Macy’s revamps loyalty program
Macy's is overhauling its loyalty program, putting a new focus on its best customers.
The department store retailer is revamping its Star Rewards program with a tiered rewards system that gives its very best shoppers (those who spend $1,200 or more annually) such perks as free shipping, additional savings and earned points on every purchase.
Based on annual spend, customers with a Macy’s credit card will be automatically enrolled into one of three levels: silver, gold or platinum, with rewards based on level. (Cardholders are automatically upgraded to the next tier when annual spend reaches the new level.) The program, which goes into effect Oct. 2, was developed with the customer in mind, based on a careful analysis of evolving shopping behaviors and consumer preferences, according to Macy's.
“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,” said Jeff Gennette, CEO, Macy’s. "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.”
Here's a review of the three levels:
&bull Platinum: Customers who spend $1,200 or more annually at Macy's with their Macy's credit card will receive 25% off any day they choose with Star Pass coupons and free shipping on any purchase with no minimum spend. Customers will also earn 5% 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.
&bull Gold: Customers who spend between $500 to $1,199 annually at Macy's with their Macy's credit card will receive 25% off any day they choose with Star Pass coupons and free shipping on any purchase with no minimum spend.
&bull Silver: Customers who spend up to $499 annually at Macy's with their Macy's credit card will receive 25% off any day they choose with Star Pass coupons.
Macy's said it plans to rollout enhancements to the new Star Rewards program throughout 2018, including more experiential benefits where members can win access to unique experiences and rewards elements.
Great new program, it rewards customers not shoppers. Retailers have the difference for years, a shopper largely takes advantage of bargains (low price) wherever they are found. A customer has some store brand loyalty (value). Margin comes from customers.