Take action…a few thoughts on the recent news from Shutterfly and Lifetouch.
If you’ve read my most recent articles, A Busy Day for Shutterfly and Lifetouch and A Busy Future for Shutterfly and Lifetouch, I want to encourage you to consider the steps needed to remain competitive in the school picture category.
First, two quick points, both of which balance the importance of relationships with the power of new technologies.
1. ACCOUNT GROWTH – OUR RELATIONSHIP WITH SCHOOLS
Shutterfly expects Lifetouch to continually produce net account growth. To do so, expect Shutterfly and Lifetouch to join forces to increase Lifetouch’s attractiveness to schools.
One specific example of this was launched in the 4th quarter of last year. Lifetouch introduced an affiliate program referred to as the Shutterfly Fundraising Storefront. Purchases made by Lifetouch school customers on Shutterfly.com result in an 8% cash back reward to the school. Lifetouch purchases are excluded from the promotion. Marketing initiatives and promotions of this kind reward the school for signing with Lifetouch and encourage moms to engage with Shutterfly to create and purchase products through Shutterfly.
The net result is the potential for more money for the school, increased customer acquisition for Shutterfly and now, having increased the switching cost, greater likelihood of mom’s and the school’s loyalty to Shutterfly/Lifetouch.
2. CUSTOMER LIFETIME VALUE – OUR RELATIONSHIP WITH MOM
I believe there are inherent weaknesses in the traditional school picture model. One of which I refer to as a “one and done model.”
Most school photographers have a limited number of contact points with the customer generally capturing one sale and if lucky a reorder. A one and done model. Shutterfly’s photo storage, image curation process, and consumer marketing provide Lifetouch’s customers with choice unheard of in the traditional school picture package or on-line through most school picture company’s websites. Shutterfly can monetize the Lifetouch customer for a lifetime. No more one and done.
I think this means less profitable schools can become more profitable over time as the customer lifetime value increases…getting more for a longer period of time from mom.
WHAT CAN WE EXPECT?
As you review the list below think about the content shared in the previous two articles, A Busy Day and A Busy Future.
Volume photographers you can anticipate progress from Shutterfly and Lifetouch in 2019.
CALL TO ACTION
Shutterfly is revitalizing Lifetouch’s relationship with its consumers and school accounts. Are you invested in revitalizing your relationships with your customers and schools? What steps do you need to take to remain competitive in this changing industry?