How Retailers Use to Do More with Less How Gordmans leverages to drive foot traffic and increase sales at their 65 locations.

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1 How Retailers Use to Do More with Less How Gordmans leverages to drive foot traffic and increase sales at their 65 locations. Cara Olson Manager of E-Marketing Digital Evolution Group Michael Hammond Director of Marketing & Creative Gordmans 2009 ExactTarget All Rights Reserved Entire Presentation Copyright ExactTarget. All Rights Reserved. No portion of this presentation may be recreated, reprinted, distributed, published or represented without the written permission of ExactTarget.

2 is # 1 for Retail Direct Marketing

3 Consumers Channel Preferences Nearly two-thirds of consumers said they had made a purchase because of a marketing message received through . Source: ExactTarget 2008 Channel Preference Survey May 23, 2008

4 Drives Retail Traffic The Retail Customer Life Cycle Store Visit Evaluation Purchase Usage Re-Purchase Loyalty Those who buy products marketed through spend 138% more than non-readers of . Source: Forrester Research Marketing Comes of Age.

5 Delivers Results Commercial ROI will hit $45.65 for every dollar spent in produces the highest response rate of direct marketing methods studied." Source: The Direct Marketing Association (DMA)

6 About Digital Evolution Group A full-service e-consultancy dedicated to helping its clients achieve success with creative, integrated and intelligent Internet-centric solutions. Services include: Creative design Campaign execution Integration execution ExactTarget Agency Partner of the Year for 2008

7 About Gordmans Everyday Low Price (EDLP) Retailer 65 Stores in 16 states Name brands at up to 60% off department and specialty store prices Apparel, accessories, footwear, home fashions, gifts, designer fragrances, fashion jewelry, bedding and bath, accent furniture and toys Founded in 1915, the family owned, privately-held business was acquired in 2008 by an affiliate of private investment firm Sun Capital Headquartered in Omaha, Nebraska

8 Gordmans Marketing Strategy

9 Gordmans Marketing Challenges Driving online traffic offline Tracking offline redemption

10 Gordmans Strategy Reward loyal customers Personalize Don t rent lists Pace frequency Embrace flexibility

11 Reward Loyal Customers Web Site Sign Up Key Components: Simple easy-to-use opt-in process Immediate incentive to become a subscriber Gives the consumer a reason to subscribe

12 Reward Loyal Customers Triggered Coupon Key Components: Triggered automatically at opt-in 15% off says thank you for subscribing Bar code provides closedloop tracking of purchase Statistics: Conversion Rate (of delivered): 7.1% Conversion Rate (of opened): 17.4%

13 Reward Loyal Customers In-Store Paper Sign Up 2008 Version 2009 Test Version

14 Reward Loyal Customers - Results Welcome Open Rate: 41.6% Click Through Rate: 7.23% Confirmation of Opt In Open Rate: 33.8% Click Through Rate: 22.9%

15 Tactical Take-Away #1: Send Triggered Messages Triggered messaging outperforms marketing campaigns Customize message based on sign up Types of Transactional s Welcome Ecommerce Confirmation Birthday Club Download Confirmation Membership/Subscription Confirmation

16 Tactical Take-away #1: Send Triggered Messages Always keep subject line completely transactional Place the transactional components of the message at the beginning of the copy Marketing-related content should not be the main focus of the message Pay close attention to the tone of the overall

17 Reward Loyal Customers Friends and Family Discount Electronic Word of Mouth Offered selectively by Gordmans employees to preferred customers Provides generous discount on entire purchase

18 Personalize Unique bar code per subscriber 3 closest locations based on subscriber zip code

19 Personalize Gordmans unique bar code process provides closed-loop tracking and capture of purchases by promotion by customer

20 Personalize Birthday 70.5% Open Rate 4.3% Conversion Rate (of delivered) 6.0% Conversion Rate (of opened) Avg. Transaction is 33% higher

21 Personalize - Results Friends & Family Open Rate: 21.6% Click Through Rate: 7.7% Conversion Rate (of delivered): 3.2% Conversion Rate (of opened):14.9% Coupon Campaigns Open Rate: 23% Conversion Rate (of delivered): 2.8% Conversion Rate(of opened): 12% Birthday Open Rate: 70.5% Conversion Rate(of delivered): 4.3% Conversion Rate (of opened): 6% Avg. Transaction is 33% higher than coupon campaigns 2009 ExactTarget, All Rights Reserved

22 Tactical Take-away #2: Send Personalized Personalize appropriately Name, location, barcode Friends and Family Don t do it just because you can Collect relevant attributes Zip code, birthday month Request profile update 2009 ExactTarget, All Rights Reserved

23 Subscriber Acquisition Best Practices: Don t rent lists Confirm Opt-In for handwritten sign ups Website Point of Sale (POS) Sweepstakes

24 Reward Loyal Customers In-Store Point of Sale Sign Up

25 Subscriber Acquisition - Results 35% list growth in 2007 Additional 51% list growth in 2008

26 Tactical Take-away #3: Keep lists clean Give to Get! Offer an incentive or reward to sign up Fish where the fish are! Identify most profitable customers and acquire more of that type Ask for address at all possible touch points Online: Website, Landing Pages, Phone (Service and Support) Offline: In Store, Events

27 Embrace Benefits of Quick fix to generate sales Limit desire to open floodgates Flexibility of medium Ability to react to market opportunity Faster to create than Print or TV Cost effective Cost is 1/10 of Direct Mail Enables us to Do More with Less Platform to other rich media SMS Text Messaging, Social Networking sites

28 Where We Go From Here Explore new creative Deal of the week Segmentation SMS text messaging

29 The Digital Evolution Group Advantage

30 How DEG Helped Gordmans Campaign execution Training Marketing Best practices Thought Leadership Technology Integration Welcome POS nightly sync Barcode platform Closest locations

31 Success Factors for Retail Stay Connected Long-term commitment It s a marathon, not a sprint No finality Test, learn, tweak Brainstorm new ideas collectively

32 Resources to Help You Improve Marketing

33 Resources from Digital Evolution Group Here s how you can get today s presentation using ExactTarget s new permission-based text messaging capability! 1. Go to the Text Messaging area of your phone 2. Type the shortcode in the To: field 3. Type MORE Example: MORE 4. Press SEND You will receive an from Digital Evolution Group with links to download today s presentation and the Gordmans case study.

34 Resources from ExactTarget Marketing Design & Rendering: The New Essentials [Whitepaper ] SMS Field Guide No Executive Left Behind 10 Things Your C-Suite MUST KNOW About NOW! [White Paper] Triggered Field Guide

35 Join us on Wednesday April 29th! A Special Webinar Featuring: Mike Corak Strategic Planning Mighty Interactive A division of Off Madison Ave

36 Cara Olson Manager of E-Marketing Digital Evolution Group Phone: Michael Hammond Director of Marketing & Creative Gordmans Phone: Entire Presentation Copyright ExactTarget. All Rights Reserved. No portion of this presentation may be recreated, reprinted, distributed, published or represented without the written permission of ExactTarget.

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