Personalization has become an expectation for many consumers, but brands’ maturity levels in providing personalized marketing and CX varies greatly. While capabilities vary, the benefits are clear: according to research from Deloitte Digital, brands that excel at personalization are 48% more likely to exceed their revenue goals, and 71% more likely to report improved customer loyalty, than their low-maturity peers.
Macy’s has always aimed to design shopping experiences that align with consumer wants and needs, but it recently decided to level up its personalization efforts, especially as consumers ventured across different channels. The retailer tapped its longtime partner, Deloitte Digital, to conduct a customer experience (CX) and marketing technology (MarTech) strategy assessment and implement a series of personalized omnichannel journeys focused on five key behaviors:
- Drive new customers to make a second purchase after making their first with Macy’s;
- Encourage customers to “complete the look” to help them navigate Macy’s vast assortment;
- Revive engagement with consumers who are spending less, or are completely unengaged, with Macy’s;
- Engage Star Rewards loyalty program members and credit card users in distinct and compelling ways; and
- Boost consumer spending across channels.
“Personalization is a top priority at Macy’s, all the way up to our CEO,” said Bennett Fox-Glassman, SVP of Customer Journey at Macy’s in an interview with Retail TouchPoints. “When we think at about personalization, and about what we’re really trying to achieve for our customers through the lens of those elements — the right investments, the right leadership, the right strategy — it really is about developing that deeper relationship with the customer, because we are creating a conversation with them that is more connected across the different touch points. Also, it’s more relevant by using the data that they choose to share with us.”
Since the program’s launch, Macy’s has sent approximately 500 million personalized offers, reaching 30+ million customers regularly.
Developing a Strategic Foundation and Multi-Year Roadmap
Trinadha Kandi, Managing Director and Advertising, Marketing and Commerce leader at Deloitte Digital pointed to Macy’s as an “iconic brand” that largely fell in the high-maturity bucket. And these organizations, he found, have three critical traits:
Advertisement
- A sound strategy;
- Leadership; and
- Appropriate investment.
Macy’s had something of a head start with this initiative, as an iconic brand that largely fell into the high-maturity bucket, according to Kandi. With the CX and MarTech strategy assessment, Deloitte Digital was able to “look inward” and see what Macy’s had from a capability, process and even talent standpoint, Kandi explained, then “reinvent the whole technology stack and capabilities so we can really try towards achieving the vision that Macy’s had on the CX and personalization side,” Kandi explained.
That diagnostic assessment led Deloitte Digital and Macy’s to establish a multi-year roadmap and gauge the total value they could create for consumers and, in turn, for the retailers’ overall business.
Fox-Glassman agreed that strategy is the critical foundation for any technology investment, especially as it relates to CX: “At a baseline, the consumer is always looking for outstanding products and brands, great experience and good value. How does personalization deliver against that strategy? We look to prioritize our investments in the same way,” he noted.
Macy’s also looks “in large part” to customer lifetime value (CLV) and determining the behaviors that the team knows drives deeper consumer relationships. This means identifying consumer challenges and then building personalized marketing and CX experiences aimed at solving these pain points. This strategic exercise allowed Fox-Glassman and his team to hone their focus and map their personalization priorities (and ultimately, their tactics) based around core omnichannel journeys.
Mapping and Orchestrating Elevated Customer Journeys
Once Macy’s and Deloitte Digital developed the strategic foundation of their work, they were able to kickstart the retailer’s “aggressive timelines,” according to Kandi, and start making tactical decisions including key investments, data collection priorities and the technology components they should prioritize.
The companies were then ready to start orchestrating these journeys, using visual content and messaging, to prepare for launch. And rather than using various disjointed tools, Macy’s wanted to tap a “strong strategic ally” in creating these journeys, according to Fox-Glassman. As a result, the retailer expanded its partnership with Adobe and used various components of its technology stack, including the Adobe Experience Platform, Adobe Journey Orchestration, Adobe Experience Manager and Customer Journey Analytics.
These solutions “still operate in an ecosystem with other important partners that we have,” Fox-Glassman added, “but we rely on Adobe Journey Orchestration for creating these journeys I’ve described. That helps us manage them, visualize them, build them and measure them.”
Macy’s now effectively harnesses key customer segments’ data to create hyper-specific campaigns and content, reaching 30 million customers with personalized touch points regularly. The retailer has seen an overall improvement in cross-channel engagement and has increased conversions across these journeys.
Fox-Glassman shared that Macy’s long-term goal is to “shift the balance” between event-based marketing and communication to more journey-driven communication, and to have more contextual communications with customers that are “more oriented to where you are in the lifecycle.” “We are relentless in our pursuit of creating a better experience for our customers — that was our drive,” said Fox-Glassman. “But Deloitte was fantastic in making sure we had all the data in one place and making sure it was accessible and that we could serve that data to a variety of systems that connect to our different marketing channels, as well as our digital and physical touch points with the consumer. Whether a consumer comes to us in the store, on the website or you happen to receive an email from us, or you see a paid social advertisement, we should be acting like we are talking to you as one brand with one voice in one conversation.”
