Businessmodel of Vistaprint

Customer Segments

Vistaprint has a niche market business model, with a specialized customer segment. The company targets its offerings at micro businesses, which it categorizes as those with 1 – 10 employees.

Value Proposition

Vistaprint offers five primary value propositions: accessibility, convenience, cost reduction, risk reduction, and brand/status.

The company creates accessibility by providing a wide variety of options. It offers a wide range of products, including business cards, calendars, checks, corporate gifts, clothing/bags, holiday cards/gifts, invitations/announcements, labels/stickers, magnets, marketing materials, phone cases, photo gifts, promotional products, stamps/ink, stationery, and signs/posters. It also offers a broad set of services, including business services, design services, and digital marketing.

The company offers convenience by making life simpler for customers. It provides a set of popular design templates customers can choose from, with the option of personalizing them if they desire. It also provides various useful tools they can use for this customization and related support services.

The company reduces costs in a variety of ways. Its website includes a “Specials“ section featuring discounts and deals. It offers customers a $10 discount if they refer a new customer who places an order. Its Vistaprint Corporate service offers free set-up and no fees, as well as 50% off the price of business cards, 25% off the price of other products, and free shipping for orders costing over $100. Lastly, its Vistaprint Pro Advantage program offers regular discounts for its members.

The company reduces risk by maintaining high quality and safety standards. It offers a free sample kit that potential customers can use to see, touch, and feel sample products (business cards, postcards, letterhead templates, etc.), so they can get a sense of their nature before making a purchase.

It also enables existing customers to see their designs in on-screen simulations of real-world settings in real time so they can get an idea of how the finished product will appear. Lastly, it maintains an “Absolute Guarantee” policy through which it promises to satisfy unhappy customers, in ways ranging from reprinting orders to providing full refunds (while covering shipping).

The company has established a strong brand due to its success. It is a leading provider of marketing products and services for micro business owners, serving over nine million companies. It employs thousands of workers in 13 offices worldwide. Lastly, it has won a number of awards, including Best Video for “The Postcard” at the 2016 B-to-B Best Awards, hosted by Ad Age.

Channels

Vistaprint’s main channel is its business development team. The company promotes its offering through its website, social media pages, catalog, advertising (paid search and TV), and conferences.

Customer Relationships

Vistaprint’s customer relationship is primarily of a self-service nature. Customers utilize its products and services while having limited interaction with employees.

The company’s website features a section called “Micro Business Insights” that includes trend reports and infographics.

That said, there are personal assistance components in the form of real-time design support seven days a week, and general customer support. Service is offered through phone, e-mail, and live chat.

Key Activities

Vistaprint’s business model entails designing, developing, and distributing its products and services to its customers.

Key Partners

Vistaprint maintains an affiliate program through which it invites third parties to promote its offerings through their platforms (websites, mobile apps, etc.). If the marketing leads to a purchase, the third parties can earn a commission ranging from 12% to 25% as well as free products.

Key Resources

Vistaprint’s main resource is its intellectual property. It possesses more than 100 patents globally. The company also has important physical resources in the form of manufacturing facilities in North America, Western Europe, Australia, and India.

Cost Structure

Vistaprint has a cost-driven structure, aiming to minimize expenses through significant automation and low-price value propositions. Its biggest cost driver is cost of revenues, a variable expense. Other major drivers are in the areas of sales/marketing and technology/development, both fixed costs.

Revenue Streams

Vistaprint has three revenue streams:

• Product Revenues – Revenues it generates from the sale of its products to its customers.
• Service Revenues – Revenues it generates from the sale of its services to its customers.
• Advertising Revenues – Revenues it generates from the fees it charges clients to advertise their products/services to its network of customers (through its catalog and other channels).