Shinola Goal

Evolve the Foundry “loyalty” program in order toestablish a deeper relationship with guests by:

• Recognizing them regardless of channel

• Including them in experiences that are aligned to Shinola’s brand

• Continuously providing guests with surprise and delightmoments to show them appreciation

 Shinola VOC Research Objectives

Conduct one-hour interviews to gain an in-depth qualitativeunderstanding of how Shinola guests define their expectationsof value and engagement from the Foundry loyalty program.

Specific VoC Objectives were to gain deep and actionable qualitative insights regarding:

• Perceptions of Shinola and reasons guests buy from Shinola

• Experiences that enhance or hurt the relationship

• Shinola Foundry program perceptions/expectations

• Detailed recommended improvements to Foundry: benefits, experiences, services, levels and “hurdles”

• Value exchange expectations regarding guest's willingness to self-profile preferences in exchange for increased personalization and value.

Voc Learnings

“It goes back to the American-made part of it. If you go to the website there are videos and biographies of the people that actually make the products and some of the products are stamped with who made them. They come with; ‘This is where it came from and who made it.’So, I feel that you are getting a quality product—almost a work of art versus just a commoditized watch. That has value to me. If I look at my style, my wardrobe, even my personal brand, I feel like Shinola augments that a little bit, which is why I would consider it a staple in my wardrobe.”

VOC LEARNINGS

Exceptionally Engaged Guests

Engaged customer base
Strong connection to the brand
Strong views regarding what is brand appropriate and what is not

Omnichannel Experience

Guests must be able to access and utilize loyalty benefits across multiple channels

VOC LEARNINGS

A traditional loyalty program would have been hierarchical and built around exclusions, external tiers and incentivizing.

Through VoC learnings Shinola guests consistently articulated that a traditional loyalty program would be inconsistent and damaging to their perception of the brand and its core values.

Research identified 4 powerful expectations that were expressed by nearly all respondents.

These needed to become the “value propositions” that served as the core of the benefits and experiences Shinola provides guests:

The Foundational Commitments

The Rules of Engagement

Simplify
Easy to understand Communicate Execute

Omni-Channel
Salesforce Implementation
Foundry Moments at Stores

Always Improving
Test Inclusive Ideas
Flexible/Nimble/Element of Surprise

Program Evolution

Foundry
(Through 2018)

Traditional & Hierarchical

Shinola Community
(These are internal levels)

VoC-based Actions

New Loyalty Program Goals

• Increase Foundry Member Repeat Purchase Rate +25%

• Scale "Leaders" group by 100% by 2020

takeways

1. Be Consumer Centric vs Company Centric

   1. Focus on your guests’ needs and align them to your goals

   2. Invest the resources to uncover opportunities and avoid costly mistakes

2. Show Appreciation vs Seek Loyalty

   1. Shift the tone of voice from “asking for loyalty” to “showing loyalty”

3. Always Be Learning

   1. Consistently stay in contact with your guests and trust their input

   2. Be flexible with your offerings so you evolve as your consumers evolve

   3. Utilize “surprise and delight” to keep customers engaged and curious