Macy’s President’s Club: Improving Customer Retention

Faced with dwindling market share and declining comp store sales, Macy’s needed a new way to spur profitability. Traditional customer-retention tactics like couponing and discounting were old hat, and no one knew if they were impacting the bottom line. Macy’s called in CCG to strategize and execute a new approach.

That was 1987 — when direct marketing reigned supreme. So a President’s Club customer recognition program was an out-there idea. But Macy’s was ready to break new ground.

To recognize and reward shoppers charging more than $2,500 per year on Macy’s private-label credit card, CCG created an exclusive quarterly President’s Club communication to deliver and highlight robust membership benefits including pre-sale notices, special shopping hours, free gift wrap and a coat check service. Home furnishing ideas, fashion news and other custom content was developed to build on best-customers’ relationships with Macy’s and heighten the personal impact of membership privileges.

The results proved that relationship-building had the power to produce sustained, measurable impact on profits.

The Votes Are In — Macy’s Wins by a Landslide

• Year after year, President’s Club members spent an average of 14% more than the control group.
• Club members spent an average of $350 more than the $2,500 club minimum.
• The program generated an incremental profit of $142 per customer per year.
• Macy’s realized a 250 percent return on investment in The President’s Club program.