GETTING MOBILE ENGAGEMENT RIGHT: MEASUREMENT TOOLS & BEST PRACTICES

1. GETTING MOBILE ENGAGEMENT RIGHT:MEASUREMENT TOOLS & BEST PRACTICES

2. Agenda • Introduction to the e-tailing group • Are merchants mobile-minded? • Research highlights – the 4 touchpoints • Calculating your own mobile-minded readiness • Mobile engagement must-dos & tips for improvement • Q & A Lauren Freedman President, the e-tailing group

3. The Voice of Cross-Channel MerchandisingStraight talk from “in-the-trenches” online merchandising experts • 20 years e-commerce consulting • Author, It’s Just Shopping • 50+ years traditional retail and catalog experience • Fortune 500 client projects ranging from strategic planning, merchandising, marketing, to technology development and messaging • Projects spanning retail landscape with global coverage • Proprietary research studies on mystery shopping, merchandising, mobile and consumer behavior

4. I. Are merchants mobile-minded?

5. The State of Mobile • Usage is Growing • 55% of time spent online in June, 2014 occurred on mobile devices • comScore; 20141 • 56% of U.S. Internet users use both desktops and mobile devices to access digital content online1 • There’s a Shift in Device Usage • Mobile is accounting for an increasing percentage (10.5% in 2013) of ecommerce spending and is growing at significantly faster rates (23%) 1 • In 2014, 124.8 million U.S. consumers will shop on a smartphone representing 63.5% of digital shoppers 2 • Tablets will outpace smartphone growth • In 2014 $38.02 billion in sales on tablets compared to $18.49 billion on smartphones (this already exceeds a 2-to-1 ratio)2 • By 2018, 72.6% of m-commerce will take place on tablets, totaling $96.31 billion2 • Shopping is Accelerating • U.S. retail mobile commerce sales will soar from $42.13 billion in 2013 (16% of total web sales) to $132.69 billion in 2018 (27% of web sales)3 1 comScore 2 eMarketer 3 Forrester (all 2014)

6. “Now” is the Mantra of the Connected Consumer I’m not getting the attention I deserve so I’m going to send a tweet and expect a response…NOW There’s nothing like live chat to solve a problem…NOW I always have my phone so it’s my preferred way to interact with retailers….NOW I prefer email to get product information so I’m willing to wait but want to do it….NOW I’m on my way home from work and could stop at the store if is knew they had what I needed so I’ll give them a quick call…NOW

7. Research Goal Provide insight into mobile engagement to assess how “mobile-minded” today’s retailers really are across all available touchpoints Explore 2 Sides to Mobile-Mindedness Coin • Customer: Customer engagement via mobile device where customer needs are resolved in a timely fashion suitable to their device and touch-point of choice. • Retail: The degree, to which an organization has implemented a coordinated set of people, processes, and technology specifically aimed at addressing the service needs of mobile consumers across distinct communication channel touch-points.

8. Research Methodology • Access merchant’s mobile site using either an Android or iOS phone (all chats on iOS) • Contact via suggested channel (email, phone, Twitter, live chat) • Ask a single question across all touchpoints which prompts a product recommendation from the retailer • Note quantitative aspects of the experience (time to respond, button location, hold time, etc.) • Record any positive or negative experiences to provide color commentary about the experience (ineffective for mobile device, CSR goes extra mile from a service standpoint, etc.) • Calculate a mobile-minded score by touchpoint (contact visibility, resolution, response time, response quality)

9. The Mobile 50 * Live Chat Only

10. 4 Touchpoints&Insights

11. A Phone Call Provides the Quickest Path to Resolution *Rounded to nearest minute

12. II. RESEARCH HIGHLIGHTS – The 4 touchpoints

13. A. EMAIL

14. Email: What Makes a Mobile-Minded Experience Mobile-Minded Score: 2.07/3.00 • Providing an email form with a required subject to direct inquiry to appropriate department • 2 or less clicks to email contact info • Timely response on first request within 24 hours • Question is answered comprehensively with alternative products recommended • A personalized response and tone that establishes a relationship with the customer • Links/attachments for product recommendations are mobile-enabled • Add to cart and/or save cart functionality provided within the context of the email • Articles/guides supporting product usage are a value add • Remember, it never hurts to ask for the order

15. Direct Inquiries to Appropriate Departments Facilitate Finding the Right Answer *subset of M50

16. Let Shoppers Know Your Turnaround Time *subset of M50

17. Gap: Providing Choices with “Branding” Can you recommend a pair of women's jeans I can wear to work?  From: Gap.com Customer Service <custserv@gap.com>Date: Tue, Aug 5, 2014 at 4:40 PMSubject: RE: Question <<#3606804-9887541#>>To: renakers80@gmail.com Dear Renee, Thank you for your interest in Gap and our awesome jean selection! My name is Brandy, and I am happy to help today. After looking around on our site, I found a few pairs you might like, depending on your style! Our Curvy Skinny Indigo Jeans (item #929042) come in a nice dark wash, which is great for work or a night on the town. They are a mid-rise and curvy through the hip and thigh to sculpt your shape. We also have our Super Stretch Legging Jeans (item #495984) are black with a nice stretchy denim for that active position. They are also a mid-rise with that trendy skinny fit. Finally, our Destructed Sexy Boyfriend Jeans (item #960153) come in a great  Medium dark blue with fading and whiskering.  The holes and subtle distressed accents are unique and vary jean to jean. They are a low rise jean with a relaxed fit. You can view any of these jeans by entering the 6 digit item number on our website or clicking the link provided in the title of each pair. If you would like further assistance with placing an order please contact us at the number below. Thank you again for contacting us! We look forward to shopping with you again soon. If we may be of further assistance, please contact us at custserv@gap.com or by calling 1-800-GAP-STYLE (1-800-427-7895). Sincerely, BrandyGap Inc Customer Service Your feedback is important to us. We invite you to take a few minutes to fill out our Gap Email Customer Satisfaction Survey by following the link below: https://gap.ehosts.net:443/CIMSurvey/default.aspx?SurveyID=11&InstanceID=1750645&KeyName=MessageID&KeyID=10567943

18. Petco: Going the Extra Mile with Product & Category Content What product would you recommend to keep my dog out of my garden? From:customerrelations@petco.com [mailto:customerrelations@petco.com] Sent: Tuesday, August 5, 2014 2:28 PMTo: Renata AkersSubject: Your Petco Inquiry # 5037163 Dear Renata, I hope you had a nice weekend. I researched on our website and found the Four Paws Keep Off! Outdoor Dog & Cat Repellent that will suit to your need. Four Paws Keep Off! will help Keep dogs and cats away from trees, shrubs, garbage cans/bags and other forbidden areas and will also reduce the frequency of defecation and urination by dogs on lawns and flower gardens. To view and order the item, please click here. On the other hand, I found a great article online that can help shed some light on why your beloved pet is behaving this way. I hope this helps. Please click here. If we can be of further assistance, please feel free to reply to this email or call us directly at 1-877-738-6742. Petco values your insights, so please tell us how we are doing on our customer service survey. Have a great day! Sincerely, Charo Z.Customer Relations CoordinatorHealthier Pets. Happier People. Better World.

19. Crate and Barrel: Product Knowledge Extraordinaire Can the vitamin 750 blender also substitute as a juicer? I have limited space and was trying to avoid buying a blender and juicer if possible

20. Crutchfield: Shopping Cart Created for Easy Checkout I'm confused with so many portable gps options. Can you suggest a reliable model under $300 for travel in the US

21. Build: Offering to Place the Order Doesn’t Hurt Recommendation for garbage disposal with a 3/4 HP & 120 volts

22. B. Call center

23. Call Center: Methodology • Locate merchant’s phone number or “call button” on site commenting on visibility • Use mobile phone to contact merchant • If agent doesn’t identify you are on a mobile device • Casually mention within conversation you are currently in your car, multi-tasking for efficiency -OR • If agent directs you to website, mention you don’t currently have access to the web as you’re in the car driving • Note mobile-mindedness (are they prepared/able to email the information or save it to a cart and email the cart)

24. Call Center: What Makes a Mobile-Minded Experience Mobile-Minded Score: 1.70/3.00 • Home page visibility • Acknowledge mobile call (welcome to Footlocker Mobile) • Clickable phone number • No hold time or call quickly picked up (within 1 minute) • Adeptness at handling the conversation • Awareness on the part of the CSR that customer is mobile tailoring experience accordingly with appropriate follow up (links to product sent, cart saved and sent, etc.) • Call me now button can be a time-saver • Mention of other channels where information can be accessed during hold times

25. Initial Contact Must Be Efficient *subset of M50

26. Call Experience Should Be Brand-Centric, Supply Choices, and Accommodate Mobile Message on hold was well branded (Did you know H&D has a 75 year reputation for farm to table freshness). Rhonda was helpful and suggested a few cakes that would work. -Harry & David Connie answered "welcome to Footlocker mobile." Took awhile to look through assortment. Provided some recommendations based on top sellers and also suggested I visit a store to see how different brands fit and the sizing of toe boxes. -Footlocker *subset of M50 Excellent experience. Mac was friendly and knew his product. I mentioned I couldn’t look online because I was in the car trying to do a few things at once. He said don't worry about it, he can add the items to a cart and e-mail it to me, which is what he did. -Build I was asked if I'd ordered with them before then I was transferred to the CSR - she gave me a list of items and also asked if I needed a cardigan or shoes; then asked if I was at a computer, when I said no she offered to email me. -J.Crew

27. c. TWITTER

28. Twitter: What Makes a Mobile-Minded Experience Mobile-Minded Score: 1.93/3.00 • Ability to tweet from multiple locations (mobile site, desktop, search via Twitter) • Twitter visibility on retailer’s mobile and desktop home page • CSR asks quick qualifying questions to support finding the right product if necessary • Quick response (under 3 hours) • Be as clear and concise as possible using 140 characters while still making sure to provide a suitable response (2 tweets is fine) • Connection to personal shopper where appropriate • Link to product recommendation that is mobile optimized • Link to tools/guides that can aid the purchase

29. Accessibility to Twitter Across Channels Ideal *subset of M50

30. Ask Qualifying Questions Budget or brand

31. Link to Personal Shoppers

32. Specific Recommendations with Links Ideal

33. Tools Are a Value-Add for Shoppers Lookbook Denim Fit Guide

34. d. Live chat

35. Live Chat: Methodology • Merchants who had live chat on their mcommerce site were further evaluated to see if they also possessed live chat via an app or on a tablet • Merchant’s customer service was contacted via all channels available, using an iOS device (iPhone, iPad)

36. Live Chat: What Makes a Mobile-Minded Experience Mobile-Minded Score: 2.12/3.00 • Customer wait time after sign on is minimal • If wait time, message to chatter to give a sense of timing • Chat is available weekdays and weekends • Pre-chat information directs chat to department and allows for comments field • Chat is easy to read on the device (mobile-friendly) • CSR is quick to find the product with a focus on “my” inquiry rather than multi-tasking • Chat is completed in less than 10 minutes unless chatter has follow-up questions that extend chat time • Chat window can be minimized particularly on smartphones

37. Brand the Experience I liked how the interface seemed to be a window within a window where select store, select vehicle and find product was on the left side. Sent links to all products; Nice store reserve option or could buy in store right within the email. –Napa Online Beautiful interface including picture of the rep and her # years of experience -perfectly on brand. recommended products in chat window which was very helpful. -Estee Lauder

38. Pre-Chat Readies CSRs *subset of M50

39. Location, Location, Location and Device-Centric Rendering Optimal Chat was a nice overlay. Liked that window could be minimized and blinked when CSR had responded. -Sullivan.edu

40. Time and Experience Must Be Tailored to Mobile *subset of M50

41. Response Legibility and Expertise Should be Conveyed *subset of M50

42. Connect the Channels for Customer Convenience CSR sent me links to TV's, told me both were on sale. Gave me his direct # to call when I was ready to place the order. -Abt

43. III. CALCULATING YOUR OWN MOBILE READINESS

44. Calculator: Email Locate link to email customer service and note location (# steps; difficulty to find) Ask a question which prompts a product recommendation within the response from the retailer

45. Calculator: Call Center

46. Calculator: Twitter Locate merchant’s Twitter link noting Twitter contact visibility. If unavailable on mobile, use another channel (desktop, Twitter search) Use mobile phone to contact merchant via Twitter

47. Calculator: Live Chat

48. IV. Mobile engagement must-dos & TIPS FOR IMPROVEMENT

49. General Mobile Engagement Must-Do’s Information and Access • List hours of availability • Make contact points readily available on mobile device (ideally home page) • Ensure experience renders properly by device The Customer Experience • Respond in a timely fashion given the nature of the contact (i.e. Twitter demands a quicker response than email) • Extend brand voice throughout mobile experiences • Listen well • Know the product and answer question comprehensively and correctly with alternative products recommended on first contact • Move beyond popular products and focus on more specific needs • Solve the problem at hand rather than passing the buck to another rep or channel (often due to lack of product knowledge) • Follow-up on any promises (will send an email with link to recommended product, etc.) Going the Extra Mile • Never hurts to include a promotion • Always go the extra mile (include link to recommendations, create a saved cart) • Ask for the order Connecting the Channels • Suggest all of the brand’s available channels to connect in all your communication • Where possible, connect to store availability and inventory • Suggest best device or tool (i.e. HSN suggested app when calling in) • Be cognizant of the channel in which the customer is connecting and suggest a solution or refer them to another channel that can better address their needs (i.e. contact our 1800# for additional information)

50. Engagement Starts with Accessible Customer Information Dedicated Customer Service Area: 88% M50 Sufficient Customer Service Information: 2.57/3.00 where 3 is sufficient