Using Merchandise to Power Your Cannabis Loyalty Program

The best loyalty programs do more than discount products—they create emotional connections that keep customers coming back. Custom merchandise transforms point accumulation from a transactional exercise into an aspirational journey where customers earn their way into exclusive branded gear.

This guide explores how to integrate custom cannabis accessories and merchandise into your loyalty program for maximum engagement and retention.

Why Merchandise Works in Loyalty Programs

The Psychology of Earning

Achievement Unlocking Earning merchandise feels like an achievement, not a transaction. Customers who earn their way to a branded hoodie value it more than if they simply purchased it.

Status Signaling Exclusive loyalty merchandise signals status within your community. Members wearing loyalty-exclusive gear identify themselves as devoted customers.

Loss Aversion Once customers start accumulating points toward merchandise, they're motivated to continue. The psychology of almost-there drives additional purchases.

Tangible Value Points feel abstract; merchandise is concrete. A t-shirt waiting at 500 points motivates more than $5 off at 500 points.

The Business Case

Higher Perceived Value Merchandise redemptions often cost less than equivalent cash discounts while feeling more valuable to customers.

Walking Advertisements Every redeemed item becomes ongoing brand exposure. Unlike discounts that disappear, merchandise markets for years.

Program Differentiation Many dispensaries offer points-for-discounts. Merchandise programs stand out and create unique value propositions.

Data and Engagement Merchandise redemptions generate engagement touchpoints and reveal customer preferences.

Designing Your Merchandise Rewards Structure

Tier-Based Approach

Create clear tiers that progress from accessible to aspirational:

Entry Level (100-250 points) Low-barrier rewards that drive initial engagement:

• Sticker packs
• Keychains
• Lighters
• Small accessories

Mid-Level (250-500 points) Rewards that require commitment but remain achievable:

• T-shirts
• Hats
• Tote bags
• Quality accessories

Premium Level (500-1000 points) Aspiritional items for dedicated customers:

• Hoodies and premium apparel
• Quality bags and cases
• Exclusive accessories
• Limited edition items

Elite Level (1000+ points) Ultra-exclusive rewards for top customers:

• Premium accessory bundles
• Limited edition collaborations
• Exclusive member-only merchandise
• Custom/personalized items

Points-to-Dollar Conversion

Establish a consistent earning rate that makes merchandise achievable:

Common structures:

• 1 point per dollar spent
• 2 points per dollar (more engaging)
• Bonus points on specific products or days
• Points multipliers for members at higher tiers

Example calculation:

• Customer spends $50/week average
• At 1 point/$, earns 50 points weekly
• T-shirt at 300 points = 6 weeks
• Hoodie at 600 points = 12 weeks

Ensure rewards feel achievable within reasonable timeframes while still requiring meaningful engagement.

Exclusive vs. Available Merchandise

Balance exclusivity with accessibility:

Loyalty-Exclusive Items

• Only available through points redemption
• Creates aspiration and status
• Drives program enrollment
• Rewards dedicated customers

Also-Available-for-Purchase Items

• Creates awareness of merchandise quality
• Options for those who prefer buying
• Points become "discount" on purchase
• Wider distribution of branded items

Recommended Mix: 60% loyalty-exclusive, 40% also available for purchase.

Merchandise Selection for Loyalty Programs

Tier 1: Entry-Level Rewards

Get customers engaged quickly with accessible items.

Stickers (50-100 points) Perfect first redemption:

• Very low cost to program
• Customers love them
• Creates habit of redemption
• Multiple design options

Learn more in our sticker marketing guide.

Keychains and Lighters (100-150 points) Functional items with daily use:

• Practical utility
• Constant brand exposure
• Gender-neutral appeal
• Multiple style options

Accessories (150-250 points) Items customers genuinely want:

• Quality grinders
• Storage containers
• Rolling accessories
• Branded promotional items

Tier 2: Mid-Level Rewards

Rewards that feel substantial and worth working toward.

T-Shirts (250-350 points) Classic reward with broad appeal:

• Universal applicability
• Multiple design options
• Various price points
• Size variety needed

Hats and Beanies (300-400 points) Year-round accessories:

• One-size simplicity
• High visibility when worn
• Style variety options
• Quality embroidery or printing

Tote and Accessory Bags (350-450 points) Practical with ongoing use:

• Genuine utility
• Large branding canvas
• Eco-friendly options
• Various styles available

Tier 3: Premium Rewards

Aspirations items that drive sustained engagement.

Hoodies and Premium Apparel (500-750 points) Highly desirable rewards:

• Premium perception
• Significant commitment required
• High visibility when worn
• Quality that reflects brand

Quality Bags (600-800 points) Premium bags and cases:

• Backpacks
• Messenger bags
• Premium totes
• Specialty cases

Accessory Bundles (700-900 points) Curated collections:

• Matching sets
• Themed bundles
• Complete kits
• Gift-worthy packages

Tier 4: Elite Rewards

Exclusive items for your best customers.

Limited Edition Items (1000+ points) Creates ultimate aspiration:

• Artist collaborations
• Numbered editions
• One-time releases
• Collector value

Premium Bundles (1200+ points) Complete brand experiences:

• Full apparel sets
• Lifestyle collections
• VIP packages
• Custom items

Personalized Items (1500+ points) Ultimate exclusivity:

• Custom embroidery
• Name personalization
• One-of-a-kind pieces
• VIP recognition

Program Mechanics and Promotion

Clear Communication

Make the merchandise program visible and understandable:

In-Store Displays

• Showcase redeemable merchandise
• Display point values clearly
• Show "almost there" progress
• Feature members wearing rewards

Digital Integration

• Point balance prominently displayed
• Visual reward catalogs
• Progress tracking to next reward
• Push notifications near redemption

Staff Training

• Staff should mention merchandise rewards
• Suggest products that earn specific items
• Celebrate redemptions publicly
• Wear merchandise themselves

Driving Engagement

Bonus Point Promotions

• Double points days
• Product-specific multipliers
• Referral bonuses
• Birthday bonuses

Limited-Time Merchandise

• Seasonal exclusive items
• Holiday specials
• Event-specific rewards
• Flash availability

Surprise and Delight

• Random bonus points
• Unexpected free gifts
• Early access opportunities
• Membership anniversary rewards

Redemption Experience

Make redemption feel special:

Presentation Matters

• Quality packaging for redeemed items
• Thank you notes included
• Celebration at pickup
• Photo opportunities

Choice and Availability

• Keep rewards in stock
• Offer size/style choices
• Allow point holds for restocks
• Backorder with bonuses if unavailable

Inventory Management

Stock Planning

Analysis-Based Ordering

• Track redemption patterns
• Predict based on points accumulation
• Season and trend awareness
• Size distribution from past data

Safety Stock

• Always have popular items available
• Nothing kills engagement like "out of stock"
• Buffer for unexpected demand
• Reorder triggers before depletion

Size Management for Apparel

Apparel sizing requires careful planning:

Size Distribution (typical):

• Small: 10-15%
• Medium: 25-30%
• Large: 30-35%
• XL: 15-20%
• 2XL+: 5-10%

Best Practice: Order based on your customer data, not assumptions. Track redemption sizes to refine future orders.

Inventory Costs

Balance investment with availability:

Avoid Over-Ordering

• Start conservative with new items
• Test before committing to large quantities
• Rotate slow movers to other uses
• Consider event giveaways for overstock

Working with Suppliers MunchMakers offers low minimum orders, allowing you to:

• Test new items without large commitments
• Restock popular items quickly
• Maintain variety without inventory burden
• Adjust to demand signals

Measuring Program Success

Key Metrics

Enrollment and Engagement

• Loyalty program sign-up rate
• Active member percentage
• Points earning frequency
• Redemption rate

Customer Behavior

• Visit frequency (members vs. non-members)
• Average transaction (members vs. non-members)
• Retention rate improvement
• Lifetime value increase

Merchandise Specific

• Redemption rate by item
• Points-to-merchandise vs. points-to-discount ratio
• Item popularity rankings
• Size/style preference data

Optimization

Use data to continuously improve:

Item Performance

• Retire underperforming items
• Increase stock of winners
• Test new items regularly
• Adjust point values based on redemption

Point Economy

• Ensure redemption feels achievable
• Balance program cost with engagement value
• Adjust earning rates if needed
• Consider tier restructuring

Getting Started: Implementation Roadmap

Phase 1: Foundation (Week 1-2)

1. Define program structure: Tiers, points earning, redemption
2. Select initial merchandise: 5-8 items across tiers
3. Request mockups: See items with your branding
4. Order initial inventory: Start conservative

Phase 2: Launch (Week 3-4)

1. Train staff: Ensure team understands and promotes program
2. Create displays: In-store merchandise showcase
3. Soft launch: Test with select customers
4. Gather feedback: Refine before full launch

Phase 3: Full Launch (Week 5+)

1. Announce broadly: Marketing push for program
2. Track metrics: Monitor enrollment and engagement
3. Iterate based on data: Adjust as patterns emerge
4. Expand selection: Add items based on demand

Conclusion

Merchandise transforms loyalty programs from transactional point systems into engaging brand experiences. Customers working toward a branded hoodie visit more often, spend more per trip, and feel genuinely connected to your brand.

The key is balancing accessibility with aspiration—rewards should feel achievable while still requiring meaningful engagement. Start with a focused selection, track what works, and expand based on customer response.

Explore custom cannabis accessories and apparel to build your loyalty merchandise program. Request mockups to see your brand on quality rewards that keep customers coming back.