As cannabis retail matures across North America, the competitive pressure on dispensaries has never been higher. With more choices than ever before, customers are no longer loyal by default. For dispensary owners and marketers, the challenge is shifting: it’s not just about attracting new customers, but also about keeping them coming back.

Cannabis retail is more competitive than ever

As reported by StratCann, there are approximately 3,600 stores across Canada. Meanwhile, emerging U.S. markets like New York are rapidly expanding, with license counts expected to more than double, from 275 to over 625 by the end of the year (source: IndicaOnline).

The influx of competitors, including major chains, has reshaped the landscape. Cannabis consumers now have countless dispensary options, often within blocks of each other. This has made standing out and sustaining customer relationships increasingly difficult.

Shoppers are spreading their spend

The data reflects this new reality. According to the Vetrina Group, the average cannabis shopper visits a dispensary only about eight times per year, and typically spreads those visits across three different retailers. One industry study noted that just 16% of customers returned to the same dispensary after their first visit over a five-year period (source: mg Magazine). The vast majority eventually drift to other stores.

This kind of churn isn’t just a missed opportunity; it’s a major cost. Retaining a customer is widely recognized as more cost-effective than acquiring a new one, yet many dispensaries still focus their efforts on attracting first-timers without a strategy to convert them into loyal regulars.

From acquisition to retention

As the market matures, leading dispensaries are shifting their mindset: retention is the new growth. Dispensary owners are starting to ask tougher questions:

• How do we build loyalty that isn’t just driven by discounts?
• What does it take to create a memorable experience?
• How can we utilize data and technology to deepen relationships?

Investments in loyalty programs, personalized service, and community-building are on the rise. As noted by Breadstack, a cannabis retail technology platform, this shift is necessary to avoid being stuck on the acquisition treadmill. In their words, “Capturing the customer is the hard part, now you need to give them a reason to stay.”

Loyalty goes beyond points

In 2025, punch cards and generic discounts just don’t cut it.

Today’s customers, especially younger ones, are more responsive to personalized, experience-led strategies. That includes tailored product recommendations, member-exclusive drops or content, educational resources, or simple touches like consistent, high-quality service that builds trust.

Dispensaries that invest in creating “emotional loyalty” where the customer feels seen, appreciated, and connected to the brand are more likely to retain repeat business. As competition continues to rise, these subtle experience differences become major differentiators.

Industry events spotlight loyalty strategies

To help elevate this conversation, Breadstack is hosting a virtual event.

• Dispensary Loyalty: How Experienced Operators Implement Loyalty in 2025
• July 15 at 1PM EST / 10AM PST

The event will feature experienced cannabis operators, including Lisa Bigioni from Stok’d Cannabis, Ryan Roch from Lake City Cannabis, Ian Scott from Plantlife Cannabis, and Justin Woo from Bud Bar Cannabis, all sharing real-world approaches to loyalty, what’s working for them in 2025, and how they’re measuring success. A live AMA session and networking opportunity will follow, including a DJI NEO mini drone giveaway.

It’s part of Breadstack’s ongoing Growth virtual event series, which previously tackled SEO and Cannabis delivery and now shifts focus to customer retention as part of a sustainable retail growth strategy.

Bottom line: In 2025’s saturated cannabis retail landscape, loyalty is no longer optional: it’s the key to long-term success. Dispensaries that prioritize customer experience, retention strategies, and community connection will have the edge. As the industry continues to evolve, sharing best practices and learning from peers is increasingly essential.

👉 Reserve your spot for the Loyalty event on July 15

Content contributed by: Breadstack Technologies