Customer
Customer Loyalty Strategy

Knowing More about Customers ―Expansion of Customer Base and Improvement of CRM Activities
Sales support through scientiﬁc approach

Enhancement of communication tools

Collaboration with specialty zones

A customer loyalty strategy is primarily intended toorganize about four million identiﬁable customers
holding Daimaru- or Matsuzakaya-branded cards andensure steady sales. To this end, we need tounderstand the buying behavior of each customerand continue to expand our customer base byencouraging customers to visit our stores. Daimaru
Matsuzakaya Department Stores operates acustomer information system J-CIS to scientiﬁcallysupport frontline sales staﬀ working on suchcustomer relations. Since J-CIS is linked with
our MD information system, we can quickly get a
grip on the attributes and changes of customers
based on the information obtained at the point ofsale. The system also enables us to consolidate
customer information in units of household, individualand account. We will analyze the buying patterns ofcustomers from such information to reﬂect them inretail space planning, as well as strengthening
relations between customers and salespersons.
Through thus improved CRM (CustomerRelationship Management) activities, our customer
base is steadily expanded and strengthened. The
total number of the identiﬁable customers of Daimaru
Matsuzakaya Department Stores for ﬁscal 2010 roseby 4.8% from the previous year, buoyed by the issueof Daimaru- or Matsuzakaya-branded credit cards
and cash customer cards increased due to stronger
eﬀorts to cultivate new members, and the percentage
of sales to these individual cardholders to total saleswas 69.1%, up 1.1 points from a year earlier.

During ﬁscal 2008, Daimaru Matsuzakaya Department
Stores launched email delivery service to provide MY Mail
Members, the company s card members registering theirmobile phone email addresses, with good buy information of
the sales sections that suit their likes and tastes. It has
already been established as an eﬀective way to encouragecustomers to visit the stores to replace newspaper
advertisements and inserts. It is not only routine informationsuch as an event schedule that is delivered to MY Mail
Members. The innovative MMS Mail service is alsoavailable in all Daimaru and Matsuzakaya stores. Valuable
store information is delivered to MY Mail Members mobilephones based on their card information within ﬁve minutes
after they visit the stores and insert their cards in thestores welcome-point-giving machines (MMS: Multimedia
Station). It is a new promotional tool that stimulates
customers buying motivation and increases the frequencyof their visit, which ensures that customers are encouraged
to buy on several ﬂoors and that sales per customer
increase.
At present Daimaru Matsuzakaya Department Stores hasabout 370,000 MY Mail Members and more than three
million card members who can register their emailaddresses, which means that there is enough room to
expand the membership in the future. Since ﬁscal 2010
the company has sought applications for Moba-MateMembers whose membership non-cardholders can receiveby registering only their email addresses and delivers themweekly email magazines containing bargain information of
Daimaru and Matsuzakaya stores to encourage them tobecome its card members.

When we develop specialty zones as a core of
our new department store model, we try toorganize their target customers as their own card
members to expand our customer base. Thiseﬀort has achieved great results. The popularUfufu Girls representing specialty zones
started to issue Ufufu Girls Card in Daimaru
Shinsaibashi store in March 2010. As a result ofcontinuing to deliver their own email information
on members-only events, extra point oﬀeringsand others, the annual card membership hasreached about 20,000 people. For ﬁscal 2010,
the number of young and around 30-year-old
identiﬁable customers of Shinsaibashi store andthe amount purchased by them increased by
28.6% and 40.9% respectively from the previousyear. Thus they fulﬁll their role as a strong tool
to attract and retain young women as their target
customers. After that, Kyoto, Kobe and Umeda
stores opened Ufufu Girls and started thesame eﬀort and their customers are steadily
becoming regular ones as expected.

MMS email delivery system

Growth rate of sales to identifiable customers by generation for fiscal 2010 (%)
Young and around 30 years old

11.86.0

Around 50 years old
Card membersregister theiremail
addresses

They insert theircards in welcomepoint-giving
machines in stores

Valuable information
is delivered within
five minutes after
card insertion

4.1

Around 40 years old
Around 60 years old ‒0.3

※Excluding Umeda store whose
floor space decreased by 45%
during fiscal 2010 and the closed
Okazaki and Nagoya Station stores.