Stamps.com 2015 Annual Report Download - page 20

TABLE OF CONTENTS
anytime.Ifwelosekeyemployeesandareunabletoreplacethemwithqualifiedindividuals,ourbusinessandoperatingresultscould
beseriouslyharmed.Inaddition,ourfuturesuccesswilldependlargelyonourabilitytocontinueattractingandretaininghighlyskilled
personnel.Wemaybeunabletosuccessfullyattract,assimilateorretainqualifiedpersonnel.Further,wemaybeunabletoretainthe
employeeswecurrentlyemployorattractadditionalqualifiedpersonneltoreplacethosekeyemployeesthatmaydepart.Thefailureto
attractandretainthenecessarypersonnelcouldseriouslyharmourbusiness,financialconditionandresultsofoperations.
The success of our business will depend upon the continued acceptance by customers of our service.
Wemustminimizetherateoflossofexistingcustomerswhileaddingnewcustomers.Customerscanceltheirsubscriptiontoour
serviceformanyreasons,includingaperceptionthattheydonotusetheservicesufficiently.Alsocustomersmayfeelthecostsfor
servicearetoohigh,theymaybegoingoutofbusiness,ortheymayhaveotherissuesthatarenotsatisfactorilyresolved.Wemust
continuallyaddnewcustomersbothtoreplacecustomerswhocancelandtocontinuetogrowourbusinessbeyondourcurrent
customerbase.Iftoomanyofourcustomerscancelourservice,orifweareunabletoattractnewcustomersinnumberssufficientto
growourbusiness,ouroperatingresultswillbeadverselyaffected.Further,ifexcessivenumbersofcustomerscancelourservice,we
mayberequiredtoincursignificantlyhighermarketingexpendituresthanwecurrentlyanticipatetoreplacethesecustomerswithnew
customers.
If we fail to effectively market and sell our services and products, our business will be substantially harmed and could fail.
Inordertoacquirecustomersandachievewidespreaddistributionanduseofourservicesandproducts,wemustdevelopand
executecost-effectivemarketingcampaignsandsalesprograms.Wecurrentlyrelyonacombinationofmarketingtechniquestoattract
newcustomersincludingdirectmail,onlinemarketingandbusinesspartnerships.Wemaybeunabletocontinuemarketingourservices
andproductsinacost-effectivemanner.Ifwefailtoacquirecustomersinacost-effectivemanner,ourresultsofoperationswillbe
adverselyaffected.
If we fail to meet the demands of our customers, our business will be substantially harmed and could fail.
Ourservicesandproductsmustmeetthecommercialdemandsofourcustomers,whichincludehomebusinessesandoffices,
smallandmediumsizedbusinesses,corporationsandindividuals.Wecannotbesurethatourserviceswillappealtoorbeadoptedby
anever-growingrangeofcustomers.IfweareunabletoshipproductssuchasitemsfromourSuppliesStoreinatimelymannertoour
customers,ourbusinessmaybeharmed.Moreover,ourabilitytoobtainandretaincustomersdepends,inpart,onourcustomerservice
capabilities.Ifweareunableatanytimetoaddresscustomerserviceissuesadequatelyortoprovideasatisfactorycustomerexperience
forcurrentorpotentialcustomers,ourbusinessandreputationmaybeharmed.Ifwefailtomeetthedemandsofourcustomers,our
resultsofoperationswillbeadverselyaffected.
A failure to further develop and upgrade our services and products could adversely affect our business.
Anydelaysorfailuresindevelopingourservicesandproducts,includingupgradesofcurrentservicesandproducts,mayhavea
harmfulimpactonourresultsofoperations.Theneedtoextendourcoretechnologiesintonewfeaturesandservicesandtoanticipate
orrespondtotechnologicalchangescouldaffectourabilitytodeveloptheseservicesandfeatures.Delaysinfeaturesorupgrade
introductionscouldcauseadeclineinourrevenue,earningsorstockprice.Wecannotdeterminetheultimateeffectthesedelaysorthe
introductionofnewfeaturesorupgradeswillhaveonourrevenueorresultsofoperations.
The modification or termination of agreements with our integration partners could adversely affect our business.
Wehavepartnershipagreementswithmanyintegrationpartnersinthehighvolumeshippingareaofourbusiness.Thesepartners
integrateourmailingandshippingservicesintotheirofferingsandprovidecustomersthatuseourservicesthroughtheirproducts.The
modificationorterminationofanyoftheseagreementsbyusorourpartnerscouldresultinlostcustomers,reducedpostageprintedand
lostrevenue,andourresultsofoperationscouldbeadverselyaffected.
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