Vistaprint 2015 Annual Report Download - page 20

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If we are unable to attract visitors to our websites and convert those visitors to customers, our business
and results of operations could be harmed.
Our success depends on our ability to attract new and repeat customers in a cost-effective manner. We rely
on a variety of methods to draw visitors to our websites and promote our products and services, such as purchased
search results from online search engines such as Google and Yahoo!, email, direct mail, advertising banners and
other online links, broadcast media, and word-of-mouth customer referrals. If the search engines on which we rely
modify their algorithms, terminate their relationships with us, or increase the prices at which we may purchase
listings, our costs could increase, and fewer customers may click through to our websites. If we are not effective at
reaching new and repeat customers, if fewer customers click through to our websites, or if the costs of attracting
customers using our current methods significantly increase, then traffic to our websites would be reduced, our
revenue and net income could decline, and our business and results of operations would be harmed.
Purchasers of micro business marketing products and services, including graphic design and customized
printing, may not choose to shop online, which would prevent us from acquiring new customers that are
necessary to the success of our business.
The online market for micro business marketing products and services is less developed than the online
market for other business and home and family products, and our success depends in part on our ability to attract
customers who have historically purchased products and services we offer through offline channels. Specific factors
that could prevent prospective customers from purchasing from us as an online retailer include:
• concerns about buying graphic design services and marketing products without face-to-face interaction
with sales personnel;
• the inability to physically handle and examine product samples;
• delivery time associated with Internet orders;
• concerns about the security of online transactions and the privacy of personal information;
• delayed shipments or shipments of incorrect or damaged products;
• limited access to the Internet; and
• the inconvenience associated with returning or exchanging purchased items.
In addition, our internal research shows that an increasing number of current and potential customers
access our websites using smart phones or tablet computing devices and that our website visits using traditional
desktop computers may be declining. Designing and purchasing custom designed products on a smart phone,
tablet, or other mobile device is more difficult than doing so with a traditional computer due to limited screen sizes
and bandwidth constraints. If our customers and potential customers have difficulty accessing and using our
websites and technologies, then our revenue could decline.
We may not succeed in promoting and strengthening our brands, which could prevent us from acquiring
new customers and increasing revenues.
A primary component of our business strategy is to promote and strengthen our brands to attract new and
repeat customers to our websites, and we face significant competition from other companies in our markets who
also seek to establish strong brands. To promote and strengthen our brands, we must incur substantial marketing
expenses and establish a relationship of trust with our customers by providing a high-quality customer experience.
Providing a high-quality customer experience requires us to invest substantial amounts of resources in our website
development, design and technology, graphic design operations, production operations, and customer service
operations. Our ability to provide a high-quality customer experience is also dependent on external factors over
which we may have little or no control, including the reliability and performance of our suppliers, third-party carriers,
and communication infrastructure providers. If we are unable to promote our brands or provide customers with a
high-quality customer experience, we may fail to attract new customers, maintain customer relationships, and
sustain or increase our revenues.