The cannabis retail market in 2025 faces a tougher climate than just a year or two ago. Rising inflation, shifting consumer priorities, and tighter disposable income have changed how customers approach discretionary spending—including cannabis. In this environment, dispensaries are re-evaluating loyalty strategies like birthday rewards. Do these celebratory perks actually motivate consumers to spend more, or are shoppers simply claiming the reward with the bare minimum purchase?
The Economic Context: Consumers Are More Cautious
The most recent data from the National Cannabis Industry Association shows that while overall cannabis sales remain strong, average transaction sizes have dipped 6-10% year-over-year in many markets. Consumers are prioritizing essentials and value brands, with many stretching out purchases rather than shopping impulsively. Birthday rewards, which were once reliable drivers of incremental visits, now compete with consumers’ more selective spending behaviors.
Redemption Rates Remain Strong
Despite financial caution, recent figures from cannabis POS provider Treez indicate that birthday rewards continue to generate above-average redemption rates. Nearly 65% of consumers who received a birthday incentive made a store visit during their birthday month—a clear sign these perks still resonate. But the average basket size at redemption is telling: many customers are sticking close to the minimum purchase threshold, often $20-$30, rather than splurging on extras.
Key Drivers of Birthday Reward Effectiveness Today
In the current economic landscape, three factors have emerged as critical to making birthday rewards truly effective:
- Value Perception: Consumers are more price-sensitive than ever. High-perceived-value birthday rewards, like a free eighth or significant percentage discounts, outperform low-value offers like a free pre-roll.
- Relevant Offers: Today’s shoppers want deals that fit their specific needs. Offering birthday discounts on popular categories such as edibles or vape cartridges—especially products the customer has purchased before—increases the chance they’ll exceed the minimum purchase.
- Ease of Redemption: With customers wary of complex terms, rewards that are easy to redeem in-store or online, without hoops to jump through, see higher engagement.
Do Birthday Rewards Boost Spending or Just the Minimum?
Recent surveys by cannabis consumer research firm New Frontier Data suggest a split: 52% of customers reported spending only the minimum required to claim their birthday reward, while 48% said they used the birthday perk as an excuse to stock up — averaging 25-35% higher basket sizes than their usual spend.
However, dispensaries that combine birthday offers with timely sales or personalized upsell suggestions see stronger performance. For example, sending a birthday email that pairs the reward with a same-day discount on favorite products can convert minimal purchases into larger baskets.
Still Relevant, But Needs Smart Execution
In a market where consumers are tightening belts, birthday rewards alone aren’t enough to guarantee bigger purchases — but they remain an effective way to drive foot traffic, build loyalty, and differentiate from competitors. To get the most out of birthday programs in today’s climate, dispensaries must focus on reward relevance, compelling value, and frictionless redemption. Doing so can help transform a simple birthday gesture into a driver of meaningful revenue, even as economic headwinds push consumers to be more selective with their cannabis dollars.