Neiman Marcus 2012 Annual Report Download - page 9

Table of Contents
Customer Service and Marketing
We believe that excellent customer service contributes to increased loyalty and purchases by our customers. We are committed to providing our
customers with a premier shopping experience whether in-store or online. Our customer service model is supported by:
· omni-channel marketing programs designed to promote customer awareness of our offerings of the latest fashion trends;
· our InCircle loyalty program designed to cultivate long-term relationships with our customers;
· knowledgeable, professional and well-trained sales associates;
· customer-friendly websites; and
· a proprietary credit card program facilitating the extension of credit to our customers.
We believe we offer our customers fair and liberal return policies consistent with the practices of other luxury and specialty retailers. We believe these
policies help to cultivate long-term relationships with our customers.
Marketing Programs. We conduct a wide variety of omni-channel marketing programs that allow us to engage with our customers in multiple
ways. We use our marketing programs to develop and maintain relationships with customers, communicate fashion trends and information and generate
excitement about our brands. The programs include in-store and online events, social promotions and targeted communications leveraging digital and
traditional media.
We maintain an active calendar of events to promote our sales efforts. The activities include integrated in-store and online promotions of the
merchandise of selected designers or merchandise categories. Many of these events are connected to our loyalty program, InCircle . In addition, events include
seasonal in-store and online trunk shows by leading designers featuring the newest fashions from the designer and participation in charitable functions and
partnerships in each of our markets. Trunk shows and in-store promotions at our Neiman Marcus and Bergdorf Goodman stores feature a variety of national
and international vendors such as Chanel, Prada, Giorgio Armani, Lanvin, Oscar de la Renta and Christian Louboutin.
Neiman Marcus and Bergdorf Goodman’s social media platforms include blogs, Twitter feeds and facebook pages. Social content includes insider
fashion news, designer profiles, product promotion, customer service and event support. Posts and replies to customers are updated multiple times per day.
Each platform is designed to reinforce our position as a fashion leader as well as to highlight the expertise and insider knowledge of our fashion directors and
merchants.
Through our print media programs, we mail various publications to our customers communicating upcoming in-store events, new merchandise
offerings and fashion trends. In connection with these programs, Neiman Marcus produces The Book approximately eight times each year. The Book is a
high-quality publication featuring the latest fashion trends that is mailed on a targeted basis to our customers and has a yearly printing of almost two million.
Our other print publications include the Bergdorf Goodman Magazine and specific designer mailers.
In addition to print publications, we leverage our websites and online advertising through banner ads and paid searches, among other things, to
communicate and connect with customers looking for fashion information and products online. We believe that the online and print catalog operations offer the
customer an omni-channel shopping experience allowing our customers to choose the channel that best fits their needs at any given time.
Loyalty Program. We maintain a loyalty program under the InCircle brand name designed to cultivate long-term relationships with our customers.
Our loyalty program focuses on our most active customers. This program includes marketing features, including private in-store events, as well as the ability
to accumulate points for qualifying purchases. Increased points are periodically offered in connection with promotional and other events. Upon attaining
specified point levels, points are automatically redeemed for gift cards. Approximately 40% of our total revenues in fiscal year 2013 were generated by our
InCircle loyalty program members who achieved reward status.
Sales Associates. Our sales associates instill and reinforce a culture of relationship-based service recognized by our customers. We compensate our
sales associates primarily on a commission basis and provide them with training in the areas of customer service, selling skills and product knowledge. Our
sales associates participate in active clienteling programs, utilizing both print and digital media, designed to maintain contact with our customers between store
visits and to ensure that
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