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.
