Before Reading

Key Concepts

Customer value concepts to see how firms boost Customer lifetime value (CLV) and how retailers use data analytics to tailor the customer’s journey.

• Recency, Frequency, Monetary Value (RFM): targeting here would be policy holder segmentation for retention or upselling (auto insurance) vs transaction frequency of customers at Macy’s for personalized offers and experiences.
• Customer profiling using segmentation by demographics, claims etc. for auto insurance and segmentation by behavior/ spending habits for Macy’s
• Collaborative Filtering to recommend insurance bundles to customers based on similarity or product recommendations based on customer rating of products to make predictions.

Glossary

Read over the following to make sure you cover the concepts discussed

What is Macy’s Loyalty Program?

Macy’s the retailer began developing customized customer journeys in late 2022, specially for loyalty program members, who account for about 70% of total sales.

Macy’s supports a culture of experimentation through variations and messages you may read throughout the article. This indicates how the marketing team refined customer engagement through experimentation.

Macy’s as well as other brands have started to pay attention to their brand’s voice. Brands aim to deliver a connected experience where they communicate in a consistent voice across all media channels to keep the style and personality of marketing messages the same.

During Reading

Questions to think about while reading the article

• Why is Macy’s interested in personalizing the customer experience?
• How can a customer journey be “conversational”?
• What benefit does tracking customer metrics have on corporate strategy?
• What lessons have you, as the reader, learnt through reading Macy’s marketing stragey? Do you believe it will continue to be successful?

Read the Article

Read the article: Macy’s Personalizes Customer Journeys: Contextual, Conversational, Connected

The contents of this page were written by Munema Mohsin Termezy. CC BY ND.

Attribution:

Author: Munema Termezy. Website: UH Libraries. Book title: Let’s Read Together: For Students by Students.
Publication date: October 20, 2025. Location: Houston, Texas. Book URL: https://uhlibraries.pressbooks.pub/readtogetherbystudents/