ROI of Empowering Workers on the FloorRaising Customer Satisfaction & Associate Engagement

Deborah MastenVP, Associate Development

Steve SchullerStores Training Director

Our Goals:• Improve Overall Customer Satisfaction

(OSAT) to top quartile performance• Best in Class Associate Engagement

Why Focus on Customer Service and Associate

Engagement?

Sales

&

Profit

Sales

&

Profit

Attack the Challenge from All Angles

Elevate the trainer

Change incentive compensation

Change Onboarding Experience

Build management Competency

Gain executive supportCelebrate

publicly

Train all associates

Recognize superstars Change the

hiring process

Build new training tools

Sustain the message

Research your starting point

Gain Executive Level SupportGain Executive Level Support

2006

Associate Focus

2008

Customer Focus

2010

Growth Focus

It Starts With Associate Engagement…

• Annual associate engagement survey

• 137,894 associates participated

• 93% participation rate

Associate Engagement has increased

0%10%20%30%40%50%60%70%80%90%

100%

2006 2007 2008 2009 2010

ScoreParticipation

81%81%

Training is a huge driver of engagement

“I have the training I need to do

my job.”

81

8587

8990

91

767880828486889092

2005 2006 2007 2008 2009 2010

Attack the Challenge from All Angles

Elevate the Trainer

Change Incentive Compensation

Change Onboarding Experience

Build Management Competency

Gain executive supportCelebrate

publicly

Train all associates

Recognize Superstars Change the

hiring process

Build new training tools

Sustain the message

Research your Starting Point

The Starting PointThe Starting Point

2006 ScoreOverall Satisfaction (OSAT)

43%43%

Research Your Starting PointResearch Your Starting Point• Focus groups with customers

• Focus groups with associates

• Executive interviews

• Competitive shopping with executives

• Benchmarking other companies

Sizing Up The CompetitionSizing Up The Competition

{ and many others…}

When it comes to When it comes to When it comes to

retailers with great

service, who comes

to mind?

When it comes to When it comes to What does Top

Quartile service

look like in the

retail industry?

Attack the Challenge from All Angles

Elevate the Trainer

Change Incentive Compensation

Change Onboarding Experience

Build Management Competency

Gain executive supportCelebrate

publicly

Train all associates

Recognize Superstars Change the

hiring process

Build new training tools

Sustain the message

Research your Starting Point

Our Approach to Customer Service TrainingOur Approach to Customer Service Training

• “Magazine”

• 2.5 hours • All associates trained on day one• Focused on the basic elements of

customer service

It’s all about G.R.E.A.T.! ServiceIt’s all about G.R.E.A.T.! Service

GreetRespect

EngageAssist

Thank

…and taking care of the Customer!…and taking care of the Customer!

…and taking care of the Customer!…and taking care of the Customer!

•Is the customer request reasonable?

•Is the request within the guidelines?

Attack the Challenge from All Angles

Elevate the Trainer

Change Incentive Compensation

Change Onboarding Experience

Build Management Competency

Gain executive supportCelebrate

publicly

Train all associates

Recognize Superstars Change the

hiring process

Build new training tools

Sustain the message

Research your Starting Point

Build Management CompetencyBuild Management Competency

•Active management

•Performance coaching

•Customer focus

Attack the Challenge from All Angles

Elevate the Trainer

Change Incentive Compensation

Change Onboarding Experience

Build Management Competency

Gain executive supportCelebrate

publicly

Train all associates

Recognize Superstars Change the

hiring process

Build new training tools

Sustain the message

Research your Starting Point

Make It Fun and Memorable!Make It Fun and Memorable!• jHits Holiday Sing Along to holiday songs

• Lyrics focused on the customer

• Karaoke tracks for meetings

• Song sheets

Tell a Compelling StoryTell a Compelling Story• G.R.E.A.T.! Holiday story distributed to all stores

• Covered in all associate meetings

• Collateral and giveaways

CustomerFIRST SuperStarsCustomerFIRST SuperStars• Annual singing/video contest

• Focused on CustomerFIRST lyrics

• Over 600 entries

• Almost 100,000 video views

Attack the Challenge from All Angles

Elevate the Trainer

Change Incentive Compensation

Change Onboarding Experience

Build Management Competency

Gain executive supportCelebrate

publicly

Train all associates

Recognize Superstars Change the

hiring process

Build new training tools

Sustain the message

Research your Starting Point

Recognize SuperstarsRecognize Superstars

Attack the Challenge from All Angles

Elevate the Trainer

Change Incentive Compensation

Change Onboarding Experience

Build Management Competency

Gain executive supportCelebrate

publicly

Train all associates

Recognize Superstars Change the

hiring process

Build new training tools

Sustain the message

Research your Starting Point

Overall Satisfaction

Feb 2007 Jul 2007 Dec 2007 May 2008 Oct 2008 Mar 2009 Aug 2009 Jan 2010 Jun 2010

Overall Satisfaction ResultsOverall Satisfaction Results

Highly Satisfied Customers

GREAT! Customer Service Drives Shopping Frequency & Spend

GREAT! Customer Service Drives Shopping Frequency & Spend

Customers who have a GREAT

shopping experience

Customers who have a BAD

shopping experience

Shopping Visits/Year

Average Spend/Visit

NRF Foundation / American Express Customer Choice Awards

NRF Foundation / American Express Customer Choice Awards• JCPenney - #7 Overall• #1 traditional department store retailer• 2nd year in a row!

two years in a row

Chief Learning Officer MagazineChief Learning Officer Magazine• Business Impact Award

• Gold, Division 1

Attack the Challenge from All Angles

Elevate the Trainer

Change Incentive Compensation

Change Onboarding Experience

Build Management Competency

Gain executive supportCelebrate

publicly

Train all associates

Recognize Superstars Change the

hiring process

Build new training tools

Sustain the message

Research your Starting Point

Keys to Success1. Make customer satisfaction part of your

company’s DNA2. Ensure that all associates are aligned with the

vision3. Make it fun4. Hold associates accountable for service5. Measure and reward successes6. Hire for smile!

ROI of Empowering Workers on the FloorRaising Associate Engagement & Customer Satisfaction

Deborah MastenVP, Associate Development

Steve SchullerStores Training Director