“The power of eCommerce extends far beyond the keyboard and onto the sales floor,” said Macy’s CEO Terry Lundgren in his keynote address at the Shop.org Annual Summit. “Every dollar spent online influences $5.77 spent in the store over the next 10 days.”

The department store’s website encourages customers to share information in product reviews. Lundgren, former CEO of Nieman Marcus and Federated Merchandising Group, addressed a common point of hesitation among retailers considering implementing user-generated content on their site.

“We were worried about what customers would say on product reviews. We realized that if you start getting bad reviews on a product, get rid of that product. Stop doing business with that particular product,” Lundgren said.

“If you start getting bad reviews on a particular product…guess what? The product is bad! It’s not the customer,” Lundgren told NRF President & CEO Tracy Mullin in an interview after his address. “To me, all product reviews are good. When they’re bad, you have to get it off the site, get rid of the product. We do that.”

Lundgren’s philosophy falls right in line with the results we’ve seen among our clients. Our recent webinar with Andy Sernovitz focused on dealing with and benefitting from negative word of mouth. Most reviews are positive, but some negative feedback is inevitable. Savvy brands learn to use this negative feedback to improve their offering – Oriental Trading Company improved over 700 products. Their attention to customer satisfaction helped them win this year’s Gartner Customer Experience Award.

A recap of the webinar is available here, and you can request the full webinar here.

5 Responses to “Macy’s CEO Terry Lundgren on the power of reviews”

  1. I’m thrilled that the CEO of Macy’s believes that product reviews are that important. My website reviews incredible artists and inventor’s products and then will link to their retail sites so consumers can buy. I have created this site under the premise of 3rd party endorsements being what savvy consumers want. Terry Lundgren has made my day.

  2. I’m thrilled that the CEO of Macy’s believes that product reviews are that important. My website reviews incredible artists and inventor’s products and then will link to their retail sites so consumers can buy. I have created this site under the premise of 3rd party endorsements being what savvy consumers want. Terry Lundgren has made my day.

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