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Macy’s wants to better understand its customers. That’s why the department store announced today it has hired dunnhumbyUSA to analyze its sales data, develop customer segmentation models and help the chain develop more targeted programs to drive same-store sales.
Terry Lundgren, CEO of Macy’s, said in a joint press release, “For Macy’s to continue to build a sustainable competitive advantage, we need to fully understand our customers and mold our offering to satisfy each customer’s specific needs. Leading retailers worldwide have benefited from the insights developed through dunnhumby’s expertise, and we believe that experience will be invaluable to Macy’s.”
Why is it that retailers pour more money in hopes of understanding their customers –while looking the other way to how their business is actually being performed?
I’ll tell you why. It’s tougher. It’s more complicated. And it isn’t sexy.
Case in point. I went to Macy’s Herald Square to look for a tie last week. That’s when I noticed the power of threes. Everywhere you looked, there were three employees gathered and talking. Three in front of the Clinique counter, three in back of the Levi’s counter, three in jewelry and two sets of three in ties.
Mind you, the store was FILLED with shoppers. I had to ask one of the three leaning on the tie table to please move so I could look at one. Their response? Not a word.
You want to know how to understand your customers? Get out and work on your floor, mystery shop, or just shop your store. I’ll guarantee surprises.
Because only if you are willing to connect the dots from the promise you pay megabucks for agencies to create and the actuality your customers experience, is your money wisely being spent.
If not, you may be just putting lipstick on a pig.
I read your comments on Retailwire regarding Macy’s and I agree 100%. After spending over 25 years in retail and wholesale apparel the stores that are still around are the stores that put customers first. Stores like Macy’s and Home Depot are two that just make me crazy everytime I try to shop. People looking right past you, not even offering to help! Good old fashioned customer service needs to make a comeback!
[...] written about Macy’s in a couple other posts, most notably about their PR firm here.) Possibly related posts: (automatically generated)How To Lose Customers in ten simple stepsReport: [...]
As an employee of Macy’s, I am embarrassed by such poor reports of other stores. I am a member of a merchandising team in the Macy’s Melbourne (Florida) store and I can assure you–our customers are our first and foremost concern. If anything, we have been accused by our patrons of over-servicing them. We pay more than lip service to providing outstanding service and the fact that we were chosen Store of the Year in 2008 reflects this. I beg you do not base your overall opinion of Macy’s on a few visits. Yes, due to the economy our staffing is lean, however, we greet and service every customer who walks through our doors. We maintain a steady repeat customer base with new customers being added each and every day and we put forth every effort to ensure every customer’s shopping experience with us is outstanding.
Thanks for sharing that you were store of the year in 2008 – congratulations! I’ve written about three different experiences at Macy’s on this blog including one recent one where the whole floor was run by 4 people. My concern is that % of labor has gone down with sales. It almost assures services issues will arise, especially as the economy recovers. I’ll check your store out when I’m in Florida again.
Thanks for commenting Sue. I’m glad to know there are some of us noticing that it isn’t the lack of customers, but management’s attitude about who they put in front of customers!