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.