The Secrets to Business Investment with Moonpig Founder Nick Jenkins

"We Took Moonpig to £45 MILLION in 3 Years"

Are you struggling to understand how to make smart investments in your business? Many entrepreneurs face the dilemma of where and how to allocate funds efficiently to ensure maximum return on investment. This challenge often leads to hesitancy, missed opportunities, and suboptimal growth.

At ActionCOACH, we specialise in guiding business owners through these intricate investment decisions. Our expertise is rooted in real-world experiences and successful entrepreneurial strategies, just like those employed by Nick Jenkins, the founder of Moonpig.com. By analysing his journey, we offer insights into making prudent business investments.

This article will look into Nick Jenkins' remarkable success story with Moonpig.com, highlighting key strategies and decisions that propelled the company to a £45 million turnover in just three years! And yes, that is the Moonpig “jingle” that is now playing in the background of your mind… genius, hey.

The Journey of Investment and Growth

When Nick Jenkins, the founder of Moonpig.com, decided to start advertising on television, it marked a pivotal moment in the company's history. With limited financial resources, the Moonpig team adopted a highly analytical approach to marketing. They meticulously evaluated various marketing channels, focusing on customer acquisition costs and return on investment. This approach allowed them to allocate their limited budget to the most effective channels judiciously.

Moonpig's journey began with a modest marketing budget and a focus on acquiring customers at the lowest possible cost. "We were very analytical about marketing... we looked at every possible channel for marketing and spent as little money as we possibly could to work out what the cost of customer acquisition was through that channel."

Jenkins and his team spent minimal amounts on different marketing channels to determine the cost of customer acquisition for each. They then focused on channels offering the lowest cost per customer, reinvesting in those channels as long as they continued to provide a good return on investment. This strategy was underpinned by a thorough understanding of customer behaviour and cash flow projections, enabling Moonpig to invest confidently in customer acquisition.

The Best Decision Nick Jenkins Ever Made

The turning point for Moonpig came with their decision to invest in television advertising. "We would throw money at marketing as long as our goal was to spend as much on a customer as we would get back in two months in gross margin."

Initially, they invested £30,000 in creating an advert and an additional £50,000 in media expenses. This bold move paid off, acquiring customers at an average cost of £10 each. As revenue began to flow back, Moonpig progressively increased its advertising budget, eventually spending up to £1.2 million per month on TV advertising. This substantial investment was key in skyrocketing Moonpig's turnover from £3 million to £45 million within three years.

The Philosophy Behind the Investment

Nick Jenkins' approach to business investment was both analytical and strategic. He stressed the importance of understanding the financials and being able to project future cash flows accurately. "With a lot of customers buying with very small orders... we understood exactly what a typical customer would behave like... we could project that forward," Nick reflects on understanding customer behaviour. Additionally, he emphasises flexible budgeting, stating, "What you've got to work out is what can you afford to spend to acquire a customer and keep throwing money at that... every penny you spend on marketing you're getting back and some."

The Promise of Learning from Success

Jenkins' story offers several crucial lessons for business owners:

• Analytical Approach: Understand your customers' behaviour and use this data to inform your investment decisions.
• Flexibility in Budgeting: Do not limit your marketing investments to a fixed budget. Instead, focus on the cost of customer acquisition and the return on investment.
• Strategic Investment: Be willing to make bold investments when the potential return justifies the risk.
• Continuous Evaluation: Regularly assess the effectiveness of your marketing channels and adjust your strategy accordingly.
• Understanding Financials: "You've got to learn the language of financials, the literacy. You need to make sure that you're making enough gross margin on that sale to cover your marketing cost and make a contribution to overhead," advises Jenkins on financial literacy in business.
• Growth and Profitability: "My rule of thumb was we got to be able to see when we get to make a profit on a customer that we recruit and be very confident of that," he adds, emphasising the importance of profitability.

Nick Jenkins’ journey with Moonpig exemplifies the power of strategic investment and analytical marketing in business growth. By adopting a similar approach, you can make more informed decisions in your business, potentially leading to exponential growth. Remember, the key to successful investment lies in understanding your market, being flexible with your budgeting, and continuously evaluating your strategies. At ActionCOACH, we are dedicated to guiding you through these complex decisions and helping you achieve your business goals.

About Nick Jenkins, the Pioneering Entrepreneur and Inspirational Business Speaker

Nick Jenkins, the entrepreneur behind the online greeting card company Moonpig, is a notable figure in the business world. In 2000, he launched Moonpig.com, leveraging the internet's potential to create a novel, personalised card service, a pioneering concept at the time and of course, that non-forgettable jingle from the TV adverts - is it still on repeat in your head too? This venture significantly influenced the e-commerce and greeting card industries, with Moonpig.com leading the UK's online card market.

Known also for his role as a 'Dragon' on BBC's "Dragon’s Den" from 2015 to 2017, Nick Jenkins is a keen investor in start-ups, especially in web retail and technology. His journey from establishing a successful multi-million-pound business offers valuable insights. As a corporate speaker, he shares his expertise in customer service, business management, innovation, marketing, and leadership, inspiring creativity and determination in his audience. You can now see why we simply had to talk with Nick on the Business Excellence Podcast and ask him to share his invaluable insights with us. 

Listen, Learn, and let These Lessons Transform Your Approach to Business

In conclusion, Nick Jenkins' journey with Moonpig.com is not just a story of business success; it's a blueprint for strategic investment, analytical marketing, and innovative thinking. From understanding customer behaviour to flexible budgeting and prioritising profitability, his approach provides invaluable lessons for entrepreneurs and business owners. By adopting these principles, you, too, can navigate business investment with greater confidence and potential for success.

Don't miss the opportunity to hear more from Nick Jenkins as he shares his experiences and insights. Tune into the full episode of the Business Excellence Podcast, where you'll find knowledge and inspiration from one of the most successful entrepreneurs of our time.  Take the next step in your business journey with ActionCOACH and explore the depths of entrepreneurial wisdom on the Business Excellence Podcast. Your path to business excellence starts here.