John Maher, Senior Vice President, Lands’

End Outfitters

Best Practices in Retail Financial Services Symposium March 14, 2011

“Delivering World-Class Customer Service”

PBS Nightly Business Report

Delivering World-Class Customer Service

“Take care of the customer, take care of the employee and the rest will take care of itself.”

-

Gary Comer Founder

Our Foundation

Recognized for Results

Named one of the top 10 most identified companies in 2007,

2008, 2009 and 2010 by the National Retail Federation

“In this environment, the ability to truly connect with customers

is an honor, a privilege and extremely hard work. Customers have spoken loud and clear

that Lands' End provides stellar customer service, and we congratulate themon this accomplishment.”

-

Kathy ManceVice President, National Retail Federation

Gary’s Vision

“Sell only the things we believe in, ship every order as quickly as possible, unconditionally guarantee everything.”

Customers Change…We Change

Lands’

End Divisions

•

Lands’

End Direct

•

Lands’

End Retail

•

Lands’

End Outfitters

•

Lands’

End International

The value of a Personalized Relationship

•

More than a catalog•

Multiple channels

Key: Establish a personalized relationship with each customer

Great Service Across Multiple Channels

Nearly 50 years of offering quality products, legendary customer

service and an unconditional guarantee

Positioning for

Growth• Based on successful test, expanded

Lands’ End retail presence (current - 200+ stores)

• Launched Lands’ End Canvas

• Social Media Presence

• International expansion into France and Austria

1963-19851963-1985 1985 - 19951985 - 1995 1995 - 20021995 - 2002

Direct Merchant

• Lands’ End Launched (1963)

• Customer focused - “Do what’s right for the customer and the rest will take care of itself.”

• Quality driven - Guaranteed Period

• Primary business was sailboat racing & marine hardware until the mid ‘70s when transitioned to apparel

Product & Market

Expansion• Launched Mens, Kids and

Home Businesses (1990)

• International Expansion in UK, Germany & Japan

• Entered business to business market with LEBO - Lands’ End Business Outfitters

Multi-Channel

Direct• Launched Landsend.com

(1990)

Retail Expansion

• Sears Acquires Lands’ End (June 2002)

• 2002 - Lands’ End Brand Launched in 180 Sears FLS

• Open first Lands’ End at Sears shops in White Plains and Yonkers (2006)

2002-20082002-2008 2009 - Current2009 - Current

Principles of Doing Business

We believe that serving our customer serves all of us. Everyone here understands that concept. Our customer care specialists are trained to know our products, and to be friendly and helpful. They are empowered to take all the time necessary to take care of our customers.

Real value is a cornerstone of our brand. We price products fairly and honestly. We operate efficiently, and build relationships with manufacturers who have proven they are skilled, cost conscious, efficient and socially responsible.

We are passionate about quality. We do everything we can to make our products better. We continually improve fabrics and construction details, and never reduce the quality of a product to make it cheaper.

We are a community dedicated to creating new ways of connecting. We consider customers and employees our heartland and seek to engage them in an ongoing conversation that encourages feedback and the betterment of the brand. That’s why when you call, click or visit Lands’ End, it’s a little like coming home.

We operate with integrity from the inside out. So employees and partners can be crystal clear about our philosophy of doing business, goals for the future and expectations for success. Everyone here is accountable for their decisions under this guiding principle. The result? An engaged workforce that delivers added value to the customer (and the bottom line).

We accept any return for any reason, at any time. Our products are guaranteed. No fine print. No arguments. We mean exactly what we say: GUARANTEED. PERIOD.

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"If you're not satisfied with any item, simply return it to us at any time for an exchange or refund of its purchase price." We mean every word of it. Whatever. Whenever. Always. Everything is Guaranteed. Period.®”

Our Pledge

Delivering world class customer service has been the cornerstone of Lands’

End:

Keys to Success

•

Lead by example •

Stay relevant

•

Empower and invest in employees•

Transact business on the customer’s terms

•

Empower employees to own the service experience

•

Engrain it in the company DNA•

Set the service standards high for employees

•

Set examples at the highest level

Legendary Leadership

Fostering customer service in every employee:

A Legacy of Innovation

Lands’

End was among the first to:

•

Offer a toll free 1-800 number•

Open a 24/7 catalog fulfillment center

•

Recognize the potential of e-commerce •

Offer chat to online customers

•

Enhance the online shopping experience•

Launched live video chats

Adapting to changing technology:

• Facebook Shops • Mobile Shops• Mobile apps • Digital catalogs • Targeted Text Messages

A Digital World

We use the Internet to interact with customers on a personal level, resulting in more than 15 million interactions a year:

Leveraging Social Media

•

650,000 live chats•

350,000 e-mail exchanges

•

600,000 Facebook friends•

8,000 Twitter followers

Our twitter initiatives are on trend:

Taking Twitter by Storm

•

Twitter Storm •

Cyber Monday 12 Hours of Twitter

•

#landsend Trends Globally

ENGAGESocial Media Outbound Calls Contests Surveys Customer Letters Community Events

Engaging CustomersEngaging Employees

Engaging Customers & Engaging Employees

Our employees are empowered to do what is best for the customer:

Empower Employees

•

Go the extra mile •

Deliver great first impressions

•

Implement independent decisions

No Can’t in Customer Service

Customer Service Stories

• Christmas delivery shipped to wrong address

• Team comes in on Christmas eve to fill the order –

a second time

• Proof that there are no limits when it comes to working together to help customers

Our commitment to personal service:

Service is Serious Business

•

Handle millions of calls every year•

Answer most calls within 6 seconds

•

Send tens of thousands of hand-written cards every year

•

Ship 95% of orders the next business day•

Process 95% of returns in 2 business days

It’s All About Training

Employees are at the center of great service. We give them the tools to excel:

•

Investment in training–

A minimum of 70 hours to start

•

Ongoing education–

Preview merchandise seasonally

–

Offer additional training monthly

Creating the Right Culture

•

The Comer Center fitness facility•

Great benefits

•

Work-life balance •

Celebrate success

Creating an inspiring culture:

The result: 40% of our employees have been with us for 10 or more years.

In Closing

Key Takeaways:

•

Lead by example•

Stay relevant

•

Empower employees •

Invest in employees

“Take care of the customer, take care of the employee and the rest will take care of itself.”

- Gary Comer

Without Our Customers, We’re Nothing

Questions?