What We Can Learn from Macy’s New Customer Loyalty Program

What We Can Learn from Macy’s New Customer Loyalty Program

Macy’s has long been known for its Star Rewards program. But with disappointing sales over the past few quarters, the company has decided to revamp that program. In this blog, we’ll examine those changes and try to understand what they want to accomplish.

There are levels to reward the most loyal customers
The most important characteristic about the new Star Rewards program is that it rewards customers based on how much they spend at the store. This Business Insider article explains the different levels in the program:

“Shoppers who spend $1,200 or more annually will receive 5% back in store credit, free shipping, 25% off with the store’s “Star Pass” coupons with no restrictions, and even more features starting in 2018…. Those who spend between $500 and $1,200 annually will receive free shipping and the same nonrestricted coupons, and those who spend less than $500 will get 25% coupons with some restrictions.”

Macy’s is clearing hoping to bring customers back in exchange for greater discounts. They’re shooting for an engaging loyalty program, as opposed to a simple one.

It’s exclusive
Macy’s is advertising exclusivity to draw more attention to its loyalty program. The company will host shopping events for its program members and there is also talk about possible online pre-sale for certain items.

It’s demanding
Macy’s Star Rewards will only apply if the customer has a Macy’s credit card. That requirement is pretty exclusive as far as customer loyalty programs go. At the same time, the rewards will automatically set in for customers who are already in possession of a Macy’s credit card.

With its new customer loyalty program, Macy’s is looking to bring customers back at even higher rates by offering varying discounts at different tiers. The program forces customers to have a Macy’s credit card and also offers invitations to exclusive shopping events. To talk more about customer loyalty programs, or anything else, contact us today to learn how we can help you setup a tiered rewards program.

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