5 Best Rewards Programs To Grow Your Small Business

Why We Chose Square POS For Loyalty

Square is an excellent free POS with an in-house loyalty program. Square is set up so that the core POS functions are free, and you only pay for whichever advanced functions you need, including loyalty. Like the POS itself, Square Loyalty is intuitive and easy to use, with a clean, uncluttered interface.

Square's digital loyalty program has businesses enter a customer's phone number, and the customer receives automated texts about their reward activity every time they make a purchase, either in-store or online. There's nothing for customers to download and the texts they receive are arguably more attention-grabbing than an email (case in point: I currently have 35,000 unread emails and 0 unread texts). Businesses can then track their loyalty program's success using reports which show how much they've earned from loyalty sales versus non-loyalty sales; according to Square, customers who enroll in Square Loyalty spend 40% more.

Square Customer Loyalty Features

Square Loyalty offers the following rewards software features:

• Works with multiple industries (restaurants, retail, personal services, etc,)
• Works with other Square products (Square Restaurant, Square for Retail, Square Appointments, etc.)
• Easy customer onboarding from POS screen
• Customizable program lets you choose how points are earned, reward tiers, & reward terminology
• Marketing features including text & email campaigns
• Omnichannel program lets customers earn & redeem in-person and online
• Multilocation program works for all your Square stores
• Data tracking from your Square Dashboard

Square Membership Program Pricing

With Square's loyalty program, only pay for how much loyalty functionality you use. Square POS is free, and loyalty pricing is based on how many loyalty visits you receive each month. Square Loyalty runs $45/month for 1-500 loyalty visits per month and goes up from there. You can try out the software for 30 days for free before deciding if you want to purchase it.

Hardware Cost

You can use Square POS with Square Loyalty on a variety of hardware setups, including iPad, Android, and Square's proprietary hardware solutions, such as Square Register and Square Terminal.

Square hardware kits start at $659 for a Square Stand kit for iPad that includes a Square swivel stand with a built-in card reader, a cash drawer, and receipt printer (iPad not included). Square Register kits start at $1,479 for a Square Register---a tablet register with customer facing screen and built-in payment acceptance---cash register, and receipt printer.

Payment Processing

With its in-house flat-rate payment processing---Square's rate is 2.6% + $0.10 per in-person transaction---Square is best for newer and lower-volume businesses; established, high-volume businesses may find better payment processing rates by getting their own merchant accounts.

Contract Requirements/Warnings

Square POS is month-to-month with no contract, which means you can stop using the service at any time; the same goes for Square Loyalty. The one warning we have for Square is that it has less account stability than a traditional merchant account, as Square is a third-party payment processor. Learn more on the pros and cons of processing with Square by reading our guide to third-party payment processors.

Why We Chose Lightspeed Loyalty Program

Lightspeed Retail is a retail POS for iPad and desktops that makes it fast and easy to sell in-store and online. Lightspeed also has an excellent in-house eCommerce program, which integrates seamlessly with the Lightspeed POS and Lightspeed Loyalty, a points-based loyalty program with flexible reward tiers, built-in marketing, and CRM.

Lightspeed Loyalty Program Features

Lightspeed Loyalty offers the following customer loyalty program features:

• Fully integrated with POS workflow, so you only need to visit the back office for initial setup & running reports
• Omnichannel design lets customers redeem rewards online or in-store
• Customer auto-segmentation based on purchasing habits
• Branded loyalty app to send promotions & one-time deals
• Automated marketing campaigns for text & email using a drag & drop tool
• Import data & balances from another loyalty program
• Retail-centric system includes multi-tender options, inventory matrix, PO management, & deep reporting

You can read our full write-up on Lightspeed Loyalty to learn more about program features and setup.

Lightspeed Loyalty Pricing

Lightspeed Loyalty is included on the $269/month Advanced Lightspeed Retail plan ($199/month with annual billing) and on the Enterprise plan for large businesses (call for quote).

You can purchase Loyalty on lower-level plans as a separate add-on.

Hardware Cost

You can use Lightspeed on an iPad or desktop setup. You can source your POS hardware yourself or purchase a kit directly from Lightspeed (call for quote).

Payment Processing

Lightspeed Retail integrates with Lightspeed Payments, which all eligible merchants in the US and Canada must use. You'll pay a flat rate of 2.6% + $0.10 for in-person payments and 2.9% + $0.30 (the same rates offered by Square) and you'll get a free Verifone P400 terminal (swipe, dip, or tap).

Contract Requirements/Warnings

To get the best pricing on Lightspeed Retail with Lightspeed Loyalty, you need to pay annually. This means Lightspeed is more of a commitment than a pay-as-you-go POS like Square.

Why We Chose Clover POS For Loyalty

Clover is an all-in-one small business POS that runs exclusively on Clover's proprietary Android-based hardware kits, pre-installed with apps for various functions, including loyalty rewards. Though multiple business types use Clover, it's especially favored by quick-service restaurants such as coffee shops and has a dedicated QSRs service plan.

Clover's built-in loyalty app, Clover Rewards, is incredibly easy to use, both for businesses and their customers. Clover Rewards is incredibly mobile-friendly, and your customers may even have the Clover app already installed on their phones.

Clover Rewards App Features

Clover's customer loyalty app has these useful reward program software features:

• Rewards app comes pre-installed on your Clover system and is included in most plans
• Effortless setup, right from your POS screen
• Customize offers to fit your business and offer multiple perks to appeal to different customers
• Customer-facing mobile Clover app lets users earn rewards when ordering from their phone or in-person
• Multiple ways to earn & redeem rewards, including SMS codes printed on receipts, the Clover app, & self check-in on Clover's customer-facing screen
• Customers can track points using the Clover app
• Rewards reporting shows which perks are most popular

Clover Loyalty Program Cost

Clover offers a variety of different plans ranging from $0/month for basic payment processing and up. Clover's loyalty app is included on the Essentials plan ($14.95/month/device) and higher.

Hardware Cost

You can use Clover Rewards on a Clover Flex ($499), Clover Mini ($799), or Clover Station ($1,799) setup. Businesses that want a countertop POS will need at least one Mini or Station, sometimes with a Flex to take mobile orders.

Payment Processing

Clover.com offers flat-rate rate processing at 2.3% + $0.10 and up. Your processing rate depends on your monthly software plan. If you buy your system from a different Clover provider, your merchant account may use a different processing model.

Contract Requirements/Warnings

Many different companies sell Clover POS systems with merchant accounts, and some of these Clover providers are not recommended due to their long-term contracts, expensive equipment leases, and other issues. Learn more about where to buy a Clover system by reading our post on the best Clover service providers.

Why We Chose Toast POS For Restaurant Rewards

Toast is an Android-based POS system with pretty much any feature a restaurant could ever need, from ingredient management to delivery and takeout modules to table management for in-person dining. Toast has incredibly strong employee management and POS reporting features, as well as smart CRM features that include a built-in points-based loyalty program. Overall, Toast is a smart choice of POS if you want a system specifically for restaurants with in-house loyalty.

Toast Restaurant Rewards Program Features

Toast POS has these and other useful loyalty rewards software features:

• Links to customer's credit card, so customers accrue points automatically
• Customizable rewards program allows restaurants to customize sign-up bonuses, set accrual and redemption rates, and offer birthday rewards
• Multiple signup methods---POS, self-order kiosk, customer-facing display, Toast Go, & online ordering
• Integrated online ordering module lets customers earn and redeem points online
• Loyalty program reporting gives you insight into who your regulars are and how much they spend.
• Rewards lookup website lets customers look up their points balance online
• Integrated gift card program allows Toast gift cards to be registered as loyalty cards

Toast Loyalty Pricing

The Toast POS itself starts at $0/month for a pay-as-you-go plan or $69/month for a standard plan. The main difference is that the free plan charges more for payment processing.

Toast Loyalty is an add-on to the POS that costs $50/month or an additional 0.40% per transaction, depending on your plan set up.

Hardware Cost

Toast POS hardware starts at $799 for a countertop kit. You can alternatively get a Toast hardware kit for free if you opt for the pay-as-you-go plan.

Payment Processing

Toast includes integrated payment processing and does not allow you to use an outside processor. Rates vary depending on your package. The lowest published price on Toast's website is 2.49% + $0.15 for in-person transactions.

Contract Requirements/Warnings

Toast requires a long-term processing contract, during which the company increases its credit card processing fees with 30 days' notice (per Toast's merchant agreement). These contracts can be as long as three years and renew automatically after the initial term for another year. If you want to get out of your Toast contract at any time, you’ll have to pay an early termination fee (ETF).

Why We Choice Loyverse Free Loyalty Rewards Program

Loyverse is a free POS that includes an excellent built-in loyalty program---also free! Best of all, it can be used in any industry: restaurant, retail, service industry, you name it. The Loyverse POS itself is intuitive and easy to use, though somewhat basic, particularly in terms of its inventory features. Still, for newer merchants looking for a basic, free POS program with free loyalty, Loyverse might have all you need.

So what's the deal with Loyverse's free, built-in loyalty program? When customers download your loyalty app, they can start to earn points, which they can redeem for discounts on your products or services. You can also use the app to send messages out to your customers. On the back end, you can add information about your customers and view their rewards activity.

Loyverse POS Loyalty Program Features

• Simple setup lets you start your loyalty program in a single click--- just set the reward percentage from each purchase
• Multi-industry POS with loyalty program has both retail & restaurant features
• Multistore functionality lets customers receive rewards across all your stores
• Physical card option allows you to issue a loyalty card with a barcode
• Customer-facing loyalty app includes messaging feature for marketing
• Customer profiles display customer's purchasing and loyalty history

Loyverse Pricing

Loyverese POS is free, as is its loyalty module. Loyverse does offer some paid add-ons--employee management and advanced inventory--- but they are optional and inexpensive, each offered at $25/month or $250/year.

Hardware Cost

You can use Loyverse on a smartphone, iPad, or Android tablet. You can purchase hardware on your own or buy various individual hardware components through Loyverse.

Payment Processing

Loyverse merchants in the US can process payments using Worldpay, Zettle by PayPal, or SumUp.

Contract Requirements/Warnings

Though Loyverse may seem too good to be true, it really is free, with no caveats like expensive hardware leases or long-term payment processing contracts. For payment processing with Loyverse, both Zettle and SumUp are no-commitment third-party payment processors, similar to Square. The only negative about Loyverse is that it is a somewhat basic program, and it only integrates with a couple of other software programs.