Do Loyalty Programs Work? Here’s the Proof.
When you’re running a dispensary in a competitive market, loyalty programs can feel like just another “nice-to-have” idea—easy to set up, easy to forget. But the truth is, when executed properly, loyalty programs don’t just work—they drive serious revenue, increase engagement, and give your customers a reason to come back again and again.
Still skeptical? You’re not alone. A lot of dispensary owners and marketers wonder if loyalty programs are worth the time, money, and tech stack.
Let’s break it down:
Do loyalty programs work? Yes. And we’ve got the results to prove it.
Loyalty Programs Are More Than Just Points
A successful loyalty program isn’t just about giving points for purchases. It’s about building a relationship with your customers—creating a system where they feel seen, valued, and rewarded for choosing you over the competition.
The best loyalty programs do four things:
- Make it easy for customers to earn and redeem value
- Keep your dispensary top of mind between visits
- Personalize offers and communication to drive action
- Develop a REAL relationship between your brand and the consumer
When those four elements come together, the results can be game-changing.
Let’s Talk Results: Real Stats, Real Revenue
One of ESBE Marketing’s standout loyalty program implementations tells the story clearly.
📈 $1,353,948 in revenue influenced by loyalty communications—and that was just in the first 6 months. That’s not hypothetical value. That’s real, trackable income directly tied to loyalty campaigns.
📧 25% open rate | 17% CTR | 7% conversion rate
That means nearly a quarter of loyalty emails were opened, almost one in five got clicked, and 7% of those led to a sale. These aren’t vanity metrics—they’re proof that loyalty customers are highly engaged and ready to buy.
📲 31% to 44% increase in opt-in rates
More opt-ins = more owned data. And more owned data = less dependency on paid media and better return on investment across all channels.
Loyalty in Action: Alpine IQ + ESBE = Revenue Machine
So how do we take a loyalty program from average to exceptional? It takes the right tools and the right team.
The Tool: Alpine IQ
A powerful platform for cannabis loyalty and lifecycle marketing. Alpine IQ allows for segmentation, automation, analytics, and multi-channel outreach (think email, SMS, push notifications, and beyond).
The Team: ESBE Marketing
We don’t just plug in the software and walk away. We roll up our sleeves and make sure your loyalty system works—day one and every day after.
Here’s what it looks like when a dispensary partners with us:
Case Study: Commencement Bay Cannabis
The Challenge:
Commencement Bay Cannabis had a four-store operation and a decent loyalty base—but they weren’t fully leveraging it. Add in a platform switch to Alpine IQ, and they needed help making sure nothing slipped through the cracks.
Our Solution:
- Cleaned and tested thousands of customer records
- Seamlessly transferred the program to Alpine IQ
- Set up trigger-based automation campaigns
- Launched personalized promotions and regular outreach
- Monitored performance and tweaked campaigns in real time
The Result:
Six months in, loyalty campaigns had influenced over $1.3 million in revenue. That’s a serious ROI—and proof that even existing programs can be optimized for massive growth.
Case Study: Dank Poet Dispensary, New Jersey
The Challenge:
Dank Poet was about to open their new store. They had three weeks to launch a full loyalty program, get Alpine IQ up and running, and start building real customer relationships. No pressure.
What We Did:
- Competitive market analysis
- Loyalty structure tailored to their customer base
- Full Alpine IQ setup (57-point configuration) in under three weeks
- Branded email and SMS templates
- 13 automated campaigns + weekly promos
- Active monitoring and reporting
The Outcome:
- 73% of total email audience engaged
- 12% click-through rate
- 6% conversion rate
- 25% of revenue attributed to loyalty campaigns
And the best part? Their CFO/CMO called the loyalty strategy a “major ROI win” that exceeded expectations despite time and resource constraints.
Loyalty Doesn’t Work Without Strategy
If you’ve tried a loyalty program before and felt underwhelmed, you’re not alone. The truth is, many dispensaries underutilize their loyalty systems. They launch with good intentions—maybe some points and a discount or two—but then it fizzles.
Why?
Because loyalty only works when it’s part of a larger retention strategy. That includes:
- Clean, accurate customer data
- Seamless platform configuration (hello, Alpine IQ)
- Automated, behavior-based triggers
- Regular promo campaigns
- Smart segmentation
- Ongoing testing and optimization
If your loyalty program is set-it-and-forget-it, it’s leaving money on the table.
Why Loyalty Works So Well in Cannabis
Let’s not forget—the cannabis industry is unique. You’ve got tight compliance laws, limited advertising options, and a highly local customer base. You can’t just run paid ads the way national retailers can.
So what can you do?
You build direct relationships.
You collect first-party data.
You stay top-of-mind through email and SMS.
You make your customers feel like they’re part of something.
And that’s exactly what loyalty programs allow you to do.
What Makes a Loyalty Program Actually Work?
✅ Ease of Use – If customers can’t figure out how to join or redeem points, it’s over.
✅ Personalization – One-size-fits-all offers don’t cut it anymore.
✅ Automation – Set up triggers based on birthdays, visit frequency, product preferences, etc.
✅ Consistent Communication – Out of sight, out of mind. Regular touchpoints matter.
✅ Reporting and Optimization – Know what’s working and double down. Fix what’s not.
When these elements come together, loyalty programs turn from a side project into a core revenue driver.
So… Do Loyalty Programs Work?
The short answer: Yes.
The better answer: They work when you work them right.
If your loyalty program is stuck in neutral—or if you’re not running one yet—there’s a massive opportunity sitting right in front of you. And if you’re thinking about making the leap to a smarter platform like Alpine IQ, having the right partner makes all the difference.
At ESBE, we specialize in full-spectrum loyalty program management—from setup and automation to creative, campaign execution, and reporting. We don’t just help you get started. We help you keep it going and growing.
Want to see what loyalty could actually do for your business?
Let’s talk.
