Shop.org 2017 Jeff Simpson, Deloitte Sarah Rasmusen, Kohl's

1. Digital sleuths: How Kohl's is increasing conversion
and elevating customer experience
Jeff Simpson, Principal, Deloitte Consulting LLP
Sarah Rasmusen, VP, Digital Merchandising & Analytics, Kohl's Corporation

2. Digital Sleuths
How Kohl’s is increasing conversion
and elevating customer experience
S E P T E M B E R 2 7 , 2 0 1 7

3. S A R A H R A S M U S E N
VP, Digital Merchandising & Analytics
Kohl's Corporation
J E F F S I M P S O N
Principal
Deloitte Consulting, LLP

4. Ok, let’s get started…
Do you REALLY want to understand
what your customers want?
No, I am going to
DEFINE what they
want for them!
Heck yeah!
(or, at least my
boss does)

5. erstand
nt?
o
y
Good luck,
Steve Jobs!

6. Do you REALLY want to understand
what your customers want?
No, I am going to
DEFINE what they
want for them!
Heck yeah!
(or, at least my
boss does)

7. Ok, so here’s what you’re up against

8. Customer satisfaction is significantly higher with online shopping
experiences
40% 80%
In-Store CSAT
Average 55%
Satisfaction
Online CSAT
Average 70%
Mass
Merchants
72%
Specialty
Online Only
IN-STORE
ONLINE
72%
69%63%
66%
64%53%49%
Department
Store
Mass
Merchants
Grocery &
Essentials
Specialty
Department
Store
+10%
Delta
+15%
Delta

9. Hmmm…why?
The assortment is
much broader
online
It’s far easier to find
the right product
online
Checkout is
(relatively)
frictionless online
More directly, existing brands & (historically) bricks
& mortar retailers are simply looking for customer
insight in the wrong places…

10. OK, so where is a better place to look to
understand what they really want from me?

11. OK, so where is a better place to look to
understand what they really want from me?

12. OK, so where is a better place to look to
understand what they really want from me?
Just copy
everything Amazon
does!
What
they
bought
What they
actually
NEED

13. 1995 called & wants its CRM strategy back
Believe it or not, there is more to a customer’s life than the
three or four times a year that they buy stuff from you…

14. OK, so where is a better place to look to
understand what they really want from me?
Just copy
everything Amazon
does!
What
they
bought
What they
actually
NEED

15. Where to look
New Sources of Customer Preference & (Potential) Demand

16. How do most customers find the product they ultimately buy?
Recommendations
Search
Social Media
Site Navigation

17. How do most customers find the product they ultimately buy?
Recommendations
Search
Social Media
Site Navigation

18. Which device has the most searches?
Desktop
Kiosk
Smartphone
Tablet

19. Desktop
Kiosk
Smartphone
Tablet
Which device has the most searches?

20. What brand did over 400,000 failed searches
help bring to Kohl's in 2017?

21. What brand did over 400,000 failed searches
help bring to Kohl's in 2017?

22. Which extension to the Lauren Conrad line launched
in 2017 as a result of listening to the customer?
Swim
Plus
Maternity
Handbags

23. Which extension to the Lauren Conrad line launched
in 2017 as a result of listening to the customer?
Swim
Plus
Maternity
Handbags

24. Ok, assuming I start paying attention, how can I use
tools, data & insight to create a better experience?
Google
Analytics
Pay attention to search
data…this has become
one of the best
sources of customer
preference and
purchase intent
Blab
Predictive targeting
allows you to reach
your intended audience
when they are engaged
and ready to act
Edited
Leverage visual reports
and flexible
dashboards to
consume product-level
competitive intelligence
to identify gaps in your
assortment
Sprinklr
Social mentions of
specified keywords or
posts/tweets from
specified social handles
can give you a much
more accurate view of
CSAT

25. So, assuming I start paying attention,
how can I use that data & insight to
create a better experience?

26. 1
Make It Easier

27. Testing continuous improvements
Leveraged testing platform in
Q4 ‘16 / Q1 ‘17 to test concepts
Customer feedback: need price clarity
Fast-tracked full implementation
Your Price

28. 2
Make It Personal

29. Future of Search
“Where is this dress located?”
Only display dresses. No more dress
pants, dress shoes or dress shirts
Search data identifies trends
Personalized for Sarah’s preference
in brand, price point, and style

30. S A R A H R A S M U S E N
VP, Digital Merchandising & Analytics
Kohl's Corporation
J E F F S I M P S O N
Principal
Deloitte Consulting, LLP
Questions?