Shutterfly 2014 Annual Report Download - page 7

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Please find page 7 of the 2014 Shutterfly annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

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and in publications, contract for targeted e-mail marketing services and contract for advertising placement
on leading search engines. Within this segment, we seek to drive the following strategies:
•Continue to grow and optimize our core brands.
We have a primary strategy to grow our core Shutterfly and Tiny Prints brands by
acquiring new customers, expanding the lifetime value of our existing customers,
improving conversion rates, and introducing innovative new products. During 2014, we
increased total transacting customers 14%, and we launched several new products
including 3⁄4 folded cards, premium card options like foil-stamping and edge treatments,
and metal and glass prints. We also introduced laser-cut cards and letterpress on our Tiny
Prints brand. In addition, we introduced a new shopping experience for our Home D´
ecor
collection called Design Studio. Design Studio supports ecommerce and conversion by
enabling a more personalized and tailored shopping experience by room, style, or
decoration, as well as adding styling tips and do-it-yourself ideas. In 2013, we acquired
BorrowLenses and MyPublisher and began to introduce their customer base to the other
products and services of our Shutterfly and Tiny Prints brands. In 2012, we acquired over
five billion of Kodak Gallery customer photos and migrated those customers onto the
Shutterfly platform. Our Share Sites platform, as well as our integrated marketing
campaigns and Internet marketing are also a significant source of our new customer
registrations.
In 2015, we are beginning a 15 to 18 month process to build the next generation of
Shutterfly: a world-class memory management service connected to our personalized
e-commerce solutions. This project will incorporate our ThisLife service directly into
Shutterfly.com and consolidate our ThisLife and Shutterfly mobile apps. We believe this
will enable the company to accelerate the rate of adoption of ThisLife’s features and
functionality through a simpler customer experience (one service, one site, one set of
apps, and one well-known brand) and drive greater usage and monetization. In addition,
we intend to move the TinyPrints and Wedding Paper Divas technology base to this new
Shutterfly platform. Currently, we are duplicating investments in the Cards & Stationery
and Photo Gift/Home D´
ecor businesses across two distinct technology platforms, forcing
us to make trade-offs on features and functionality which increases time to market, cost
and complexity. We will continue to invest in the Tiny Prints and Wedding Paper Divas
brands and consumer facing capabilities but our brands will be supported by a common
set of shared technology services, including cart, checkout, creation paths, login, address
book and media storage platform.
•Invest in early stage strategic growth initiatives.
We have made investments in key, early stage initiatives. In 2014, we acquired
Groovebook, a mobile photo book app subscription service that sends customers a
keepsake book of their mobile phone photos each month. Groovebook continues our
commitment to offering customers dynamic mobile experiences and options for
preserving their memories. Also in 2014, We continued to improve our mobile experience
adding new features and functionality to our existing apps on iOS, Android and Kindle
devices. We completely redesigned our Share sites iPhone app, added new styles, fonts
and a dust cover options to our Photo Story iPad app which we originally launched in
2013, and unveiled a ‘‘Super Simple Book’’ creation path on our Shutterfly iPhone app,
providing mobile users the ability to create, personalize and order a 20-page,
6