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Macy’s.com: Channel choice stokes revenues
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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.




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