Best Practices in Experimenting with Existing Channels - Omni Digital

1. Best Practices in Experimenting with Emerging Channels Charlene Li, Principal Analyst, Altimeter @charleneli September 10, 2015 Proprietary and confidential. Do not distribute.

3. Strategy is What You Do – And Don’t Do

4. It’s About Relationships

5. Nordstrom’s purpose: To provide a fabulous customer experience by empowering customers and the employees who serve them. Best Practices in in Experimenting with Emerging Channels, Charlene Li, Altimeter September 10, 2015 5

6. Customer Journeys Are Not Connected to Digital Transformation Which best describes your company’s efforts around the customer journey/experience? The need to do so hasn’t come up or been made a priority Is your organization undergoing a digital transformation? No We’ve talked about the need to do so but no one has taken the lead yet 12%3% 12% We are researching customer behavior now and waiting for results to inform our digital transformation strategy We have not officially researched the digital customer journey but we have updated digital touch points with new social and mobile technologies and investments 12% 42% 25% We have completely mapped out the customer journey within the last year and have a clear understanding of new digital touch-points 88% Yes Source: Altimeter Group Digital Transformation Study, 2014. Proprietary and confidential. Do not distribute. 6 Enter document title and manual fixed date in this placeholder on the topmost slide master to “lock footer” information

7. Creating Next Generation Customer Experiences Traditional Journeys Next Gen Experiences • Personas • Individuals • Linear • Unpredictable, shared • Optimization focus • Strategic focus • Functional • Emotional • Episodic designed • Continuously designed • Static • Dynamic, real-time • Survey & heuristic based • Data-based Best Practices in in Experimenting with Emerging Channels, Charlene Li, Altimeter September 10, 2015 7

8. Four Best Practices to Create Next Gen Customer Experiences 1. Customer Obsession 2. Practice Relentless Pragmatism 3. Build Brand Trust 4. Networked Mindset Proprietary and confidential. Do not distribute. 8 Enter document title and manual fixed date in this placeholder on the topmost slide master to “lock footer” information

9. 1. Customer Obsession

10. How much do you really understand your customer? Case study: T-Mobile Frustrated wireless customers fed up with carriers • Willing to look beyond coverage and services • Rising need for transparency, flexibility, and fairness • T-Mobile re-positioned as the “Un-carrier” creating customer experiences and employee engagement around the theme

11. How to be Customer Obsessed Best Practices in in Experimenting with Emerging Channels, Charlene Li, Altimeter September 10, 2015 11

12. E M P A T H Y ! Best Practices in in Experimenting with Emerging Channels, Charlene Li, Altimeter September 10, 2015 12

13. Understand Customers’ Offsite Behavior • What your most “loyal” customers do? Where do they go? • Source: Jumpshot

14. Don’t Wait for “Complete” 360 View of Customer to Make Decisions Best Practices in in Experimenting with Emerging Channels, Charlene Li, Altimeter September 10, 2015 14

15. 2. Practice Relentlessly Pragmatism

16. What The Most Successful Brands Do Well Best Practices in in Experimenting with Emerging Channels, Charlene Li, Altimeter September 10, 2015 16

17. Rigorously Define Success and Failure Proprietary and confidential. Do not distribute. 17 Enter document title and manual fixed date in this placeholder on the topmost slide master to “lock footer” information

18. Experimenting with Snapchat Best Practices in in Experimenting with Emerging Channels, Charlene Li, Altimeter September 10, 2015 18

19. 3. Build Brand Trust

20. Best Practices in in Experimenting with Emerging Channels, Charlene Li, Altimeter September 10, 2015 20

21. Build Trust with Engagement Source: Edelman Trust Barometer, 2015 Best Practices in in Experimenting with Emerging Channels, Charlene Li, Altimeter September 10, 2015 21

22. Consumers Don’t Understand How Data Is Used Best Practices in in Experimenting with Emerging Channels, Charlene Li, Altimeter September 10, 2015 22

23. Case Study: John Lewis Brand promise drives strategy Online shopping = 33% of trade Focus on “Click & Collect”, which accounted for 49% of online sales in 2014

24. 4. Networked Mindset

25. Digital Will Require New Ways of Working Rigid Organizations Dynamic Organizations Best Practices in in Experimenting with Emerging Channels, Charlene Li, Altimeter September 10, 2015 25

26. Great Employee Relationships Support Great Customer Relationships 45% of organizations said that developing a plan for employee advocacy is a top priority Source: Altimeter report, “The 2015 State of Social Business” Best Practices in in Experimenting with Emerging Channels, Charlene Li, Altimeter September 10, 2015 26

27. Case Study: Telstra’s “BBQ” App Employees download an app to their phone • Can log service request for friend or family member • Escalate issues • Closes the loop with both employee and customer • Also provides updates on strategy, news updates, etc. • Almost half of employees have downloaded the app •

28. It’s About Relationships

29. For more information please contact: Charlene Li Principal Analyst +1 415-915-9597 charlene@altimetergroup.com @charleneli www.altimetergroup.com www.charleneli.com