TECHNOLOGY

Study: Irrelevant promotions are killing customer loyalty

BY Deena M. Amato-McCoy

Retailers that don’t target promotions are leaving profits on the table, and sacrificing customer satisfaction.

There is a big disconnect among retail promotions and the consumers receiving them, as 52% of weekly or monthly retail promotions are going to customers who would happily have paid full price, according to “Indiscriminate Promotions Cost Retailers,” a study from Revionics.

Despite having extensive data on historical promotions and shopper preferences, retailers who neglect to do effective promotion performance analysis default to easy but unproductive offers. For example, 37% of respondents who received offers on items they would have paid full price for said the offer had neutral or negative impact. More than half of these shoppers said they would be less likely to shop that store or brand in the future, or that they reacted with annoyance, the study said.

“Many of these unproductive offers come via email, a medium which retailers may find easy or inexpensive to use especially when delivering personalized offers, but which still carries risk if used indiscriminately,” said Cheryl Sullivan, Revionics’ chief marketing and strategy officer. “We clearly see in the study results that unfocused offers fail to elevate a brand, and can even be damaging.”

Today’s tech-savvy shoppers believe retailers should utilize technology and data analytics to provide targeted, relevant pricing and offers. In fact, 59% of shoppers reported that they would refuse to purchase an item if they perceived the price as arbitrary. They accept price increases or decreases that remain within the “fair” range if they are based on data science.

Shoppers also prefer promotional offers synchronized with the frequency of their purchase. More frequently purchased items, such as groceries, household essentials, personal care products, and convenience products, are the most likely to benefit from daily or weekly offers, according to the study.

When determining the right promotional offer, retailers should tread cautiously.  Although 65% of shoppers appreciated personalized prices, 47% of those shoppers stated they would be angry if someone else received a better price, the study said.

“Retailers who leverage machine-learning based price and promotion capabilities have a clear advantage in delighting their customers with meaningful, carefully crafted prices and promotions,” Sullivan said. “Conversely, retailers who fail to utilize these capabilities risk alienating shoppers, squandering scarce resources and undermining their brand – costly mis-steps that can prove fatal in an increasingly unforgiving retail landscape.”

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TECHNOLOGY

Kohl’s steps up its loyalty game

BY Deena M. Amato-McCoy

Kohl’s is reinventing its loyalty strategy by taking the best elements of its three rewards programs and rolling them into one.

The department store retailer is launching Kohl’s Rewards, a new loyalty program that combines elements of its credit card, sales events and Yes2You Rewards points-based loyalty program. Instead of earning points, all members will now earn the company’s signature Kohl’s Cash for all purchases.

Here’s how it works: Kohl’s credit card customers will earn 10% Kohl’s Cash on every purchase they make with their charge card. Customers that aren’t Kohl’s Charge card holders will earn 5% Kohl’s Cash on every purchase, regardless of how they pay. These rewards are on top of the company’s sales events that offer $10 of Kohl’s Cash for every $50 spent. Kohl’s Cash is earned in $5 increments.

Kohl’s tracks all earned Kohl’s Cash in store, online and through the Kohl’s app, a move that will remind members of their balance while making a purchase, according to a company blog.

Kohl’s is also opening up its 15%-, 20%- and 30%-off sale events previously reserved for Kohl’s credit card holders to all Kohl’s Rewards members. However, Kohl’s Charge holders who spend more than $600 with the retailer in a calendar year earn an “elite-level” membership, which entitles them to free online shipping, as well as early access to Black Friday sales.

Kohl’s will test its new loyalty program in approximately 100 stores across eight markets the week of May 21st. The program will be rolled out nationwide in 2019. All Yes2You Rewards points will convert to Kohl’s Cash automatically, and existing cardholders and loyalty members will be enrolled in Kohl’s Rewards, according to the company.

“This evolution of loyalty at Kohl’s is easier to join, easier to track and easier to use. It provides more savings to all customers,” Kohl’s chief marketing officer Greg Revelle said in the blog.

 

 

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Best Buy taking its Geek Squad to another level

BY Marianne Wilson

Best Buy is launching a subscription-service for tech troubleshooting and support—regardless of where or when the consumer bought the item.

The new program, called “Total Tech Support,” provides members with unlimited Geek Squad in-store, phone, and online support for their technology and appliances. The annual fee is $199.00, which also entitles members to unlimited technical support and many services for their personal devices, including Internet security software on up to three devices.

In addition, the program offers members discounted pricing on such in-home services a TV mounting, appliance installation, computer setup and connected home device installation,

“We all rely on technology more than ever and are constantly looking for that trusted friend to turn to for inspiration, advice and help,” said Trish Walker, president of Best Buy Services. “We built Total Tech Support for that very reason.”

Best Buy piloted the program over the past several months. The retailer said 230,000 people signed up for the service, using it to trouble-shoot or fix their technology more than 400,000 times.

“This kind of service used to be available on single products only, but now essentially covers all of the electronics and appliances in your home,” Walker added.

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S.Taylor says:
May-23-2018 06:19 am

If this is a success, I'll be very, very surprised.

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