The problem
Paper stamp cards get lost, forgotten or stamped twice, and a regular who drifts to the chain café down the road isn't noticed. If a loyalty scheme brought back 40 extra visits a month at $8£6€7A$12C$11 each, that's $319£240€286A$461C$451 a month in sales a bakery isn't getting now.
What the AI does
Square Loyalty is built into Square's tills. Customers join at the till and earn points by visit, spend or item, then redeem rewards in store or online, and Square sends a text automatically when they earn points or rewards. It's priced per location by loyalty visits a month (a sign-up, points earned or a reward redeemed): $33£25€30A$48C$47 for up to 500, $60£45€54A$86C$85 for 501 to 1,500. Set a simple reward, such as a free pastry after 10 visits, and ask every customer at the till. Marketing messages beyond those transactional texts need separate consent.
A worked example
An independent bakery in Frome with the owner-baker and four staff, a shop counter on Square tills, sets up Square Loyalty with a free pastry after 10 visits and logs about 450 loyalty visits a month.
Before
Paper stamp cards, no record of the regulars and 0 extra visits from them
After
40 extra visits a month at $8£6€7A$12C$11 = $319£240€286A$461C$451; about 30 rewards redeemed at $1£1€1A$2C$2 ingredient cost = $40£30€36A$58C$56
What it's worth
About $152£114€136A$219C$214 a month in profit, at an assumed 60% margin on $319£240€286A$461C$451 of extra sales ($192£144€171A$276C$271) less about $40£30€36A$58C$56 of free pastries given as rewards. The 40 extra visits is an assumption, not a promise. Square Loyalty is $33£25€30A$48C$47 a month for up to 500 loyalty visits; above that it's $60£45€54A$86C$85.
How to set it up
- Start the 30-day free trial and set one simple reward.
- Ask every customer at the till whether they'd like to join, and say what the texts will be about.
- Put a small sign on the counter explaining the reward.
- Check the loyalty report each month for visits and rewards redeemed.
- Watch the loyalty visit count; past 500 a month the price rises to $60£45€54A$86C$85.
What goes wrong
- The price depends on loyalty visits, which include sign-ups and redemptions, not just purchases; a popular scheme can move you into the $60£45€54A$86C$85 band.
- Customers' phone numbers are personal data; keep to your privacy notice and don't send marketing texts without consent.
- Staff must ask every time; a scheme only half the counter staff use won't bring regulars back.
- Rewards cost money; keep them to items with a good margin.