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Dispensary Loyalty Programs: Maximizing Retention & Revenue

August 16, 2023

Dispensaries are now one of the most popular cannabis consumer outlets in the United States, according to surveys. This is why dispensary owners should start focusing on dispensary customer retention, especially in the crowded market of the industry. This blog will provide you with an insider’s guide to dispensary loyalty, rewards, and customer retention.

Dispensary Customer Retention Starts With Fundamentals

The most fundamental aspect of customer retention is understanding what customers want and need. You will lose them if you don’t have the products they want. Therefore, dispensaries should keep a close tab on their menu and monitor what products are selling. 

Is The Price Right?

Pricing is another key factor in retaining customers. The price should be reasonable and affordable to customers while still profitable for dispensaries. Wholesale prices are variable and can be negotiated by high-volume dispensaries and those with multiple locations. Therefore, dispensaries with bulk supply or chain dispensaries tend to have lower prices than the rest.

Is Your Customer Service On Point?

Dispensary owners and managers must ensure that their budtenders provide excellent customer service. You want the experience with your budtender to be personalized, welcoming, and informative. The single most important factor in retaining customers is the relationship cultivated by the budtenders with the customers. Therefore, they must be knowledgeable about the products, attentive, and friendly. 

Insider’s Guide Tip: Use the notes section of your POS system to take notes about your customers’ preferences or interests so that you can create a personal experience every time they visit with IndicaOnline.

Know What You’re Selling: What’s your return policy?

Dispensary owners should prepare for any return policy they plan to enforce. The policy should be clearly stated to all customers on a sign, online, or by the budtender. It’s also important to train your staff should they need to enforce it while being cautious not to upset the returning customer. 

Limit Budtender Turnover

When budtenders quit, so does hope for retention. Newly hired budtenders will first struggle to build relationships with customers, which can lead to customer churn. Therefore, dispensary owners should strive to create a satisfying work environment and value their budtenders so they stay. 

Build Customer Loyalty With Deals

Create customer loyalty by offering a loyalty and rewards program. Adding perks and benefits for repeat customers is a fantastic way to build customer loyalty. Free gifts, discounts, and points for redeemed products can significantly improve customer retention and increase sales. Discount deals are an excellent way to attract potential customers too.

Dispensary Loyalty and Rewards Programs

The first step in developing a loyalty program is determining the customer baseline. Since customers usually differ based on their spending and purchase frequency, dispensaries should form customer groups of the top versus the regular buyers. A program can consist of discounts, free products, exclusive access to limited distribution products, and points easily exchanged for premium products. Communication about the details and ongoing promotion of the program is crucial in maintaining customer engagement. 

Grow Loyalty and Retention with SMS and Email Campaigns 

Launching SMS and Email Campaigns is an effective way to engage customers and increase retention. It can come in the form of newsletters, reminders, event invitations, promotions, and surveys. The key is to make the customer feel valued and informed. Customers who feel they have a close relationship with the brand are more likely to continue visiting and purchasing. Pamper your customers with exclusive information and valuable content.


Dispensary customer retention and loyalty-building are fundamental to the business’s success. We’ve provided valuable information on retaining customers by providing the right menu, competitively priced products, excellent customer service, and implementing a loyalty program with valuable incentives. Email and SMS campaigns will keep your customers engaged, and taking notes on each customer’s preferences will keep you informed. Now, if you follow these tips effectively, you will inevitably increase customer retention and revenue in the long run.