Macy’s has revamped its Star Rewards loyalty program so it’s simpler and provides better benefits, as part of new marketing efforts launched this year to recapture lost customers, gain new ones and perk up sales with existing shoppers.
Effective Monday, customers with a Macy’s credit card will be automatically enrolled into one of three levels, the highest being platinum, which is for those spending $1,200 or more annually at Macy’s with their store card.
Platinum-level shoppers will be entitled to 25 percent off on any day they wish to shop, utilizing their “star pass” coupons. They will also get free shipping on any purchase with no minimum spend; earn 5 percent back in rewards on every purchase, and once they spend $200, receive $10 in “star money” that can be used immediately with no merchandise exclusions. They also receive a platinum-colored Macy’s credit card.
The second highest level, gold, is for those spending between $500 to $1,199 annually at Macy’s with the store card. They will receive 25 percent off any day they choose with the star pass coupons and free shipping on any purchase with no minimum spend.
The third tier is silver, for customers spending up to $499 annually at Macy’s with the store card. They receive 25 percent off any day they choose to shop with the star pass coupons.
“Macy’s customers have high expectations for their shopping experience, and earning and keeping their loyalty is now more important than ever,” said Jeff Gennette, Macy’s Inc. chief executive officer.“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.”
Last June, at an investors’ conference, Gennette and Rich Lennox, Macy’s chief marketing officer, outlined a marketing overhaul, citing the new loyalty program and a “re-engineering of the high-intensity promotional model.” Rather than pulling back on promotions, Macy’s is creating “a different species of promotions that are clear and distinct and aimed at different segments.”
Lennox cited a “concentrated multimedia approach for spring, summer, fall and holiday fashion with marketing that coalesces around a window of time and lives in all media channels.”
Gennette also cited simplified pricing, with Macy’s moving to “faster and deeper permanent markdowns” and no point-of-sale markdowns layered on top of promotions.
Essentially, Macy’s marketing has three layers, the biggest being the promotional effort that stresses value. The second biggest involves marketing Macy’s as a fashion authority, and the third and smallest layer revolves around romancing the Macy’s brand and its iconic events such as the Fourth of July fireworks and the Thanksgiving Day parade.
Seventy-five percent of the marketing investment remains promotional; 20 percent is for spotlighting special or hot-selling products, and big-event marketing is being increased from 2.5 percent of the marketing budget to 5 percent.
Macy’s is also working to build an image of being “a fashion authority” by highlighting “cutting-edge” styles, exclusives, hot items and key partnerships with brands.
The retailer said it will continue to roll out enhancements to its loyalty program through 2018, including chances to win “unique experiences and rewards elements.” A cardholders shopping event will be held on the evening of Oct. 15.