Gifting brand Moonpig has praised its “well-optimised marketing platform” for helping drive customer loyalty and revenue growth.
Reporting its full year results today (26 June), the group reported revenue of £350.1m, up 2.6% on last year, with profit rising 3% to £208.6m.
The Moonpig brand specifically increased revenue by 8.6% year-on-year, driven by growth in orders. Revenue from the US, Australia and Ireland grew at a combined 36.1% year-on-year, markets where the company is looking to build brand awareness.
Gifting brand Moonpig has praised its “well-optimised marketing platform” for helping drive customer loyalty and revenue growth.
Reporting its full year results today (26 June), the group reported revenue of £350.1m, up 2.6% on last year, with profit rising 3% to £208.6m.
The Moonpig brand specifically increased revenue by 8.6% year-on-year, driven by growth in orders. Revenue from the US, Australia and Ireland grew at a combined 36.1% year-on-year, markets where the company is looking to build brand awareness.
On a call with investors today, CEO Nickyl Raithatha said the Moonpig brand had “returned to double digit revenue growth”, claiming the brand positioning of “having the world’s most personalised card” is resonating with customers.
“What we’re seeing from customers is they understand just how different we are versus buying a regular card from the offline market. And so that’s kind of pulling more customers online,” said Raithatha.
The CEO also announced that he is departing the business after seven years following the completion of his 12 month notice period and plans to “leave Moonpig on a high”. The search for his successor is underway.
We can continue to optimise how we present those [Experiences] products to customers, how search technology works, how we can show them to customers.
Nickyl Raithatha, Moonpig
Having recently celebrated its 25th birthday, the brand has been performing strongly with consumers. The total active customer base at Moonpig and the group’s Dutch brand Greetz increased by 4.3% to 12 million as of 30 April.
Moonpig Plus and Greetz Plus subscriptions rose to 920,000 members, compared to 540,000 in April 2024. Moonpig Plus also lifted members’ average order frequency by over 20%. These members were described as the most “engaged customers”, opting more often to attach a gift to their order.
Headline frequency remained unchanged year-on-year at 2.94 orders per active customer, while the average order value increased by 2.1% year-on-year. The company credited this success to the addition of gifts to purchases, postage price increases and more efficient targeting of promotional activity.
In a statement accompanying the financial results, the company called out the strength of its “well-optimised marketing platform”, which Moonpig claims “consistently delivers customer acquisition at scale” within a 12-month payback threshold.
Raithatha also noted the impact of tech developments, including social login capabilities for customers via Apple and Google, and magic links for passwords, fuelled the conversion of visitors into new customers.
“It’s ecommerce best practice. We launched it and we saw a pretty significant step up in conversion rate at that step for customers that previously may not have wanted to create an account,” he explained.
The Moonpig CEO claimed “it’s not an easy environment to acquire a customer, certainly on a performance marketing basis”.
Marketing drumbeat
When it comes to marketing, Raithatha explained that instead of making “big brand investment”, Moonpig is looking to “being more and more creative across the group” and keep the “drumbeat of marketing on” through partnerships, influencers and social media.
He claimed being “clever” in the way the company uses social media is “cost effective”, for example driving demand for its Experiences product via TikTok.
Customer loyalty was also highlighted as a strength, as nearly nine tenths of revenue came from existing customers.
In its new markets, including the US, Australia and Ireland, the goal is to “increase customer lifetime value to support future scaling of marketing”, with the brand acknowledging expanding the gifting range is key.
Moonpig has extended its gift attach offering and sees this as a key growth lever for the business, particularly as it partners with “trusted consumer brands” such a Hotel Chocolat, Next and The Fragrance Store.
The company claimed these partners “contribute deep category merchandising expertise” and “enrich” the curated range, lending their brand equity to the platform. Their introduction supported “robust gift attach rate growth” during the second half of the year.
What we’re seeing from customers is they understand just how different we are versus buying a regular card from the offline market.
Nickyl Raithatha, Moonpig
While Raithatha admitted it was a “tougher environment” in the second half of the year and premiumisation proved “a little bit of a harder fight”, he credited the acceleration of gift attach and said the brand is seeing “strong growth” from the offering.
The company conducted paid marketing on social for its gift attach brands and co-branded on marketing to boost Virgin Wines on Moonpig, which the CEO said “unlocked sales”.
The business is also expanding its Experiences branch, with exclusive offers such as The Traitors live experience, in an effort to “go to where the customer is”.
“Rather than continuing to say, you know, buy afternoon teas and the hotel stays, which continue to sell actually, customers are going axe throwing in the evenings. They are doing virtual reality Squid Game events,” said Raithatha.
“We can continue to optimise how we present those products to customers, how search technology works, how we can show them to customers,” he added.
The Moonpig CEO claimed having a “seamless digital experience” will drive customer growth, conversion rates and NPS.
Going forward, Raithatha argued there is more the brand can do to differentiate in the market, but that isn’t the “key priority”.
