Nordstrom Rack | Hautelook (NRHL), a Nordstrom Company, empowers shoppers through choice and discovery of fashion at great prices. NRHL serves customers with a large selection of merchandise in over 200 Nordstrom Rack stores nationwide, on the web, and through the NRHL mobile app. The UX team supports mobile, web and omni-channel initiatives and has been tasked to implement a customer-centered culture to create a seamless experience for its customers across all touchpoints. In this webinar, Sherlyn Soo, Lead UX and Jessica Munoz-Miller, Sr. UX Researcher cover how UX has evolved at NRHL from infancy to its current state, including the journey of proving the business case for a UX team and research resources. Sherlyn and Jessica will discuss how simple UX research tools and strategies have driven cultural change within the organization of NHRL and improved digital products and experiences for customers across channels. You'll learn: - Challenges of building a user-centric culture - How NRHL leverages UserTesting and other research tools to drive ROI - How to make the voice of the customer a priority when faced with limited resources

1. Nordstrom Rack | Hautelook:
Building a Customer-Centered
Culture
January 30, 2018

2. “Works at the pace of your
business”
In-the-moment Access
Every Business Decision Powered by Human Insights
“More humans on demand
than the rest of the industry
combined”
Massive, Diverse Panel
“Understand moments of
decision at every stage of
the customer journey”
360o Applicability

3. About UserTesting
Access to 1 million+ panelists
1M+ Sessions conducted per month
50K+ Sessions completed (15x more
than closest competitor)
1.5M+
Of sessions completed in less
than 2 hours
89% Enterprise customers
600+ Since 2007, UserTesting has
been the category leader and
the first choice of the world’s
leading companies.
2007

4. Great CX Drives Business Results
GROW REVENUE
5.1x revenue growth of
CX leaders over laggards
5.1x
Customer Success
REDUCE COSTS
100x cost to fix something
post-launch vs. pre-launch
100x
IMPROVE PROFIT MARGINS
4.5x customers are willing to
pay a premium for excellent
vs. very poor experiences
4.5x
GET TO MARKET FASTER
66% reduction in time to
insights via UserTesting vs.
traditional methods
66%
RETAIN CUSTOMERS
89% of customers companies
retain based on providing
great experiences
89%
WIN AGAINST COMPETITION
66% reduction in time to
insights via UserTesting vs.
traditional methods
87%
Sources: Forrester’s Customer Experience Index Online Survey,
US Consumers 2016 McKinsey Quarterly, February 2017
Conversion rate double and an
8% increase in order size with
insights from UserTesting
Increases retention rates
by 15% with UserTesting
Achieved a 2.6% increase in
conversion and millions of dollars
in extra revenue
User engagement increased by
8% with insights from UserTesting
For every $1 spent on customer experience,
companies see $2-$100 in return.

5. BUILDING A
CUSTOMER-CENTRIC
CULTURE

6. PRESENTERS
Sherlyn Soo
UX Lead
Jessica Munoz-Miller
Sr. UX Researcher

7. WHAT WILL YOU LEARN TODAY?
● Identify UX Maturity Stages
● Strategies & Tactics to Overcome Barriers at Each Stage
● Suggested UX Research Methodologies at Each Stage
● Nordstrom Rack | Hautelook Case Studies
● Tips to Help Your Organization Become More User-Centric

8. The question we should
always be asking ourselves is,
‘is the customer having an
exceptional experience?’
1901
1963
1971
1973
2011
2014
NORDSTROM LEGACY
1st day receipts: $12.50
Company acquires best apparel
Company goes public
First Rack store opens
Company acquires HauteLook
Stores open in Canada,
NordstromRack.com Launch,
acquired Trunk Club
“ — Blake Nordstrom

9. CUSTOMER
OBSESSED
DIGITALLY ENABLED
CUSTOMER
OBSESSED
DIGITALLY
ENABLED
+

10. BRICK & MORTAR ONLINE
FULL-PRICE
OFF-PRICE
.com
.com
7+ MILLION UNIQUE DAILY VISITORS

11. NRHL UX TEAM
+ 2 MORE!

12. NRHL PRODUCT TEAM
ANALYTICS
PRODUCT MANAGEMENT (Platform) USER EXPERIENCE (UX)
PRODUCT MANAGEMENT (CX)

13. STAGES OF
UX MATURITY

14. Chart for UX Maturity Stages
1 2 3 4 5
INCEPTION AWARENESS ADOPTING MATURING INTEGRATED
PRINCIPLE BASED USER-CENTERED
Introduction
Usability
Testing Quantification
Correlation
of KPIs
Value Reinforced
Proven Business Performance
Absence of UX UX as
Aesthetics
UX as a Process UX Informs Product
Strategy
UX Part of
Global Strategy

15. PRODUCT
STRATEGY
DESIGN &
DEVELOP
ARCHITECTURE
& PROTOTYPE
IDEA
CONCEPTION
PROJECT
DEFINITION
UX IN THE PRODUCT LIFECYCLE
PRINCIPLE BASED USER-CENTERED
RELEASE BUSINESS
STRATEGY
STAGE 1
INCEPTION
STAGE 3
ADOPTING
STAGE 2
AWARENESS
STAGE 4
MATURING
STAGE 5
INTEGRATED

16. STAGE 1:
INCEPTION
Absence of UX Influence
1: INCEPTION 2: AWARENESS 3: ADOPTING 4: MATURING 5: INTEGRATED

17. Stage 1: Inception
CHARACTERISTICS
ABSENCE of UX Design or UX Research
ABSENCE of awareness for UX capabilities
REJECTION of UX influence within the
Product Lifecycle
1
INCEPTION
Introduction
Absence of UX
UX Leadership: Nope. Null. Negative.

20. Stage 1: Inception
STRATEGIES
Establish Trust & Build Relationships
Introduce and Advocate for UX Deliverables &
UX Tools
Introduce the Voice of the Customer
1
INCEPTION
Introduction
Absence of UX

22. STAGE 2:
AWARENESS
UX Emerges
1: INCEPTION 2: AWARENESS 3: ADOPTING 4: MATURING 5: INTEGRATED

23. UX as
Aesthetics
Usability
Testing
Stage 2: Awareness
CHARACTERISTICS
UX is present, but uninvolved in Product Lifecycle
until after coding
UX is perceived as aesthetics
Research is Evaluative only
Limited understanding of UX capabilities
& limited time / resources
UX Leadership: Sr. UX / Sr. UX Researcher
2
AWARENESS

25. Stage 2: Awareness
STRATEGIES
Leverage Usability Testing as common practice
Introduce “Evaluative” UX Research into the
Product Lifecycle
Share “nuggets” of user learning to demonstrate
value of UX
Establish KPIs
UX as
Aesthetics
Usability
Testing
2
AWARENESS

26. How to Transition from Stage 2 to Stage 3:
CASE STUDIES

27. “
Usertesting.com paid for itself on the
first day, when we gained some
understanding of user confusion on the
registration page that we’d not seen
before through just the analytics.”
Grahame Fraser, VP Product

28. WHY
USABILITY
TESTING?

30. DESIGN.
TEST.
ITERATE.
REPEAT.

31. & SHOP
SNAP
Visual Search was Implemented as a
supplement of our Scan & Shop feature
to introduce in store customers to digital
the endless aisle.
Data revealed that match rates for Snap
& Shop were low (55%). UX Research
was conducted to optimize the visual
search experience.

32. USABILITY TEST
GOALS
Uncover Pain Points
Identify Opportunities to Improve
CHALLENGES
Limited Resources
POC was ending in a month

33. SNAP AND SHOP VIDEO

34. UX PROPOSALS To increase feature adoption.
PREVIOUS NEW

35. ONBOARDING
COACH MARKS INFO MODULE

36. METRICS
PRE POST
Related Items
↑ 3%
No Results
↓ 3%
MATCH RATES

37. PRODUCT REVIEWS
BACKGROUND
Industry standard to have Product Reviews.
Reviews were launched to build customer
trust, mitigate customer uncertainty and
decrease returns.

38. PRODUCT REVIEWS PROCESS
Competitive
Audit
Attribute
Research
Usability
Testing
Recommended
IU Elements

40. UX RESEARCH:
CARD SORTING

41. PRODUCT
REVIEWS
FINAL
DESIGNS

42. THE RESULTS
In First 2 Weeks of Launch
926
Submissions
4.2
AVG RATING
5 STAR
4 STAR
3 STAR
2 STAR
1 STAR

43. STAGE 3:
ADOPTING
UX Design as a Process
1: INCEPTION 2: AWARENESS 3: ADOPTING 4: MATURING 5: INTEGRATED

44. Stage 3: Adopting
CHARACTERISTICS
Formalized UX Processes
UX in the Product Lifecycle is Not Consistent
Research Evolves to More “Generative” learning
UX Emerges as an Influencer
UX Gains Advocates
3
ADOPTING
Quantification
UX as a Process
UX Leadership: Management

45. Stage 3: Adopting
STRATEGIES
3
ADOPTING
Quantification
UX as a Process
Quantification of Impact
UX Tied to KPIS
Case Studies / Demos for Product Team
Socializing Segmentation & Personas

46. How to Transition from Stage 3 to Stage 4:
CASE STUDIES

47. OMNI-CHANNEL DISCOVERY
INVENTORY UPC FIX
As part of generative research to
understand and improve the returns
process, team discovered that items were
reticketed inaccurately due to manual
system processes. Updates to UPC
matching were made as a result.
UPC ALIGNMENT UPDATE
77% 90%
!PRE
!
!POST
!

48. Dedicated Onsite UX Lab

49. A UX Forum is a gathering of the UX & Product Team
to share learnings, discuss & collect feedback for
current projects or hot business topics.
GOAL OF THE UX FORUM
Provide the opportunity to answer critical questions
leveraging user-centric approaches & design
thinking methodologies.
UX Forums

50. FIRST EVER
UX FORUM

51. STAGE 4:
MATURING
UX Design as a Process
1: INCEPTION 2: AWARENESS 3: ADOPTING 4: MATURING 5: INTEGRATED

52. Stage 4: Maturing
CHARACTERISTICS
UX Driver of Product Strategy
UX Research Informs & Drives Product Decisions
Organizational Needs for UX Demand Scalability
Managing Demand for UX Resources
4
MATURING
Correlation
of KPIs
UX Informs Product
Strategy
UX Leadership: Director

53. Stage 4: Maturing
STRATEGIES
4
MATURING
Correlation
of KPIs
UX Informs
Product Strategy
Correlate KPIs with UX successes
Gaining close allies/advocates in key functions
More user-targeted design & research
Feature development based on Segmentation &
Personas
Seek opportunities to continually build company
intuition of the user

54. How to Transition from Stage 4 to Stage 5:
CASE STUDIES

55. MOBILE WEB
REDESIGN

56. MOBILE WEB REDESIGN
Rack.com MOW Traffic is Projected to Increase
Majority of the Traffic = NEW Customers
Rack.com is 4 yrs old

57. SEGMENTATION & PERSONAS:
BUILDING A CASE
Stakeholder
Interviews
Employee
Survey
Case
Building
Executive
Pitch
BUDGET
APPROVED!

58. Persona Research
LEVERAGING
VARIOUS METHODS &
DATA SOURCES
Customer Database
Analytics
Customer
Survey Data
Interviews +
Observations

59. SEGMENTATION
BASED
PERSONAS
FUTURE STATE Varied
Understanding
by Function
Aligned Target
Understanding
Across NRHL
Generic User
Profile
Most Valuable
Target
Understanding
Metrics on User
Behavior
Growth Opportunities
based on Customer
Data & Understanding
DEEPER UNDERSTANDING
OF OUR CUSTOMERS

60. STAGE 5:
INTEGRATED
UX as a Global Strategy
1: INCEPTION 2: AWARENESS 3: ADOPTING 4: MATURING 5: INTEGRATED

61. Stage 5: Integrated
CHARACTERISTICS
UX is Part of Global Corporate Strategy
User-Centered Culture
Executive Leadership Advocates for UX
5
INTEGRATED
Value Reinforced
Proven Business Performance
UX Part of
Global Strategy
UX Leadership: Executive

62. Stage 5: Integrated
STRATEGIES
5
INTEGRATED
Value Reinforced
Proven Business Performance
UX Part of
Global Strategy
Managing change
Not becoming too process driven
Frequent Knowledge sharing

63. “
The UX team has successfully challenged
company biases with the power of research and
championing our customers. The team has proven to
be a vital part of the product development
process & plays an integral part of the Customer
Experience Product strategy. Having a strong UX
voice will enable us to continue creating a cross-
channel experience that is seamless & delightful.
Renu Razdan,
Director of Customer Experience | Product Management

64. Stage 1: Inception
Barriers & Strategies
● Lack of understanding of UX capabilities
● Rejection of UX influence within the
Product Lifecycle
● UX is expected to execute design
mandates (no POV expected or
receptivity)

66. Q&A
CONTACT US:
webinars@usertesting.com
___
THANK YOU!