Macy’s Looks to Reward Loyal Customers
When Federated Department Stores makes the final switch from the Marshall Field’s banner to Macy’s, it is safe (and understated) to say many of Field’s most loyal customers will not be automatically transferring that emotional connection to the new retailer.
Macy’s management is aware of the challenges it faces, particularly in Field’s hometown of Chicago, and is looking to for ways to make it attractive to the very same consumers who are most disappointed to see their favorite department store fade into history.
One way the department store chain is looking to speed the conversion of Field’s customers to Macy’s is by rolling out a rewards program the chain says will provide greater perks to shoppers at lower levels of spending.
Jennifer McNamara, a Macy’s spokesperson told the Pioneer Press, Macy’s customers can achieve platinum Star Rewards program status by spending $1,000 in a year. Field’s Regards program required shoppers to spend $2,000 to achieve the same reward levels.
Mollie Young, a principal at Nametag International, said the Star Rewards program is one step in the right direction for Macy’s.
“In the transition strategy of Marshall Field’s to Macy’s, it is imperative they take every opportunity to connect with the existing core customers and not lose them,’ she said.
Discussion Questions: What must Macy’s do (such as the Star Rewards program) to retain existing customers at stores it is converting from other banners,
such as Marshall Field’s? Will steps such as the Macy’s Star Rewards program aid the chain in at least getting some loyal Field’s customers to give it a look?