Temporary Price Reduction: Was $1495, Now $375. Lyra recently undertook a Web survey of 490 self-identified digital camera owners to find out their views of online photo services. According to respondents, no single online photo site dominates (see chart below). In fact, after Photoworks.com, respondents noted ""other"" most often.
With satisfaction levels generally high among respondents, it does not seem likely that existing customers will switch online photo sites without some very good reasons, such as lower costs or services that are better or more inclusive than the ones they currently have. In addition, survey results indicate that respondents do not seem to be shopping around: they only visited one to three sites in the last six months, so there is little opportunity for them to experience online photo sites other than the one to which they subscribe. ""There is no 500-pound gorilla in online photo services; thus, every one of the services competes for every single customer. With advertising and word of mouth being the top two reasons people choose their service, but neither being overwhelmingly effective, there is no single killer strategy for attracting new members."" --Ed Lee, Director, Lyra's Digital Photography Advisory Service. This latest digital photography report from Lyra examines the state of the online photo services market through the eyes of the customer. It also identifies some strategies for attracting and retaining customers and developing potential new revenue sources for online photo service sites.
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