David Jones looks for one-to-one customer relationships with loyalty program plans

Department store plans to launch a customer loyalty program as part of a three-pronged, data-driven customer engagement strategy

David Jones will launch a customer loyalty program as part of a three-pronged strategy to better understand and engage with its customer base.

In an interview with CMO, the department store’s chief marketing officer, David Robinson, said the loyalty scheme will be based on an extensive amount of customer and market research undertaken both with David Jones, as well as the four brands sitting under the Country Road group: Country Road, Witchery, Trenery and Mimco.

“We have done a significant amount of qualitative research, as well as two round of quantitative research, and have landed on a value proposition and agreed on that for David Jones,” Robinson said.

“At this stage, we’re working through implementation and time lines. And we’re very excited about it.”

The program will be based around delivering value to customers across the group and within all categories and brands, and is about fostering a one-to-one relationship. This is expected to tap into data work done around a customer’s demographic and behavioural information, as well as David Jones’ increasingly content-led marketing investments.

“We believe our brand has something in particular to bring to the market,” Robinson said. “We’re not a transactional brand, or a bank or airline, we are an emotive brand.”

Launching a loyalty program is one of three streams of work being undertaken by David Jones to get to know its customers better. The activities are being spearheaded by Robinson, who took up the CMO post two years ago after leading the retailer’s omni-channel strategy.

The first foundation step was to understand who David Jones customers are, Robinson said. Historically, the retailer had viewed customers as a single segment – a David Jones customer.

“We understood 6 per cent of our customers, or 20 per cent of sales, which is our AMEX/David Jones cardholder customers, very, very well. But we didn’t necessarily understand the other percent of our customer base,” he said.

To achieve this, David Jones has delved into internal data sources, conducted qualitative research with nearly 3000 customers, and called on market insights from data consultancy, Quantium, to build of clear customer segments to address, Robinson said.

“This gave us a very granular view of where we dominate, where we have opportunity, and where we don’t want to play,” he said.

“There were surprises in there. In areas where we thought we were doing really well, once we got down to a granular level of defining the market in Australia we realised there were further opportunities. And in areas we thought we were underperforming in, we weren’t. We are using that information in determining how we go to market.”

Read more about David Jones’ customer data approach and our full interview with David Robinson

Follow CMO on Twitter: @CMOAustralia, take part in the CMO conversation on LinkedIn: CMO ANZ, join us on Facebook: https://www.facebook.com/CMOAustralia, or check us out on Google+: google.com/+CmoAu

Join the newsletter!

Error: Please check your email address.
Show Comments

Blog Posts

To DMP or not to DMP?

There are plenty of brands that can benefit from plugging into a data management platform. But should you engage an agency to run one or bring it in-house?

Ben Willee and Richard Taylor

Spinach Advertising

Innovations in retail will bring creative and technology closer than ever

While approaching a customer in a shop and asking what you can help them with is Retail 101, how many of us actually enjoy being approached? Generally, you have to give the forced, fake smile and say, “Just browsing, thanks,” while screaming on the inside, “just leave me alone!” Maybe it’s just me?

Jason Dooris

CEO and founder, Atomic 212

There’s a brand in my digital soup

Not a day passes by in the life of business executives where digital innovation or the prospect of disruption is not front of mind. This in turn, drives an unrelenting flow of questioning, discussion and strategy papers.

Jean-Luc Ambrosi

Author, marketer

Marin Software’s digital marketing solution as a short way of streamlining and finding a scalable solution...

Al Drazhev

How BizCover is boosting search advertising success

Read more

It is really inspiring to see that medial psychology & machines are going hand in hand to innovate new things and even are improving ...

CBT Professionals

How psychology is shaping better machine learning

Read more

Anything is achievable when you talk the talk .. good luck

Mo Al Hooti

Data Creative crowns Matt Bates as new CMO

Read more

Great hire and good luck Andrew. I am sure you'll do a fabulous jobRob

Rob

Amaysim marketing and commercial chief joins property tech investment startup

Read more

I need to be reborn before i can grow up & become a contestent.

Kaye Peterkin

Channel Nine's content now streamed digitally on 9Now

Read more

Latest Podcast

More podcasts

Sign in