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Kohl’s leverages mobile loyalty program to drive customer engagement

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October 9, 2014

Kohl's offers $5 for every 100 points earned

Kohl’s offers $5 for every 100 points earned

Kohl’s is leveraging its new loyalty program, optimized for mobile and Web, in a bid to continue driving customer engagement and build deeper relationships with consumers.

The Yes2You rewards program will offer earning points for every purchase made at Kohls.com or in-store, and will serve as a two-way dialogue to help deliver meaningful experiences, according to the retailer. The rewards program launched on Oct. 6.

“Whether in preparation for mobile payments or not, a well-executed loyalty program can make a big impact,” said Gregg Aamoth, co-founder and CEO of POPcodes, Calgary, AB.

“Loyalty programs serve two major functions: to enable the collection of critical consumer contact and purchase history data and to encourage consumers to give that brand a little bit bigger share of their wallet over a longer period of time.”

Portfolio of incentives
Kohl’s is planning to incorporate a seamless omnichannel experience into its sales strategy, particularly before the busy holiday shopping season starts in full force. Members of Yes2You rewards will earn one point for every dollar spent, and a reward of $5 shopping credit after every 100 points.

The rewards program includes eight savings offers each year, along with a birthday gift for each rewards holder. Customers will also receive notifications of unique opportunities to garner more bonus points.

The retailer offers a “Share” features which enables customers to share their rewards points with family and friends if they choose. Points can only be distributed among members of the program.

Offering a slew of incentives

Offering a slew of incentives

Users can also donate points to Kohl’s Cares, the brand’s charity for children’s education initiatives and health.

Customers may enroll in Yes2You rewards through the Kohl’s mobile app, online or in any store nationwide.

“Rewarding loyal customers is crucial, as according to NRF, 91 percent of shoppers would shop elsewhere if a store offered a promotion or reward,” said Guillaume Lelait, general manager at Fetch, San Francisco, CA.

“Loyalty programs not only reward consumers to make them feel appreciated, but gathers valuable information on consumers which retailers can use to keep the customer loyal by catering deals towards them.”

Mobile wallet
Kohl’s is also introducing its expanded mobile wallet, enhanced to simplify tracking, redeeming and sharing rewards points. Many retailers are going the way of mobile wallets in order to convenience consumers and provide relevant services.

In some cases, mobile wallets and loyalty programs go hand-in-hand.

“With the announcement of ApplePay and Visa Checkout, we will undoubtedly see more retailers utilize mobile wallets as consumers become more confortable using them,” Mr. Lelait said.

“In the case of retailers, the mobile wallet capitalizes on the convenience and immediacy of the mobile device and provides a more personalized and seamless experience for brand loyalists,” he said.

“Mobile apps that simply recreate an online web experience tend to be a waste of money, however by integrating payment features, loyalty opportunities and discounts, Kohls has created a product that will ensure it contributes to overall revenue.”

Final Take
Alex Samuely is an editorial assistant on Mobile Commerce Daily, New York

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Alex Samuely is staff writer on Mobile Commerce Daily, New York. Reach her at alex@mobilemarketer.com.

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