Express 2012 Annual Report Download - page 17

experience as a result of the training we provide, the culture of accountability we foster, the incentives we offer,
and the decision-making authority we grant to store managers.
Marketing and Brand Building
We use a variety of marketing vehicles to increase customer traffic and build brand loyalty. These include direct
mail offers, e-mail communications, in-store promotions, print, television and digital advertising, and social
networking sites, such as Facebook and Twitter. We offer a private-label credit card through an agreement with
World Financial Network National Bank (“WFNNB”) under which WFNNB owns the credit card accounts and
Alliance Data Systems Corporation provides services to our private-label credit card customers. All of our
proprietary credit cards carry the Express logo. We also have a tender-agnostic customer loyalty program,
Express NEXT, that offers customers the opportunity to earn rewards in conjunction with purchases of Express
product and other engagement with the Express brand. We believe the Express NEXT program encourages
frequent store and website visits and promotes multiple-item purchases, thereby cultivating customer loyalty to
the Express brand, resulting in a potential for increased sales.
Technology
We actively look for ways to use technology to improve the customer experience, both in-store and on-line, and
differentiate ourselves from competitors. After the Christmas holiday, we transitioned our website hosting from a
third party to an internal team that will utilize a platform customized to our specific needs. This will enhance
overall system performance, provide improved analytics and more creative control, and enable delivery of a more
seamless experience between our stores and website. Online sales are currently supported from the store point-of-
sale system. Over time, this enhanced platform will enable us to offer additional features, such as placing orders
online and picking up selections at a designated store.
Our digital marketing efforts include the use of social media and mobile applications. They are designed to reach
our customers using the communication and shopping channels widely adopted by our customers. As a result, we
can more successfully keep our brand front of mind and also make it easier for customers to purchase from us.
Our information technology systems provide a full range of business process support and information to our
store, merchandising, financial, and real estate business teams. We utilize a combination of customized and
industry standard software systems to provide various functions related to point-of-sale, inventory management,
design, planning and allocation, and financial reporting. During 2012, we made additional investments to
upgrade our general ledger, stock ledger, and allocation systems to provide additional capabilities to support our
4 growth pillars, particularly international expansion. Looking ahead, we anticipate additional capital
expenditures for upgrades to our human resources information and merchandise management systems to further
support our 4 growth pillars.
Intellectual Property
The Express trademark and certain variations thereon, such as Express World Brand, are registered or are subject
to pending trademark applications with the United States Patent and Trademark Office and/or with the registries
of many foreign countries. In addition, we own domain names, including express.com which include our primary
trademarks. We believe our material trademarks have significant value, and we vigorously protect them against
infringement.
Regulation and Legislation
We are subject to labor and employment laws, including minimum wage requirements, laws governing
advertising and promotions, privacy laws, safety regulations, and other laws, such as consumer protection
regulations that govern product standards and regulations with respect to the operation of our stores. We monitor
changes in these laws and believe that we are in material compliance with applicable laws.
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