Why Cannabis Faces a Customer Loyalty Problem and How the Industry Is Solving It (2025)

Building customer loyalty is hard enough in any business, but in cannabis, it can feel almost impossible. Despite rapid industry growth, cannabis brands struggle to cultivate long-term consumer relationships, often losing customers to the next dispensary offering a better deal. Regulatory fragmentation, inconsistent product quality and price sensitivity are just some of the challenges that make retaining customers an uphill battle. Yet, as the cannabis market matures, new tools and business strategies are emerging, offering hope for brands looking to build lasting loyalty.

One of the biggest challenges in cannabis is the fragmented nature of the market. Federal prohibition forces each state to operate under its own set of regulations, meaning that a product bought in California may be completely different from the same branded product sold in New York. The lack of consistency in the cultivation, processing and availability of cannabis products across state lines is significant.

A strain from the popular brand, Cookies, in one state might look, taste and feel different in another — thanks to different growers, manufacturers and even regional regulations. This inconsistency is a loyalty killer. When consumers can’t rely on a brand to deliver the same experience every time, they’re more likely to switch brands. For brands, this creates a vicious cycle of having to constantly compete on price.

Compounding the issue is the extreme price sensitivity of cannabis consumers. Due to high taxes and regulatory fees, cannabis is already expensive in most legal markets. Shoppers, looking to get the most for their money, often choose their dispensary based on discounts and promotions. This results in customers “dispensary hopping,” chasing deals rather than sticking to any particular brand or retailer.

Loyalty programs in cannabis have generally fallen flat, failing to deliver meaningful value to customers or seamless integration into the shopping experience. In a market driven by price wars, simply offering points for repeat purchases is not enough to keep customers from going elsewhere.

Thankfully, technology is starting to offer solutions that could change the game. One of the most promising developments is the rise of AI-driven retail platforms, which can help dispensaries predict customer behavior, optimize their inventory and personalize the shopping experience. Platforms like Dutchie and Lit Alerts are leading the way in providing dispensaries with the tools to not only stay compliant but to also track customer preferences and purchasing habits. By using this data, dispensaries can tailor their marketing efforts and offer personalized deals based on individual consumer behavior — much like successful strategies seen in the hospitality and retail sectors.

The Rolling Stone Culture Council is an invitation-only community for Influencers, Innovators and Creatives. Do I qualify?

For example, if a regular customer is consistently buying a particular strain or product type, the system can automatically send them targeted offers or notifications when that product is back in stock. This kind of personalization helps cultivate a deeper relationship with customers, making them more likely to return. While these tools don’t solve all the problems of a fragmented and price-sensitive market, they do provide an edge for retailers looking to stand out and offer a better experience.

Technology isn’t the only answer. Cannabis brands are also starting to realize the importance of building community and offering unique experiences that go beyond the products themselves. In a competitive market, customers are more likely to return to a dispensary where they feel a personal connection.

Some dispensaries, such as JoyLeaf in the suburbs of New Jersey, VERDI in the heart of Manhattan and The Plant in Yonkers, are hosting events, such as educational seminars or social gatherings such as yoga classes, weekly live music and even Fall festivals, to build a sense of community among their customers. Others are finding success by offering exclusive benefits to loyal members, like early access to limited-edition products. These approaches give consumers more reasons to return, helping to build brand loyalty in a way that purely transactional relationships can’t.

As the cannabis market continues to evolve, brands will need to adopt a multi-pronged approach to customer retention. AI-driven tools, like Dutchie 2.0, will likely play a crucial role in enabling dispensaries to deliver a more personalized and seamless experience. But technology alone won’t be enough. Brands that succeed in cultivating loyalty will also need to focus on consistency, community-building and offering more than just a product — they’ll offer an experience.

The future of cannabis loyalty will likely look a lot like the future of retail in other industries: highly personalized, community-driven and powered by smart technology that makes customers feel valued. It’s a challenge, but for brands willing to invest in these strategies, the reward will be worth it.