Why Myer and David Jones’ old rivalry has a new edge
And since Myer’s loyalty program is larger and older, it may have an advantage here: Myer One, founded in 2004, is three times larger, with around 4.7 million members compared to David Jones’ 1.5 million.
But David Jones has made its connection with Qantas the key selling point of his plan and it is likely to have wider appeal. Taking advantage of the dominant carrier’s highly profitable loyalty program – the country’s largest with around 17 million members – customers can choose to open a bank account or spend David Jones or Qantas points when paying in store or online.
“David Jones’ prize partnership almost seems to be being sold as ‘Join David Jones to buy Qantas’ [points]’, said Daniel Sciberras, spokesman for frequent flyer guide Points Hack.
In the past three weeks, David Jones’ loyalty scheme has gained more than 50,000 members.
Fyfe, who aims to reach 5 million members in five years, said, “We have not seen these new customers before.” “Qantas is already bringing us new customers.”
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Sciberras said Points Hack’s comparative analysis of the Myer-Velocity and David Jones-Qantas programs concluded that the value of each was very similar.
Myer has sought to counter its rival’s move by expanding its partnership with Virgin Australia: members can now use Virgin points for Myer purchases both in-store and online, but they cannot earn Velocity points.
Wirth insists Myer is running his own race.
“We’re very focused on what our customers want. We understand what their needs are. We’re very clear on their pain points. We’re very clear on what they like, and we’re going to focus on delivering that,” he said.
“What you need to look at is the level of engagement, the level of depth of a topic. [loyalty] “I think that’s what Myer One has.”
Where David Jones rewarded a Qantas traveler, Myer’s enhanced free gift pack targets stores with frequent shoppers through ‘reward days’ where customers can earn double points.
Myer’s free beauty treatments also offer customers a very tangible reward experience. “It will be everything from facial care to makeup to eyebrows,” Wirth said. ‘MY Edition Beauty Boxes’ are reminiscent of Mecca’s hugely successful Beauty Loop boxes, which members have to go to the store to pick up.
“It’s a sense of closeness… It actually helps them feel like they’re recognized and rewarded for being a member.”
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