PacSun: Surprise and Delight Loyal Customers Who We Are PacSun Vision and Mission Vision: • 16-24 year olds’ favorite lifestyle retailer for brands and California Lifestyle. Mission: • Sell more clothes at higher margins • Thrive on creativity • Change perception • Spawn passionate advocates • Win as a team 2 PacSun History Who We Are Optimistic. Open Minded. Creative. Energetic. Carefree. Active. Passionate. PacSun is dedicated to embracing the amazing diversity and unique sense of adventure that California offers at every turn based on this vast, yet attainable state. For over 30 years we've called California our home, with our offices located in the sun-drenched heart of Orange County. With almost 600 stores across the country, we embrace and deliver all aspects of the California lifestyle to our customers, leaving the possibilities limitless. 3 Just Imagine… A place where a Golden State of Mind comes to life, where PacSun has a relationship with our customers through brand, innovation and their complete awareness of how PacSun fits their lifestyle. 4 So We Did… • We Imagined being top of mind with our customers • We Imagined our customers know we understand them • We Imagined a time when our customer uses their phone -- for everything • We Imagined being their favorite store • We Imagined knowledge of our customers’ wants • We Imagined being in lock step with our customers’ world • We Imagined enhancing the customers world and being valued for it • We Imagined employees seamlessly handling centralized exchanges / returns • We Imagined employees checking shoe inventory without searching the backroom • We Imagined employees checking prices from anywhere, any time • We Imagined employees spending time selling to and inspiring our customers 5 The CET Initiative: 3 Years Ago Customer Experience Technology • Upgrade our technology foundation • Replace our POS with in store technology • Create a customer database • Cultivate a community and understanding of what the customer wants • Create a connected customer experience across all channels Strategy • Lead with mobile first • Continue to drive store sales • Develop a more comprehensive view of the customer • Personalize how we market to the customer • Recognize and reward our most loyal customers • Increase engagement by encouraging interaction • Have a conversation – “two-way” dialogue • Have what they want, when they want it and where they want it 6 The CET Project xStore | Customer Engagement | Order Broker For our CRM and loyalty program we selected Oracle Retail Customer Engagement. To help us with this project we selected SkillNet as our system implementation partner. We selected SkillNet as our partner based on their experience implementing omni-channel solutions. SkillNet was already familiar with the Oracle Retail Customer Engagement product and had a team anchored with members from the original MICROS team. SkillNet helped with our end-to-end implementation, taking the product from concept to live, helped define our requirements and supported us through production. 7 Sources of Customer Data Along with Oracle and SkillNet we needed to engage several other vendors. There was valuable data about our customer in each of our existing systems and we wanted to pull it all together. Email Service Provider Mobile Application Vendor PacSun.com System Implementer 8 Existing Gamification Program Website Authentication Service Private Label Credit Card Provider Our Project Room 9 The Data: Pull It Together All of the existing touch points had data we wanted to consolidate into our new “360 view of the customer.” We also wanted to make sure the customer was attached to the sale. • • • • • • • 10 Who they are (name/age/gender) How to reach them (mobile app/email/physical address) What they buy (products, categories, brands, fashion/basic, reg price or md) When they buy (Back to School, year round, sales, special occasion or gift) Where they buy (in-store/online/app) How they shop (research online/shop in-store) How they respond to messages (channel, offer timing) myGSOM Rewards Sign up in all channels • In store • Pacsun.com • Mobile App Published rewards • $5 off coupons • Earned through purchasing and activity • Ongoing and constant value prop Dynamic rewards • Driven by business needs • Timing, offer and frequency will vary between customers 11 Published Rewards Our published rewards are designed to drive enrollment, continually draw attention back to our brand and collect valuable data. Rewards are added to the customers account electronically and are redeemable in store and online. 12 $5 $5 For every 1250 point Just for signing Up 10 250 50 50 Points for ever dollar spent Points for completing your profile Points for in store check-in Points for PacSun.com login 15 100 25 Points for opening PacSun email Points for mobile messaging opt-in Points for sharing of products Unpublished Dynamic Rewards The unpublished dynamic rewards drive incremental purchasing according to the needs of the business. • • • 13 Different customer segments receive personalized offers Offers jointly determined by Planning, Marketing, and Merchandising Examples: ₋ Gift with purchase ₋ Sweepstakes ₋ Thanks for being one of our best customers. To show our appreciation, we’d like to present you with… ₋ Check out our expanded swim assortment on PacSun.com – Just for you: Free shipping! Surprise and Delight 14 Recipe for Success What are some of the key ingredients necessary to implement a project this size in less than 6 months? • • • • • • 15 Executive buy-in Priorities are set at the top Set expectations Access to key decision makers Collaboration and teamwork between our internal teams - Marketing - eCommerce - IT - Store Ops - Accounting All day, onsite design sessions Customer First Email Hello Mobile PacSun.com Catalog Customer Social Media 16 In . Store Success 17 18
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