In the competitive world of cannabis retail, loyalty and rewards programs have become a mainstay. From text message discounts to point-based purchases, dispensaries across legal markets are tapping into customer rewards as a way to drive traffic, increase retention, and boost sales. But beneath the attractive incentives and catchy slogans lies a more nuanced question: who really benefits the most from these programs — the customers or the dispensaries?
On the surface, rewards programs appear to be designed with the customer in mind. Shoppers earn points for every purchase, get access to exclusive deals, and often receive personalized offers that cater to their preferences. These perks build excitement and give frequent buyers a sense of value beyond just product quality. For budget-conscious consumers or those who rely on cannabis for medical use, these programs can provide essential savings on recurring purchases.
However, the structure of most cannabis loyalty programs reveals they’re more than just goodwill gestures — they’re powerful business tools. From a dispensary’s perspective, rewards programs are a calculated investment. They not only encourage repeat business but also generate rich data on customer behavior. Every point earned, product redeemed, and visit logged becomes part of a dispensary’s data set that can be used to fine-tune inventory, personalize marketing efforts, and optimize product placement.
This data-driven approach creates a feedback loop that ultimately benefits the retailer. By analyzing which promotions lead to higher returns, which customers shop at specific times, and which products drive the most redemptions, dispensaries can create targeted campaigns that increase both short-term sales and long-term brand loyalty.
Moreover, rewards programs reduce the overall customer acquisition cost. While acquiring new cannabis customers through digital ads, influencer marketing, or SEO can be expensive and highly regulated, maintaining and re-engaging an existing customer through a loyalty program is far more cost-effective. A dispensary might spend $10-$20 to acquire a new customer, but only pennies to keep them coming back through text alerts or email promotions.
That said, savvy customers do benefit from these programs — but often only if they play the long game. Occasional buyers may never accumulate enough points to access high-value perks, and many promotions are time-sensitive or tiered in ways that encourage more frequent spending. In some cases, rewards expire or are limited to specific product categories, reducing their real-world utility.
Another factor to consider is transparency. Not all rewards programs clearly communicate point expiration policies, product restrictions, or the actual dollar value of each point. Customers who don’t read the fine print might find themselves disappointed when their “free pre-roll” turns out to require a $60 minimum spend.
Ultimately, the biggest winners are dispensaries that implement well-designed loyalty systems with strategic analytics. These businesses retain more customers, increase purchase frequency, and gain insights into buyer behavior that allow them to stay competitive in a crowded market.
For customers, the benefit lies in choosing programs that align with their buying habits and being consistent enough to capitalize on those perks. The more informed and engaged a customer is, the more value they can extract.
In today’s cannabis retail landscape, rewards programs are a win-win — but only when customers know how to work the system, and dispensaries know how to use the data.
