Cannabis Loyalty Program Playbook

But what separates the high-performing from the rest is how they nurture those relationships. Without a structured cannabis loyalty program, even your best customers are just one competitor's promo away from disappearing. In today’s hyper-competitive market, loyalty isn’t just a nice-to-have—it’s your most powerful, revenue-driving strategy.

According to Headset, loyal customers spend over $10 more per transaction than new or casual shoppers. Meanwhile, Bain & Company found that a 5% increase in customer retention can drive profitability up by as much as 75%.

And yet? Most cannabis loyalty programs are poorly executed, underutilized, or completely forgotten. This guide will walk you through how to build a loyalty program that actually works—backed by data, strategy, and real-world examples.

What Is a Cannabis Loyalty Program?

A cannabis loyalty program is a strategic system that rewards repeat customers with discounts, points, or exclusive perks. These programs incentivize continued purchasing behavior while capturing first-party data that can fuel smarter marketing decisions.

For cannabis retailers, loyalty programs are not just promotional tools—they're essential to building customer relationships, maximizing lifetime value, and staying competitive in a heavily regulated industry. From cannabis text message offers to point-based rewards, loyalty programs help cannabis businesses personalize outreach and drive more revenue.

Why Loyalty Programs Are Critical in the Cannabis Industry

Loyalty isn’t just a customer perk—it’s a dispensary's profit center. In an industry built on compliance and constraints, loyalty is one of the few ways you can speak directly to your customers—on your terms, not the platform’s. More than just messaging access, it gives you the data to predict demand, time promotions, and increase order values—making it one of the most cost-efficient revenue drivers you have. Loyalty programs offer one of the few legal, scalable, and ROI-positive tools dispensaries can use to:

• Increase repeat purchases
• Capture valuable first-party data
• Build direct communication channels (like SMS and email)
• Enhance customer lifetime value (CLTV)

In fact, loyalty is one of the only levers that small dispensaries can pull to compete with large multi-state operators (MSOs) with bigger budgets and more resources. By cultivating a strong relationship with your customer base, you create a moat around your brand that isn’t easily disrupted by pricing wars or new players.

And with regulatory pressures making digital marketing more difficult, loyalty is no longer just about rewards—it’s about access.

Types of Dispensary Loyalty Programs That Work

Choosing the right structure for your loyalty program depends on your customer base, tech capabilities, and marketing goals. Here are the five most effective types:

1. Check-in Bonuses

Encourage repeat visits by rewarding customers every time they check in. This format works well for walk-in traffic and builds routine habits.

2. Points-Based Programs

The most common structure—customers earn points for every dollar spent. Points can be redeemed for discounts, store credit, or exclusive products.

3. Tiered Rewards

Gamify loyalty by creating levels based on spending thresholds. Higher tiers unlock better perks, encouraging long-term commitment and bigger baskets.

4. Referral Programs

Customers get rewarded for bringing in friends. Referral offers often include discounts or bonus points for both the referrer and the referred.

5. Digital Punch Cards

A modern twist on old-school loyalty. Reward customers after a set number of visits or purchases (e.g., “Buy 9, get the 10th free”) using scannable loyalty tech.

Real-Life Examples of Cannabis Loyalty Programs

See how successful dispensaries are putting these strategies into practice:

• Haven: Based in Maryland, Haven runs a “Reefer-a-Friend” program where customers hand referral cards to friends. When those friends shop, the original customer earns points.
• Clear Choice Cannabis: Washington-based Clear Choice gives customers one point for every dollar spent. Points can be redeemed for discounts up to 20% off.
• Greenside Recreational: Another Washington dispensary offering 10% off after every fifth visit, reinforcing visit-based behavior.

These brands combine humor, ease of use, and digital tracking to encourage repeat visits and referrals.

How to Promote Your Loyalty Program

Even the best loyalty program will fail without visibility. Here’s how to promote it effectively:

• Train your staff to mention the program at checkout and explain the benefits clearly
• Use in-store signage and tablet kiosks to encourage signups
• Send SMS invitations to existing customers with an opt-in link
• Create a dedicated landing page on your website for easy sign-up and FAQs
• Incorporate loyalty in emails—highlight current point balances, upcoming rewards, or flash deals for members only

💡Pro tip: Don’t over-message. Texting customers too frequently can lead to opt-outs. Stick to high-value, time-sensitive offers only.

Loyalty Program Compliance Checklist

Before you launch, make sure you're legally covered.

• Get explicit opt-in for SMS communications under TCPA
• Avoid offering rewards that violate state promotional restrictions (like discounts tied to purchase limits)
• Store and manage customer data in compliance with HIPAA (if applicable) and state-level privacy laws
• Make terms and conditions easily accessible and written in plain language

A compliant loyalty program protects both your customers and your business.

How Loyalty Powers Your Full Marketing Funnel

Loyalty is more than a standalone program—it’s the connective tissue across every channel. Smart dispensaries integrate loyalty data into:

• Email Marketing: Trigger personalized product recommendations, refill reminders, and VIP offers
• SMS Campaigns: Send flash deals or time-sensitive offers based on past purchases
• Programmatic Ads: Retarget lapsed loyalty members with precision messaging
• E-commerce: Pre-fill rewards, show dynamic discounts, and offer early access to product drops

When loyalty integrates with your entire funnel, every message gets smarter—and every sale gets closer.

Choosing the Right Loyalty Software for Your Dispensary

The platform you choose determines your program’s success. Look for loyalty software that:

• Seamlessly integrates with your POS, CRM, and ecommerce platforms
• Supports SMS and email automation with full opt-in tracking
• Offers segmentation tools for targeting offers based on spend, product type, or behavior
• Provides built-in reporting dashboards to track ROI and customer lifetime value

Popular solutions in the cannabis space include Alpine IQ, springbig, and MediaJel. Choosing the right one depends on your business size, tech stack, and retention goals.

Loyalty Is Your New Cannabis Customer Retention Tool

In a world where ad restrictions keep changing and customer acquisition costs keep rising, customer loyalty is your dispensary's most reliable growth engine. When integrated into your marketing funnel and built on a strong tech stack, a loyalty program becomes more than a reward system—it becomes a profit-driving strategy that delivers long-term brand growth.

Get it right, and your customers won’t just return—they’ll bring their friends with them.

See how MediaJel can help you launch and scale a loyalty program that actually delivers. Schedule your personalized demo.