customer loyalty program

[seaside]

We currently have an ongoing customer loyalty program that we started for locals after the bulk of revolving summer clients left in our summer tourist area.  There are other businesses here that also use square but have chosen not to pay for the retail app.   My understanding is that they were only charged the minimum for enrolling and using the loyalty program regardless of how many people enrolled or used it.  We are paying for a premium service in a small business area and pay the "square retail" fees AND also a premium to add new customers to a loyalty program that reduces our small margins,   Problem: We want to be able to reward local customers and anyone else that wants to shop at our store repeatedly year round but with a seasonal influx of new and not returning or maybe returning shoppers, we don't want to be addtionally penalized finacially for offering the square rewards program.    

[pessosices · Accepted solution]

Hey @seaside

Unfortunately the pricing model for Loyalty did change from a flat rate to based on Number of Loyalty Activities per month.

The old rate was not connected to Retail but rather just based on when a Seller signed up for Loyalty. 

I definitely can see how the current pricing model is an added expense to any business, but especially to one in a seasonal location like yours with loyal locals and an influx of one time visitors. 

A benefit of the new Loyalty pricing model is that it’s based on Loyalty Transactions rather than individual Loyalty Customers, so you’re not exactly paying for each new customer that signs up separately but rather each transaction where Loyalty is used. So that cost is spread out and not directly associated with each new seasonal customer but rather with each purchase, which is definitely better than literally paying for a new customer. 

So whether you have 2 customers who made 50 purchases each, or 100 customers who made 1 purchase each, you’re paying the same amount for Loyalty. 

Unfortunately I don’t really know of a work around in order to prevent seasonal customers from using Loyalty, but hopefully if they do have a Loyalty account set up with you, they will be more likely to come back within the season and again next year to keep earning points and rewards, and make the added expense worth it for you!

[seaside]

I understand that. Please correct me if I am wrong. A loyalty transaction includes a customer signing up for the program, regardless if they ever "check in" again or use the program.  Businesses like ours that are paid retail app. subscibers and are purchasing the service on a sliding scale, the fees can add up quickly with no benefit for us or for the out of town shoppers (lose/lose) and not a sustainable optiion.  This does not help our business (and probably many others in like situations) and is a disincentive for retail business like ours to encourage people that we know won't be back to sign up but also don't we don't want to disclude anyone, which will leave us with many new sign-ups but not a good ratio of returning (loyalty intended) customers  Spring is just around the corner and we have been happy overall with square and associated apps but are concerned with how this program will impact our seasonal business and bottom line. 

"A benefit of the new Loyalty pricing model is that it’s based on Loyalty Transactions rather than individual Loyalty Customers, so you’re not exactly paying for each new customer that signs up separately but rather each transaction where Loyalty is used. So that cost is spread out and not directly associated with each new seasonal customer but rather with each purchase, which is definitely better than literally paying for a new customer. "

[pessosices]

Hey @seaside

Yes, any transaction where Loyalty information is entered, whether it’s the customer’s first and only time or their 50th will count as a Loyalty Activity in the new pricing model. 

Any seller that start Loyalty now will be paying on the sliding scale, not just sellers that are using the retail subscription. 

I definitely understand the frustration and the predicament. I myself am not a fan of the new Loyalty Pricing Model for this very reason, and much prefer the old flat rate method and I have been advocating a return to that, but from a business perspective I do understand why Square decided to take that route. 

That being said, I think that The Loyalty program, no matter the pricing model, can definitely help many businesses stay competitive and incentivize many customers that may have normally never returned to go out of their way to come back.

But of course that’s not true of all customers and all businesses, and if the pricing model doesn’t fit the needs of your business, then it’s not a good fit and doesn’t work for you. 

I hope you find what works for you!

[seaside]

We have been happy with square retail app for the most part, as a small bussiness but hope the loyalty subsciption will be tweeked some more to make it something that both buyers and customers feel confindent with using going forward.

[pessosices]

I totally understand and I'm glad you've been happy with things overall so far!
We've been on Square for 6 years so far, and absolutely love it - aside from the occasional issue.
I hope they tweak the pricing of it too!