Today, the photofinishing industry faces significant, but not insurmountable hurdles. Not only are we in the midst of a major industry transition to personal publishing, or as I like to call it, ‘social picturing,’ but at the same time we are in the midst of a challenging international economic environment. While the headlines paint a grim picture for businesses large and small alike, the New Year also brings new possibilities and new resolve. Like most of you, in college I was forced to study all kinds of useless stuff. Something from those studies has been running through my mind lately. It is a quote from the British poet Anne Bradstreet. She said, “If we had no winter, the spring would not be so pleasant: if we did not sometimes taste of adversity, prosperity would not be so welcome.” Together, let’s welcome that prosperity. I for one am sick of the adversity. Here are my ideas for 2009. 1. Increase creative sales. Did you realize that in 2008, ninety percent of orders were non-creative and 10 percent were creative? And the average non-creative sale was $17 while the average creative order was $37? Clearly, creative is how we will get back to prosperity. In 2009, the industry should strive to move creative orders from 10 percent to 15 percent. Creative is not only more profitable, it’s what consumers want. With the digital revolution, consumers have gained greater control over their personal content, including pictures. The photo book has gained traction, but consumers are quick learners and soon they’ll be looking beyond the photo book for new creative products to use to express themselves and share their memories. If you’re not already on board the creative train, it’s time to get an express ticket. Give me a call. 2. Push the personal publishing revolution forward. In the 80’s, the industry experienced the minilab revolution as retailers shifted to 1-hour photo. Today, we’re in the middle of a revolution to the brave new world of social picturing. Consumers no longer walk in and out of your store simply dropping off rolls of film. They are exploring the plethora of new in-store and online possibilities and many of them are looking to you for guidance. Be prepared to walk them through the Long Tail of personal publishing. Need help? Give me a call or visit www.Lucidiom.com. 3. Focus on the consumer, not the technology. Photo finishing at retail has been going through a shift for some time. The consumer used to spend about 5 minutes in your store for every roll of film. With digital they started spending more time; the kiosk became a vital tool for your success. The trend has been to find the best technology in all sectors, massage it to meet your needs, and then find more technology. This is the year that needs to shift. The focus needs to be on the customer not the technology. How can you help her find what she is looking for? How can you help him express how he feels? How can you help your customer explore the possibilities of social picturing? It’s also more important now to find a technology partner you can trust so you can forget about technology. “Pay no attention to that man behind the curtain,” as they say in the Wizard of Oz. Focus instead on your customers, marketing and the amount of your average sale (reminder – creative orders have a higher average sale!). 4. Focus on the up-sell. The most difficult thing to do in running your business is to attract new customers. Customer retention and up selling are much more lucrative in the short run. Since attracting customers will be tougher this year, bundling and up-selling will play important roles in maximizing the sale. Don’t just promote folded cards; show your customers how they can create a complete set of event stationery from that favorite photo or set of photos. If they’ve come in to create a personalized birthday party invitation, encourage them to add custom photo wrapping paper, a poster to hang at the party, customized party favors and thank you notes to send out afterwards. 5. Invest smart. The fight or flight instinct certainly comes out during tough economic times and while it might be tempting to flee or hibernate, now is not the time to stop moving forward. I am not saying you need to invest like you did in the past. If you used to spend $150,000 on new technology every year, just don’t take the budget to zero. Find out what is really important to your customers, then figure out if there are smart investments that can pay off this year. If you don’t invest in the future at all, you’ll come out weaker than you started. Invest wisely and you’ll come out stronger. Drive through it and most of all market into it. Your brand is vital to your success. Let your customers know that you are still moving forward and are bringing their stories to life at your store.
Thursday, November 19, 2009
The Photofinishing Industry Faces Significant
Today, the photofinishing industry faces significant, but not insurmountable hurdles. Not only are we in the midst of a major industry transition to personal publishing, or as I like to call it, ‘social picturing,’ but at the same time we are in the midst of a challenging international economic environment. While the headlines paint a grim picture for businesses large and small alike, the New Year also brings new possibilities and new resolve. Like most of you, in college I was forced to study all kinds of useless stuff. Something from those studies has been running through my mind lately. It is a quote from the British poet Anne Bradstreet. She said, “If we had no winter, the spring would not be so pleasant: if we did not sometimes taste of adversity, prosperity would not be so welcome.” Together, let’s welcome that prosperity. I for one am sick of the adversity. Here are my ideas for 2009. 1. Increase creative sales. Did you realize that in 2008, ninety percent of orders were non-creative and 10 percent were creative? And the average non-creative sale was $17 while the average creative order was $37? Clearly, creative is how we will get back to prosperity. In 2009, the industry should strive to move creative orders from 10 percent to 15 percent. Creative is not only more profitable, it’s what consumers want. With the digital revolution, consumers have gained greater control over their personal content, including pictures. The photo book has gained traction, but consumers are quick learners and soon they’ll be looking beyond the photo book for new creative products to use to express themselves and share their memories. If you’re not already on board the creative train, it’s time to get an express ticket. Give me a call. 2. Push the personal publishing revolution forward. In the 80’s, the industry experienced the minilab revolution as retailers shifted to 1-hour photo. Today, we’re in the middle of a revolution to the brave new world of social picturing. Consumers no longer walk in and out of your store simply dropping off rolls of film. They are exploring the plethora of new in-store and online possibilities and many of them are looking to you for guidance. Be prepared to walk them through the Long Tail of personal publishing. Need help? Give me a call or visit www.Lucidiom.com. 3. Focus on the consumer, not the technology. Photo finishing at retail has been going through a shift for some time. The consumer used to spend about 5 minutes in your store for every roll of film. With digital they started spending more time; the kiosk became a vital tool for your success. The trend has been to find the best technology in all sectors, massage it to meet your needs, and then find more technology. This is the year that needs to shift. The focus needs to be on the customer not the technology. How can you help her find what she is looking for? How can you help him express how he feels? How can you help your customer explore the possibilities of social picturing? It’s also more important now to find a technology partner you can trust so you can forget about technology. “Pay no attention to that man behind the curtain,” as they say in the Wizard of Oz. Focus instead on your customers, marketing and the amount of your average sale (reminder – creative orders have a higher average sale!). 4. Focus on the up-sell. The most difficult thing to do in running your business is to attract new customers. Customer retention and up selling are much more lucrative in the short run. Since attracting customers will be tougher this year, bundling and up-selling will play important roles in maximizing the sale. Don’t just promote folded cards; show your customers how they can create a complete set of event stationery from that favorite photo or set of photos. If they’ve come in to create a personalized birthday party invitation, encourage them to add custom photo wrapping paper, a poster to hang at the party, customized party favors and thank you notes to send out afterwards. 5. Invest smart. The fight or flight instinct certainly comes out during tough economic times and while it might be tempting to flee or hibernate, now is not the time to stop moving forward. I am not saying you need to invest like you did in the past. If you used to spend $150,000 on new technology every year, just don’t take the budget to zero. Find out what is really important to your customers, then figure out if there are smart investments that can pay off this year. If you don’t invest in the future at all, you’ll come out weaker than you started. Invest wisely and you’ll come out stronger. Drive through it and most of all market into it. Your brand is vital to your success. Let your customers know that you are still moving forward and are bringing their stories to life at your store.
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