The problem
Paper stamp cards get lost, left at home or copied, so many cafés give up on loyalty and know nothing about their regulars. If a scheme brought regulars back 15 more times a week at a $8£6€7A$12C$11 average spend, that's $120£90€107A$173C$169 a week, about $515£387€461A$743C$728 a month of sales the café isn't getting.
What the AI does
Square Loyalty is an add-on for Square point of sale. Its UK page says customers sign up at the till, through Square Online or a sign-up link, earn points by visit, spend or item, and redeem rewards in store or online, with a text sent automatically when they earn points or rewards. It's $33£25€30A$48C$47 a month per location for up to 500 loyalty visits, counting sign-ups, points earned and rewards redeemed, and $60£45€54A$86C$85 for 501 to 1,500. Set one reward, such as a free drink after 9 paid ones, and ask at the till. Any reward involving food follows your normal allergen information, not a separate list.
A worked example
A 30-seat café in Norwich already takes payments with Square. It switches from paper stamp cards to Square Loyalty with a free drink after 9 paid ones, and staff ask every customer at the till.
Before
0 regulars on record; paper stamp cards that get lost or copied
After
About 15 extra visits a week (65 a month) at $8£6€7A$12C$11 = about $515£387€461A$743C$728 a month, with about 45 free drinks redeemed a month
What it's worth
About $281£211€251A$405C$397 a month in profit, against $33£25€30A$48C$47 for Square Loyalty. That's $515£387€461A$743C$728 of extra sales at an assumed 65% margin ($335£252€300A$484C$474), minus about 45 free drinks at an assumed 90p cost ($55£41€49A$79C$77). The 15 extra visits a week is an assumption, not a promise. With about 400 points earned, 45 rewards and a few sign-ups a month, the café is close to the 500-visit limit; past it the price is $60£45€54A$86C$85.
How to set it up
- Start the 30-day free trial of Square Loyalty from your Square account.
- Choose one simple reward and put it on a sign by the till.
- Train staff to ask every customer if they want to join, and to explain the text they'll get.
- Check loyalty visits each month so you know which price band you're in.
- After 3 months, compare repeat visits with before and decide whether to keep it.
What goes wrong
- Sign-ups and redemptions count as loyalty visits, so a busy café can move into the $60£45€54A$86C$85 band.
- The automatic texts are transactional. Promotions or offers by text need separate marketing consent under PECR.
- It needs Square point of sale. If your till is another make, this doesn't work without switching.
- Price the reward so extra visits pay for it; a free cake costs more than a free filter coffee.