Moonpig Praises ‘Always On’ Marketing Strategy

Moonpig says the scale of its UK business has enabled the card and gift brand to take an “always on” approach to marketing above the line. This is compared to a “previous concentration” of marketing activity during peak times.

Choosing to invest in marketing to “sustain awareness,” the focus has been on acquiring new customers in the brand’s first full year since its IPO in 2021. Moonpig says its marketing strategy “remained effective after the lockdown ended”, generating higher revenue from new customers than before the pandemic.

On a two-year basis, group turnover for the year to 30 April increased by 75.8% to £304.3 million, reflecting “significant growth” in customer base, frequency purchase price and a further increase in gifts. However, year-on-year revenue was down 17.3%, reflecting a comparison with periods of severe lockdown restrictions in 2021, which benefited the online card and gift brand .

During the year, Moonpig delivered 39.8 million orders, up from 50.9 million in 2021, but up from 24.3 million in 2020. The app now accounts for over 43% of orders for Moonpig, compared to 37% in 2021 and 16% in 2020.

Moonpig Hails ‘Strong’ Marketing Performance Despite Falling Revenue

The company has also started testing the Moonpig Plus subscription service, which offers discounts and perks in exchange for an annual fee. Currently only available to a small proportion of customers, the intention is to test different variations over time to determine the best proposal and pricing structure to promote customer buying frequency and lifetime value.

The brand says its “consistently strong” marketing performance over the year has enabled it to acquire new customers at a faster rate than before Covid.

The company points to a “relentless focus” on creating and maintaining long-term customer relationships, based on insights from first-party data, which led to a “sustainable stage” in customer loyalty over the past year. Describing retention as “very high”, 87% of the group’s total turnover came from existing customers, compared to 75% in 2021 and 79% in 2020.

Moonpig says success in engaging customers and “encouraging them deeper” into its data-driven ecosystem has enabled the brand to “extend its leadership position” in UK online maps. The company reports that its market share in calendar year 2021 is 4.4 times that of its closest online competitor.

Focus on Personalization

The brand claims to be moving towards offering “hyper-personalized” customer journeys, including personalized landing pages for customers who click a reminder, reminders of upcoming opportunities on the homepage, and search results. custom searches.

Moonpig also launched a personalized promotions engine offering targeted offers to incentivize first-time app users and personalized offers on the shopping cart page allowing customers to attach a gift before completing their order.

The company says its algorithms have been optimized across 230 million cumulative transactions as of April 30, up from 190 million in April 2021, helping Moonpig capture “more than four times” the additional customer data than its nearest competitor.

The brand also says it has grown its database of calendar reminders, which it sees as key to customer retention, to more than 70 million as of April 30, from 50 million in April 2021.

To fuel this digital push, Moonpig has increased the number of data scientists, analysts and engineers in the company to 195, up from 153 in 2021.

Why Moonpig Relaunched Its Brand Mascot

In addition, the company is considering its proposed £124 million acquisition of UK gift experience platform Buyagift, which Moonpig says will “bring a sea change” to its gift proposition. During the year, gifts reached their highest ever share of total revenue, at 48%, reflecting what Moonpig describes as “new progress” in its strategy to become the ultimate gifting companion. .

During the year, Moonpig launched 500 new branded gift SKUs (stock keeping units) and rolled out a range of jewelry in the UK. Compared to 2020, the company has increased the number of licensed brands it works with by 116%.

Diversification into new product lines was supported by the launch of new packaging in the gift line, as well as premium packaging for higher priced purchases. The brand believes the new “unboxing journey” will help its products stand out and drive “viral customer growth.”

Over the past 12 months, Moonpig has also relaunched its pig mascot after a four-year hiatus in a bid to reunite the brand’s original icons. Speaking to Marketing Week at the time, CMO Kristof Fahy described the new piglet mascot as an “incredible brand asset” alongside the brand’s unique name, intense pink color and jingle.

CEO Nickyl Raithatha describes the year as a “transformational period” for the group financially, operationally and strategically, adding that Moonpig “significantly exceeded” the targets set when it went public. Raithatha also points to a “radical shift” in customer size, with each customer “buying more often than before”.

William L. Hart