The document discusses a webinar about transforming the customer experience by unifying in-store and online systems. It provides an overview of Lovesac, a furniture retailer that has experienced steady growth. Lovesac chose to implement a unified commerce platform to accelerate omnichannel success and better understand customer expectations across its many touchpoints. The technology roadmap involves moving to a single cloud-based environment to reduce complexity and make customer information readily available.

1. Unify In-Store And Online Systems To
Transform The Customer Experience
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WEBINAR SPONSORED BY
Find Out Why Lovesac Chose A Unified Commerce
PlaDorm To Accelerate Omnichannel Success

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Ryan Johnson
Chief OperaGng Officer
Lovesac
ryan@lovesac.com
@lovesac
Steve Rowen
Managing Partner
Retail Systems Research
sdrowen@rsrresearch.com
@rsrresearch
Panelists MODERATOR:
Debbie Hauss
Editor-in-Chief, Retail TouchPoints
Branden Jenkins
General Manager, Global Retail
NetSuite
bjenkins@netsuite.com
@NetSuite

6. Closing The Gap Between Online
And In-Store
RSR Benchmark Report 2015
Steve Rowen
6

7. The BOOT Methodology©
They sell more “stuff” but… they also think and act
differently than their compeGtors.
Retail Winners: Year-over-year comparable store sales
outperform inflaGon.
Business
Challenges
Opportuni?es
Organiza?onal
Inhibitors
Technology
Enablers
7

8. What’s It All For?
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%
Emphasize digital, de-emphasize stores
Be where we don’t have physical stores
Grow into new markets
Drive sales to stores
Provide a conGnuous shopping engagement
Generate more sales in our exisGng markets
Generate new value creaGng opportuniGes
Drive direct sales
Create greater efficiencies in our exisGng operaGons
Build brand awareness
The Importance Of A Digital Presence To:
Very Important Somewhat Important Not Important
8

9. The State of The Union
17%
23%
31%
31%
51%
59%
46%
55%
29%
14%
16%
13%
2%
3%
7%
1%
Replacing legacy POS with newer omni-channel customer POS
would be too expensive and disrupGve
We’re aware of viable customer order management systems
that can traverse all selling channels
Our legacy store POS system is holding us back from providing
a consistent customer experience across all channels
There are important differences between in-store POS and
eCom order management systems that must be considered
Retailer SenGment
Strongly Agree Agree Disagree Strongly Disagree
9

10. 14%
17%
28%
26%
24%
34%
38%
41%
Replacing legacy POS with newer omni-channel customer POS
would be too expensive and disrupGve
We’re aware of viable customer order management systems
that can traverse all selling channels
Our legacy store POS system is holding us back from providing a
consistent customer experience across all channels
There are important differences between in-store POS and eCom
order management systems that must be considered
Retailer SenGment
"Strongly Agree"
Winners All Others
For Winners, A Completely Different Lens:
In Much Sharper Focus
10

11. Universal Accord
18%
20%
21%
41%
48%
45%
53%
46%
52%
47%
30%
26%
28%
5%
5%
7%
1%
5%
1%
We’re happy with the in-store experience we currently
provide our customers
We’re happy with the online shopping experience we
currently provide our customers
The store experience is unique from the digital experience
and the two are not easily harmonized
We have to do a beKer job accommodaGng a younger, more
tech-savvy consumer
The store and the digital experience must be brought
together for a conGnuous, seamless experience
Further SenGment
Strongly Agree Agree Disagree Strongly Disagree
11

12. It’s A Digital Horizon
24%
47%
23%
6%
12%
32%
46%
10%
More than 75%
25-75%
10-25%
Less than 10%
Percent Of Total Sales Influenced By Digital Shopping
Behaviors
Today In 3 Years
12

13. 25%
33%
16%
32%
26%
33%
37%
25%
37%
28%
10%
14%
21%
24%
24%
28%
31%
38%
48%
48%
Our compeGtors' merging of physical and digital offerings is
Customer dissaGsfacGon caused by lack of integraGon
Fast pace of change in consumer technology
Difficulty differenGaGng ourselves from our compeGtors
AccommodaGng how different customer segments engage
Keeping up with evolving consumer shopping paKerns: social
Customers expect a seamless experience between desktop,
Consumers are using mobile as part of their shopping
Need to improve customer service while holding the line on
Providing more ways for consumers to connect through our
Top 3 Business Challenges In CreaGng A Seamless Customer
Experience
Winners All Others
But Winners Already Have A Leg Up
13

14. The House Loses: For Now…
30%
35%
5%
25%
19%
40%
26%
46%
37%
35%
3%
10%
17%
21%
31%
35%
35%
48%
48%
52%
Add self-service customer-facing technologies in the store
"Save the sale" or "endless aisle" at the shelf
Broaden our assortment (endless aisle, etc.)
Improving the payment process across all selling channels
Enhance the in-store experience with digital touch points
Focus on a more convenient customer experience
Improving cross-channel fulfillment capabiliGes
More personalized aKenGon/service from our employees
Deeper customer engagement to drive sales through
Bring more of a digital/online experience to stores
Top 3 Consumer-Facing OpportuniGes In CreaGng A Seamless
Customer Experience
Winners All Others 14

15. 11%
23%
24%
31%
34%
35%
36%
48%
57%
HR self-service (scheduling, Gme off requests, etc)
To have a physical store that’s as interesGng to our potenGal
Offer employees training tools that use a familiar user-
Team communicaGons
Providing richer product detail informaGon (photo, video) to
Find ways to make our store employees more producGve
Mobile in-store concierge to alleviate some of the sales
Provide ability to locate and sell merchandise from anywhere
Offer store employees selling & producGvity tools that are
Top 3 Employee-Facing OpportuniGes In CreaGng A Seamless
Customer Experience
…But Change Is In The Air
15

16. Half Empty? Half Full?
7%
12%
12%
20%
29%
43%
55%
55%
52%
65%
63%
53%
36%
34%
35%
15%
8%
3%
Technology training
Selling & customer service
Cross-channel selling & fulfillment
Restocking/shelf management
Inventory management (receiving, transfers, etc)
AdministraGve tasks (corporate paperwork & processes)
Store Employees Time Spent
Too Much Time Right Amount of Time Not Enough Time
16

17. The Fast Pace Of Tech Adop?on Is A
Significant Challenge
7%
15%
20%
41%
34%
24%
3%
8%
15%
34% 35% 36%
AdministraGve tasks
(corporate paperwork
& processes)
Inventory
management
(receiving, transfers,
etc)
Restocking/shelf
management
Selling & customer
service
Cross-channel selling
& fulfillment
Technology training
Store Employee Time Spent
"Not Enough Time"
2014 2015
17

18. 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-provided mobile hardware for customers
BYOD management infrastructure for our employees
Sorware to assign acGons for specific stores/departments in
Digital displays and interacGve kiosks
Single commerce plaDorm
Detachable POS hardware (to enable line-busGng)
Clienteling/CRM soluGons for store employees
Enterprise-wide payment portal to handle all payment types
Store-provided mobile hardware for employees
Modern POS sorware architecture that is easily integrated
Real Gme product informaGon across all channels
Real Gme visibility into customer acGvity across channels
Inventory insight across all channels
The Importance Of Infrastructure Technology Enablers
Very Important Somewhat Important Not Important
Visibility Comes First
18

19. Winners Are More Enthusias?c
30%
30%
58%
39%
54%
39%
53%
41%
52%
55%
55%
66%
66%
66%
In-Store Beacons
Self checkout
Endless Aisle selling capabiliGes
Digital receipts
In-store fulfillment
KPIs and alerts to store managers on mobile
devices and tablets
Employee assisted selling mobile capability
Tech Enabled Features' Importance
(Rated "Very Important")
Winners All Others 19

20. • Address 'The VisibiliGes'
- Enterprise-wide visibility into Inventory, Customer, and Product remains
retailers’ top tech enabler for success
• Modernize POS
- Legacy in-store POS is holding retailers back from providing consistent
experiences
• Empower Associates
- Give them the mobile technology and training for creaGng seamless customer
experiences
Big Takeaways
20

21. 2015
21

22. • Couches, Beanbags, Accessories
• “The Couch For Life”
• 5+ Defensible Patents
• Ongoing PlaDorm InnovaGon
• 60 “Lovesac” Stores > $900 psf
• Lovesac.com > 20% of Sales
• Steady 25%-30% Compound Growth
What Is Lovesac
22

23. 60+Stores23

24. 24

25. 25

26. Lovesac
Beanbags
26

27. 27

28. 28

29. Sactionals
Couches
29

30. 30

31. 31

32. 32

33. We Need to BeQer Understand Customers Expecta?ons and Find New Ways
to Provide the Experience that will Define Our Brand
Sales by Channel with AcGve Customer Count
Developing A World Class Brand
35,000
55,000
75,000
95,000
115,000
135,000
155,000
175,000
$0
$50
$100
$150
$200
2013 2014 2015E 2016E 2017E 2018E
Store Sales ($ in MM) Web Sales ($ in MM) # Customers
33

34. Mul?ple Touchpoints, all with Opportunity to Deliver
“Personalized” Experience that would Allow Consumer to
Get Closer to the Brand
Lovesac Customer Journey
34

35. Customers Experience Our Brand Through Countless
Touchpoints, Bringing them together Seamlessly is an
Overwhelming Challenge
Customer Interac?ons
35

36. Technology Roadmap
We are Aggressively Moving to a Single Cloud Based
Environment to Reduce Complexity and Make Relevant
Informa?on Readily Available 36

37. • Clearly understand customer expectaGons as we build brand awareness
• Create seamless experiences between stores and other channels
• Reference one view of the customer across all of our touchpoints
• Deliver real-Gme inventory and make it easily available for sales associates & customers
• Implement a modern POS to support our needs & our customers needs
• Train, train, train our employees on how to use new tools effecGvely
• Ensure that everything we do translates to mobile
Our Focus – Achieving with NetSuite
37

38. #OmniSuccess
Q&A | Panelists MODERATOR:
Debbie Hauss
Editor-in-Chief, Retail TouchPoints
Ryan Johnson
Chief OperaGng Officer
Lovesac
ryan@lovesac.com
@lovesac
Steve Rowen
Managing Partner
Retail Systems Research
sdrowen@rsrresearch.com
@rsrresearch
Branden Jenkins
General Manager, Global Retail
NetSuite
bjenkins@netsuite.com
@NetSuite

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