Myer will this year spend more on direct marketing to its Myer One customers than all of its other advertising put together, according to chief executive Bernie Brookes.
The retail giant is bucking international retail trends with its expansion plans, as a result of targeted direct marketing campaigns, Brookes told a NSW Australian Direct Marketing Association (ADMA) seminar.
The department store has plans to open nine new stores during the year as well as maintaining its overall marketing spend, said Brookes: “We will this year spend more on the advertising associated with Myer One customers than all of our other advertising avenues put together.”
“Once you have the basics of the business right, it is the use of DM that drives the future trajectory of the business.”
There are now approximately 2.7million Myer One card holders, who are clustered into groups and divided into three tiers. Myer Gold is for customers who spend more than $7500 a year in store, while Silver is for those who spend between $1500 and $7499 a year, with white being the general card.
The DM spree is based on extensive research by the company on its Myer One customers, with the company now spending three times as much on research then it did when Texas Pacific first bought the company in 2006.
The research has been used to divide the stores into four main categories and the customers within them. “It’s about being more relevant to the consumer,” Brookes said.
Most of the DM for Myer One customers was spent on voucher advertising, with each $50 voucher normally resulting in a $125 sale Brookes said.
Each quarter the company sends out approximately $13m worth of vouchers to its Myer One customers, which drives traffic into the store, thus resulting in sales.
The Myer One card has also been proven to improve the experience of shopping at Myer said Brookes, based on new research the company did comparing Myer One customers to non-Myer One customers.
To add to the appeal of the Myer One card, Myer has signed on a raft of businesses who give discounts to Myer One customers such as Emirates and Vodafone.
