Macy's Case Study

The main intention of this program is to generate repeat purchases from customers. In addition, it allows the company to obtain information from clients with the purpose of using that information to send the customers promotions or coupons to generate more repeat purchases. Moreover, the program seeks to develop a need or want over time for its products and services after the consumer benefits from using the initial discounts and offers. So, the company tries to create a purchase behavior from the consumer by increasing purchasing the chances of repeat purchases from customers. As a result, the company expects for consumers to increase their purchasing behaviors toward the company without having to provide any reward, coupons, or promotional
Many companies use the strategy used by Macy’s, but, usually, consumers expect more discounts and promotions in the future. In general, once the customer receives a discount or some kind of reward for engaging in purchase behavior towards a company, their expectation for future rewards increases. So, in order to make this program effective, Macy’s needs to increase the value offered to consumers. This can be done by offering customers a reasonable reward for repeat purchases. This means that the reward program should offer any type of reward that would actually make a difference for the consumer. If the company offers a $10 dollar discount for every $500 dollar spent, then that is not a reasonable discount for the consumer. In contrast, if the company offers a 10% discount for every $500 spent, then that could be a reasonable reward for the consumer. In this case, Macy’s is offering 10% off which may not be a good deal for a person spending $10 to $15 dollars in the next two days. In addition, I believe that the current program is performing well when it comes to the timing in receiving rewards because, the longer it takes to receive the benefit or reward, the less benefit would be perceived by the consumer. Also, the company should develop a program that would deliver more benefits in the long-run. Currently, the company is offering only two days of rewards. Finally, the company should develop a long-term loyalty program to maintain customers involved in the program. A good example would be a reward program that would use points which could allow customers to earn points every time they make a purchase. And, after gathering a determined amount of points, the consumer would be able to exchange those points for rewards or