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MyMacy’s initiative customizes merchandise to boost loyalty
I was heartened by a recent Detroit News article that reported on a new Macy's initiative called MyMacy's, which allows managers to customize merchandise in specific stores based on customer request and market demand.
It's this kind of nimbleness and flexibility, particularly putting power in the hands on front-line local managers, that is at the heart of some of the principles of Enterprise Loyalty. That's because loyalty is not just a function of the marketing department. Building loyalty should ultimately become a function across the organization, including merchandising. And offering customization and flexibility to managers and store staff gives customers what they want and when they want it — and common sense says that can increase loyalty to your brand.
In addition, the MyMacy's initiative speaks to a new localism gaining strength around the world. That is, customers are expecting an ever-higher level of personalization and customization tied to their local communities. In the same way they can customize the latest iPhone app to their liking, so too they want to be able to receive targeted merchandise and service at their local retailer — even if it is a retailer with hundreds of stores in dozens of states or countries.
According to the Detroit News piece, the result of MyMacy's has indeed been stronger sales for the retailer: "Sales at stores open at least a year have been up every month since December 2009, about 18 months after Macy's started the program nationally. Same-store sales rose 4.8 percent in September and hit a high of a 10.8 percent hike in March." Is the MyMacy's initiative the only reason for the sales boost? Maybe not — but there's no doubt that filling this kind of important customer need can build relationships and encourage return visits, which are key measures of increased loyalty.
Not all retailers are ready to offer this kind of merchandising freedom in specific stores, perhaps because of their company culture or an inability to analyze their data in a way that supports local management in this way — but in our opinion it is a goal to strive for. Efforts such as MyMacy's will keep customers coming back and offer more of a sense of flexibility and nimbleness that will be required for large retailers to compete in a still-soft economy, where smaller, more nimble niche retailers can easily lure away customers.
What do you think of the MyMacy's program? Is this type of initiative something your company has considered? If not, what are the things that keep your company from moving in that direction?
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