The Promotional Idea Showcase - Fall 2000 - Updated Quarterly

Real Problems, Real Solutions

Macy’s And Hotels Work Together To Increase Sales And Bookings

While the mention of San Francisco might conjure up images of cable cars, hilly streets, Fisherman’s Wharf and Tony Bennett to those who’ve never been, people who’ve spent more than a few days in the city also know it’s a great place to shop.

But while stores like Gump’s and Wilkes-Bashford attract customers because they’re exclusive to the city, other chains with a nationwide scope have to be a little more aggressive. Even though people tend to spend more freely when they’re on vacation, the problem is attracting them to a store that probably also has a location close to where they live. This is especially true during the holiday season, when competition is keenest.

Macy’s West, the Pacific-coast arm of the department store chain, wanted people to do at least some of their Christmas shopping at its San Francisco store. Rather than rely on print and electronic media alone, it contacted counselor Steve Stewart. “We wanted to come up with something that would reward people who shopped at Macy’s – something they wouldn’t be able to buy,” he says. “Macy’s wanted to attract business from local residents who might want a getaway weekend, as well as people in the Los Angeles area and beyond.”

The “something” was a co-op arrangement with eight San Francisco hotels. Advertising placed in the San Francisco Examiner and Los Angeles Times touted a special weekend rate that included a coupon for a Macy’s Holiday Card, good for 10% to 20% off various items.

The ads also mentioned that those spending $250 or more could stop at Macy’s visitor’s-service desk to receive a silver-plated keytag with a steel-cable loop, subtly engraved with the Macy’s logo.

Why a keytag? “There were really two factors,” Stewart explains. “First, we needed to stay within Macy’s budget, which also included the newspaper ads. Second, we wanted something that could be used every day but had an elegant look and high perceived value. ... The tag fit all of these criteria, in addition to the fact that it couldn’t be purchased.”

The promotion ran from just before Christmas to the end of the year. The holiday cards were presented to guests upon check-in at the affiliated hotels. The offer was also advertised at the hotels themselves to catch the eye of those from out of town.

By the time the promotion ended, between 4,000 and 5,000 keytags had been distributed. Hotels reported an increase in weekend bookings and, while it wouldn’t release numbers, Macy’s reported a significant increase in its holiday sales. “One official called the response incredible and noted that it very definitely met and surpassed all expectations,” Stewart says. “They’re already talking to us about doing a year-end promotion for this year with another product.”

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