Loyalty Schemes

[SiBellebeauty]

Hey Square Community,

I am in the process of updating our loyalty scheme with the help of Square Loyalty. We already use it in the business, but looking at updating it and simplifying it.

It made me think... what does everyone else do with their loyalty schemes? I am in the beauty industry but would be great to hear what you guys do and create a thread full of ideas for other square community 🙂 x

[Lou8 · Accepted solution]

Hi @SiBellebeauty, thanks for posting - I like the idea of starting a thread where other sellers can share their loyalty schemes !

I'm tagging @Bronze_Palms and @Doran who are also in the beauty industry, as well as @Twiggy and @signature_home. @TGPH and @SimonH, I believe you use Loyalty too?

Hoping you can all share your own Loyalty set-up with the rest of the Community 🙂.

[SimonH]

Hi Lois,

Loyalty is a core strategy for my bar. Before switching to Square, I used Kangaroo Rewards, which had more features but came with a high price tag and still missed some marks.

Loyalty schemes have two key objectives: increasing customer spend and frequency of visits. The more data you collect, the better you can achieve these goals. I’ve found that loyalty truly works when structured simply. For example, we offer 2 points per pound spent, and at 250 points, guests receive £5 credit.Keeping rewards achievable for the average guest is essential.

We also run monthly perks, like offering 500 bonus points (worth £10) when guests spend £100. This has significantly increased both repeat visits and spend.

Additionally, we’ve found success using promotions like double points on slow days, which savvy customers love.

On top of loyalty, targeting customers who’ve fallen off the radar is crucial. I’ve had success using Meta advertising to retarget lapsed customers who may ignore emails. It’s a bit clunky and costly to set up, but it’s worked very well for us.

What changes are you considering for your loyalty scheme?

[Jollybrewer]

Hi Simon

i just read your post on the square community regarding the loyalty scheme. We as a small homebrew shop in Stoke on trent are considering utilising the loyalty scheme for our customers.

i wanted to ask if the scheme was still working for you regarding customer retention and how do you gain new customers from the scheme?

Any help or guidance would be greatly appreciated 

Paul

[SimonH]

The Square Loyalty Scheme is great for us, as a bricks and mortar bar.
It does have some limitations, but for the price point it's great.

We sign people up when checking out, they sign up with their mobile number.

The only part I find really frustrating is that the sign up only requires a mobile number, which in the UK you can't then re-market too. You don't see the guests name, or email address - it would be useful if these were added so you could then actively market to your loyalty base.

If you have lots of repeat customers though it's definately worth moving forward with, it really drives up how much people spend, wanting to hit that next reward!

[Twiggy]

Hi - you’ re sort of down the road 😀 I love loyalty it’s great BUT there is one big thing GDPR - customers have to tick the box in order for us to use square marketing - which again is another fantastic add on.

If you’re a coffee shop or daily - it’s brilliant and again if your customers recency is say 3 weeks or even bi monthly.  Loyalty is important, especially when you offer a service like yours with a high visit frequency. However, if the customer's purchases are high value, less frequent, say once a year or even less like ours - Valentines, Birthday, Anniversary, Mother’s’ Day traditional loyalty marketing strategies might not be as effective and just marketing works.

A thing to note about loyalty is say you offer a free “Glycolic peel facial” @£45 if they have 6 - they can’t upgrade /redeem it for a“renew me facial” @£55 for £10 - you’ll have to deduct the points for that client, add the “renew me” as a sale and adjust the price to £10. 

We often adjust our clients petal balance to zero - deduct the value of the item from their bill normally £50 or £100.  We find people save their loyalty to get an upgraded purchase and don’t use the discount option. They want a £50 bouquet and get one for £100 or as an example use their loyalty points to reduce their flower bill when we decorate their house at Christmas. 

I agree to keep things simple “a flat white is a flat white” buy 7 get 8th free is a no brainer.. 

I’ve not ventured into the realm of converting the points to a coupon/online /POS - might look into that and give feedback especially as coupons has just been relocated/modified/enhanced/ 

[TGPH]

Where is the coupon/online/pos info?  I've not seen it!

[Doran]

I keep it simple.  $1 point per $1 spent.  Once they reach 250 points they can redeem $25 off anything they want.  If their total is under $25 the rewards don't roll over.  So if they buy a cleanser that is $10 then I usually suggest they save the reward for their next purchase.  I allow customers to use the rewards on facial services or products and they earn on both as well.