Macy's wants to better understand its customers. That's why the department store 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.
Interestingly, dunnhumby has signed a deal that will make Macy's its one and only department store client in the U.S.
"We are delighted to be partnering with Macy's, an iconic American brand with unprecedented marketing and merchandising prowess," said Simon Hay, CEO, dunnhumbyUSA, in a joint press release with the department store. "We are passionate about helping Macy's win the lifetime loyalty of their customers. We understand the complexities that face the department store shoppers today and seek to apply our data-driven insights and keen understanding of shopper behavior patterns to create more meaningful connections between Macy's and their customers."
Terry Lundgren, chairman, president and chief executive officer of Macy's, said, "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. The insights culled from our work with dunnhumby will support our new My Macy's localization initiative. Our intention is to leverage knowledge of customer segments to drive same-store sales, profitability, customer loyalty and, ultimately, shareholder value. Leading retailers worldwide have benefited from the insights developed through dunnhumby's expertise, and we believe that experience will be invaluable to Macy's."
Discussion Question: What has prevented Macy's from better understanding and responding to its customers' needs up to this point? What will Macy's need to do if it is to achieve the lofty goals put forth in its joint announcement with dunnhumbyUSA?