The problem
Plenty of farm shop customers come for a summer day out and aren't seen again until next year, and a paper stamp card gets lost and tells you nothing about who your regulars are. If 40 customers each came in one extra time a month and spent $24£18€21A$35C$34 that would be $958£720€857A$1,382C$1,354 a month of takings the shop isn't getting now.
What the AI does
Square Loyalty is an add-on for Square's point of sale. Square's page says customers earn points by visits, amount spent or items or categories bought, rewards can be an amount off or a free item, and text notifications go out automatically when customers earn points or rewards. Customers can join at the till, through Square Online, through Square Invoices or with a shareable sign-up link. Set one simple reward, such as a free dozen eggs after 10 visits, and have staff ask every customer at the till. Pricing is per location by loyalty visits a month, where a visit is an enrollment, a point earned or a reward redeemed.
A worked example
A farm shop in Somerset already on Square point of sale has about 900 sales a month, mostly locals plus summer visitors. It starts a points scheme: 1 point a visit, with a free dozen eggs or $4£3€4A$6C$6 off after 10 points.
Before
About 900 sales a month on paper stamp cards, most of them lost, and no record of who the regulars are
After
About 400 loyalty visits a month, with an assumed 40 customers coming once more a month at $24£18€21A$35C$34 and about 30 rewards redeemed
What it's worth
About $168£126€150A$242C$237 a month in profit after rewards, against $33£25€30A$48C$47 for Square Loyalty. That is $287£216€257A$415C$406 at an assumed 30% margin on $958£720€857A$1,382C$1,354 of extra takings (40 extra visits at $24£18€21A$35C$34), less about $120£90€107A$173C$169 of rewards (30 a month at $4£3€4A$6C$6). Square Loyalty is $33£25€30A$48C$47 a month per location for up to 500 loyalty visits and $60£45€54A$86C$85 for 501 to 1,500. The extra visits are an assumption; compare members' visits before and after.
How to set it up
- Start Square Loyalty's 30-day free trial from your Square account.
- Pick one reward that costs you little and customers value, such as eggs from your own hens or $4£3€4A$6C$6 off.
- Choose points per visit rather than per pound if most baskets are small, so it's easy to explain.
- Brief staff to ask every customer at the till, and put the sign-up link on your website and gate sign.
- After 3 months, compare how often members come back with before, and decide whether to keep it.
What goes wrong
- Price is per location by loyalty visits, which include sign-ups, points and rewards; a busy December can tip you into the $60£45€54A$86C$85 band.
- Joining means customers give contact details. Say how you'll use them, and only send marketing to those who've separately agreed.
- It only works where sales go through Square; a café on a different till won't earn points.
- A loyalty scheme won't fill a quiet shop on its own. Watch whether members actually come more often.