we run a bakery and coffee shop with two locations in New York, ringig up around 1,500 tickets a week but to reward our regulars and drive repeat visits we rolled out a digital stamp card using a widely praised "free" loyalty program app.
the first six months didnt go as planned at all then we put QR codes at the registers, but only managed to get 420 customers to download the app. the real shock came from the billing side: turns out the free tier only covers the first 100 users and includes zero SMS notifications. we had to buy a 60-dollar monthly add-on just to text customers... once we passed the threshold, the platform started billing us 140 dollars a month in subscription fees... we ended up spending 1,200 dollars over six months and only 75 of those registered users ever opened the app a second time.
are free loyalty apps just a trap for small retailers like us? or was our mistake forcing a standalone app on customers from day one? would love to hear advice from anyone who's been down this road.