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Our customer centricity journey



1) Strategic Custom er Focus

2) Unifying Custom er Languages

3) Activating Against Custom er
   Insights




2
OUR STRATEGIC
 CUSTOMER
    FOCUS
AS A COMPANY
“CUSTOMERS FIRST” HAS ALWAYS BEEN A PRIORITY
OUR INDUSTRY-LEADING CUSTOMER DATABASE - “BIG
DATA”
                  33 m illion active
                  households/year

                  500 m illion transactions/year


                  40 terabytes of data


                  7 out of 10 transactions
                  m atched to a unique
                  custom er
                  Behavior details: w ho is she,
                  w hat did she buy, w hen, w here,
5                 how …
Communicate a data- inform customer strategy
                              ed


    Large $ Sales Opportunity over Five Year Horizon




    Converting Non-Purchasers



    Developing Non-Loyals



    Retaining and Growing Loyals




6
unifying
CUSTOMER
LANGUAGES
What, so w hat, now w hat???




9
Activating
 against
customer
 insights
Loyalty - Emotional and rational connections


                 *************************                         *************************

                 Mary Smith                                        Mary Smith
                 Loyalty Number ****1234                           Loyalty Number ****1234
                 Earning Level: 5%                                 Earning Level: 1%
                 Earned Today: $11.25                              Earned Today: $9.75
                 Total Earned: $11.25                              Total Earned: $21.00
                 4 More Visits to Go !                             3 More Visits to Go !

                         *************************                       *************************
                                 Thank you!                                  My Macy’s Rewards

                  Enjoy a free coffee on us, simply present this    Get 20% off your next purchase of Tommy
                                       offer                             Hilfiger 02/01/10 to 03/01/10




                                                                         *************************
                         *************************




11
Omnichannel behavior analysis informing truly custom
direct mail, Email, Display
     Num ber of Different Versions                                15,000




                                                        7,000                As m any as
                                                                            500k unique
                                                                             direct m ail
                                                                            versions on a
                                              4,700                         circulation of
                                                                                1MM
                                     665


                                     Book 1    Book 2    Book 3    Book 4
12
Relevance and Customization is even more important than
personalization

                                       Personalized emails




           Localized content




13
custom recommendations based on data analysis, delivered
at every decision moment
            MORE                    BETTER                      FASTER
     Omnichannel Migration    Increased Relevancy      Speed-to-Product Navigation




       Online-to-Store /     Cross category shopping    Product Recommendations
        Store-to-Online                                            &
                                                             Replenishment
14
Mobile: shopping, information, marketing
APPLY PASSION, PATIENCE AND PERSEVERANCE TO
SIMPLY LEAP OVER THE HURDLES…

     1. Making the Call for Change ‘Stick’ in presence of Com fort Zone


     2. Resource Expertise/Learning Curves


     3. Work Flow /Processes


     4. Costs (Real and Perceived)


     5. Speed to Positive Sales Results




16
Thank you for listening; any questions?




                Julie Bernard – GVP, Custom er Centricity, Marketing
                    julie.bernard@m acys.com 212.494.7490




17

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Keynote: Macy's: 150+ Years of Customer Centricity

  • 1.
  • 2. Our customer centricity journey 1) Strategic Custom er Focus 2) Unifying Custom er Languages 3) Activating Against Custom er Insights 2
  • 3. OUR STRATEGIC CUSTOMER FOCUS AS A COMPANY
  • 4. “CUSTOMERS FIRST” HAS ALWAYS BEEN A PRIORITY
  • 5. OUR INDUSTRY-LEADING CUSTOMER DATABASE - “BIG DATA” 33 m illion active households/year 500 m illion transactions/year 40 terabytes of data 7 out of 10 transactions m atched to a unique custom er Behavior details: w ho is she, w hat did she buy, w hen, w here, 5 how …
  • 6. Communicate a data- inform customer strategy ed Large $ Sales Opportunity over Five Year Horizon Converting Non-Purchasers Developing Non-Loyals Retaining and Growing Loyals 6
  • 8.
  • 9. What, so w hat, now w hat??? 9
  • 11. Loyalty - Emotional and rational connections ************************* ************************* Mary Smith Mary Smith Loyalty Number ****1234 Loyalty Number ****1234 Earning Level: 5% Earning Level: 1% Earned Today: $11.25 Earned Today: $9.75 Total Earned: $11.25 Total Earned: $21.00 4 More Visits to Go ! 3 More Visits to Go ! ************************* ************************* Thank you! My Macy’s Rewards Enjoy a free coffee on us, simply present this Get 20% off your next purchase of Tommy offer Hilfiger 02/01/10 to 03/01/10 ************************* ************************* 11
  • 12. Omnichannel behavior analysis informing truly custom direct mail, Email, Display Num ber of Different Versions 15,000 7,000 As m any as 500k unique direct m ail versions on a 4,700 circulation of 1MM 665 Book 1 Book 2 Book 3 Book 4 12
  • 13. Relevance and Customization is even more important than personalization Personalized emails Localized content 13
  • 14. custom recommendations based on data analysis, delivered at every decision moment MORE BETTER FASTER Omnichannel Migration Increased Relevancy Speed-to-Product Navigation Online-to-Store / Cross category shopping Product Recommendations Store-to-Online & Replenishment 14
  • 16. APPLY PASSION, PATIENCE AND PERSEVERANCE TO SIMPLY LEAP OVER THE HURDLES… 1. Making the Call for Change ‘Stick’ in presence of Com fort Zone 2. Resource Expertise/Learning Curves 3. Work Flow /Processes 4. Costs (Real and Perceived) 5. Speed to Positive Sales Results 16
  • 17. Thank you for listening; any questions? Julie Bernard – GVP, Custom er Centricity, Marketing  julie.bernard@m acys.com 212.494.7490 17