Lessons Learned from 2016 Holiday Shopping

Lessons Learned from 2016 Holiday Shopping

KEVON HILLS, SVP, Operations and Insights , StellaServiceDAVID PITSCH, Dir., Guest Education Centre, lululemon athletica

© 2016 StellaService. Proprietary & Confidential.

Introducing StellaServiceHelping retail brands grow through better service

Objectively measure contact center and fulfillment operations and benchmark performance against service leaders

Collect real-time customer feedback after every service interaction and use it to

motivate front-line teams

Download the full Holiday Report at StellaService.com/holiday


Stella Covers The Best And Biggest Online RetailersStellaService Ecommerce Index



Christmas Delivery Cutoff DatesExtra Mid-Week Shipping Days Encouraged Later Cutoff Dates In 2015

2016 – Sunday Christmas2015 – Friday Christmas

Most Popular Dates:

Monday, Dec. 21 and 22Most Popular Date:

Wednesday, Dec. 21

Up to Fri. 12/18

Sat.12/19

Sun.12/20

Mon.12/21

Tues.12/22

Wed.12/23

5% – 19% 29% 29% 19%

Up to Sun.12/18

Mon.12/19

Tues.12/20

Wed.12/21

Thur.12/22

Fri.12/23

9% 22% 9% 39% 13% 9%

Fewer Late Cutoffs



Delivery Cutoffs Move LaterRetailers Extend Deadlines Closer to Christmas

20152014

642016

5Extended Cutoff Dates At Least Twice Over the Past 3 Years



• BOPIS bridges the gap between the online and in-store

• Online shoppers looking for a stress-free experience will seek out stores with BOPIS

• Retailers with stores have an advantage in serving shoppers who procrastinate

• Additionally, retailers’ physical stores can continue to capture “ecommerce” revenue

The Buy Online, Pickup In-Store (BOPIS) AdvantageBrick-And-Mortar Stores Have A Leg Up With Last-Minute Shopping



Successful Same Day OrdersRetailers Still Struggled to Fulfill Orders on High Traffic Days

Successful Orders Available Same Day

Pre-Holiday Black Friday Cyber Monday Christmas Week Christmas Eve30%

40%

50%

60%

70%

80%

90%

100%

84%76% 75%

86%

72%

91%

76% 76%

86%

75%

Holiday 2015 Holiday 2016

Holiday 2015: 81% Holiday 2016: 82%



Successful Same-Day OrdersOffice Supply Retailers Were Most Consistent in Fulfilling Orders

Successful Orders Available Same Day

Series10%

25%

50%

75%

100% 98% 98% 95% 93% 93%



BOPIS Speed Improved This YearDespite Cyber Monday Blip, Retailers Had Products Ready Faster in 2016

Speed to Item Availability (hours)

Holiday 2015: 5.5 hours Holiday 2016: 2.7 hours

Pre-Holiday Black Friday Cyber Monday Christmas Week Christmas Eve0.0

5.0

10.0

15.0

1.7

4.8

13.9

3.6

7.1

2.1 1.9

4.5

2.51.7

Holiday 2015 Holiday 2016



Holiday 2016 BOPIS LeadersOffice Depot Fulfilled Orders the Quickest

Speed to Item Availability (hours)

Series10.0

0.5

1.0

0.3

0.4 0.4

0.6

0.8Incredibly Consistent • Maintained a 100% success rate

on all days except Cyber Monday• Time to availability under 1 hour

all holiday season

Most Improved• Success rate improved from 78% in 2015

to 93% in 2016• Speed to availability improved from 48

minutes in 2015 to 24 minutes in 2016



Holiday 2016 Customer Care PerformanceCyber Weekend Chat Speed Impressed

Pre-Holiday 2016 Cyber Weekend December

Note: Pre-holiday is August – October 2016. Cyber weekend is Black Friday – Cyber Monday

21% 16%

44% 61%

Reached in 30s

Reached in 20s

15%

41%



80%

90%

90%

63%

77%

80%

97%

87%

80%

Growth of ChatChat Expands as an Offering and in Availability; Email Declines

Jan 2014

Jan 2016

Jan 2017

Offer Email Offer Chat Chat Availability



Top Cyber Weekend PerformersL.L.Bean Dominated Phone Speed All Weekend; Home Depot Fastest on Chat

Black Friday Cyber Monday Cyber Weekend

16 secs 8 secs8 secs

5 secs 3 secs 11 secsDownload the full Holiday Report at StellaService.com/holiday


Top Cyber Weekend PerformersChat is the Fastest Way for Customers to Connect

13 secs11 secs

Top 5 Retailers For Cyber Weekend Overall

47 secs31 secs8 secs

17 secs

34 secs 45 secs

17 secs13 secs


2016 HOLIDAY LEARNINGS

Importance of being available for our guests during holiday

Value of taking care of our people and sweating together

Mutual win of making experiences easy for our guests and our team

Lessons Learned from 2016 Holiday Shopping

Retail

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