Innovation of the Week is a subscriber-only series highlighting retail initiatives that have caught the eye of our team. Every week, we will bring you new ideas and case studies that link to the trends in our Retail Horizon 2024 reports – across consumer, technology, sustainability, and economy, policy and industry.
What is it?
Moonpig is investing in AI and tech tools to drive higher lifetime value from its customers, with the company reporting that an enhanced AI deployment contributed to growth last year.
Among its tech investments, Moonpig significantly upgraded its algorithms to incorporate individual customer-level data, unlocking the ability to show different price ranges to different cohorts of customers.
Additionally, AI-driven creativity features were used more than 10 million times, including video messages, AI-driven customised card greetings, sticker images and digital gift vouchers.
Why does it matter?
Personalisation and loyalty are key drivers of growth for any retailer but particularly Moonpig with its mission to create ”better, more personal, connections between people that care about each other”. The company generated 89% of revenue in the past year from existing customers, demonstrating the lifetime value of investment in its platform.
Creativity features such as video and audio messages, sticker images, digital gift vouchers and AI-driven customised card greetings were used more than 10 million times.
Moonpig flagged that its database of “occasion reminders” reached 90 million in the year to April 2024, from 84 million a year earlier.
“Growth has been driven by our multi-year investments in technology and innovation, which continue to foster extraordinary customer loyalty. Our investments in new AI technologies are delivering an increasingly personalised experience”
Nickyl Raithatha, chief executive, Moonpig
Strategic implications
Continued investment in AI tools is helping retailers to personalise the customer experience and drive loyalty. By making shopping and gifting more engaging and relevant, customer lifetime value is increasing.
- Personalisation and innovation
- AI for productivity and engagement
Retail Horizon 2024 is Retail Week’s exclusive strategic toolkit for subscribers.
Across four in-depth reports, Retail Week research director Lisa Byfield-Green and our team of analysts explore the most significant trends that will shape the sector in the year ahead across consumer, technology, sustainability, and industry, economy and policy.
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