Temu’s gamification success offers lessons for cannabis dispensaries
HighRewards AI
HighRewards is the first AI-powered retail conversion engine and app for the 21+ economy.
Gamify it, but don’t turn your customers into rage-quitters.
Temu, the Chinese discount e-commerce platform owned by Pinduoduo, has been living rent-free in our phones and brains since it burst onto the scene in 2022.?
With its crazy-low prices and borderline addictive gamified shopping experience, it’s no wonder the app has racked up over 80 million active users in the U.S. alone by September 2023. Oh, and just a casual $15.1 billion in gross merchandise volume in 2023.
Temu's formula for success??
Cut out the middlemen, offer prices that make Amazon look like a luxury boutique, and sprinkle in a little dopamine-driven gamification to keep customers hooked. By the end of 2023, it had over 250 million downloads globally, with U.S. users making up a whopping 40% of installs. Not bad for an app that’s basically asking, “Do you really need it? No? Well, here’s 50% off anyway!”
But what makes Temu’s rise truly fascinating is how its blend of affordability and gamification could inspire industries beyond e-commerce—ahem, cannabis dispensaries.
What Temu does right: gamification at its core
Temu doesn’t just sell products—it sells the experience of shopping, using gamification to turn buying socks and storage bins into a full-blown adventure.
This isn’t about throwing a shiny button on a screen; it’s about tapping into deep psychological motivators to keep users coming back.
Interactive rewards: make shopping fun
Temu hooks users with spin-the-wheel games, countdowns, and challenges promising instant rewards. It’s like a carnival booth, but you get discounts and freebies instead of a goldfish in a bag.
For dispensaries, this could mean leveling up loyalty programs. Imagine your customers earning points for check-ins, answering surveys, or referring friends. Platforms like HighRewards make this easy, offering customizable ways to gamify loyalty programs. Turn buying gummies into a game, and suddenly, your customers aren’t just shopping—they’re playing and winning.
Scarcity and urgency: FOMO is real
Temu thrives on the art of the panic buy: limited-time deals, low-stock alerts, and countdown timers that scream, “BUY NOW OR CRY LATER.”
Dispensaries can harness this energy. Think: flash sales on pre-rolls or exclusive app-only discounts for the next two hours. Not only does this drive traffic, but it also makes shopping feel like an event.?
Bonus points if you lean into the cannabis community’s natural enthusiasm for deep deals.
Personalization: make it feel special
Temu knows your likes, dislikes, and probably what you had for breakfast. Its curated product suggestions and tailored deals feel like they were picked just for you.
Dispensaries can do the same. Use tools like HighRewards to tailor promotions to individual customers—whether offering discounts on their favorite strains or creating tiered rewards programs that make shopping feel personal and thoughtful.?
After all, everyone loves to feel seen.
Social Proof: build a buzz
Temu leverages the power of social proof by showing what’s trending, what people are buying, and how they’re reviewing products. It’s part trust-building, part “Ooh, I want that too!”
Dispensaries can replicate this with real-time customer testimonials, trending rewards, or even gamified leaderboards highlighting top participants. It’s a great way to build a sense of community and encourage engagement.
When gamification goes too far
Here’s the thing about gamification: It’s a double-edged sword. Sure, it’s fun—until it’s not.
Case in point: A Reddit user shared their chaotic experience with Temu’s over-the-top gamification.?
“I was searching for hobby storage containers online and saw a Temu item,” they said. “The extreme gamification made me feel like they were selling the experience of buying stuff rather than quality products. After 15 minutes, I gave up and uninstalled.”
Yikes. The takeaway for dispensaries? Don’t gamify to the point of exhaustion. If your loyalty program feels like a puzzle to crack, customers will bounce faster than you can say “pre-roll.”
What dispensaries can take away from Temu’s strategy
Cannabis dispensaries can cherry-pick Temu’s winning strategies while sidestepping its pitfalls. Here’s how:
The future of loyalty in cannabis retail
Temu’s rise proves one thing: Gamification works. It creates a shopping experience that customers enjoy and actively seek out when done right.?
The potential for cannabis dispensaries is huge. By blending gamification, personalization, and urgency, dispensaries can turn occasional shoppers into loyal advocates.
Just remember: It’s about balance. Keep it fun, keep it rewarding, but most importantly, keep it simple.?