New Loyalty Program Offers Simplicity, Incentives, Tiered Benefits and More!
This fall, Macy’s will be rolling out its new loyalty program, which is meant to simplify the coupon process and increase rewards for the 9% of customers who account for 46% of the department store’s sales. The program will begin as a reinvention of Macy’s current reward program aimed at credit card holders, but move to be a “tender-neutral” offering — meaning it includes shoppers regardless of payment type — in 2018.
“The idea is not to pull back on promotions, it’s to make sure the different species of promotions we run are clear and distinct — one-day sales aimed at deal hunters or friends and family aimed at fashion spending,” said Richard Lennox, Chief Marketing Officer.
The New Loyalty Program:
Tier 1 – Base Value tier: 14% of customers prefer over the current program
Tier 2- Mid-value tier: 35% of customers prefer over the current program
Tier 3 – High-value tier: 75% of customers prefer over the current program and 56% would shop more with Macy’s overall
Guiding Principles for Macy’s Loyalty:
- Simple program with clear value
- Incentives that motivate changes in customer behavior
- Tiered benefits that benefit our best customers
- Deliver the program mobile first
- Develop a loyalty program, not a rewards program
5 Big Changes in Strategy:
- Revitalize brand engagement
- Build tentpole campaigns around the four key seasons
- Establish Macy’s always-on publishing voice
- Design distinct promotional event properties
- Create a loyalty program; not a rewards program Stellar Loyalty CMO Narina Sippy told Loyalty360 that retailers are under pressure, period.
In addition, Macy’s is testing out a host of other business strategies to reverse its slowing sales. The company is boosting its growing buy-online, pick-up-in-store offering and expects to experiment with pick-up lockers in certain locations later this year. It is exploring real estate strategies to wring more profit out of valuable properties like its Herald Square location in Manhattan, where it could eventually lease roof space to a bar and restaurant.
And as other retailers buy e-commerce players, as Walmart did with Jet.com, to strengthen their digital punch in the Amazon age, Macy’s may have its own plan in the works.
“We’re committed to getting double-digit growth online,” said Jeff Gennette, Macy’s CEO, and president. “All things are on the table with respect to keeping the digital growth going.”
Loyalty Marketing Resources
- Why Loyalty Marketing?
- How to Design a Successful Loyalty Program?
- What are the Different Types of Loyalty Programs?
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Filed under: Brand Loyalty