satisfaction.

3. Make Your Rewards Enticing

Your rewards should be more than just an afterthought. They should be something your customers genuinely desire and see value in. 

Ensure your rewards cater to the diverse needs and interests of your clientele, whether it's:

  • Exclusive access to new cannabis strains
  • Discounts on their favorite products
  • Educational workshops on cannabis use 

An enticing reward system will not only encourage repeat purchases but also foster positive word-of-mouth marketing.

4. Celebrate Birthdays and Milestones

Personal touches make a world of difference. Offering a special discount or a free product on a customer's birthday can make them feel truly valued. Similarly, recognizing milestones, such as a customer's 10th or 50th purchase, can reinforce their loyalty to your brand. 

Consider implementing ideas such as:

  • Birthday bonuses
  • Purchase milestones
  • Anniversary reward

These gestures, while seemingly small, can significantly enhance the overall customer experience and foster a deeper connection between the customer and your dispensary.

A couple is celebrating their anniversary, just as customer loyalty programs should.

5. Offer a Sign-Up Incentive

Whether it's a discount on their next purchase, a free sample, or early access to sales, a sign-up incentive can set the tone for a fruitful and long-lasting relationship with your customers. 

Offer new customers an opportunity to come back and shop again with:

  • Immediate discounts
  • Free samples
  • Exclusive access

First impressions matter. By offering a compelling sign-up incentive, you can encourage more customers to join your loyalty program from the outset.

Final Thoughts on Cannabis Loyalty Programs

Cannabis loyalty programs are more than just a marketing strategy; they're a way to build a community around your brand. By offering enticing rewards and recognizing your customers' loyalty, you're not only boosting your sales but also fostering a sense of belonging among your clientele. 

As the cannabis industry continues to grow, standing out becomes crucial. But growth isn’t attained solely through marketing strategies and stocking top products — it's also gained by nurturing lasting relationships. Effective people management combined with exceptional customer service is key to retaining loyal customers. 

Ready to elevate your customer experience? Discover KayaPush and schedule a demo today to revolutionize your approach to cannabis customer loyalty.

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August 2023


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