News Feature | December 6, 2013

Macy's Puts Customers First With Omni-Channel Initiatives

Source: Retail Solutions Online
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By Anna Rose Welch, Editorial & Community Director, Advancing RNA

Company emphasizes its success as an omni-channel retailer, but it hasn’t forgotten the people behind Macy’s that drive business forward

Whether it be reserve in store, buy online and pick up in store, or online ordering and home delivery programs, retailers this holiday season have been embracing the power of omni-channel to reach out to their customers. The customer base and its shopping preference are changing drastically, and it is in a retailer’s best interest to be there for its customers where and whenever the customer feels like shopping; Macy’s is no exception.

As CEO Terry Lundgren says, “What is online? If the customer starts her journey on her phone, but ends up buying in our stores, is that online or is that in-store? If the customer buys the product online and returns it to our store, is that online or is that in-store? The answer is it doesn't matter and it shouldn't matter. We should engage the customer in however he or she chooses to shop with us. I want to break those silos down internally in my own organization and make sure that we are doing one thing and that is putting the customer at the center of all of our decisions.”

Using Advertising To Emphasize Omni-Channel Offerings  

For the past five years, Macy’s has been busy attempting to do just this by investing in omni-channel to provide a more personal customer experience and give customers access to inventory they might not have been able to access at their local store. While in the past, Macy’s hasn’t been able to offer all brands at certain locations, with technology on its side, they are able to put their inventory online and ship items from nearby stores. Indeed, earlier this fall, the department store added fulfillment departments to 200 stores, bringing the total to 500. The effect of this investment not only helps stores clear out inventory that isn’t selling locally, but it also keeps customers from turning to other stores when merchandise is out of stock in their local brick-and-mortar Macy’s. To encourage shoppers to utilize these different offerings, Macy’s has invested in a holiday ad campaign accentuating its place as an omni-channel retailer.

Stores are the ultimate omni-channel platform

The new holiday ad that appeared this fall is a new approach for the company, which often relied on sales or exclusive celebrity lines including Martha Stewart, Usher, and Donald Trump. Now, the company is plugging its app and its various shipping options to draw attention to “extend the message of the “What’s in store” campaign to cover other topics that are important to us,” Macy’s VP of digital Jennifer Kasper says. Ultimately, the company hopes to engage with its customers through its store app, which has already had 2 million downloads. As Kaspar says, “We’re trying to increase the number of downloads but also give people a chance to engage with the app and get familiar with it.” One way customers can engage with Macy’s through mobile devices this holiday is with The Star Gifts app, which utilizes visual recognition technology and enables customers to scan specifically marked items for additional information or to make a purchase. As the company explains, “This marks a first-of-its kind use of iD’s visual recognition technology to deliver a seamless experience across national catalogs, print and outdoor advertising.” 

Technology Is Convenient, But The Personal Touch Is Still Important

While it can be argued that these technological advancements in retail today are what make for a retailer’s success, Macy’s still emphasizes the importance of a skilled sales team. Over the past year, the company has been training sales associates to “think omni-channel” and encourage customers to buy merchandise, because when it comes down to it, a company is much more than just its technology. Macy’s CEO explains that, while evolutions in technology have certainly brought success to the retailer and have helped close the gap between the company and customers, there is still the need for a team of professionals to drive business. As he says, “We’re together and we make decisions together. We’re constantly working. We’ve been together or a long period of time, and this team down to a person is outstanding in what they do. And so, I really think all of these things are what’s driving our business, not an industry trend or anything else.” 

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