Shutterfly 2014 Annual Report Download - page 9

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Molly Sims, Rachel Zoe and Nicole Richie. We also partnered with leading lifestyle
brands like Nordstrom, Banana Republic, GAP, Pottery Barn, Southern Living, as well as
mainstream brands such as Macy’s, Kellogg’s, Babies R Us, Fisher Price and McDonalds
to launch innovative co-branded marketing campaigns. At our Tiny Prints and Wedding
Paper Divas brands, we added celebrity designers such as Marchesa, Claire Pettibone and
Victoria Justice to our lineup of designers. During 2014, we also expanded our catalog
distribution to new and prospective customers and launched a new television campaign
targeting new customers from our core demographic on various cable channels. We also
continue to work closely with our key advertising partners, participating in new programs
such as Facebook’s commerce program, Pinterest’s new Partners program and Google’s
cross device conversion program. We believe these efforts will drive increased awareness
of our brands and our product offerings, as well as increase the engagement of existing
customers.
•Attract, retain, and grow our leadership team.
In order to successfully execute our strategies, we require a talented leadership team. As a
result, we intend to continue our focus to attract, retain, and grow our team; and to build
continuity and pursue executional excellence in our daily operations everywhere. By
providing our employees with a great place to work, we believe that we continue to
strengthen our high performance culture.
•Maintain financial discipline.
We manage our business activities with a focus on continued revenue and profitability
growth. Our financial strategy involves growing revenues across our brands and initiatives
to take advantage of the multi-billion dollar social expression and personal publishing
markets, but in a way that generates continued adjusted EBITDA growth.
Enterprise
In Enterprise, we continue to expand programs with existing customers while also targeting new
customers. We continue to focus our efforts in expanding our presence in this market. To support our
Enterprise segment, we have hired a small sales force to engage with marketing fulfillment organizations
and advertisers for Enterprise services.
Technology and Production Systems
We use a combination of proprietary and third-party technology, including the following:
Customer relationship management, or CRM, system. Our integrated CRM system is composed of
various tools designed to convert first-time customers into repeat buyers. We seek to increase average
order sizes by expanding customer awareness, providing targeted, segmented offers to customers, and
encouraging cross- and up-selling. The system uses a variety of data, including website usage patterns,
order size, order frequency, products purchased, seasonality factors, image upload, and share usage, as well
as customer satisfaction information. This data is continually updated and refreshed in a data warehouse,
from which different customer segments are identified and monitored on a continuing basis for targeted
marketing communications.
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