Macy's updates loyalty program to capture more shoppers

By

Cassidy Mantor

Published
Sep 28, 2017

After a year of layoffs and hundreds of store closures, Macy's has restructured its Star Rewards program with a tiered strategy based on annual credit card spending in the hopes of breathing new life into the retailer.

The new Silver, Gold and Platinum levels are based on the customer's annual spend on their Macy's credit cards. Customers using a Macy's credit card are automatically enrolled in one of the plan levels. Customers are automatically upgraded to the next plan level when they hit the spending thresholds of $500 or $1,200.

Benefits include free shipping, additional savings and points earned for purchases. Macy's plans to roll out experiential events for loyalty program consumers to attend beginning in 2018 to better connect with its millennial customer and her expectations.

Jeff Gennette, Macy’s, Inc. CEO said, “Loyalty is a foundational element of our ... [s]trategy, and stronger relationships increase the lifetime value of our customers." He noted the program would offer an enhanced consumer experience both online and in store as well as delivery of "edited and elevated" products.

The tiers start with the Silver level for customers who spend up to $499 annually on their Macy's credit card. They will be able to choose any day to use coupons for 25% off their purchases. Customers reach Gold when they spend $500 to $1,199 annually on their Macy's credit card. Gold level awards free shipping with no minimum purchase and a birthday offer.

Platinum loyalty members spend over $1,200 annually on their Macy's card. In addition to the Gold and Silver benefits, they will receive five percent back in rewards on every purchase. Once they spend $200, they will receive $10 in Star Money to be used for future purchases. Platinum members will also have access to priority customer service.

To celebrate the new loyalty program, Macy's is hosting shopping events at its 670 stores in the US on Sunday, October 15 from 6 to 9pm. The program goes into effect Monday, October 2.