Shutterfly 2015 Annual Report Download - page 8

75% of our revenues coming from repeat customers and increase in total transacting customers
of 6%. Our top three consumer brands, Shutterfly, Tiny Prints and Wedding Paper Divas, grew
through innovations in premium products and advertising. Shutterfly and Tiny Prints continued
to delight customers and increase their loyalty to our industry-leading lineup of design-forward
products and services. Both brands benefited from the popularity of our premium add-on
options such as foil, envelope liners and special finishing touches; premium services, mobile
and home decor. We also added several premium options such as designs on envelopes, colored
envelopes and a variety of envelope liners in different designs, a selection of trim options to
differentiate the card and take the edge off the hard corners, with for example, curves and
scallops, as well as new address labels.
Home décor continued its strong growth with new products such as new ornaments and wall art.
We launched Art Prints, featuring high quality wall art in various mediums with an option to
upgrade to higher quality paper. Art Library, our curated offering with professional images,
attracted many new customers. Furthermore, we also officially launched “Make My Book” in
October, which offers customers the option of having us create their photo album for them, and
which brought in new customers.
In Tiny Prints, we launched a new glitter offering with glitter that stays on the card, not the
floor, which was exclusive to Tiny Prints in the marketplace. We focused on providing full
solutions or “suites” that helped our customer stand out — at the mailbox and from the crowd.
Our customer cares about the details, and we made it easy for them to add premium features
such as liners and colored or themed envelopes, including designs on the back, which lifted
average order value (AOV).
New products in Wedding Paper Divas included premium designs under the “Affordable
Luxury” category — foil products, a re-launch of thermography and personalized letterpress
and an expanded laser cut collection. We went to market with a simpler free sample kit which
drove sample growth and reduced the time to get the product in the customers’ hands. Wedding
Paper Divas also benefited from coordinated marketing messages to reinforce the affordability
of our products and increased direct mail touchpoints to encourage purchase. We also launched
a new campaign “True to the Two of You” — real world couples are about the couple and not
just the bride.
These innovations are on top of the success in 2014, during which we increased total
transacting customers 6%, and launched several new products including
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⁄ 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 décor 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. And, 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.
•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
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