| Introduction | | | | many offenses. VistaPrint provides a plethora of |
| At first glance, VistaPrint's business model seems | | | | business identity products, including ink stamps, |
| absurd. They give away most of their products. Free. | | | | stationery, and magnets. Of course, VistaPrint charges |
| Seriously. It does sound scary, but there is a lot that | | | | a modest fee for these products, though the company |
| small online businesses can learn from VistaPrint - | | | | occasionally offers them free to entice their |
| which was a small online business itself, once. The | | | | customers. |
| challenge is to apply the principles on which VistaPrint | | | | The keys to VistaPrint's success are the size and |
| relies to affect viral marketing and drive customer | | | | loyalty of its customer base. Through its free offers, |
| loyalty. VistaPrint has embedded itself in popular culture | | | | VistaPrint generates goodwill and accumulates a |
| using a simple formula. Quite simply, VistaPrint gives | | | | mountain of customer data. As a result, VistaPrint |
| away the basics and charges for the extras. | | | | avoids competing in the commodity business card |
| VistaPrint Is Everywhere | | | | market while achieving a competitive advantage in |
| A customer of mine had business cards made - by | | | | stationery and business identity products. Why |
| VistaPrint - for nothing more than the cost of shipping. | | | | compete in a commodity space where price is the |
| Her needs were simple; she did not even have her | | | | primary driver? |
| own logo to add to the cards. She simply used one of | | | | VistaPrint has exhibited innovative differentiation. |
| VistaPrint's default designs. It met an immediate need, | | | | Lessons for Small Businesses |
| and the price was right. Over the weeks that followed, | | | | VistaPrint's innovative approach to the market holds |
| she saw her business card design - on a number of | | | | some important lessons for small businesses of all |
| other people's business cards! | | | | types. Now quite large, VistaPrint grew rapidly through |
| VistaPrint was everywhere . . . | | | | a two-pronged strategy entailing a commitment to |
| Not only did she see business cards from VistaPrint, | | | | customer loyalty and a gutsy decision to give away |
| she saw personal cards as well. Energetic | | | | the commodity. By generating a formidable bond with |
| professionals have eschewed the | | | | is customers through free product offerings, VistaPrint |
| phone-number-on-the-napkin approach to social | | | | accumulated extensive customer data - and goodwill - |
| interaction, favoring a pre-printed alternative. This | | | | for use in future sales. |
| solution actually is quite clever. To exchange contact | | | | Selling a commodity product has never been easy; it is |
| information in social situations, you traditionally have had | | | | extremely difficult to differentiate what you offer from |
| two choices. You could scramble for a napkin, | | | | the masses. A commitment to "quality" is no longer |
| matchbook, or scrap of paper, ultimately risking the | | | | sufficient. So, if you cannot differentiate your product, |
| readability of your contact information. Alternatively, | | | | you can differentiate your company - as VistaPrint did. |
| you could use a business card - which can be | | | | By changing how you interact with your customers - |
| disconcerting; giving out professional information in a | | | | through targeted online promotions - you change how |
| social setting can be uncomfortable. | | | | your company is perceived. Giving your product away |
| With social and professional uses, VistaPrint enters | | | | is not the only option. Other high-gain opportunities |
| your life. Free "business" cards make VistaPrint an | | | | include a unique website design, efficient purchasing |
| attractive solution, and their popularity, consequently, is | | | | process, and loyalty programs. |
| not surprising. But, how do they generate income? | | | | Of course, your interaction with customers requires |
| The Extras Will Cost You | | | | that you have customers . . . |
| While the business cards are free, the alternatives are | | | | For small online businesses, it is essential to win |
| limited. You can choose from a number of fonts, | | | | fanatically devoted customers early. They are your |
| pre-defined logos, and layouts, but the choices are not | | | | best marketing channel. You need your "early |
| sophisticated. Eventually, VistaPrint expects that you | | | | adopters" to become devoted to your product and |
| will want more. They tend to be correct; tastes evolve. | | | | your company as a whole. VistaPrint affected this |
| Small businesses develop identities as they grow - | | | | through targeted promotions and product giveaways, |
| identities that include logos and branding. Individuals | | | | but you do not need to limit yourself. Even basic |
| crave distinction; they want to be unique. These are | | | | customer interaction can help. Make phone calls; ask |
| the routes VistaPrint takes to profitability. The fees are | | | | how your customers like the product. Send a |
| modest, but they accumulate quickly with a large, loyal | | | | newsletter. Stay at the front of their minds! |
| customer base. | | | | Customer loyalty is the gift that keeps on giving. |
| Business cards represent only one of VistaPrint's | | | | Differentiate yourself and win customers for life. |