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!

Or
Error: Please check your email address.
Show Comments

Blog Posts

Social purpose: Oxygen for your brand health vitals

If trust is the new currency, then we’re in deep trouble. Here's why.

Carolyn Butler-Madden

Founder and CEO, Sunday Lunch

Customer experience disruption: Healthcare faces a bitter pill

Over the past decade, disruptors such as Amazon, Apple and Australia’s Atlassian have delivered technology enhanced customer experiences, which for the most part, have improved customers’ lives and delivered unparalleled growth. Can they do the same for healthcare?

Alex Allwood

Principal, All Work Together

How can a brand remain human in a digital world?

Some commentators estimate that by 2020, 85 per cent of buyer-seller interactions will happen online through social media and video*. That’s only two years away, and pertinent for any marketer.

James Kyd

Global head of brand strategy and marketing, Xero

https://bit.ly/2qLgzmR Transform your life a proven digital blueprint

Okitoi Steven

How this banking group tackled a digital marketing transformation

Read more

Its great to hear that companies including JCDecaux, oOh!media, Omnicom and Posterscope Australia have all partnered with Seedooh inorder...

Blue Mushroom Infozone Pvt Ltd

Out of home advertising companies strive for greater metrics and transparency

Read more

Much ado about nothingAnother fluff piece around what it could possibly do rather than what it is doing

gve

How AMP is using AI to create effortless ‘experiences’

Read more

is it true that Consumer expectations are also changing as a result. If we trust someone with our data there is also an expectation that ...

Sunita Madan

Society will decide where digital marketing takes us next: Oracle

Read more

This Blog is Very interesting to read and thank you for sharing the valuable information about Machine Learning. The information you prov...

johny blaze

What machine learning has done for the Virgin Velocity program

Read more

Latest Podcast

More podcasts

Sign in