Square’s POS Data Pinpoint the Value of Regular Customers

As creatures of habit, individuals often follow a routine throughout the day, and that extends into their local shopping activity. New data from Square, the point-of-sale arm of Block Inc., have found that regular customers generate six times more revenue for local businesses than more transient shoppers.

Drawing on transactions made at U.S. Square merchants from January 2019 through December 2025, the “2026 Square Local Economy Report” also reports that 32% of regular customers are shared among businesses within the same ZIP code, says Christine Kahm, Block’s head of customer strategy, in an email to Digital Transactions News. Though Square has approximately 4.5 million merchants globally, it does not provide a U.S.-only tally.

This role of the “neighborhood network effect” turned out to be revealing. “While customer loyalty is widely recognized as a key driver of individual business success, what stood out was how often that loyalty extends beyond a single storefront,” Kahm says. The 32% of consumers shared among businesses helps strengthen the local economy as they routinely move among their favorite places, she says.

For example, in the Richmond neighborhood of San Francisco, “one path through the network of shared regulars links a hair salon to a nearby coffee shop, which connects to a dessert shop,” the report says.

“Food-and-beverage businesses tend to be especially good at building loyal customer bases,” Kahm says. “They often become part of customers’ daily or weekly routines, and act as a link connecting nearby sellers. Among these businesses, a neighborhood’s cafés typically have the highest number of regular customers, with bakeries following close behind.”

Square’s data found that revenue from regular customers increased 7.67% in 2025, besting overall revenue growth of 6.97%.

One way to cultivate regulars is with affordable prices and friendly and reliable services. A Block survey of 994 consumers last fall found that 65% cited affordable prices as a reason for returning to a local business, followed by 54% who marked out friendly and reliable service.

Kahm says the service aspect is very important. “It’s the latter that often distinguishes Square sellers. They build their base of regulars by deeply understanding their customers through data, empowering staff to build genuine connections, and going beyond the typical loyalty program to recognize regulars and build relationships with perks, memberships, or hosted events.”

Harkening to the neighborhood effect, the Square survey found that 56% of consumers cited a business’s proximity to their homes as a factor in choosing to spend their money there. Forty percent said word-of-mouth affirmations were a factor, while 37% said the same about discounts, deals, or loyalty programs.