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How UGG is delivering an experience of gratitude in their loyalty program

Penney's new loyalty program shows the pressure of shopping behavior

While we would appreciate having the loyalty of our customers without paying attention to the competition, we have to admit our customers almost always know what our competition is doing. A study recently published by McKinsey & Company makes it clear: in women's clothing, 82% of purchases are shopping driven, not loyalty driven. Read more about shopping behavior in many categories. 

Dallas News: J.C. Penney tries to capture the best of Kohl's in new loyalty program, 2017-Jul-10  by Maria Halkias

The department store chain studied the hospitality and travel industries and its retail peers, while asking customers to rank features that were most important to them, said Sherina Smith, vice president of loyalty and customer relationship management.

"Customers didn't like having a limit on how many $10 rewards they can earn or that points expired," Smith said. "That's not a way to drive loyalty." Penney lifted a cap on the number of $10 rewards shoppers can earn in a month. Those rewards are good for 60 days. Members-only prices and shopping events have been added where shoppers can earn rewards faster.

Penney's rewards customers shop and spend more than twice as much as the retailer's other customers, and 66 percent of Penney's sales comes from rewards customers, Smith said. The goal also is to increase the number of Penney credit card holders, she said, which is now about 40 percent of its customers. In the new program, Penney credit card purchases earn twice the points of other types of payments. 

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