It doesn’t take long for predictions to become predictable: The rise and rise of Facebook; advancements in analytics; the normalisation of chatbots; personalisation, programmatic, automation, authenticity… The prediction that’s missing from these lists is that in 2017 we will witness a resurgence of values-based marketing.
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.”
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.