Keynote: Macy's: 150+ Years of Customer Centricity

Our customer centricity journey

1)Strategic Customer Focus

2)Unifying Customer Languages

3)Activating Against Customer Insights

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OUR STRATEGIC

CUSTOMERFOCUS

AS A COMPANY

“CUSTOMERS FIRST” HAS ALWAYS BEEN A PRIORITY

OUR INDUSTRY-LEADING CUSTOMER DATABASE - “BIG DATA”

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33 million active households/year

500 million transactions/year

Behavior details: who is she, what did she buy, when, where, how…

40 terabytes of data

7 out of 10 transactions matched to a unique customer

Communicate a data- informed customer strategy

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Retaining and Growing Loyals

Developing Non-Loyals

Converting Non-Purchasers

Large $ Sales Opportunity over Five Year Horizon

unifying CUSTOMER LANGUAGES

What, so what, now what???

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Activating against

customer insights

Loyalty - Emotional and rational connections

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*************************

Mary SmithLoyalty Number ****1234Earning Level: 5%Earned Today: $11.25Total Earned: $11.254 More Visits to Go !

*************************Thank you!

Enjoy a free coffee on us, simply present this offer

*************************

*************************

Mary SmithLoyalty Number ****1234Earning Level: 1%Earned Today: $9.75Total Earned: $21.003 More Visits to Go !

*************************My Macy’s Rewards

Get 20% off your next purchase of Tommy Hilfiger 02/01/10 to 03/01/10

*************************

Omnichannel behavior analysis informing truly custom direct mail, Email, Display

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Book 1

665

Book 2

4,700

7,000

15,000

Book 3 Book 4

Num

ber

of

Diff

ere

nt

Vers

ions

As many as 500k unique direct mail

versions on a circulation of

1MM

Relevance and Customization is even more important than personalization

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Localized content

Personalized emails

custom recommendations based on data analysis, delivered at every decision moment

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MOREOmnichannel Migration

BETTERIncreased Relevancy

FASTERSpeed-to-Product Navigation

Online-to-Store / Store-to-Online

Cross category shopping Product Recommendations &

Replenishment

Mobile: shopping, information, marketing

APPLY PASSION, PATIENCE AND PERSEVERANCE TO SIMPLY LEAP OVER THE HURDLES…

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1. Making the Call for Change ‘Stick’ in presence of Comfort Zone

2. Resource Expertise/Learning Curves

3. Work Flow/Processes

4. Costs (Real and Perceived)

5. Speed to Positive Sales Results

Thank you for listening; any questions?

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Julie Bernard – GVP, Customer Centricity, Marketing julie.bernard@macys.com212.494.7490