Amy Shepherd Brian Humphrey Cailin Radcliffe MAKE IT AN EXPERIENCE Amy Shepherd Brian Humphrey Cailin Radcliffe

“It’s our job every day to make every important aspect of the customer experience a little bit better” – Jeff Bezos

WHAT MAKES A MEMORABLE EXPERIENCE?

GREAT EXPERIENCES ARE DIFFERENTIATORS Think of a great experience that you’ve had in the past – where was it? What set it apart? There are a number of companies aside from Starbucks that deliver great experiences

THE GROWING IMPORTANCE OF EXPERIENCES 9 out of 10 US consumers say they would pay more to ensure a superior experience Americans tell an average of 9 people about good experiences, and tell 16 people about poor experiences Consumer spending on experiences has increased 70% since 1987 78% of millennials would rather spend money on a desirable experience vs. product purchases

Experiences are becoming increasingly important – our economy has shifted from goods to services and services to experiences From Disney to Starbucks, companies that deliver great experiences are positioned to grow and prosper

Starbucks illustrates the power of delivering a great experience - Can charge a premium price and benefit from customer loyalty

OUR CUSTOMER EXPERIENCE FOCUS

WHERE WE STARTED … “My customers would come away from a Kitchen Show with tips on what they saw and learned that night, as well as easy-to- prepare, time-saving recipes” – Doris Christopher CONFIDENTIAL

… WHERE WE ARE TODAY Delivering a great customer experience through incredible shows and service is what sets Pampered Chef apart from other cookware brands

“Pampered Chef is truly loved by its customers because it has found a need and filled it exceptionally well, helping everyday home cooks become masters of their own home kitchens and making mealtime preparation quick, easy and fun” - Warren Buffett

OUR EXPERIENCE BIG BET TEAM

OUR TEAM’S GOALS Enhance current customer experience Create new experiences and services that leverage our combined strengths Your Experience and Expertise Our Brand Strength & Reputation Support and enhance your success Introduce experiences and services that address the shift in consumer demographics, expectations, and behaviors Our cross-functional Experience Big Bet Team kicked off in early 2016

OPTIMIZING EXISTING SHOW AND DEVELOPING NEW SERVICES Customer Research/Insights, Field Feedback, and Pilots Optimize Existing Show Develop New Services/Experiences Strength of Product and Experience Introduce experiences and services that address the shift in consumer demographics, expectations, and behaviors Trusted Brand Strong Field Organization

OUR DESIGN THINKING PROCESS Customer / Market Insights Define Problem & Brainstorm Solutions Refine & Prioritize Solutions Pilot Solutions Collect Field and Customer Feedback Iterate & Improve We are taking a design thinking approach This approach is widely used at companies such as Apple and Nike Six Step information gathering process: Customer and market insights Problem statement development and solution brainstorming Solution refinement and prioritization Piloting solutions Field and customer feedback gathering Iteration and improvement Surveyed tens of thousands of hosts and guests Conducted individual interviews of hundreds of consultants, guests and hosts Observed Pampered Chef and other Direct Sales Shows

NET PROMOTER SCORE ‘NPS’ NPS is a standardized measure of customer satisfaction We’ve asked over 150K hosts and guests : Would you recommend attending (or hosting) a Pampered Chef show to your family and friends? Our score from hosts is really strong, but the score from guests is below other best in class companies such as Apple or Nordstrom Guest experience is important because leads to more bookings and sales We are surveying customers to understand their interaction with Pampered Chef and how likely they are to refer us to friends Currently our score is [] and a great score is around 70+% which means we have a great opportunity to improve!

SURVEY AND INTERVIEW FEEDBACK Guests reported they love: Products and the opportunity to “try before they buy” Fun recipe ideas and food or product tips Guests reported they disliked: Pressure to host the next party or become a Consultant The slow check-out process Hosts reported: Loved earning rewards, and sharing PC with friends Discomfort sharing link between sales and host rewards Feeling of pressure

HOW CAN WE IMPROVE CUSTOMER EXPERIENCE?

“Do what you do so well, that they will want to see it again and bring their friends” – Walt Disney Think about how we would want guests and hosts to talk about their experience after they leave a show… Are we currently happy with what they would say?

OUR CUSTOMERS VALUE LEARNING Guests are more engaged when they are learning Help your team think of ways to: Include even more food and product tips Food history is great to share at their shows I can talk about my show and pizza, tips, etc.

OUR CUSTOMERS DESIRE HEALTHY QUICK MEALS Consumers are interested in cooking healthy meals with fresh ingredients, in 30 minutes or less, that still feel ‘from scratch’ Help your team suggest new recipes that are quick, healthy and fun.

WE CAN PROVIDE A BALANCED SHOW EXPERIENCE We learned the guests and hosts least like the feeling of obligation at shows Your show is like a recipe, hearing great tips, trying the products and socializing are the main ingredients. Your booking and recruiting messages are the seasoning – essential to include, but you don’t want them to be overpowering or too lengthy “Don’t you think its tacky to invite people to a party at your house and pressure them to buy? I certainly do…There are too many gimmicks, too much game playing…presentations were all about making people feel obligated.” – Doris Christopher

WHAT ARE WE DOING WITH EXPERIENCES FOR THE REST OF 2016?

OUR NEXT STEPS Our Experience Big Bet Team will continue to learn, pilot and refine experiences in 2016 We are already mapping out how to optimize the current show, as well as looking at piloting new experiences so look more news, results and information in the coming months! This will continue to be a critical focus for us moving forward