FORESEE EXPERIENCE INDEX RETAIL NPS & SATISFACTION

F O R E S E E E X P E R I E N C E I N D E XR E TA I L N P S& S AT I S FAC T I O NREPORT Q2 2018C O M M E N TA R YRESEARCHA N A LY S I SEric FeinbergJosé BenkíJeff SylvesterChief Evangelist 2018 ForeSeeSenior ResearchScientistSenior Analyst

F O R E S E E E X P E R I E N C E I N D E X : R E TA I L N P S & S AT I S FAC T I O N R E P O R T — Q 2 2 0 1 8The Road Ahead on Customer ExperienceThe competition for retail success is playing out across a complex customer journeyGood customer experiences drive better business outcomes: The more satisfiedWHO WINS O N NPS AND SATI SFAC TI ONa customer is, the more likely they are to buy from, return to, and recommend aFour brands made the top five in both our Net Promoter Score (NPS) and customerbrand. Based on data from 40,000 consumer surveys, this study shows how evolvingsatisfaction (CSAT) lists, suggesting a strong link between metrics — and a payoff forcustomer journey behaviors are impacting the industry, and which retailers areinvesting widely in CX.delivering experiences that delight customers and keep them coming back. Amazon wins on both NPS and CSAT listsA C H A N GI N G CU STO M ER J O UR N E Y Our benchmarks show a recent drop in NPSIt’s clear that customers seek out and value new touchpoints, and that digitalcontinues to expand: stores and contact centers increasingly incorporate web andBUIL D A BE TTE R E XPE R IE N C E, SEE B ETTER OU TC OM ESmobile into customer interactions.Customer expectations continue to rise. More competition, CX innovations, andpressure from other sectors all play a role. Consumers can stream shows from 42% of shoppers use multiple channels and touchpoints before purchasinganywhere, and easily bank and pay bills from an app, so they wonder: why isn’t Multichannel shoppers are 16% more likely to purchase than are single channel shoppersmy retail experience that seamless? Mobile purchases increased by 40% since our last Retail FXIIt’s a tall order, but brands that deliver will be rewarded.RETA IL N PS3120123320133630201420152332016192020172018

F O R E S E E E X P E R I E N C E I N D E X : R E TA I L N P S & S AT I S FAC T I O N R E P O R T — Q 2 2 0 1 8Brands That Get It RightTop performers use complementary metrics to perfect CXC S ATCSAT and NPS are separate and linked measures of CX. Brands that valueboth score better on all fronts because: CSAT is a loyalty metric that helps you retain and upsell to customersbased on experiences NPS is a word-of-mouth metric that helps you gain new customersbased on long-term trustThe higher your satisfaction score, the more likely your customers are torecommend your brand. And the inverse is true as well: Brands with lowCSAT will also see their NPS drop.3NPS

F O R E S E E E X P E R I E N C E I N D E X : R E TA I L N P S & S AT I S FAC T I O N R E P O R T — Q 2 2 0 1 8Satisfaction and NPS RankingsRE TA IL E RCSATNP SR ETAILERCSATNPS1AMAZON83.646132BATH & BODY WORKS82.9393COACH82.84VICTORIA'S SECRET5C SATN PSBARNES & NOBLE80.13425BASS PRO ERFLY80.03327MENARDS78.62779.63616ULTA BEAUTY79.23228THE HOME DEPOT79.826APPLE81.13617UNDER ARMOUR80.43129TRACTOR SUPPLY CO.79.1266NIKE80.53618TIFFANY & ALPH LAUREN78.8258L.L. BEAN80.53520ACADEMY SPORTS79.82932MICHAELS77.2259SEPHORA80.03521ROSS DRESS FOR LESS77.02933NEWEGG77.92510BJ'S WHOLESALE CLUB80.83422REI79.02934BEST DISCOUNT TIRE81.03424LOWE'S78.92836DOLLAR TREE76.524Brands are ranked according to NPS on a scale of 100 to -100. When two or more scores are identical at one decimal place,the next decimal place is used to break ties and determine rankings. CSAT scores are listed for comparison purposes.4R ETA I L ER

F O R E S E E E X P E R I E N C E I N D E X : R E TA I L N P S & S AT I S FAC T I O N R E P O R T — Q 2 2 0 1 8Satisfaction and NPS RankingsRE TA IL E RCSATNP SR ETAILERCSATNPSR ETA I L ERC SATN PS37JCPENNEY77.42448O'REILLY AUTO PARTS79.72259GNC75.51638NEIMAN MARCUS77.62349LANDS' END78.62160BEALLS74.71639WILLIAMS TOZONE78.42351GAP77.02062AMERICAN EAGLE75.21541FOSSIL78.12352DILLARD'S77.31963CRATE & R74.91543BED BATH & BEYOND78.52254DRESSBARN74.51865PARTY CITY74.71444SAKS FIFTH AVENUE76.72255BELK76.01766CHICO'S74.61445GOODYEAR 58STAGE74.11669WALGREENS76.113Brands are ranked according to NPS on a scale of 100 to -100. When two or more scores are identical at one decimal place,the next decimal place is used to break ties and determine rankings. CSAT scores are listed for comparison purposes.5

F O R E S E E E X P E R I E N C E I N D E X : R E TA I L N P S & S AT I S FAC T I O N R E P O R T — Q 2 2 0 1 8Satisfaction and NPS RankingsRE TA IL E RCSATNP SR ETAILERCSATNPSR ETA I L ERC SATN PS70LORD & TAYLOR74.61381PETSMART75.71192BIG LOTS73.5771JUSTICE75.01382DICK'S SPORTING GOODS74.31193CVS CAREMARK74.7672ADVANCE AUTO PARTS78.31383ZARA72.71194STAPLES74.7473RESTORATION HARDWARE75.61384ASHLEY FURNITURE73.71095PEP ICE DEPOT74.1175WALMART75.11286FOREVER 2172.8897MEN'S WEARHOUSE73.5076ABERCROMBIE & FITCH74.21287CHARLOTTE RUSSE74.0898OVERSTOCK70.6-177DOLLAR GENERAL73.61288STEIN MART74.0899URBAN OUTFITTERS70.9-478RUE2172.51289THE BUCKLE72.28100SEARS70.8-579J CREW74.01290FOOT LOCKER75.1780HOT TOPIC74.41191FRY'S ELECTRONICS73.87Brands are ranked according to NPS on a scale of 100 to -100. When two or more scores are identical at one decimal place,the next decimal place is used to break ties and determine rankings. CSAT scores are listed for comparison purposes.6

F O R E S E E E X P E R I E N C E I N D E X : R E TA I L N P S & S AT I S FAC T I O N R E P O R T — Q 2 2 0 1 8Satisfaction and NPS Rankings — U.K. and CanadaRE TAILE RCSATNPSR ETAILE RC SATN 2.5123MARKS & SPENCER74.7123CANADIAN LKO74.985REITMANS72.696JOHN LEWIS74.276MARK'S75.487BURBERRY72.467THE HOME DEPOT75.388B&Q73.358BEST S DRUG MART73.6311HARRODS72.5111THE SOURCE70.7112CURRYS71.8012LOWE'S71.7-213SPORTS DIRECT72.3-213HUDSON'S BAY70.6-214DOROTHY PERKINS71.5-514SPORT CHEK72.4-615TOPSHOP69.1-715WALMART70.0-12Brands are ranked according to NPS on a scale of 100 to -100. When two or more scores are identical at one decimal place,the next decimal place is used to break ties and determine rankings. CSAT scores are listed for comparison purposes.7

F O R E S E E E X P E R I E N C E I N D E X : R E TA I L N P S & S AT I S FAC T I O N R E P O R T — Q 2 2 0 1 8Retail Categories: NPS Highs and LowsAmid wide-ranging scores, Mass Merchants and Apparel/Accessories see most polarity-5LOWHIGHNPS AVERAGE LTH & BEAUTY36COMPUTERS/ELECTRONICS1934HOUSEWARES/HOME FURNISHINGS1934AUTOMOTIVE PARTS/ACCESSORIES11-10MASS MERCHANT242920308SPORTING GOODS4050

F O R E S E E E X P E R I E N C E I N D E X : R E TA I L N P S & S AT I S FAC T I O N R E P O R T — Q 2 2 0 1 8NPS BenchmarksYear-over-year trends for 25 leading retailersRE TA IL E R2 0152 01620 1720 18R ETAILER2 01 5201 6201 7201 3336BED BATH & BEYOND39443522NORDSTROM45344023BEST BUY32372425ROSS DRESS FOR LESS26232629COSTCO48435035SEARS292012-5CVS CAREMARK2523206T.J.MAXX35233227DICK'S SPORTING GOODS31271111TARGET39332922GAP35312820THE HOME DEPOT33363026JCPENNEY28392724VICTORIA'S S33413928WALMART29272112MACY'S33302617WILLIAMS SONOMA46414523NEIMAN MARCUS293640239

F O R E S E E E X P E R I E N C E I N D E X : R E TA I L N P S & S AT I S FAC T I O N R E P O R T — Q 2 2 0 1 8The Customer Journey: Examining Starts and Ends25% of shoppers who start in digital complete their journeys in storeSTARTS INS TOREENDS IN91%STOR E2%2%25%W EB64%W EB5%MOB IL E25%9%56%M OB I L E10

F O R E S E E E X P E R I E N C E I N D E X : R E TA I L N P S & S AT I S FAC T I O N R E P O R T — Q 2 2 0 1 8The Customer Journey: Waypoints and DetoursThe purchase path gets complex as shoppers research and compare before becoming buyersSTARTS IN20%S TORE42%W EBMOB IL EENDS INof shoppers use morethan one channeland multipletouchpoints duringthe purchase journeyuse a voice-activated deviceto get product informationSTOR E19%use ratings & reviews11%visit a productmanufacturer website10%visit the retailer’ssocial media site8%use a printed catalog6%call the contact center11W EBM OB I L E

F O R E S E E E X P E R I E N C E I N D E X : R E TA I L N P S & S AT I S FAC T I O N R E P O R T — Q 2 2 0 1 8CX Drives Millions in RevenueBetter experiences lead to increases in conversions, recommendations, and loyaltyConsumers who are satisfied withshopping experiences are:2XOVER90%more likely topurchase innext 30 daysA ForeSee-commissioned study conducted byForrester Consulting determined the Total Economic Impact (TEI)of our solutions and found that CX Suite enables: 7.8MIN ECONOMIC BENEFITS ANDPAYBACK IN315% ROI 3 MONTHSmore likely torecommendthe companyForeSee’s independent analysis found that CX Suite provides:70%more likelyto trust thecompany40% MORE REVENUE GROWTH THAN COMPETITOR SOLUTIONS1.9X FASTER PAYBACK THAN INDUSTRY COMPETITORS12

F O R E S E E E X P E R I E N C E I N D E X : R E TA I L N P S & S AT I S FAC T I O N R E P O R T — Q 2 2 0 1 8NPSRetailer Scorecardsfrom ForeSeeDETRACTORSJOURNEYSPASSIVESPROMOTERSSTARTS INSTOR E88%27%Consolidated CX data help you prioritize,18%This is the scorecard for Apple.S TORE3%55%gain buy-in, and benchmark progressENDS IN3614%W EB65%WEB7%8%14%M O BIL E65%M OBI LENPSTo see this kind of data for yourcompany or any company in thisPRIORITY MAPT E X T A N A LY T I C Sstudy, SC H E D U LE A B R I EFI N Gwith our retail team. You’ll get aDigital85, 1.2personalized scorecard or seeStreamlined. Bright and cheerful.“ Clean.Lots of hands on opportunities.”Fresh and current content and up to“ dateon latest products and services.Fun to look at and browse.”were extremely knowledgeable“ Theyabout their product and the customerMerchandise83, 2.1Service83, 0.9how your brand compares toindustry competitors.SCO R EPrice75, 0.5service reps were very attentive.Top PriorityI M PAC T13“”The stores are modern and clean, and theyintegrate technology into their customer service.”