Pricing for Square Loyalty for existing sellers

[zder]

This post was created from an existing thread: Important Update for Loyalty: Add multiple rewards, customize your Loyalty terminology and more

Fees for the Square Loyalty Program have gone up dramatically (https://squareup.com/help/us/en/article/6382). So, the more loyalty customers you have, the harder it will be to administer them, and the more you will have to pay. We were already thinking of eliminating the Square Loyalty Program because of the increased burden of managing it.

[#2]

First of all, I’m sorry for the confusion around this topic. I’d like to start by clarifying that pricing is not currently changing for existing Loyalty customers.

As you’ve seen, we’re testing a new Loyalty pricing model for new customers that sign up for the program. If you already have a Loyalty program, there is no change to your pricing happening in 2018.

I’d also like to give a little more insight into what’s happening behind the scenes. The Loyalty team is testing a participation-based pricing model that is based on the number of loyalty visits per month. The reason behind this shift: based on program usage data and seller interviews, they have learned that pricing by location does not best align the price of a loyalty program to the value sellers receive. They are exploring different ways to find a pricing model that is the right fit for the variety of businesses we serve, as we have businesses of all sizes and complexities using Loyalty. With this new participation-based pricing model, the hope is that many businesses will benefit by only paying for a loyalty program when it’s working for you and your customers. The monthly price would adjust based on your monthly loyalty program participation across all your locations.

Since the team is in the testing phase with this pricing model, they are collecting feedback and will make a longer-term decision about pricing after gathering additional data and hearing directly from more Square sellers. Thank you for sharing your thoughts here in the community - our Loyalty team is reading each of these responses. Additionally, Darsh on the Loyalty team will be conducting phone calls to gather more feedback with anyone here willing to talk with her. If you’re interested, please schedule a feedback appointment.

I can imagine that if you are a current Loyalty subscriber, seeing these new pricing tiers is somewhat shocking and surprising, based on the increase in price that some of you would see under the new model. The team remains very mindful that this new pricing model could have large increases in pricing for some of you and they are continuing to collect feedback to understand the impact before any changes are made. In the event that we do decide to change pricing, you will have months of advance notice and we will notify you directly. We understand that your business needs time to adjust to any substantial change like this.

Again, I’m sorry for any confusion and thank you all for working with us to find the right fit for pricing.

[sasharecycles]

@Kpay could you also please clarify, the number is based off new sign ups or total (new & existing) visits? i think i know the answer but want to hear it out loud.

it's like pulling teeth around here.

thanks in advance

[Kpay]

Hey @sasharecycles - we're not trying to keep information from you! But I also hate that feeling when you're just trying to get an answer and it feels like no one can give it to you. I'll do my best to make it clear! 

The pricing is based off total loyalty visits. 

Total Loyalty Visits = new + repeat visits. 

A visit includes new loyalty enrollments to the program and repeat visits where a loyalty point is accrued or a reward is redeemed.

I also added a screenshot to the comment above with where to find your total visits info in the dashboard. 

[HeatherS]

@sasharecycles

I am sure you are NOT an idiot!! It is ridiculous. I understood it to be the number of visits whether they were earning or redeeming the reward. I looked in the Loyalty Overview for Last Month to see that we had 1529 visits in June. That would put us in the $175 level. Not happening!

[sasharecycles]

Lol @HeatherS maybe I am slightly because for some reason I thought you were with Square, and clearly (now, to me) you are not. Ugh, sleep deprivation does a number on one's brain. 

I would actually hope that maybe there's an average? Because only twice in the two years we've been using loyalty (other than the initial signing up of everyone regular) have we gone over a certain tier... does that mean one month I might be charged $50 and the next (for going over) $75? Also, I'm still trying to figure out if this is total loyalty visits or new sign ups, because I'm thinking only new sign-ups? If it's total, then I am screwed and will go back to punch cards....

[ArtisanCandies]

Not sure if this post was able to be seen earlier, so I'm putting it here, too. I can delete it where it was earlier... just want it to be seen. @Kpay please forward this on if you deem it helpful.

Something that is slightly bothering me about this whole discussion, and previously over the last few weeks when we were talking about the nature of the Loyalty program and how it would work... it's that this whole issue is taking a lot of my time away from my business. I find myself having to shuffle things around in order to participate and write out my thoughts in an articulate way to keep up with what is being said and shared.

This is a long way of saying that Square should be paying for its research and development in the same way that other companies do, by organizing and paying for market research in an official capacity. I imagine you already do in some ways, but this topic should be dealt with in the same way. Square is essentially getting our time and input for free in these forums, and 1) I don't mind if it's small stuff once in a while, but 2) at this point I feel like Square is using all of us customers (I've been on panels where my time has been paid for, up to $250 depending on the topic).

At this point, if you, Square, want to have access to my opinions and experience with your product, you will need to contact me directly and pay for my time. May I recommend Nichols Research for your market research needs, especially as it relates to your Loyalty Program. https://nicholsresearch.com/

[GoodGrapes]

The timing of this information near the recent loyalty program release is unfortunate. There isn't a single thing in the latest release that I care about, need, or will use.  The stars based program worked fine for me. The only addition that I've been repeatedly requesting is for a customer to be able to use multiple rewards in a single purchase, which is basic functionality. If that functionality were supported along with the pre-tiered rewards program, I would consider that a bare bones program.

If Square goes down this pricing path, in addition to many months notice, the exported customer file should include the number of stars per customer. This information will be needed when the customers are loaded into a new loyalty program.

[zder]

Square Loyalty Team Folks,

Here's an idea,

Grandfather all existing Loyalty Program Sellers into the existing pricing for a significant period of time. Earlier this year we had a popular WordPress plugin company grandfather our account into their new pricing tier. We went from a basic plan to the top level of usage with no change in pricing. I loved them for it.

[sasharecycles]

Brilliant.

[straycatbrew]

Entering this thread weeks later -- but adding my 2¢...

I am a small coffee shop that currently uses punch cards, and have since we opened over 2 years ago.  We have also used Square the entire time.

At the beginning, we did not use Loyalty because of the price.  And that's when it was more affordable.

Now, if only 1/4 of my transactions involved a loyalty action, we would pay $125 per month.  It would give me no incentive to encouraging customer enrollment.  In comparison, a box of 1000 color-printed business cards costs less than $30 shipped, and lasts multiple months.  If 100% of my transactions were loyalty, we would pay at least $250, based on last month's numbers.  That would be giving Square over 2% of my net sales!  I might as well be paying franschise fees to some large franchise instead!

This should be a free product, or at least, many portions of it should be free.  Like other posters have mentioned, driving addtional transactions is only in the best interest of Square, who will make more money in transactional fees.  Maybe instead subtract out non-essential extra parts of the program to charge for, such as sending promotional emails about the program, or reminders about rewards, or the like.

Had this been a flat $10/month program, I would have signed up from DAY ONE.  But at this pricing, there is no benefit -- and dozens of competitors that are lower priced, as long as I'm willing to suffer having a second tablet on the counter.

But instead, @Kpay, I will continue to use my punch cards -- and not use a very, very overpriced Square program that has recently become much more overpriced.

[katieand]

Thank you for sharing your 2 cents, @straycatbrew! I appreciate you taking the time to share your concerns and thinking as we evaluate Loyalty pricing. It's helpful to hear a different perspective from someone like yourself who has been on punch cards and finds them working very well for their business. I recognize that not every business is going to find all of the Square products a fit for their business and price changes can exacerbate this. I'll convey this to our Loyalty team. @Kpay mentioned in her comment that we will be sharing lots of information as decisions are made and give sellers time to evaluate what works best for their business should pricing change. 

It is good to know that ~$10/month is your sweet spot for Loyalty pricing. 

We'll continue to update this thread as we get more information. Thanks again for writing in with your thoughts and please do share more if anything else comes up. 

[dongillis]

I just started a new business and was filling out the loyalty program parameters. Had no idea the prices have changed since I'm paying 20-25 a month at my other business. Woah nelly, absolutely not. I'm sorry square, love you guys but the new pricing structure is truly crack cocaine bender inspired. You're losing the plot and I fear that I might have to find a back up plan if you guys ever mess with the processing fee.

[kellyj]

@dongillis

Thanks for the feedback on this. I will definitely pass this on to our Loyalty Product team for consideration.