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Customer-centricity is often a goal for many marketers, but might only serve as lip service.
At Shutterfly, its committed customer-centric approach has paved the way for a great customer experience and ever-increasing customer loyalty.
“From an innovation and differentiation point of view, we are focused on maintaining our customer-centric approach and unwavering commitment to high-quality, design-forward products and services,” Shutterfly CEO Jeffrey Housenboldon said during the company’s April 29 first-quarter earnings conference call, according to Seeking Alpha. “We are driving innovation across our core businesses and early stage initiatives, as evidenced by several projects including the broadening of our assortment and selection of products aimed at capturing a greater share of wallet, the refreshing of our user experience, brand identity, and functionality across our websites to attract and retain customers. The launch of ThisLife, our new memory management solution, provides consumers a new way to manage, share, enjoy, and preserve their memories.”
Housenboldon said Shutterfly’s expansion and development of its mobile offerings and the addition of new features and functionality to its existing apps on iOS, Android, and Kindle devices provide a flexible approach for customers as they interact with their memories across various devices and ecosystems.
First-quarter sales rose 17%, to $160 million.
“Our partnerships with major national brands are providing an effective lever to grow customers, increase visibility for our brands, and drive attractive lifetime customer value,” Housenboldon explained. “Overall, our customer metrics demonstrate strong performance across the board for our Shutterfly brand in every product area. We saw particular strength in photo gifts, reflecting successful promotional activity early in the quarter.”
Shutterfly recorded growth in its mobile revenue. Shutterfly’s brand revenue from all mobile sources accounted for 13% of first-quarter revenue, up from 9% in the same period last year and 10% in the fourth quarter.
“During 2015, we are expanding the capabilities of our SBS technology platform to enhance our differentiated offering,” Housenboldon said. “We believe these platform investments will lead to increased profitability in our enterprise business in 2016 and beyond.”
The repatriation of Shutterfly’s call centers back to the United States to increase customer satisfaction rates further differentiated the company from online and offline competitors.
“The combination of ThisLife with Shutterfly will provide a more holistic and stronger value proposition to consumers while reducing technology costs from an integrated platform point of view,” Housenboldon added.
What’s more, Housenboldon discussed the company’s vision to build a modern, scalable, global technology platform that will be the underpinning of the next generation Shutterfly, a world-class memory management service connected to the smartest personalized ecommerce solutions.
“We call this Shutterfly 3.0.,” he explained. “We introduced our vision for this new technology platform in February at the time of our Q4 results. As I said on our last earnings call, as part of this plan, we will be incorporating our ThisLife service directly into Shutterfly.com and consolidating our ThisLife and Shutterfly mobile apps. We believe this will enable the company to accelerate the rate of adoption of ThisLife’s features and functionalities through a simpler customer experience, one service, one site, one set of apps, and one well-known brand, and drive greater usage and monetization. We are still in the early stages of this five to six quarter process, but you can begin to see some glimpses of what consumers will have available to them as we roll out new features on ThisLife.”
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