1. ROI of Empowering Workers on the Floor Raising Customer Satisfaction & Associate Engagement Deborah Masten VP, Associate Development Steve Schuller Stores Training Director

2. Our Goals: Improve Overall Customer Satisfaction (OSAT) to top quartile performance Best in Class Associate Engagement

3. Why Focus on Customer Service and Associate Engagement? Sales & Profit Sales & Profit

4. Attack the Challenge from All Angles Elevate the trainer Change incentive compensation Change Onboarding Experience Build management Competency Gain executive support Celebrate publicly Train all associates Recognize superstars Change the hiring process Build new training tools Sustain the message Research your starting point

5. Gain Executive Level Support 2006 Associate Focus 2008 Customer Focus 2010 Growth Focus

8. It Starts With Associate Engagement… Annual associate engagement survey 137,894 associates participated 93% participation rate

9. Associate Engagement has increased 81%

10. Training is a huge driver of engagement “I have the training I need to do my job.”

11. Attack the Challenge from All Angles Elevate the Trainer Change Incentive Compensation Change Onboarding Experience Build Management Competency Gain executive support Celebrate publicly Train all associates Recognize Superstars Change the hiring process Build new training tools Sustain the message Research your Starting Point

12. The Starting Point 2006 Score Overall Satisfaction (OSAT) 43%

13. Research Your Starting Point Focus groups with customers Focus groups with associates Executive interviews Competitive shopping with executives Benchmarking other companies

14. Sizing Up The Competition { and many others…}

15. When it comes to When it comes to retailers with great service, who comes to mind?

16. When it comes to What does Top Quartile service look like in the retail industry?

17. Attack the Challenge from All Angles Elevate the Trainer Change Incentive Compensation Change Onboarding Experience Build Management Competency Gain executive support Celebrate publicly Train all associates Recognize Superstars Change the hiring process Build new training tools Sustain the message Research your Starting Point

18. Our Approach to Customer Service Training “Magazine” 2.5 hours All associates trained on day one Focused on the basic elements of customer service

19. It’s all about G.R.E.A.T.! Service Greet Respect Engage Assist Thank

20. …and taking care of the Customer!

21. Is the customer request reasonable? Is the request within the guidelines?

22. Attack the Challenge from All Angles Elevate the Trainer Change Incentive Compensation Change Onboarding Experience Build Management Competency Gain executive support Celebrate publicly Train all associates Recognize Superstars Change the hiring process Build new training tools Sustain the message Research your Starting Point

23. Build Management Competency Active management Performance coaching Customer focus

24. Attack the Challenge from All Angles Elevate the Trainer Change Incentive Compensation Change Onboarding Experience Build Management Competency Gain executive support Celebrate publicly Train all associates Recognize Superstars Change the hiring process Build new training tools Sustain the message Research your Starting Point

25. Make It Fun and Memorable! jHits Holiday Sing Along to holiday songs Lyrics focused on the customer Karaoke tracks for meetings Song sheets

26. Tell a Compelling Story G.R.E.A.T.! Holiday story distributed to all stores Covered in all associate meetings Collateral and giveaways

27. CustomerFIRST SuperStars Annual singing/video contest Focused on CustomerFIRST lyrics Over 600 entries Almost 100,000 video views

28. Attack the Challenge from All Angles Elevate the Trainer Change Incentive Compensation Change Onboarding Experience Build Management Competency Gain executive support Celebrate publicly Train all associates Recognize Superstars Change the hiring process Build new training tools Sustain the message Research your Starting Point

29. Recognize Superstars

30. Attack the Challenge from All Angles Elevate the Trainer Change Incentive Compensation Change Onboarding Experience Build Management Competency Gain executive support Celebrate publicly Train all associates Recognize Superstars Change the hiring process Build new training tools Sustain the message Research your Starting Point

31. Overall Satisfaction Results Highly Satisfied Customers

32. GREAT! Customer Service Drives Shopping Frequency & Spend Customers who have a GREAT shopping experience Customers who have a BAD shopping experience Shopping Visits/Year Average Spend/Visit

33. NRF Foundation / American Express Customer Choice Awards JCPenney - #7 Overall #1 traditional department store retailer 2 nd year in a row! two years in a row

34. Chief Learning Officer Magazine Business Impact Award Gold, Division 1

35. Attack the Challenge from All Angles Elevate the Trainer Change Incentive Compensation Change Onboarding Experience Build Management Competency Gain executive support Celebrate publicly Train all associates Recognize Superstars Change the hiring process Build new training tools Sustain the message Research your Starting Point

36. Keys to Success 1.Make customer satisfaction part of your company’s DNA 2.Ensure that all associates are aligned with the vision 3.Make it fun 4.Hold associates accountable for service 5.Measure and reward successes 6.Hire for smile!

38. ROI of Empowering Workers on the Floor Raising Associate Engagement & Customer Satisfaction Deborah Masten VP, Associate Development Steve Schuller Stores Training Director