NRF NXT 2019 July 22, 2019 Julie Roy, VP, CRM, Digital, and Customer Insights & Analytics, DSW Inc. Brian Seewald, SVP, Customer Experience & Operations, DSW Inc.

1. Julie Roy - VP, CRM, Digital & Analytics
Brian Seewald - SVP, Customer Experience & Operations
DSW Designer Shoe Warehouse
7.22.19
SESSION:
Using Data to Transform
Customer Loyalty

3. DSW + LOYALTY
• Leading omni-channel footwear and accessories retailer,
DSW is all about the thrill of finding the perfect shoe at the
perfect price
• Sales of $2.7B with over 500 store locations in the U.S. and
Canada
• Strong loyalty program dating back over 30 years
• 26M+ loyalty members, with 29% members for 10+ years
• Represents >90% of sales
• Brand mission: WE INSPIRE SELF-EXPRESSION

4. THE NEED FOR CHANGE
• Proven, but tired loyalty program
• Changing retail landscape
• Evolving customer needs, preferences and expectations
• Desire to refresh the brand
• Need to build emotional loyalty

5. VISION DEVELOPMENT
HUMAN-CENTERED DESIGN
- Voice of the Customer Research: Qual, Quant
- Identification of Barriers to ‘Shoes as a Habit’ & Pain Points
- Macro shifts in consumer needs & preferences
RETAIL &
COMPETITIVE TRENDS
- Buying Behaviors
- Role of Physical Retail
- Competitive Plays
WHO WE ARE
- Brand Mission, Values & Promise
- Competitive Advantages
LOYALTY
INNOVATION
- Best-Practices in Loyalty
- Program Design
BUSINESS IMPACT
- Economic Modeling
- ROI & Long-Term Payoff
1 2 3 4 5

6. PROGRAM DEVELOPMENT
MUSE
DEFINITION
DATA
EVALUATION
BENEFITS
EXPLORATION
QUANTITATIVE
ASSESSMENT

7. ITERATIVE PROGRAM DESIGN
SPRING 2018 FALL 2018 SPRING 2019
• Faster rewards
• Free shipping & returns
benefits
• 3-tier structure with
exclusive benefits
• Shoe donation &
rewards earning
• Digital integration
• Cloud-based loyalty
engine
• Real-time points &
rewards
• Expanded non-
transactional rewards
• Rewards donation
• MyPerk choice reward
• Mobile wallet
• Text to enroll

11. KEY SUCCESS METRICS
• +6% annual sales comp = highest in 7 years
• Tri-fecta of AMAZING customer growth:
• Significant new customer enrollments
• Highest-ever retention & reactivation rates
• Average annual member spend increase
• 1.6M additional app downloads, growing to 20% of digital traffic
• 1M shoes donated in <1 year and heart-warming, emotional stories
• Recognized as one of the best, most innovative programs in the industry

12. FORWARD FOCUS
• Personalization
• Community & social
• Enhanced digital utility
• Experiential rewards
• Paid memberships/bundles
• Exclusive services
• Credit integration
• Gamification

13. KEY TAKEAWAYS
• Focus on the customer
• Set a vision & align the organization
• Keep it simple
• Continuously evolve