UnifyIn-StoreAndOnlineSystemsToTransformTheCustomerExperience

#OmniSuccessWEBINARSPONSOREDBY

FindOutWhyLovesacChoseAUnifiedCommercePlaDormToAccelerateOmnichannelSuccess

#OmniSuccess

QuesGons,Tweets,&Resources

Submityourques?ons

here

Downloadtoday’sresources

Jointheconversa?on#OmniSuccess

#OmniSuccess

FollowThisEventOnTwiKer

#OmniSuccessRetailTouchpoints:@RTouchPoints

DebbieHauss:@DhaussNetSuite:@NetSuite

BrandenJenkins:@brandenjenkinsLovesac:@lovesac

RetailSystemsResearch:@rsrresearch

#OmniSuccess

AboutRetailTouchPointsü  Launchedin2007

ü  Over30,000retailsubscribers

ü  ToprovideexecuGveswithrelevant,insighDulcontentacrossavarietyofdigitalmedium

SignupforourweeklynewsleQer:

www.retailtouchpoints.com/subscribe

#OmniSuccess

RyanJohnsonChiefOperaGngOfficer

Lovesacryan@lovesac.com

@lovesac

SteveRowenManagingPartner

RetailSystemsResearchsdrowen@rsrresearch.com

@rsrresearch

Panelists MODERATOR:DebbieHaussEditor-in-Chief,RetailTouchPoints

BrandenJenkinsGeneralManager,GlobalRetail

NetSuitebjenkins@netsuite.com

@NetSuite

ClosingTheGapBetweenOnlineAndIn-StoreRSRBenchmarkReport2015SteveRowen

6

TheBOOTMethodology©

Theysellmore“stuff”but…theyalsothinkandactdifferentlythantheircompeGtors.

RetailWinners:Year-over-yearcomparablestoresalesoutperforminflaGon.

BusinessChallenges

Opportuni?es Organiza?onalInhibitors

TechnologyEnablers

7

What’sItAllFor?

31%

54%

59%

64%

64%

64%

67%

68%

68%

84%

33%

30%

39%

34%

31%

32%

30%

29%

30%

16%

36%

15%

2%

1%

2%

3%

3%

3%

2%

0%

Emphasizedigital,de-emphasizestores

Bewherewedon’thavephysicalstores

Growintonewmarkets

Drivesalestostores

ProvideaconGnuousshoppingengagement

GeneratemoresalesinourexisGngmarkets

GeneratenewvaluecreaGngopportuniGes

Drivedirectsales

CreategreaterefficienciesinourexisGngoperaGons

Buildbrandawareness

TheImportanceOfADigitalPresenceTo:

VeryImportant SomewhatImportant NotImportant8

TheStateofTheUnion

17%

23%

31%

31%

51%

59%

46%

55%

29%

14%

16%

13%

2%

3%

7%

1%

ReplacinglegacyPOSwithneweromni-channelcustomerPOSwouldbetooexpensiveanddisrupGve

We’reawareofviablecustomerordermanagementsystemsthatcantraverseallsellingchannels

OurlegacystorePOSsystemisholdingusbackfromprovidingaconsistentcustomerexperienceacrossallchannels

Thereareimportantdifferencesbetweenin-storePOSandeComordermanagementsystemsthatmustbeconsidered

RetailerSenGment

StronglyAgree Agree Disagree StronglyDisagree

9

14%

17%

28%

26%

24%

34%

38%

41%

ReplacinglegacyPOSwithneweromni-channelcustomerPOSwouldbetooexpensiveanddisrupGve

We’reawareofviablecustomerordermanagementsystemsthatcantraverseallsellingchannels

OurlegacystorePOSsystemisholdingusbackfromprovidingaconsistentcustomerexperienceacrossallchannels

Thereareimportantdifferencesbetweenin-storePOSandeComordermanagementsystemsthatmustbeconsidered

RetailerSenGment"StronglyAgree"

Winners AllOthers

ForWinners,ACompletelyDifferentLens:InMuchSharperFocus

10

UniversalAccord

18%

20%

21%

41%

48%

45%

53%

46%

52%

47%

30%

26%

28%

5%

5%

7%

1%

5%

1%

We’rehappywiththein-storeexperiencewecurrentlyprovideourcustomers

We’rehappywiththeonlineshoppingexperiencewecurrentlyprovideourcustomers

Thestoreexperienceisuniquefromthedigitalexperienceandthetwoarenoteasilyharmonized

WehavetodoabeKerjobaccommodaGngayounger,moretech-savvyconsumer

ThestoreandthedigitalexperiencemustbebroughttogetherforaconGnuous,seamlessexperience

FurtherSenGment

StronglyAgree Agree Disagree StronglyDisagree11

It’sADigitalHorizon

24%

47%

23%

6%

12%

32%

46%

10%

Morethan75%

25-75%

10-25%

Lessthan10%

PercentOfTotalSalesInfluencedByDigitalShoppingBehaviors

Today In3Years12

25%

33%

16%

32%

26%

33%

37%

25%

37%

28%

10%

14%

21%

24%

24%

28%

31%

38%

48%

48%

OurcompeGtors'mergingofphysicalanddigitalofferingsis

CustomerdissaGsfacGoncausedbylackofintegraGon

Fastpaceofchangeinconsumertechnology

DifficultydifferenGaGngourselvesfromourcompeGtors

AccommodaGnghowdifferentcustomersegmentsengage

KeepingupwithevolvingconsumershoppingpaKerns:social

Customersexpectaseamlessexperiencebetweendesktop,

Consumersareusingmobileaspartoftheirshopping

Needtoimprovecustomerservicewhileholdingthelineon

Providingmorewaysforconsumerstoconnectthroughour

Top3BusinessChallengesInCreaGngASeamlessCustomerExperience

Winners AllOthers

ButWinnersAlreadyHaveALegUp

13

TheHouseLoses:ForNow…

30%

35%

5%

25%

19%

40%

26%

46%

37%

35%

3%

10%

17%

21%

31%

35%

35%

48%

48%

52%

Addself-servicecustomer-facingtechnologiesinthestore

"Savethesale"or"endlessaisle"attheshelf

Broadenourassortment(endlessaisle,etc.)

Improvingthepaymentprocessacrossallsellingchannels

Enhancethein-storeexperiencewithdigitaltouchpoints

Focusonamoreconvenientcustomerexperience

Improvingcross-channelfulfillmentcapabiliGes

MorepersonalizedaKenGon/servicefromouremployees

Deepercustomerengagementtodrivesalesthrough

Bringmoreofadigital/onlineexperiencetostores

Top3Consumer-FacingOpportuniGesInCreaGngASeamlessCustomerExperience

Winners AllOthers14

11%

23%

24%

31%

34%

35%

36%

48%

57%

HRself-service(scheduling,Gmeoffrequests,etc)

Tohaveaphysicalstorethat’sasinteresGngtoourpotenGal

Offeremployeestrainingtoolsthatuseafamiliaruser-

TeamcommunicaGons

ProvidingricherproductdetailinformaGon(photo,video)to

FindwaystomakeourstoreemployeesmoreproducGve

Mobilein-storeconciergetoalleviatesomeofthesales

Provideabilitytolocateandsellmerchandisefromanywhere

Offerstoreemployeesselling&producGvitytoolsthatare

Top3Employee-FacingOpportuniGesInCreaGngASeamlessCustomerExperience

…ButChangeIsInTheAir

15

HalfEmpty?HalfFull?

7%

12%

12%

20%

29%

43%

55%

55%

52%

65%

63%

53%

36%

34%

35%

15%

8%

3%

Technologytraining

Selling&customerservice

Cross-channelselling&fulfillment

Restocking/shelfmanagement

Inventorymanagement(receiving,transfers,etc)

AdministraGvetasks(corporatepaperwork&processes)

StoreEmployeesTimeSpent

TooMuchTime RightAmountofTime NotEnoughTime16

TheFastPaceOfTechAdop?onIsASignificantChallenge

7%

15%20%

41%34%

24%

3%8%

15%

34% 35% 36%

AdministraGvetasks(corporatepaperwork

&processes)

Inventorymanagement

(receiving,transfers,etc)

Restocking/shelfmanagement

Selling&customerservice

Cross-channelselling&fulfillment

Technologytraining

StoreEmployeeTimeSpent"NotEnoughTime"

2014 2015

17

27%28%

36%37%42%43%44%44%52%59%63%65%66%

42%45%

59%51%

52%44%50%44%42%

38%34%30%28%

30%26%

2%9%5%

12%6%6%5%0%2%3%2%

Store-providedmobilehardwareforcustomersBYODmanagementinfrastructureforouremployees

SorwaretoassignacGonsforspecificstores/departmentsinDigitaldisplaysandinteracGvekiosks

SinglecommerceplaDormDetachablePOShardware(toenableline-busGng)

Clienteling/CRMsoluGonsforstoreemployeesEnterprise-widepaymentportaltohandleallpaymenttypes

Store-providedmobilehardwareforemployeesModernPOSsorwarearchitecturethatiseasilyintegrated

RealGmeproductinformaGonacrossallchannelsRealGmevisibilityintocustomeracGvityacrosschannels

Inventoryinsightacrossallchannels

TheImportanceOfInfrastructureTechnologyEnablers

VeryImportant SomewhatImportant NotImportant

VisibilityComesFirst

18

WinnersAreMoreEnthusias?c

30%

30%

58%

39%

54%

39%

53%

41%

52%

55%

55%

66%

66%

66%

In-StoreBeacons

Selfcheckout

EndlessAislesellingcapabiliGes

Digitalreceipts

In-storefulfillment

KPIsandalertstostoremanagersonmobiledevicesandtablets

Employeeassistedsellingmobilecapability

TechEnabledFeatures'Importance(Rated"VeryImportant")

Winners AllOthers19

• Address'TheVisibiliGes'- Enterprise-widevisibilityintoInventory,Customer,andProductremainsretailers’toptechenablerforsuccess

• ModernizePOS- Legacyin-storePOSisholdingretailersbackfromprovidingconsistentexperiences

• EmpowerAssociates- GivethemthemobiletechnologyandtrainingforcreaGngseamlesscustomerexperiences

BigTakeaways

20

2015

21

• Couches,Beanbags,Accessories• “TheCouchForLife”• 5+DefensiblePatents• OngoingPlaDormInnovaGon

• 60“Lovesac”Stores>$900psf• Lovesac.com>20%ofSales

• Steady25%-30%CompoundGrowth

WhatIsLovesac

22

60+ Stores 23

24

25

Lovesac Beanbags

26

27

28

Sactionals Couches

29

30

31

32

WeNeedtoBeQerUnderstandCustomersExpecta?onsandFindNewWaystoProvidetheExperiencethatwillDefineOurBrand

SalesbyChannelwithAcGveCustomerCount

DevelopingAWorldClassBrand

35,00055,00075,00095,000115,000135,000155,000175,000

$0

$50

$100

$150

$200

2013 2014 2015E 2016E 2017E 2018E

StoreSales($inMM) WebSales($inMM) #Customers

33

Mul?pleTouchpoints,allwithOpportunitytoDeliver“Personalized”ExperiencethatwouldAllowConsumerto

GetClosertotheBrand

LovesacCustomerJourney

34

CustomersExperienceOurBrandThroughCountlessTouchpoints,BringingthemtogetherSeamlesslyisan

OverwhelmingChallenge

CustomerInterac?ons

35

TechnologyRoadmap

WeareAggressivelyMovingtoaSingleCloudBasedEnvironmenttoReduceComplexityandMakeRelevant

Informa?onReadilyAvailable36

• ClearlyunderstandcustomerexpectaGonsaswebuildbrandawareness

• Createseamlessexperiencesbetweenstoresandotherchannels

• Referenceoneviewofthecustomeracrossallofourtouchpoints

• Deliverreal-Gmeinventoryandmakeiteasilyavailableforsalesassociates&customers

•  ImplementamodernPOStosupportourneeds&ourcustomersneeds

• Train,train,trainouremployeesonhowtousenewtoolseffecGvely

• Ensurethateverythingwedotranslatestomobile

OurFocus–AchievingwithNetSuite

37

#OmniSuccess

Q&A|Panelists MODERATOR:DebbieHaussEditor-in-Chief,RetailTouchPoints

RyanJohnsonChiefOperaGngOfficer

Lovesacryan@lovesac.com

@lovesac

SteveRowenManagingPartner

RetailSystemsResearchsdrowen@rsrresearch.com

@rsrresearch

BrandenJenkinsGeneralManager,GlobalRetail

NetSuitebjenkins@netsuite.com

@NetSuite

#OmniSuccess

ThankYouForJoiningUsViewthispresentaGonon-demandat:hQp://rtou.ch/OmniSuccess