Macy’s offers multiple ways to update its gift registry – and discovers more profitable customers.
When it comes to offering goods or services via multiple channels, there
is always that nagging threat in the back of a retailer’s mind that one channel
will end up cannibalizing the other – and in the end, multiple channel
investment will become a losing proposition.
But in reality, the opposite is true. At least that’s what Federated
Department Store’s Macys.com learned when it offered multiple ways for customers
to maintain and make purchases via its gift registry. In fact, Macys.com was
singled out in a recent Forrester Research report as an example of stellar
cross-channel implementation.
How it works
At Macy’s, engaged couples can maintain their gift registries online, via
the phone or in the store. Similarly, gift-givers can purchase registry items
all three ways.
These cross-channel capabilities are possible because the retailer has
implemented an XML-based synchronization infrastructure that updates store
inventory and registry data in real-time across all of Federated’s retail
channels and brands, which include Macy’s, Bloomingdale’s and Burdines, among
others. This ensures that once a gift is purchased – no matter which
channel or store brand is used – the registry is updated and the data remains in
sync.
The effort has paid off. Not only are the gift registries more accurate,
resulting in higher customer satisfaction, but the company soon found that
customers who took advantage of more than one channel actually spent more in the
long run.
For example, according to Kent Anderson, president of Macy’s Online,
couples who used multiple channels to maintain their gift registry ended up
putting 60% more items on their list. And gift-givers of multi-channel couples
actually bought 40% more items than those buying for single-channel registry
couples, he said.
The overall scheme has resulted in Macys.com seeing a 7% increase in
orders, year over year – even when it’s parent company, Federated Department
Stores, has experienced an overall drop-off in sales.
For more information on Macy’s and its cross-channel successes, see
macys.com or visit
Forrester Research.