Customer & Associate Engagement

1. Customer & Associate Engagement October 2008 NAW CEO Roundtable Dick Gochnauer United Stationers, Inc. President and Chief Executive Officer

2. HR Product Category Legal Marketing Shipping Customers First Sales Operations Customer Care Finance IT Engagement is a Business Strategy that can be Leveraged to Drive Revenue and Profitability Opportunities to Create Engagement are Everywhere! • Engaged Customers • Spend more money • Less price sensitive, deliver higher margin • Engaged Associates • Provide higher levels of customer centric behavior • More productive & have fewer accidents Engaged Associates + Engaged Customers = Profitable Growth

3. Customer & Associate Engagement Framework …a Continuous Feedback Loop The Framework • Diagnostics - measure & compare customer expectations and associate perceptions • Calibration - gain further insight into diagnostic feedback • Diagnostics & Calibration - identify strengths & areas to improve or change • Action Planning – create a new customer experience model • Improvements & Measures - Provide leading indicators as to the impact of action planning through continuous feedback Action Planning Improvements & Measurement Diagnostics Calibration Interaction Surveys - Call Centers Customer Survey Experience 360 Customer Focus Groups Customer Engagement Actions Care Center Feedback to DC’s Associate Engagement Actions Associate Survey Experience 360 & AES Associate Focus Groups Customer & Associate Pulse Surveys

4. Diagnostics Calibration Customer Focus Groups Customer Survey Experience 360 Associate Survey Experience 360/AES Associate Focus Groups Customer & Associate Engagement Framework …an Ongoing Journey • Diagnostics & Calibration • Compare customer expectations & associate perceptions • Assess OUR unique drivers of engagement • Focus group feedback used to gain further insight into survey responses • Action planning based on prioritized customer & associate survey and focus group feedback

5. Improve/Measure Action Planning Interaction Surveys Customer Engagement Actions Care Feedback to Distribution Centers Associate Engagement Actions Pulse Surveys Customer & Associate Engagement Framework …an Ongoing Journey • Action Planning • Prioritized based on items proven to drive engagement • Create a new customer experience model • Empower associates to own the experience Improvements & Measures • Real time measurement providing leading indicators from the customer’s perspective • Tracking metrics for customer satisfaction & loyalty

6. Associate & Customer Engagement …Higher Engagement linked to Business Results Engagement & Results • Even early in the journey, engagement can be seen in measurement results • Results across Distribution Centers show that engagement is linked • Higher key financial & performance indicators • Including productivity, quality, safety, sales & EBIT Profitability + 5 -10% Sales + 5% Productivity + 10% Cost - 20% Engaged Associates Provide higher levels of customer satisfaction Safety + 28% Engaged Customers Spend more money with the company 66% of our customers expect to grow their business by 5 – 40% if we get it right based on their feedback!

7. Engagement in Action The surveys & focus groups provided invaluable feedback from customers & associates – We are ACT’ing on the highest customer impact process enhancements Here’s What Customers Said… Here’s What We’re Doing… > $500K Cost Reductions > $60M Revenue • Recognized as a logistics partner but want expanded order fulfillment capabilities • Improved web-based capabilities, advertising/ catalogs & flawless deployment of marketing programs and tools • Increased level of value added service offerings & implementation of growth initiatives • Increased breadth & depth of products & opportunities in Technology and Jan/San • Custom logos - Serial number tracking - Auto/item substitution - online invoice access - Simplified shipping/packing lists - Future dated orders - Simplified Returns Processing – S/N Tracking • Smart Search - On-going dealer advisory -Engagement in marketing program execution - Increased focus on execution expertise • Targeted Marketing Programs such as Green Catalog - Jan/San Promotion – Technology Smart Deals

8. Engagement in Action The surveys focus groups provided invaluable feedback from customers & associates – We are ACT’ing on the top enablers to deliver a great customer experience Here’s What Associates Said… Here’s What We’re Doing… • Decision making capability to quickly resolve customer issues • Increased cross functional communication • Know our customers and have stronger loyal relationships • Career planning and opportunities for growth • Revised approval levels to drive decision making to lower levels in the organization • Established cross functional meetings for shared discussion • Provided funding and direction for local customer appreciation events • Created opportunities for high performing associates to lead strategic initiatives with increased visibility to top leadership

9. Engagementis a Journey Critical Success Factors • Make it Easy to Internalize • 4 Easy Steps • Capture customer & associate perceptions of the customer experience • Define a great customer experience from the customers’ perspective • Determine how the experience can be delivered by associates • Develop metrics and action plans and communicate Next Step… Link Engagement to Compensation Business Strategy Linkage Executive Sponsorship Management Accountability Culture Change On-going Communication Org Readiness