The problem
In December people want to buy something for a friend's dog or cat but don't know its food or size, so they buy nothing or go to a big chain. If a pet shop is asked for vouchers 40 times in December and could sell each at $27£20€24A$38C$38 that's $1,064£800€952A$1,536C$1,504 of sales missed.
What the AI does
Square Gift Cards has no monthly fee and nothing to pay to set up digital cards. Customers buy eGift cards from an online ordering page or at the till, and cards are redeemed through Square's point of sale with no redemption fee. Physical cards start at $0.69£0.52€0.62A$1C$0.98 each if buyers want something to hand over. Card processing applies when a gift card is sold: 1.4% + 25p for UK cards online and 1.75% in person. Put the eGift link on your website and social posts from November, and a sign by the till.
A worked example
A pet shop in Harrogate uses Square at the till and is asked every December whether it sells vouchers. It sets up eGift cards and orders a small pack of physical cards.
Before
No gift cards; about 40 December requests turned away
After
40 gift cards sold at $27£20€24A$38C$38: $1,064£800€952A$1,536C$1,504 of sales, mostly spent in January
What it's worth
About $27£20€24A$38C$38 a month in profit, averaged over a year, at an assumed 30% margin on $1,064£800€952A$1,536C$1,504 of gift card sales in December ($319£240€286A$461C$451 a year, divided by 12). There's no monthly fee; card fees come off each sale, and physical cards cost from $0.69£0.52€0.62A$1C$0.98 each.
How to set it up
- In Square, set up digital gift cards and the online page where people buy them.
- Decide whether to order physical cards, from $0.69£0.52€0.62A$1C$0.98 each, for buyers who want something to hand over.
- Set the amounts people can choose, such as $13£10€12A$19C$19 $27£20€24A$38C$38 and $40£30€36A$58C$56.
- From November, add the gift card link to your website and social posts, and put a sign by the till.
- Show staff how to redeem a card at the till before the January rush.
What goes wrong
- Gift cards are money you owe customers until they're spent; keep track of what's outstanding.
- Decide your own terms for gift cards, including any expiry, and show them to buyers before they pay.
- Card fees are taken when the gift card is sold, not when it's spent.