THE CLARUS Blog

Going all in on Star Rewards – Is Macy’s Loyalty Program the Answer?

Macy’s is going all in on customer loyalty.

After recently announcing they will close approximately 125 stores and eliminate 2,000 jobs, Macy’s officials believe a revamped loyalty program will positively impact customer behavior and spark an overall company turnaround.

They upgraded their Star Rewards loyalty program, which rolled out earlier this month.

The revamped program now allows every Star Rewards member to earn on every purchase, regardless of how they pay. In the past only Macy’s members on the top tier or platinum level earned a percentage of their purchases back as rewards.

Based on annual spend, Macy’s cardholders are automatically enrolled in Star Rewards at one of three levels: Silver, Gold or Platinum.

Macy’s officials are showing their loyalty to their customers.

 

“It’s How We Love Our Customers Back”

Rich Lennox, Macy’s Chief Customer Officer, said the Star Rewards program has nearly 30 million members and is still growing.

“We hugged our best customers with the relaunch in October 2017 and then expanded it in 2018 to all customers,” Lennox explained. “We have seen strong results and received positive customer feedback. With this next phase of the program, all customers will earn rewards on everything they buy (except gift cards, services and fees) and can redeem on anything they choose. In the simplest terms, it’s how we love our customers back.”

Macy’s nicknamed the enhanced program Loyalty 3.0.

Macy’s CEO Jeff Gennette said during the company’s Investors Day that the business had been “overly reliant on our best customers.” The new program will “increase the engagement with customers who shop with us only occasionally and to bring new customers into the brand.”

 

Macy’s Aims to Strengthen Customer Relationships

As part of its recently announced three-year Polaris strategy, Macy’s top priority is strengthening customer relationships.

A big piece of this overarching strategy is the revamped Star Rewards program, along with accelerated digital growth.

The Star Rewards runs through Macy’s mobile app and is expected to increase the engagement of occasional Macy’s customers and bring new customers to the brand.

Putting the customer at the center of everything it does is Macy’s mantra.

While the company plans to close 125 of its least productive stores (that account for about $1.4 billion in annual sales), it will reduce staff in some stores and increase staff in others.

Gennette said that Macy’s customers expect convenience and personalized experiences across all channels.

The focal point of all the moves Macy’s made is its customers.

“The more convenient, brand-right touch points we have, the greater loyalty and engagement we engender,” he explained. “This will enable us to grow with the next generation of American shoppers.”

 

Macy’s Places Customers at the Center of Everything

It’s apparent that Macy’s is placing its customers at the heart of some huge decisions.

And we think that is a great thing!

It seems as if Macy’s officials trust their customers to reciprocate through the upgraded loyalty program and elevated brand engagement.

Customers seeing that brand trust is always a favorable dynamic.

The key to strengthening customer relationships is offering a value exchange that meets and exceeds expectations.

Gaining that all-important trust and engagement from its customers will be critical for Macy’s future.

Keeping that focus on customers bodes well for Macy’s.

We think Macy’s made the right move to trust its customers and will find success through the relaunched Star Rewards loyalty program.

Do you think Macy’s relaunched Star Rewards program will lead to heightened engagement and increased sales?

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