DSW, a leading omnichannel footwear retailer, has a robust loyalty program with over 26 million members contributing to more than 90% of sales. A recent transformation effort aimed to refresh the program in response to evolving customer needs and competitive trends, resulting in significant growth metrics and innovations. Key areas of focus moving forward include personalization, community engagement, and enhanced digital services.

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