Moonpig’s use of AI to design and personalise cards drives up sales
Moonpig reported a 6.7% sales increase to £169m after expanding AI tools that help customers design, personalize and order greeting cards. The AI features now touch half of all purchases, improve query handling and support a return to profitability.
Moonpig, the UK‑based online greeting‑card retailer, announced a 6.7% rise in revenue to £169 million for the six‑month period ending 31 October, a growth it attributes largely to the rollout of artificial‑intelligence (AI) tools across its platform. The AI suite assists shoppers in creating card designs, customizing messages, adding stickers or photos, and even generating handwritten‑style text, turning a routine purchase into a more creative experience.
How AI is reshaping the Moonpig experience
Chief executive Nickyl Raithatha explained that AI now drafts a substantial portion of the company’s card catalogue, ranging from baby‑shower greetings to corporate acknowledgements. While the algorithms generate design concepts, an in‑house team reviews each output to ensure relevance and originality, preventing the site from becoming a repository of generic templates. This hybrid approach allows the platform to suggest dozens of variations for a single occasion, giving users a broader creative palette without sacrificing the human touch.
Data released by Moonpig shows that roughly 50% of all orders now involve at least one AI‑driven feature—a dramatic jump from the 2% adoption rate recorded two years ago. Customers can, for example, upload a photograph and let the system automatically adapt the surrounding layout to suit a specific age group or relationship, such as a grandparent’s birthday or a teenager’s graduation.
Impact on sales, profit and customer service
The AI‑enhanced offering has not only increased average order value but also boosted order frequency, especially on the core Moonpig brand. The stronger top line helped the company swing back into profit, posting a pre‑tax gain of £26.6 million for the half‑year, a reversal from the £33.3 million loss recorded a year earlier. Moonpig’s European arm, Greetz, and its ancillary voucher business—covering experiences like spa days and cinema tickets—also contributed to the turnaround.
Beyond sales, the AI chat assistant now resolves about one‑third of all customer inquiries, with satisfaction scores consistently outpacing those of human agents. Raithatha emphasized that the technology is not intended to replace staff but to augment productivity, enabling designers to focus on higher‑value creative work while the AI proposes 50 or more design options per request.
Leadership change and future outlook
Raithatha, who will step down at the end of the month, highlighted that the AI rollout aligns with Moonpig’s broader strategy to modernise its product suite ahead of the festive peak. He noted that recent fiscal measures announced in the UK Chancellor’s budget have not yet altered consumer behaviour, but the company feels more confident about planning in a less uncertain environment.
His successor, Catherine Faiers—currently chief operating officer of AutoTrader’s second‑hand car marketplace—will inherit a business that has successfully blended technology with tradition. Faiers is expected to continue investing in AI capabilities while safeguarding the brand’s hallmark of personal, heartfelt messages.
What the AI trend means for the online greeting‑card market
Moonpig’s experience illustrates a broader shift in e‑commerce where AI is used to personalize products at scale. By automating routine design tasks, retailers can offer a near‑infinite array of options without proportionally increasing design staff. For consumers, the benefit is a faster, more tailored shopping journey that feels bespoke despite being generated by algorithms.
Analysts predict that as AI models become more sophisticated, the line between human‑crafted and machine‑assisted creativity will continue to blur. Companies that manage the balance—leveraging AI for efficiency while preserving a human quality‑check—are likely to capture the most market share in the competitive online card space.
In the coming months, Moonpig plans to expand its AI capabilities to include real‑time language translation for international cards and deeper integration with social‑media platforms, allowing users to share digital versions of their creations instantly. These initiatives aim to keep the brand at the forefront of digital personalization as consumer expectations evolve.
Why it matters
Moonpig’s AI‑driven growth shows how personalization technology can revive profitability in traditional retail sectors, setting a benchmark for other online greeting‑card providers.
Key points
- Moonpig sales rose 6.7% to £169 million after expanding AI design tools
- AI features now touch about half of all card purchases, up from 2% two years ago
- The AI chat system handles roughly one‑third of customer queries with higher satisfaction than human agents
- Pre‑tax profit swung to £26.6 million, reversing a £33.3 million loss from the previous year
- CEO Nickyl Raithatha steps down; COO Catherine Faiers will take the helm
Frequently asked questions
How does Moonpig's AI help customers design cards?
The AI suggests multiple design layouts, adapts graphics to the recipient’s age or relationship, and can generate personalized handwriting or sticker elements based on user input.
What proportion of Moonpig orders now use AI features?
Approximately 50% of all purchases involve at least one AI‑driven tool, a steep increase from about 2% in 2022.
Will AI replace human designers at Moonpig?
No. The company uses AI to generate ideas, but a human team reviews each design to ensure relevance and creativity before it goes live.
Who will lead Moonpig after Nickyl Raithatha leaves?
Catherine Faiers, currently COO of AutoTrader’s second‑hand car marketplace, will become Moonpig’s chief executive.
