Multichannel
Customer-centric Outlook a Win for Macy’s
- 19th January
- Neha Kale 289
Macy’s is enjoying high loyalty levels and an upswing in revenue, courtesy of ongoing efforts to put its customers at the centre of every business decision.
When a department store can lay claim to the fact that 70% of US households enter its doors at least once a year, it must be doing something right. But Macy’s enviable levels of customer loyalty have little to do with its inventory and size and everything to do with the way it places the customer at the heart of every business decision.
Macy’s CMO Peter Sachse spoke about the cornerstones of Macy’s loyalty strategy during a panel at Retail’s Big Show in New York earlier in the week. He said that Macy’s focused its efforts on identifying its best customers and cultivating relationships with those that shop with them most frequently. The panel agreed that many retailers make the wrong move by focusing on acquisition strategies instead of taking care of existing customers.
Last year, Macy’s rolled out My Macy’s, a much-lauded localisation inititiative that saw it tailor its merchandise according to customer buying habits across 810 stores. This focus on personalisation has had a direct impact on revenue – the retailer’s net income jumped 4.1% to $US5.85 billion in the third quarter of 2011.
