Myer customer loyalty program brings in 70% of total sales

Australian retailer's annual financial results also highlight growth and investment in its omni-channel retail and outline the restructure of its marketing and digital teams

Seventy per cent of sales at Myer in the past financial year were made by customer loyalty program members, its end-of-year financial results reveal.

According to the Australian retailer’s preliminary financial report for the year to 27 July 2013, Myer now has 5 million Myer one card loyalty card members, an increase of 9 per cent over the year. These members represented 70 per cent of total sales nationally.

The company also distributed $50 million in loyalty cards during the past financial year, with an average spend redemption of 3.8 times the value of the card.

Myer highlighted several changes to its customer loyalty program over the past year, including the launch of a Myer one app. This provides members with smartphone access to shopping credit and rewards card balances, as well as notifications about events and exclusive news.

Myer also introduced a new platinum invitation-only tier this year for its top 2000 customers in August, offering a series of exclusive experiences, concierge service and private shopping parties.

In addition, the company broadened its affiliates strategy by bringing on Caltex as a key partner, as well as struck a ‘pay with points’ collaboration initiative with the Commonwealth Bank in December allowing instant redemption of awards points at Myer’s point-of-sale terminals.

“We are focused on building customer engagement and loyalty by acknowledging and rewarding our most valuable members, including issuing new silver cards to our Silver tier members,” Myer CEO, Bernie Brookes, stated.

“We have a pipeline of further enhancements for our Myer one loyalty program as it is a key competitive advantage providing incredible insights through sophisticated data analysis.”

Today's customer loyalty game
Qantas loyalty chalks up record result
Uniting a customer loyalty program using data

Across the group, Myer reported total sales were up 0.8 per cent to $3.14 billion, with profits attributable to shareholders down 8.7 per cent to $127,212. Pre-tax earnings were also down to $214,849.

Brookes said Myer’s omni-channel business continued to strengthen over the past year, with key customer metrics such as online sales, page views and average monthly visits all more than double year-on-year. Online-based sales leapt by more than 200 per cent, and online basket size and average order value online were also up.

To further boost its efforts, Myer recently invested in order management and content management systems.

“The new order management system… will provide significant efficiency gains and provide customers with a more consistent experience across all channels,” Brookes said.

As has been reported in recent months, Myer has combined its marketing, Myer one, online, commercial services and digital teams into one business group, a move that saw its top marketer, Megan Foster, promoted to managing director of part-owned fashion brand, sass & bide. It has also established a digital services team in-house to cover social media, ecommerce, digital advertising, Web design and email marketing.

Brookes said the retailer is increasingly integrating marketing efforts to balance traditional media with digital marketing opportunities. He added digital marketing and social media are now a feature of all campaigns.

Moving forward, Myer will continue to adapt its business in line with customer expectations to meet current and future challenges, Brookes said.

“We have changed processes and systems to improve productivity leveraging our IT investments. We are responding to the ways our customers now shop with us through the execution of our omni-channel strategy and revitalising our store environments,” he added.

Follow CMO on Twitter: @CMOAustralia, take part in the CMO Australia conversation on LinkedIn: CMO Australia, or join us on Facebook: https://www.facebook.com/CMOAustralia

Signup to CMO’s new email newsletter to receive your weekly dose of targeted content for the modern marketing chief.

Join the CMO newsletter!

Error: Please check your email address.
Show Comments

Supporting Association

Blog Posts

Top tips to uncovering consumer insights for business innovation

An in-depth understanding of consumers sits at the heart of what we all need to do, but we know it’s not always easy to uncover insights that will unlock a true innovation opportunity.

Matt Whale

Managing director, How To Impact

Is your customer experience program suffering bright shiny object syndrome?

You may have heard of ‘bright shiny object syndrome’. The term is used to describe new initiatives undertaken by organisations that either lack a strategic approach, or suffer from a failure to effectively implement.

Leveraging technology to stand out in the sea of sameness

The technology I'm talking about here is data and marketing automation. Current digital marketing methodology, much as it is practiced at Bluewolf, dictates the need for a strategy that does four things: Finds the right audience, uses the right channel, delivers the right content, and does all of that at the right time.

Eric Berridge

CEO and co-founder of Bluewolf, an IBM Company

Lead Management is very important part of the process. For anyone running Facebook Lead Ads I would recommend using this service.Get your...

Dirk Lo

How this fintech startup is improving content marketing and lead generation

Read more

I am agreeing with Mr. Tyron Hayes that a measured test-and-learn approach could be missing opportunities to not only better engage custo...

rush essay reviews

CMO interview: How Curtin University’s marketing chief is using test and learn to cope with complexity

Read more

Excellent!

Dr Sadasivan,US

Shakespeare shows data and creativity aren’t Montagues and Capulets

Read more

Great article! Agreed with all... Matthew Lerner, Deeps De Silva... When a company has a great product that solves customers needs, a gre...

James Tyler

Why marketers are embracing growth hacking techniques

Read more

Very good article, Social media analytics helps in problem identification. They can serve as an early warning system for negative custome...

BizVinu

Four ways to use social media to boost customer loyalty

Read more

Latest Podcast

More podcasts

Sign in