Why Rewards Programs matter

• Dispensaries have limitations on how they can market
• Also generally get a lot of walk-in traffic,
• One-off customers contribute a lot less to your overall revenue than regular buyers, except in special cases like a tourism-driven store
• The best way to grow is to get really good at converting walk-in customers into regular buyers
• A rewards program is one of the pillars of

Earning points:

Points Per Dollar

1 point per $1 spent by the customer before taxes and discounts is the standard option. This can be changed to any other number desired (e.g. 5 points per $1).

This number sets the look and feel of your program, but does not have to affect the cost of the program to you. For example, a 1000pt item at 1pt/$1 and a 10pt item at 0.01pt/$1 have the same program cost to the dispensary. In both cases the customer had to spend $1000 to get the item.

Loyalty Levels

Loyalty levels reward longtime, high-spending customers by giving them more points with each purchase. If you choose to use loyalty levels, your customers receive a multiplier on the points they earn based on their lifetime spend at your store.

You create and set as many loyalty levels as you want, and also set the name and multiplier amounts. Our standard setup is shown below

Bud 1x Starting level

VIP 1.5x $500 lifetime spend

Diamond 2x $4000 lifetime spend

Elite 2.5x $10000 lifetime spend

Spending points:

Category based

In a category-based rewards program, you create groups of products, and any products within each group will have the same points price. A customer will be able to redeem any product within that category for the same amount of points regardless of the price of the product.

Pros:

• Easy for staff and customers to remember and understand.
• Encourages customers to save up for and shop often to get top items

Cons

• Modifications to inventory structure may be necessary to create the desired product groupings
• Some outlier items may not fit inside of their logical group (eg a $70 item in a group where all other items are $10-$30

Price Range based:

This rewards program directly sets points prices based on the dollar price of the item. Items of similar price are grouped into buckets together.

Pros:

• More reliably target a specific cost for your program
• Beneficial if you will have a wide range of prices for similar products
• Less maintenance

Cons:

• Less clear for budtenders and customers
• Slower checkouts for redemptions made at the store

Bucket Start	Bucket End	Points Cost
$0.01	$10.00	200
$10.01	$20.00	400
$20.01	$30.00	600
$30.01	$40.00	800
$40.01	$50.00	1000
$50.01	$60.00	1200
$60.01	$70.00	1400
$70.01	$80.00	1600
$80.01	$90.00	1800
$90.01	$100.00	2000
$100.01	$120.00	2400
$120.01	$140.00	2800
$140.01	$160.00	3200
$160.01	$180.00	3800
$180.01	$200.00	4000
$200.01	$250.00	5000
$250.01	$300.00	6000
$300.01	$350.00	7000
$350.01	$400.00	8000

Dollar Amount Off:

With this program, customers spend points to redeem a dollar discount on their purchases, not tied to specific items. It can be used together with the first two programs, or as a complete program by itself.

This rewards program is best for dispensaries that do not want to tie points to specific products and would like customers to be able to receive a dollar discount on anything in their cart.

Pros:

• Very simple and easy to understand
• Customers don’t need to select a specific product to redeem their points
• Don’t have to tie points to specific products

Cons:

• Using this program by itself can result in lower engagement since customers are less motivated to track their progress towards high value items