Dispensary Loyalty Program Case Study

Learn how we helped a South Jersey dispensary structure and execute a branded loyalty program that drives customer retention and revenue growth.

Project Overview

In a competitive and discount-driven cannabis market, retaining customers is just as critical as acquiring new ones. For a leading dispensary in South Jersey near Philadelphia, we developed and implemented a fully branded loyalty program with customized tiers, icons, and email/SMS campaigns to engage customers, drive repeat purchases, and increase revenue.

Our strategy combined effective loyalty program structuring with seamless technology integration, ensuring customers received timely, relevant communications about deals, events, and new products after signing up for rewards.

The Loyalty Program

To create an engaging and impactful loyalty program, we designed a strategy centered around clear branding, rewarding customer loyalty, and developing long-term relationships. 

Here are the essential components of a dispensary loyalty program that we emphasized with the client in this case study. 

  • Custom Branding: We developed a unique program name, custom tier names, and branded icons to differentiate the program and enhance its appeal.
  • Tiered Rewards System: We structured a multi-tier program with benefits such as points-based discounts, birthday rewards, and exclusive member perks. Customers earn enhanced rewards as they climb the tiers based on their lifetime spend.
  • Sign-Up Incentives: We introduced a “$5 off first order” offer to encourage new sign-ups through website lead capture forms, display ads, and in-store promotions.
  • Automated Campaigns: We set up targeted email/SMS campaigns to deliver personalized offers, including:
    • Abandoned cart recovery
    • Birthday rewards
    • Win-back offers for lapsed customers
    • Members-only product bundles and discounts
We’ve structured these programs in many different ways. This is just one example of how it can be done. Some clients opt for a non-tiered system or offer different sign-up incentives. There is no one-size-fits-all approach.

Website & Technology Integration

We ensured seamless integration between the loyalty program and the dispensary’s website, optimizing user experience and maximizing conversions. Features included:

  • Lead Capture Forms: We developed branded, easy-to-use forms to encourage sign-ups directly from the website.
  • Rewards Dashboard: We provided customers with access to track their tier, points, and rewards.
  • Platform Setup: We configured and managed the loyalty program using Alpine IQ, ensuring domain verification, email deliverability, and list health.
Ensuring the loyalty program operates smoothly with the dispensary’s website is critical to a positive user experience. Sign-up and program benefits instructions should be communicated, and customers should be able to easily redeem their rewards when shopping online or in-store.

Campaign Execution

To keep members engaged and drive continuous revenue, we executed weekly email and SMS campaigns highlighting promotions, events, and product updates. Key metrics included:

Engagement Rates:

Open Rate: 30.58%

Conversion Rate: 7.95%

Revenue Impact:

Total Revenue Generated: $1,038,481.10

ROI: 156x (15,592%)

Per-Conversion Performance:

Cost Per Conversion: $0.19

Revenue Per Conversion: $170.35

Conversion Highlights by Engagement Type:

After Email Sent: $817,677.40 (13.9% of revenue)

After Text Sent: $544,843.10 (9.3% of revenue)

After Push Opened: $4,104.20

These results showcase the value of well-structured campaigns tailored to loyalty members’ purchasing behavior.

Why a Branded Loyalty Program IS CRITICAL

In an industry where customers often shop based on deals, a branded loyalty program is a game-changer for dispensaries looking to develop long-term customer relationships.

A properly executed campaign should also maximize revenue through repeat purchases. This is achieved by offering personalized, targeted promotions that resonate with specific customer preferences.

With a cohesive strategy, unique branding, and powerful platform integration, this South Jersey dispensary’s loyalty program became a key driver of customer retention and sales growth.

Results

  • 16,306 Loyalty Members with a 42.62% active rate.
  • $2.4M+ in Revenue generated from email/SMS campaigns.
  • 36,248% ROI on campaigns, proving exceptional cost-efficiency.

Ready to Build a Winning Loyalty Program for Your Dispensary?

At MOST Consulting Group, we specialize in building branded, high-performing loyalty programs for cannabis businesses. From custom program design to email/SMS execution, we’ll help you turn one-time buyers into lifelong customers.

Let’s Talk!
(215) 298-1555
welcome@mostcg.com