1. Winning in the Omni-channel Blur November, 2012 Steven Dennis SageBerry Consulting & SMU/Cox School of Business 1

2. Steven Dennis: Who is this guy? President, SageBerry Consulting, a boutique consulting firm focused on customer-driven growth and marketing strategy for retail and luxury/fashion brands Executive-in-Residence at SMU’s Cox School of Business Before founding SageBerry in 2009, Senior Vice President, Strategy, Business Development & Marketing, Neiman Marcus Group Prior senior leadership roles at Sears/Lands’ End, NutraSweet, Booz & Co. BA, Tufts; MBA, Harvard 2

3. Key Themes 1. A constantly connected—increasingly in-charge— consumer 2. Multi-channel morphing to omni-channel 3. The death of the traditional purchase funnel 4. The age of conversation, collaboration & transparency 5. Like social, love mobile 6. Think “Me-tail” 3

4. The constantly connected--increasingly in-charge– consumer... 4 This year 468 MM smart-phones and 64MM tablets will be sold (Gartner)

5. The constantly connected--increasingly in-charge– consumer... 5 Sharing

6. The constantly connected, increasingly in-charge, consumer... 6 Generating and Checking Reviews

7. The constantly connected--increasingly in-charge– consumer... 7 Validating Prices

8. The constantly connected--increasingly in-charge– consumer... 8 And Sometimes Naming Their Own Price

9. During the past decade, channels have thrived largely based on their distinct benefits Digital Retail Advantages Rich data User reviews Expert advice Global network Broad choices Low prices Easy shopping anytime, anywhere Physical Retail Advantages Feel and try Edited choices Instant delivery Simple returns Social event Real people Physical help 9

10. With digital retail gaining share...

11. But the lines are rapidly blurring...

12. The traditional purchase funnel is dying... 12

13. Consumers now engage in an “omni-channel blur” 13

14. A New Age: Conversation, Collaboration & Transparency 14

15. Social Media: The vehicle, not the destination 15 Increase Awareness Engage in New Ways Build Trust & Loyalty Enhance Your Brand Improve Search Visibility Transact

16. Social commerce is growing rapidly, but is projected to remain relatively small 93.4% US CAGR

17. “F-commerce” appears to be losing momentum Only 27% of consumers say they are willing to make a purchase on social networking sites JC Penney, Nordstrom, Gap & GameStop have all recently closed their Facebook shops Current concern is slowness of FB apps and adaptation to mobile environments Burberry, MAC and others have had success using Facebook to drive consumers to their websites ROI remains difficult to measure 17

18. Mobile Commerce: Today “Bricks & Mobile” is pretty basic

19. Very soon, mobile will revolutionize retail 19 Enables smarter “pre-shopping” Enhances the in-store experience Brings “Me-tail” to life

20. Mobile commerce is experiencing rapid adoption Dramatic growth in smartphones and tablets Explosion of new retailer and 3 rd party applications Comparison shopping on a mobile device while in store has become the #1 mobile behavior across all ages and genders An estimated 72.8 MM mobile users will research or browse items on their phones this year 20

21. Mobile Commerce: Becoming a significant sales—and sales influence-- channel 21

22. Me-tail: Treat different customers differently 22

23. 23 Customer-centric growth strategies embrace the concept of treating different customers differently 1 Deep Customer Insight 2 Actionable Customer Segmentation 3 Robust Analytics 4 Customer Specific Strategies

24. To sum up... 1. The power is shifting radically from brands to consumers 2. More and more, the blended channel is the only channel 3. Digital retail creates exciting new capabilities to transform the customer experience 4. “Me-tail”—delivery of more relevant and personalized products and experiences—will emerge as a key differentiator 5. And mobile is becoming a major driver 24

25. Q & A 25

26. Contact Information Steven Dennis President and Founder SageBerry Consulting 100 Highland Park Village, Suite 200 Dallas, Texas 75205 www.sageberryconsulting.com Phone: (214)-520-6555 Email: steve@sageberryconsulting.comsteve@sageberryconsulting.com Blog: http://stevenpdennis.wordpress.com http://stevenpdennis.wordpress.com SMU/Cox Office: Fincher 410C 26