How Smart Dispensaries Use Reviews to Win Local Search

While most dispensaries focus on inventory and promotions, the industry's top performers quietly dominate local search through strategic review generation.

Our latest data reveals that the average dispensary achieved a New Customer Review Rate of 5.43%—nearly 9 times higher than struggling competitors'.

This isn't just about vanity metrics. Every additional review directly impacts your visibility in local search results, driving foot traffic and reducing customer acquisition costs.

Why Reviews Make or Break Your Local Search Performance

When potential customers search "dispensary near me" or "cannabis delivery in [city]," Google's algorithm determines which businesses appear in the coveted local pack – those prominent listings with star ratings that appear above organic search results.

What many dispensary owners don't realize is that review signals account for approximately 15-17% of local pack ranking factors, according to industry research.

This includes:

• Total review count
• Review velocity (how frequently you receive new reviews)
• Review diversity (across multiple platforms)
• Review sentiment and rating
• Review responses from your business

In cannabis markets where advertising options are limited and competition is fierce, this "review advantage" creates a sustainable competitive edge that paid to advertise simply can't match.

New Customer Review Rate: The Benchmark That Predicts Local Search Success

Through our analysis of single-store, multi-store, and multi-state dispensaries across the United States, we've identified New Customer Review Rate is the single most predictive metric for local search performance.

What is the New Customer Review Rate?

The New Customer Review Rate KPI measures the percentage of first-time customers who leave a review. For example, if your dispensary serves 100 new customers monthly and receives 20 reviews from these first-time visitors, your New Customer Review Rate is 20%. Based on our proprietary BNCHMRK dataset from February 2025, here's how dispensaries stack up:

Performance Level % of Dispensaries

• Great (≥7.5%) 20%
• Average (3-7.5%) 40%
• Needs Improvement (<3%) 40%

Average New Customer Review Rate

• Great (≥7.5%) 15.72%
• Average (3-7.5%) 4.56%
• Needs Improvement (<3%) 1.17%

What's clear from this data is that there's a massive performance gap between top performers and those struggling with review generation. This gap directly translates to local search visibility and a retailer's Cost Per Order.

How to Calculate Your New Customer Review Rate

To determine where your dispensary stands, follow these steps to calculate your New Customer Review Rate:

1. Track New Customer Reviews

• Monitor reviews across all platforms (Google, Weedmaps, Leafly, etc.)
• Verify review authenticity
• Note review timestamps
• Match reviews to customer visit dates

2. Count New Customer Orders

• Include all first-time purchases
• Track across all sales channels
• Exclude repeat customers
• Account for delivery and pickup orders

3. Apply the Formula

New Customer Review Rate = (Number of New Customer Reviews / Total New Customer Orders) × 100

For example, if you had 200 new customers last month and 5 of them left reviews, your New Customer Review Rate would be 2.5%.

The Local Search Advantage: Why Reviews Dominate Rankings

Google's local algorithm heavily weighs review signals when determining which dispensaries appear in local search results. Here's why reviews are so critical:

Trust Signals for Google

Google uses reviews as a proxy for business quality and relevance. Higher review counts and better ratings signal to Google that your dispensary is a trusted local resource worth recommending.

Click-Through Rate Optimization

Listings with more reviews and higher ratings naturally attract more clicks. This higher engagement further reinforces to Google that your business is relevant to searchers.

Rich Snippet Advantages

Reviews enable rich snippets in search results, increasing your listing's visibility with gold stars that capture attention in crowded search results.

Fresh Content Generation

Each new review adds unique, user-generated content to your Google Business Profile – content that contains natural keywords and location signals Google values for local search.

7 Proven Review Generation Strategies for Dispensaries

Based on our work with top-performing dispensaries, these strategies consistently deliver the highest New Customer Review Rate improvements:

1. Strategic Timing

The Strategy: Ask for reviews at the moment of highest satisfaction.

Implementation: Train budtenders to identify delighted customers (those who express enthusiasm about products or services) and make the ask while the positive experience is fresh.

2. Staff Incentive Programs

The Strategy: Create friendly competition among staff members.

Implementation: Track which team members generate the most customer reviews and reward top performers with bonuses, product discounts, or other perks.

3. QR Code Simplification

The Strategy: Remove friction from the review process.

Implementation: Create QR codes that link directly to your Google review form. Place these on receipts, exit signage, and bag stuffers.

4. Post-Purchase Automation

The Strategy: Systematize review requests through your marketing technology.

Implementation: Set up automated SMS or email sequences that trigger 24-48 hours after first purchase, with direct links to leave a review.

5. Two-Step Review Prompting

The Strategy: Pre-qualify satisfied customers before asking for a review.

Implementation: First, ask, "How was your experience today?" Then, direct only those who respond positively to the review platform.

6. Review Response Strategy

The Strategy: Show potential reviewers that you value feedback.

Implementation: Respond to every review (positive and negative) within 24 hours with personalized, thoughtful replies.

7. Feedback Loop Implementation

The Strategy: Use review insights to improve the customer experience.

Implementation: Create a system to route review feedback to relevant teams and track improvements based on customer suggestions.

Market-Specific Variables That Impact Review Performance

When benchmarking your dispensary's review performance, consider these market-specific factors:

Competition Density

Markets with higher dispensary concentration often see lower review rates as businesses compete for customer attention. In these markets, differentiation becomes critical.

Local Customer Behavior

Demographics, cultural factors, and local habits influence review behavior. Understanding your local market helps in tailoring review generation strategies.

Market Maturity

• New Markets: Emphasis on education and trust-building. Encourage first-time buyers to share their experiences.
• Growing Markets: Enhanced feedback collection and differentiation through service quality.
• Mature Markets: Advanced review systems and strategic response protocols help maintain high review rates.

How One Oregon Dispensary Achieved a 10.36% New Customer Review Rate

The Challenge:

A two-location dispensary in a competitive, established coastal market struggled with increasing competition and fluctuating visibility in local search results, with a New Customer Review Rate of just 0.33%.

The Strategy:

They implemented a comprehensive review generation system focused on:

1. QR code implementation on receipts and exit displays
2. SMS follow-up for delivery and pickup orders
3. Weekly staff leaderboards for review generation

The Results:

Within 45 days, they achieved:

• 10.36% New Customer Review Rate
• 67% increase in "dispensary near me" visibility
• Top position in the local pack for primary keywords

Your 30-Day Review Generation Action Plan

Ready to improve your dispensary's review performance? Here's a practical 30-day plan:

Week 1: Assessment

• Calculate your current New Customer Review Rate
• Audit existing review generation processes
• Analyze staff knowledge and comfort with requesting reviews
• Evaluate technology capabilities for automated follow-up
• Benchmark against competitors in your market

Week 2: Strategy Development

• Set specific New Customer Review Rate goals
• Select 2-3 strategies from this article to implement
• Create staff training materials
• Develop tracking systems for measuring results
• Prepare necessary marketing assets (QR codes, email templates, etc.)

Week 3: Implementation

• Train staff on new processes
• Launch automated follow-up sequences
• Implement in-store materials
• Begin tracking staff performance
• Establish review monitoring protocols

Week 4: Measurement and Refinement

• Calculate the updated New Customer Review Rate
• Collect staff feedback on the new process
• Adjust approaches based on initial results
• Develop ongoing training and reinforcement plans
• Set 90-day performance goals

Beyond Reviews: Building a Complete Local Search Strategy

While reviews are critical, they work best as part of a comprehensive local search strategy that includes:

• Complete Google Business Profile: Keep all information accurate and updated
• Local Content Creation: Develop neighborhood-specific website content
• Local Link Building: Build relationships with local businesses and organizations
• Consistent NAP: Ensure Name, Address, Phone number are consistent across the web
• Local Schema Markup: Implement proper technical SEO for local businesses

Measure What Matters: Review Performance Tracking

To properly track your review generation efforts, monitor these key metrics:

• New Customer Review Rate: As discussed throughout this article
• Overall Review Velocity: Total new reviews per month across all platforms
• Platform Distribution: Spread of reviews across Google, Yahoo Local, Yelp, etc.
• Average Star Rating: Overall quality score across platforms
• Response Rate: Percentage of reviews that receive responses
• Response Time: Average time to respond to reviews
• Sentiment Trends: Changes in the tone and content of reviews
• Staff Performance: Reviews generated per budtender or team member

Ready to Dominate Local Search with Strategic Review Generation?

Your dispensary's review strategy directly impacts your visibility to potential customers searching for cannabis products in your area. With the right approach, you can systematically improve your New Customer Review Rate and gain a sustainable competitive advantage in local search.

Want to know precisely how your dispensary stacks up?

Get your free BNCHMRK scorecard See your performance across all critical marketing metrics, including the New Customer Review Rate.