The document proposes a new loyalty program called Macy's Magical Rewards to provide a more exclusive shopping experience for their target customer, the "Fashionable Spender." Key aspects of the proposal include merging existing rewards programs into one card, establishing three membership tiers (Glamour, Star, VIP) with increasing benefits, and hosting exclusive "Invitation Only" events for higher-tier members to access new product launches. The goal is to simplify the rewards structure, incentivize increased spending, and set Macy's apart by satisfying the Fashionable Spender's preferences for personalized service and access to top brands.

1. Macy’s Magical
Rewards
University of California, Berkeley 2017
Ikram Magzoub , Alexandria Bruschi, Briana Fregoso

2. Meet the Team
Alexandria Bruschi
Media Studies and
Psychology, Class of 2018
Briana Fregoso
Business Administration,
Class of 2017
Ikram Magzoub
Sociology and Computer
Science, Class of 2018

3. Macy’s Inc. - A
Magical Customer
Experience
● Macy’s strives to consistently provide the
ultimate customer experience through
upholding the motto:
“Be everywhere, do everything, and never fail
to astonish the customer”
● Macy’s provides giant “Cathedral”
department stores that provides all
customers needs by utilizing the
Omnichannel Strategy
SummaryPillar Magical Rewards Implementation
Challenge

4. Who is the
Fashionable
Spender?
The “Fashionable Spender” is a 30
year old woman who:
● Loves the shopping experience
but dislikes disorganization
● Seeks top brands for fair prices
● Enjoys personalized service
● Stays in the loop with new
arrivals of top brands
SummaryPillar Magical Rewards Implementation
Challenge

5. Identifying Macy’s Challenges
SummaryPillar Magical Rewards Implementation
Challenge
● Utilizing an online survey, we reached 30
current Macy’s customers to better
understand their Macy’s experience
● Most shoppers identified Macy’s as
“chaotic” in nature
● Majority of customers were unsatisfied
with the current services offered by
macy’s
Level of satisfaction for Plenti or Macy’s Rewards Cards

6. Challenge Breakdown
The Challenge Team Proposal
● The fashionable spender dislikes a
chaotic environment and desires a
personalized in-store experience
● Macy’s provides its rewards and
membership services to all customers
● Minimize competition by providing
exclusivity through the membership
and services pillar
● Setting Macy’s apart from other
retailers by providing the fashionable
spender exclusive deals through a
renovated rewards system
SummaryPillar Magical Rewards Implementation
Challenge

7. Membership & Services
● To focus on exclusivity of Macy’s customers, we have to re-establish the
services provided:
Macy’s Star Rewards Plenti My Stylist
● The interchangeable rewards programs (Macy’s Star Rewards and Plenti) do
not provide a sense of exclusivity
○ Customers are overwhelmed with programs offered
Summary
Pillar
Magical Rewards ImplementationChallenge

8. Introducing:
Macy’s Magical Rewards

9. Current Services vs. Magical Rewards
Macy’s Current Services Magical Rewards Proposal
Macy’s Star Rewards Program:
● Offers additional discounts to cardholders
Plenti Rewards:
● Members can combine Plenti and Macy’s
Star Rewards to earn more points
● Points are redeemable at non-Macy’s stores
My Stylist:
● Personalized service is inclusive to all
customers
My Stylist:
● Shift My Stylist as an exclusive VIP reward
SummaryPillar Magical Rewards ImplementationChallenge
Macy’s Magical Rewards Program:
● Merge Plenti and Macy’s Star Rewards into
a single rewards card
● Promote a point system consisting of three
levels: Glamour, Star, and VIP
● Advertise a seasonal exclusive “Invitation
Only” event to members with Star status
● Points are non-redeemable at non-Macy’s
stores

10. Magical Rewards Point Tiers
0-800
800-2000
2000+
For the customer
that shops at Macy’s
more than once a
month.
For the average
customer that shops
at Macy’s a few
times every other
month.
For the customer
that shops at Macy’s
multiple times
throughout the
month and desires
Macy’s exclusives.
S T A R V I PG L A M O U R
SummaryPillar Magical Rewards ImplementationChallenge
B E N E F I T S
Access to Glamour level
+ exclusive “Invitation
Only” event
B E N E F I T S
Early access to
One Day Sales
B E N E F I T S
Access to Glamour and
Star levels + My Stylist
+ Up to $100 in gift
cards + Magical sample
box

11. Invitation Only
● Exclusive event tailored to
satisfy the fashionable
spender’s needs
● Event sells exclusive products
that are not sold to non-
members
● Held online and in-stores to
promote both platforms
● Offers general products at a
10% discount
SummaryPillar Magical Rewards ImplementationChallenge

12. Why it will
work
SummaryPillar Magical Rewards ImplementationChallenge
● Strategically host event at the start
of each quarter to increase revenue
and showcase seasonal trends
● For each quarter, the fashionable
spender is up to date with new
trends
Benefits of Invitation
Only Event

13. Launch Timeline
Host first “Invite Only”
event prior to 4th of July
and summer sales
SummaryPillar Magical Rewards ImplementationChallenge
Inform current Plenti and
Macy’s rewards cardholders of
new Macy’s Magical Rewards
Enroll current and new
members over to Magical
Rewards Program
Market Magical Rewards Program
to general public and customers
End of March 2017
April - May 2017
End of June 2017
April - May 2017

14. Advantage of
Magical Rewards ● Based on our survey, the results
demonstrated that 90% of members
want a single rewards card
● Combining Plenti and Macy’s Star
Rewards will:
○ Increase simplicity that
fashionable spenders enjoy
○ Bring the success of Plenti to a
one-carded program
○ Multiply Macy’s revenue through
solely redeemable points at Macy’s
SummaryPillar Magical Rewards ImplementationChallenge

15. Risks and Offsets
Risks Potential Offsets
● Traditional members feel excluded
● Designers unwilling to collaborate to
sell exclusive products
● The fashionable spender does not
appeal to the program
● Provide incentives to traditional
members to transition to the Magical
Rewards program
● Partners will gain free advertising
from Invite Only events
● Persuade fashionable spenders
through social media channels similar
to the marketing strategy of Macy’s
Backstage
SummaryPillar Magical Rewards ImplementationChallenge

16. Executive Summary
In order for Macy’s to be deemed as the destination store for the fashionable spender, it must appeal to their wants and needs. We know that
the fashionable spender is a middle aged female who loves a personalized experience, in which she finds the latest trends for the right price.
However, a chaotic store experience is her greatest aggravation.
Through our proposal of Macy’s Magical Rewards and Invitation Only events, the fashionable spender will not only feel like the most
important customer, but will have first access to high-end brand releases and products. Macy’s Magical Rewards will create an easier reward
system that understands and provides perks that the fashionable spender desires. Moreover, the point system will create three tiers of
rewards that will keep the fashionable spender spending. The first tier, Glamour, will have a low point requirement in order to create an
achievable goal and incentive for the spender to join. Once the fashionable spender becomes a Star, she will be enticed to spend more in order
to become a VIP shopper. As a VIP shopper, the fashionable spender is Macy’s highest rewarded customer that is given the greatest amount of
rewards for their commitment to the Macy’s brand.
The Invitation Only events will be offered to our Star and VIP members who have proven to be loyal customers. These events will take place
at the beginning of each quarter, where top designer brands partner with Macy’s to release the latest trends. Macy’s will thus be known for
exclusive, top-brand releases to it’s highest valued customers. Additionally, the fashionable spender will desire to be part of the Macy’s
Magical Rewards in order to get exclusive access to new brand releases and be the first to purchase the new releases.
To that end, promoting Macy’s Magical Rewards will be at a low cost to Macy’s. Our launch will require marketing expenses, which will be
replenished by the expected increase in purchases through the Magical Rewards and Invitation Only events. Advertisements will be sent out
through emails members currently in the Macy’s Star Rewards program. Our proposal will re-establish Macy’s image as a luxurious brand
while ensuring that it is an exclusive destination for the fashionable spender, thus setting it apart from its competitors.
SummaryPillar Magical Rewards ImplementationChallenge

17. Thank you!

18. Bibliography
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e-lower-tier-handbags-and-the-facade-starts-to-erode-4
● https://www.macys.com/ce/creditservice/marketing/benefits
● https://www.macys.com/ce/splash/plenti/welcome?cm_mmc=VanityUrl-_-plenti-_-n-_-n
● https://www.macysbackstage.com/home