The flip side of the Retail Apocalypse has seen retailers innovating again in ways that they arguably haven’t done since the rise of ecommerce in the late 1990s. While some retailers, unable to adapt quickly enough, shed stores or declare bankruptcy, others are experimenting with new store formats, new mobile and payment platforms, and a renewed focus on best customers. Indeed, so many retailers are turning to loyalty as a strategic focus that Wall Street has taken notice – and rewarding with “Buy” ratings those retailers who demonstrate a commitment to customer relationships. The latest retailer to join the party: US department store retailer Macy’s, which has announced a relaunch of their Star Rewards program.
By Wise Marketer staff
This week, Macy’s announced the reinvention of their flagship loyalty program, Star Rewards. Using their Macy’s card and beginning October 2, 2017, Macy’s customers will enjoy “an even more engaging shopping experience” at Macy’s stores and at macys.com.
Based on annual spend, customers with a Macy’s credit card will be automatically enrolled into one of three levels: Silver, Gold or Platinum. Rewards are tiered by level, with Macy’s best customers receiving benefits that include free shipping, additional savings and earned points on every purchase. Additionally, cardholders are automatically upgraded to the next tier when annual spend reaches the new level. The program was developed with the customer in mind, based on a careful analysis of evolving shopping behaviors and consumer preferences.
Money quote from Macy’s CEO Jeff Gennette:
“Macy’s customers have high expectations for their shopping experience, and earning and keeping their loyalty is now more important than ever. We listened to our customers – and with the reinvention of Macy’s Star Rewards, we are delivering a loyalty program that will strengthen our relationships and better engage, reward and grow our best customers. Loyalty is a foundational element of our North Star Strategy, and stronger relationships increase the lifetime value of our customers. We are providing what matters most to her – an enhanced experience both in store and online, edited and elevated products, compelling value and an excellent loyalty offering.”
Tiered benefits include:
- Platinum – Customers who spend $1,200 or more annually at Macy’s with their Macy’s credit card will receive 25 percent off any day they choose with Star Pass coupons and free shipping on any purchase with no minimum spend. Customers will also earn five percent back in rewards on every purchase and, once they spend $200, will be issued $10 in Star Money that can be used immediately with no merchandise exclusions. Platinum cardholders will also receive an exclusive platinum-colored Macy’s credit card.
- Gold – Customers who spend between $500 to $1,199 annually at Macy’s with their Macy’s credit card will receive 25 percent off any day they choose with Star Pass coupons and free shipping on any purchase with no minimum spend.
- Silver – Customers who spend up to $499 annually at Macy’s with their Macy’s credit card will receive 25 percent off any day they choose with Star Pass coupons.
Macy’s will continue to roll out enhancements to Star Rewards throughout 2018, including more experiential benefits where members can win access to unique experiences and rewards elements that only Macy’s can offer.
Macy’s customers will be notified of the new Star Rewards program beginning in late September through dedicated email and in-home mailers in addition to advertising in store and online. Additionally, cardholders will be able to check their status and track their rewards on macys.com and via the Macy’s App. In celebration of the new Star Rewards, Macy’s stores across the country will host Macy’s cardholders for an exclusive shopping event from 6 p.m. to 9 p.m. on Sunday, October 15, 2017.
While the program design itself is perhaps not revolutionary, Macy’s “North Star” commitment to customer relationships will no doubt pay dividends to both Macy’s shareholders and Macy’s best customers. We’ll be excited to see where they take Star Rewards next.
Rick Ferguson is Editor in Chief at The Wise Marketer and is a Certified Loyalty Marketing Professional (CLMP).