How Deluxe rose to the challenge of a disappearing market

From a check printer to an essential
strategic partner to financial services firms

Background

Founded in 1915 in St. Paul, Minnesota in a one room print shop, Deluxe today is a $1.3 billion Fortune 1000 firm servicing 8,000+ financial institutions (FIs).
The clock was ticking for its core business. With the use of ATM debit cards and other electronic payment methods on the rise, check usage is in decline, shrinking at a rate of 3-4% per year.
By all outward appearances, the industry had commoditized

Diagnosis

Little existing knowledge about consumer check buyers among FIs.
Some consumers want more than the standard gray check—they see checks as a way to express their personalities.
FIs uncertain how to create better customer experieneces for their customers at every touchpoint—including check buying.
Check printers including Deluxe were perceived as a supplier, a vendor, not a business partner.

Strategic Research

Three large scale studies were undertaken among national samples of more than 1000 consumer check buyers and 600 decision-makers at FIs.
The needs, problems and motivations of each group were measured, along with profitability.
The most profitable segments and a positioning that would resonate with FIs were identified coupled with modeling to evaluate alternative marketing plans.
In addition, FIs were exposed to alternative new service concepts designed to improve the check buying experience for customers.

Strategic Options

Sell the check printing business assets to competitors and exit the business all together.
Continue to cut costs and compete as a low price vendor.
Position the company as a strategic partner and knowledge leader in the industry, dedicated to helping FIs create better customer experiences with check buying and beyond.

Strategic Choice

Chuck Feltz, President of Deluxe Financial Services selected the third option and instituted a strategy to become an indispensable business partner to FIs, helping them to deliver better customer experiences.
The company launched the DeluxeSelectSM service, leveraging its vast knowledge of consumer check buyers to streamline FIs check programs.
It also sponsored a series of quarterly conferences with world famous management speakers and a 2-day educational workshops at leading universities including the Harvard Business School, to help FIs learn how
to improve customer experiences and their bottom lines.

Performance Results

Deluxe is moving rapidly to achieve its objectives.
DeluxeSelectSM has generated an additional $100 million for the company, in a shrinking industry.
87% of customers and prospects indicate they view Deluxe as a strategic partner, not a commodity supplier.
9 out of 10 customers and prospects also report they are likely to do even more business with Deluxe.
They have become an industry superstar as new products and services are being rolled out to help FIs improve business performance.