Loyalty schemes are booming in popularity in an inflation-led era.

Offering rewards, discounts, and other unique incentives has become a great way for businesses to attract and retain customers. According to research, on average, 61.3% of European adults are members of at least one loyalty programme. In addition, figures show that, in the UK alone, a fifth of people who never use loyalty cards risk missing out on an average of 301 euros a year. One young entrepreneur who’s looking to take loyalty schemes to the next level through technology is Katie Farrell, Co-founder and COO of SQUID Loyalty. As part of our female founders series, Katie spoke to us about how she founded a universal platform that aims to transform these initiatives globally.

Can you tell us a bit about you, what motivates you in life and what led you to develop SQUID Loyalty?

Of course! So, I co-founded SQUID in 2019 alongside my best friend, Matthew Coffey, after we spotted a gap in the market for a universal loyalty platform. We’re first-time entrepreneurs coming from an engineering background, so naturally, we are drawn to problem-solving. Consumer and small to medium-sized business (SMB) problems are particularly appealing to me because seeing your solutions make a daily impact is rewarding. What fuels my passion for SQUID is hearing users say how the app has become a part of their daily routine! 

What sets SQUID Loyalty apart from other platforms?

Unlike most digital loyalty software that typically provides a way to administer points and coupons, SQUID tackles the challenge of acquiring and engaging customers through ease of use, complemented by intuitive marketing tools. Our platform fosters a network, linking local businesses with shoppers through a single account to access area-wide loyalty offers. SQUID is revolutionising loyalty programs, similar to the transformations seen in the food delivery and taxi service industries.

How does the app work exactly?

If you can imagine having access to loyalty programs from thousands of cafes, restaurants, and salons all in one app, that is SQUID. Our platform enables businesses to manage their own unique digital loyalty programmes through our platform. With thousands of business partners and hundreds of thousands of app users, it helps to reward loyal customers, drive retention and influence purchasing behaviours. For users, a single account grants access to numerous loyalty programs, offering a wide range of rewards for everyday purchases.

Can you tell us a bit about the technology behind it?

SQUID uses NFC technology, allowing users to join loyalty programmes, collect stamps, and redeem rewards with a simple phone tap. With the widespread adoption of contactless payments, our app offers a walletless loyalty experience, mirroring the convenience consumers have grown accustomed to.

How can consumers start using the SQUID app, and is it free?

The SQUID app is free on both the App Store and Google Play. Through the app, you can discover local partnered businesses, and by tapping a SQUID tag at the counter with your purchase, you receive a loyalty stamp. Some businesses even offer signup treats, such as a free coffee on your next visit!

Describe yourself in three words.

I would say I am inquisitive, ambitious, and analytical.

What challenges have you faced as a young female entrepreneur?

For me, age has arguably posed more challenges than gender, as lacking prior industry or business experience can prove attracting investors difficult. My co-founder is male, so our experience may differ from that of all women founding teams. I believe in the strength of diversity within the executive team. That is a mix of genders, ages, and backgrounds that not only enriches our perspective but also leads to more innovative solutions.

What are your key learnings on loyalty and business this year? Has inflation had much of an impact on your work?

Inflation has affected nearly every business, including ours, leading to increased operating costs. The investment landscape has also become more challenging, with many startup investors becoming more conservative. Despite this, we’ve successfully closed a €5M seed round. It’s tough out there for the independent businesses we partner with as they deal with tighter margins. Interestingly, our data shows that businesses using SQUID tend to have double the lifespan compared to the industry average, highlighting the importance of investing in customer retention for business longevity.

Do you have any advice for other female founders with families looking to start their tech business?

The best advice is to take the leap, particularly if there’s little to lose. The journey of running a startup is incredibly educational, offering insights into business, people, and oneself. I’ve never met anyone who regretted trying!

Are there any new features or significant platform updates planned for the next year?

We’re really excited about the upcoming year, having recently revamped our technology to support scaling better. We’re now focusing on rolling out new marketing tools to assist businesses in attracting, retaining, and engaging customers. Additionally, partnerships with leading point-of-sale providers will enable us to support a wider range of business types with more flexible loyalty solutions.

Last but not least, what are your ambitions for SQUID Loyalty in the upcoming year? Do you plan to expand globally?

We started out in Dublin, our local stomping ground, but now our network is almost evenly split between Ireland and the UK, with a growing presence overseas. The UK will continue to be a significant focus for us this year, alongside exploring new global markets.