Boosting Gift Card Conversions by 12.5% with an AI Search Assistant

  • Country: the USA
  • Industry: eCommerce & Retail
  • Team Size: 5

Highlights

  • Rapid and low-cost validation: We validated our idea by building a working MVP in just 3 days using Replit. Instead of spending time on perfecting the infrastructure, we focused on learning fast and created the concept for only $25.
  • Transitioning from “Search” to “Gift Advisor”: The solution provides contextual framing and explains why a gift card is relevant, reducing decision friction.
  • Solving vague intent via semantic search: We set up the system to understand the meaning behind each query. It can interpret natural language, full sentences, vague or emotional requests, and even non-text inputs like emojis.
  • Quantifiable commercial impact: 12.5% boost in search-to-purchase conversions and a 16% increase in items per order show that AI personalization helps undecided shoppers and increases revenue.

Client

Our client, BlackHawk Network Inc. (BHN), is a leading U.S.-based provider of branded payment technology. For this project, we worked with their eCommerce branch, which runs a gift card website for direct-to-consumer sales. Their customers visit the site to buy gift cards.

We have worked with BHN for almost ten years, providing custom software solutions through dedicated teams. Nearly 80 of our experts support the client. Our projects include enterprise platform development with data migration and microservices and building of the merchant portal, a self-service platform that streamlines merchant registration and onboarding, including legal checks. AMP now serves over 8,000 businesses in the US.

BHN has about 4,000 employees and operates in 28 countries. Their clients and partners include well-known brands like Kroger, Simon, Disney, Staples, iTunes, BestBuy, Target, and eBay.


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Product

The product is an AI-powered search assistant for an eCommerce gift card platform. It’s designed for customers who know they need a gift but aren’t sure which card to choose, helping them decide on the right present to give. The assistant understands what users want and guides them from vague ideas to confident choices. Users can describe their needs in their own words and receive relevant gift card options, along with suggestions for how to use them.


Goals and objectives

When we reviewed the client’s platform, we saw that the recommendation system was working well, increasing average order value by 15%. However, some shoppers still needed help since they knew they wanted a gift but didn’t know where to begin.To help these users stay engaged and complete their purchases, we suggested using an AI assistant to personalize gift discovery. As part of our AI consulting, we developed the idea and set these goals:

  1. Improve the relevance of search results: Ensure users receive accurate, meaningful results even when searching with vague, long, or imperfect queries.
  2. Suggest how to use our products: Provide contextual use cases and ideas to help customers understand how each card can be used for specific occasions, needs, or recipient profiles.
  3. Increase engagement with search: Encourage users to ask follow-up questions, clarify what they want, and explore more relevant options.
  4. Boost conversion rate and revenue: Reduce decision friction for undecided shoppers, leading to purchases and a growth in overall sales.

Project challenge

The team wanted to apply our AI/ML expertise to build a solution that would truly help users and give the product a competitive edge. In doing so, we faced several challenges:

  1. Validating the product quickly: We needed to confirm whether an AI assistant could genuinely help customers personalize their gift search by testing a simple MVP and learning from feedback.
  2. Supporting users with vague or undefined intent: Our team was tasked to make the system understand and respond to broad, unclear, or emotional requests from shoppers, as in the real world.
  3. Ensuring user-friendly search: Our experts wanted to help customers interact with the assistant in natural language. They can ask questions, refine their needs step by step, and feel guided rather than forced to use strict keywords.
  4. Reducing decision friction for uncertain shoppers: We needed to help indecisive users move from exploration to confident choice by providing relevant options, clear explanations, and simple ways to narrow down results. 

Solution

We wanted to quickly make sure that our idea worked, so we started with AI MVP development. We built a working prototype in three days using Replit, a platform where we could describe requirements in plain language and have AI generate code. This let us skip setup and infrastructure, so we could launch a live version for real users to try – all that at a cost of just $25. Since the AI assistant prototype ran in the browser, we didn’t need to set up servers or cloud environments. We could share a demo link right away, get feedback, make changes, and test again within minutes.

Next, we worked on validating the conversational AI in a way that could grow beyond a simple prototype. Instead of building our own model infrastructure, we used AWS Bedrock, which gives access to several large language models through one interface and is built for understanding intent and processing text efficiently. This choice saved setup time, avoided early vendor lock-in, and made it easier to move from testing to controlled rollout. In about six weeks, we went from the first demo to A/B testing, collecting real data on how well the assistant helped users who didn’t know what to search for and how it guided them to the right gift options.

We built the AI search assistant with several connected features. At its core is a semantic search layer that uses embeddings, so both user queries and products are mapped as vectors in the same space. This lets the system match by meaning, not just exact words, and understand full sentences, vague descriptions, and unusual phrasing. On top of this is a comprehension block that focuses on intent and can handle typos, slang, and incomplete queries. Finally, the Gift Advisor layer turns search results into helpful guidance, suggesting how each gift card can be used and presenting them as thoughtful ideas instead of just products.

We added small but important features to make the experience feel more natural. The system can read emojis as part of intent, which is especially useful on mobile. For instance, emojis of a heart and chocolate sent together are interpreted as a romantic vibe, and the search results adjust accordingly. At the same time, Gift Advisor adds context to brands like HelloFresh, presented as a meal kit option, and Sephora, as a beauty and self-care brand, so users quickly see the idea behind the possible present. Plus, the assistant suggests related categories, letting shoppers explore and combine cards into bundles. All these features turn search into an intent-driven assistant that helps customers go from a vague idea to a confident choice.

Tech Stack

  • AWS Bedrock AWS Bedrock
  • Replit Replit

Our results

Our work led to a successful launch of the AI assistant. It made the website easier to use and directly improved business results and user engagement with search. Specifically, we achieved:

  • 3 days for the prototype: We built a Replit-based MVP from natural-language requirements in just three days, with total prototype costs of about $25.
  • +12.5% increase in search-to-purchase rate: We introduced an intent-driven AI search assistant, and more search sessions successfully converted into completed orders.
  • +16% growth in items per order: We added guided discovery and contextual recommendations, and users became more confident exploring and combining gift options.
  • New customer segment unlocked: We reached a new group of customers by personalizing gift discovery for shoppers with vague intent. This attracted users who needed a gift but weren’t sure what to search for.
  • Improvements in search behavior: We made search more flexible by allowing natural language and emoji input. Users started searching with full sentences more often, used emojis (especially on mobile), and sent more location-based, intent-rich requests.

The success of the MVP and rollout increased management’s trust in AI solutions and made it easier to approve future AI projects. We are now working on improving the search system and adding new features, such as trending items and recommendations in the search results.

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