How to Structure a Loyalty Program: A Guide for Dispensaries That Want to Drive Real Retention

If you’re asking how to structure a loyalty program for your dispensary, you’re already ahead of most cannabis retailers. Because while many businesses offer points or perks, few actually design their programs with strategy, customer psychology, and long-term retention in mind.

At ESBE, we’ve helped dispensaries across 14 states build loyalty programs that go beyond discounts and drive 20X–50X ROI. Whether you’re launching your first program or looking to optimize an existing one, this guide will walk you through how to structure a loyalty program that works—from tier design and rewards to messaging and automation.

Start With Simplicity

The foundation of every great loyalty program is clarity. Too many dispensaries try to do too much: 10+ tiers, hard-to-understand reward conversions, confusing exclusions. The result? Customer confusion and staff frustration.

Instead, aim for a structure with:

• 3 to 5 reward tiers max
• Easy-to-understand earning rules (e.g., 1 point per dollar spent)
• Clear redemption options at each level

Each tier should offer a meaningful step up from the last. A flat reward structure (like 5% back at every level) creates no incentive to progress. Make the rewards feel earned, not automatic.

Reward Behavior, Not Just Purchases

If your program only rewards people for buying, you’re missing out on deeper engagement opportunities. Customers want to be recognized for all the ways they interact with your brand.

Here are a few behaviors to reward:

• Signing up for SMS/email
• Downloading your dispensary app
• Referring a friend
• Leaving a product review
• Attending an event
• Participating in community service

Each touchpoint becomes a chance to reinforce brand loyalty and build emotional connection. This is especially important in cannabis, where brand affinity is still forming for many consumers.

Add Experiential Layers

As we’ve shared in previous ESBE blogs, experiential loyalty programs outperform basic transactional ones. Why? Because experiences are memorable—and memorable is what keeps people coming back.

Consider layering in perks like:

• Exclusive invites to product drops or tasting nights
• Limited-edition merch for top-tier members
• Access to educational or community events
• VIP support channels or surprise gifts

These kinds of rewards increase engagement without cutting into margins.

Integrate With Your Loyalty Software

How you structure a loyalty program isn’t just a strategy decision—it’s a tech decision too. That’s why we build all of our loyalty systems on Alpine IQ, a best-in-class cannabis marketing platform that allows for:

• Behavior-based segmentation
• Automated tier progression
• Multi-channel communication (SMS, email, push)
• Real-time tracking and reporting

Paired with ESBE’s strategic campaign design, Alpine IQ ensures your loyalty structure doesn’t just look good on paper—it functions flawlessly in real life.

Use Automation to Keep the Program Alive

One of the biggest mistakes dispensaries make? Building a loyalty program… and then forgetting to engage with it.

With Alpine IQ and ESBE, you can automate:

• Welcome flows when someone joins
• Progress nudges (“You’re just 50 points from the next reward!”)
• Anniversary messages and milestone celebrations
• Reactivation campaigns for lapsed users

This keeps the loyalty experience front and center—without overwhelming your marketing team.

Communicate the Value Clearly

Even the best loyalty program won’t work if customers don’t understand it. Use every touchpoint to remind them of their rewards and show them how to level up.

Display your loyalty structure:

• In-store signage
• At checkout screens
• Inside your dispensary app
• In email/SMS marketing

And make sure your staff is trained to explain it in one sentence. If they can’t, it’s too complicated.

Keep Testing and Optimizing

Your loyalty program should evolve with your customers. Monitor:

• Which tiers get the most engagement
• Which rewards are redeemed (and which aren’t)
• Which campaigns drive visits or increase basket size

ESBE helps our clients track these KPIs and adjust in real time, so your program stays aligned with your goals.

Structure It Around the Customer, Not the Calendar

Don’t fall into the trap of only rewarding customers during big holidays or promotional events. The best loyalty programs are designed around the customer journey, not just your marketing calendar.

Ask:

• What does a first-time shopper need to feel welcome?
• What reward makes sense on a customer’s 5th visit?
• What kind of messaging brings someone back after 90 days?

Map out these key touchpoints, then build your structure to support them.

Final Thoughts: Loyalty Is a System, Not a Gimmick

When people ask us how to structure a loyalty program, we always return to the same principle: build a system that rewards behavior, feels personal, and evolves with your brand.

Discounts might bring customers through the door. But structure is what keeps them coming back.

Want help designing or optimizing your loyalty program? Contact ESBE to build a loyalty structure that actually delivers.