For years, loyalty programs were heralded as the secret sauce to keeping cannabis customers coming back. Points-based systems, tiered memberships, and flashy discounts promised to turn occasional shoppers into loyal brand ambassadors. But recently, a quiet shift has begun: some dispensaries are abandoning rewards programs altogether. Rather than a sign of decline, this move reveals evolving strategies for customer engagement—and it’s reshaping the cannabis retail landscape.
The core issue? Rewards programs aren’t always a guaranteed success. In tightly regulated markets, dispensaries face limitations on the types of promotions they can offer. States like Colorado and Massachusetts restrict how discounts are advertised or applied, making it difficult to run rewards programs effectively. Compliance headaches, from tracking points to ensuring promotions align with state laws, have driven some operators to reconsider whether these programs are worth the effort.
Another factor is cost. Loyalty platforms often come with monthly software fees, integration expenses with POS systems, and staff time to manage customer accounts and handle questions. For small or independently owned dispensaries, the investment may outweigh the benefits, especially if customer volume is steady without rewards. Many operators have found that the customers who truly value convenience, product selection, and service quality will return regardless of a points system.
Additionally, data suggests not all customers care about loyalty perks. In a market research survey conducted by Headset, only about 30% of cannabis consumers identified rewards programs as a primary influence on their purchasing decisions. Many customers prioritize factors like product availability, knowledgeable staff, or store atmosphere. In competitive urban markets with dispensaries on every block, shoppers often chase the best product at the best price, loyalty programs or not.
So what are dispensaries doing instead? One major trend is focusing on experiential retail—creating memorable in-store experiences rather than transactional incentives. Dispensaries are hosting events like vendor pop-ups, educational workshops, and product tastings where regulations allow. These events foster community and give customers reasons to visit beyond earning rewards.
Another alternative is personalized service. Rather than blanket discounts, budtenders and sales associates are trained to build rapport with customers, recommend products tailored to individual needs, and offer consultative shopping experiences. This approach helps customers feel understood and valued—without relying on points or coupons.
Some dispensaries are also investing in technology to improve convenience rather than loyalty. Features like online ordering with real-time inventory, curbside pickup, and text notifications keep customers engaged by making shopping frictionless. A streamlined process encourages repeat visits simply because it’s easy, not because shoppers feel “locked in” by a rewards program.
Additionally, some operators are shifting to value-based pricing strategies. By keeping prices consistently competitive, dispensaries can attract price-sensitive shoppers without needing to offer rewards that chip away at already-thin margins. Transparent pricing can inspire customer trust and loyalty naturally.
Finally, dispensaries are prioritizing brand partnerships and exclusive drops. By offering unique products customers can’t find elsewhere, they create excitement and drive repeat visits through scarcity and novelty rather than points accumulation.
In the end, rewards programs are just one tool in a dispensary’s customer engagement toolbox—and for some, it’s not the right one. As the cannabis industry matures, successful operators are looking beyond one-size-fits-all solutions, choosing strategies aligned with their brand, market, and customer base. Whether it’s through curated experiences, exceptional service, or exclusive products, dispensaries that understand what their customers truly value are finding loyalty doesn’t always need to be bought—it can be earned.