The problem
Regulars are what keep an independent shop open, but a paper card in a purse doesn't bring anyone back. If a loyalty scheme brought in 25 extra visits a month at a $29£22€26A$42C$41 average spend, that's $732£550€655A$1,056C$1,034 a month in sales the shop isn't getting now.
What the AI does
Square Loyalty is built into Square's tills. Customers join at the till, through Square Online or with a link, earn points by visit, spend or item, and redeem rewards in store or online. Square texts them 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, with a 30-day free trial. Set one simple reward, ask every customer at the till, and look at the loyalty report monthly. Marketing texts or emails beyond those notifications still need consent.
A worked example
A gift and homewares shop in Harrogate with three staff, already on Square for Retail, sets up Square Loyalty with $7£5€6A$10C$9 off after 10 visits and logs about 400 loyalty visits a month.
Before
Paper stamp cards, no record of the regulars and 0 extra visits from them
After
25 extra visits a month at $29£22€26A$42C$41 = $732£550€655A$1,056C$1,034; about 15 rewards redeemed at $7£5€6A$10C$9 = $100£75€89A$144C$141
What it's worth
About $193£145€173A$278C$273 a month in profit, at an assumed 40% margin on $732£550€655A$1,056C$1,034 of extra sales ($293£220€262A$422C$414) less $100£75€89A$144C$141 of rewards. The 25 extra visits is an assumption, not a promise. Square Loyalty is $33£25€30A$48C$47 a month for up to 500 loyalty visits, rising to $60£45€54A$86C$85 above that.
How to set it up
- Start the 30-day free trial and choose one reward you can afford on every item, such as $7£5€6A$10C$9 off after 10 visits.
- Ask every customer at the till if they'd like to join, and explain the texts they'll get.
- Put a card by the till and a line on receipts explaining the reward.
- Check the loyalty report each month: visits, rewards redeemed and the number of members.
- Keep an eye on the monthly loyalty visit count so you know if you're nearing the $60£45€54A$86C$85 band.
What goes wrong
- Loyalty visits include sign-ups and redemptions as well as purchases; a busy December can move you into the $60£45€54A$86C$85 band.
- Customers' phone numbers are personal data; don't use them for marketing unless the customer agreed to that separately.
- A reward on low-margin items loses money; set it as money off a minimum spend or on lines with a healthy margin.
- The scheme only works if staff ask every time; agree it as part of the till routine.