Vape Loyalty Programs vs. Traditional Discounts: Which Drives More Sales?

In the fast-changing vape retail landscape, vape shop owners are challenged like never before. Between tightening vape and e-cigarette regulations, rising customer acquisition costs, and growing price sensitivity, traditional sales tactics often fall short of delivering sustainable results. 

As shoppers become more savvy and selective, retailers must rethink their approach—particularly, whether to lean on discounts or deploy vape loyalty programs as their core strategy.

Let’s explore how each tactic works, where they excel, and why loyalty programs are emerging as the smarter choice for long-term growth.

What Are Vape Loyalty Programs?

A vape loyalty program is a system designed to reward returning customers for their ongoing purchases. Unlike one-time discounts, these programs foster habitual purchasing and brand preference. Vape loyalty can take several forms:

• Digital loyalty cards: Customers scan or tap their virtual card with each purchase.

• Points systems: Shoppers earn points for every dollar spent, which they can redeem for rewards, new flavors, or exclusive merchandise.

• Stamp cards: Digital platforms like Lootly transform classic punch cards into app-based experiences.

For more ideas on structuring attractive rewards, explore how to choose program rewards that motivate your vape customers.

The Case for Traditional Discounts

Discounts—whether a flat percentage off, BOGO deals, or seasonal mark-downs—have long been a staple in vape shop marketing. Their immediate appeal is clear:

Advantages:

• Simplicity: Easy to communicate and understand, both for staff and customers.

• Immediate incentives: Drives quick sales and helps clear overstocked inventory.

• Fast customer acquisition: Discounts can attract first-time buyers looking for a deal.

However, the limitations of discounting are hard to ignore—especially for shops focused on healthy profit margins and lasting relationships.

Limitations:

• Margin erosion: Regular or deep discounts eat into profits, making long-term growth unsustainable.

• Deal-hopping customers: Many shoppers are motivated solely by savings, jumping to the next shop offering a better deal.

• Lack of brand loyalty: Once the deal is over, so is the customer’s relationship with your store.

Ultimately, discounts work well for grand openings, moving slow stock, or boosting traffic on slow days; but they rarely nurture the kind of brand affinity that sustains repeat sales.

Why Vape Loyalty Programs Drive More Repeat Sales

Loyalty programs are designed to keep your best customers coming back—and research supports their power. According to Loyalty360, loyalty program members generate 12% to 18% more revenue annually compared to non-members.

Here's why loyalty programs deliver where discounts fall short:

• Emotional Connections & Reward Buildup: By recognizing shoppers with points, exclusive offers, or early access, you create a positive feedback loop. Customers feel valued, increasing their likelihood of returning.

• Personalized Offers: Loyalty platforms can deliver targeted rewards—like birthday discounts or suggestions based on previous purchases—deepening engagement.

• Higher Customer Lifetime Value (CLV): Loyal customers not only spend more, but also cost less to retain. Programs give you the data needed to segment and target these high-value shoppers.

• Actionable Data Collection: Each interaction offers insights you can use to optimize promotions and inventory—key for a regulated, responsive industry like vaping.

Platforms like Lootly highlight the success of programs featuring points-per-purchase, free vape juice after a set number of visits, or VIP tiers for high spenders. Many local vape shops, for example, find that offering a free 30ml bottle after ten purchases keeps their regulars satisfied and spending more.

How Referral Programs Help Vape Brands Grow Despite Advertising Restrictions

Referral programs provide a strategic solution for vape brands to thrive in an industry often limited by strict advertising regulations. Many traditional promotional channels, such as social media ads or paid search campaigns, are off-limits for vape companies due to compliance rules. However, referral programs enable brands to bypass these restrictions by leveraging their existing customer base to organically spread the word.

By encouraging satisfied customers to refer friends in exchange for rewards—such as discounts, free products, or store credit—vape brands can effectively reach new audiences without violating advertising laws. This peer-to-peer recommendation approach is not only cost-effective but also highly impactful since potential customers are more likely to trust recommendations from friends. Implementing an easy-to-use referral program can create a steady influx of business while aligning with legal and ethical marketing practices.

For creative ways to use referral incentives alongside loyalty rewards, check out these tips on acquiring more customers.

Vape Loyalty in Action: Real-World Examples

Consider how Lootly works with shops across the globe to launch app-based programs that reward points for each visit or purchase. Customers can redeem points for free e-liquids, accessories, or higher-tier membership perks. Similarly, Lootly digitizes the punch card process, making it easy for customers to track rewards and for businesses to manage loyalty engagement at scale.

Common structures you’ll see:

• Points per dollar spent, redeemable for products or discounts

• Free merchandise after a threshold (such as five or ten visits)

• VIP programs with gold or platinum tiers that unlock special privileges

These real-world examples show how loyalty programs provide a clear incentive for customers to stick with a single store—rather than jump from one discount to another.

When to Use Discounts vs. When to Use Loyalty Programs

Knowing when to apply the right tactic is key for maximizing sales and retention:

Discounts Are Best For:

• Product launches that need buzz fast

• Clearing old or overstocked inventory

• Attracting traffic during slow seasons

Loyalty Programs Excel At:

• Building brand equity and encouraging repeat business

• Collecting customer data for smarter marketing

• Sustaining strong profit margins over time

Hybrid Strategies: 

Many successful vape shops use both: limited-time discounts to pull in new shoppers, with loyalty programs capturing and converting them into long-term fans.

Conclusion: Loyalty Isn’t Just a Trend—It’s a Smarter Business Move

For vape retailers aiming for sustainable growth, relying only on discounts is a short-term play. Real value—and higher margins—come from investing in customer relationships that endure. Loyalty programs don’t just reward purchases; they build meaningful connections that outlast any sale.

Ready to unlock the full potential of your customer base? Research shows that digital loyalty programs can significantly increase annual revenue and customer lifetime value. Don’t wait for your competitors to take the lead. It’s time to move beyond fleeting promotions and toward a strategy that pays dividends well into the future.

The result? Discounts may drive a temporary spike in sales, but loyalty programs create a lasting foundation for your shop’s success.