The American department store retail giant Macy’s just announced a new marketing strategy. The new Chief Marketing Officer, Richard Lennox, outlined his plans in a recent interview with Ad Age magazine.
There are three key points that summarise the complete strategy that Lennox details in the interview:
- reconnect with loyal shoppers
- lure in new shoppers
- use a new mix of marketing media
All three areas of this strategy are tied to just two important outcomes – either they boost sales or they improve the communication of the brand with customers and therefore improve the customer experience.
Personally, I am less interested in the advertising changes, although it seems fairly obvious to me that the days of the 30-second TV advert (that is exactly the same across the entire country) are numbered. Customers are expecting a much more personal service and this exactly ties into the other areas of their strategy.
A key part of the reconnection strategy is to re-launch the loyalty programme, taking the emphasis away from discount coupons and not requiring specific payment types. These are all smart moves, but importantly the emphasis is on how a profile of the customer can be created using knowledge of their purchases and preferences.
Loyalty cards that are little more than discount coupons are a dated concept. What customers expect today from a loyalty programme is ideas, recommendations, and discounts that are personalised to the individual. This focus on how the customer expects a brand to behave is now clearly an integral part of the marketing process, in addition to being essential for executives planning the overall customer experience.
Macy’s has had a rough time in recent years, but it’s clear that they are focusing on the future by putting the customer at the heart of their strategy. Only time will tell if they can beat Amazon in the apparel wars, but this marketing strategy that focuses on the customer experience is a great move. What do you think of these findings? Leave a comment here or get in touch directly via LinkedIn.