Will more customer rewards lift J.C. Penney’s sales?
J.C. Penney is counting on a new rewards program to entice customers to shop more frequently and spend more on each trip to its stores and website.
Penney’s rewards are more generous than before, allowing customers to earn a $10 reward for every 200 points they earn with the chain. Rewards can be rolled over into a new month and are a valid for a minimum of 45 days and up to 60 days. Penney credit cardholders are automatically enrolled in the program and earn one point for every dollar they spend. Others using other forms of payment earn one point for every $2.
Members receive special offers including lower pricing on selected merchandise, limited samples from Sephora and a coupon to use on their birthday. Penney credit card holders receive even more benefits, such as exclusive coupons and invitations to private shopping events.
“We know our JCPenney Rewards members shop and spend more than twice as much as non-Rewards customers,” said Sherina Smith, vice president of loyalty and customer relationship management for the chain, in a statement. “As we focus on growing revenue per customers, our customer loyalty program will be integral to enticing customers to shop more often and spend more on every trip.”
The department store chain’s focus on its best customers is well placed, according to Melissa Freund, a partner at LoyaltyOne.
“Brands can’t be complacent. They have to look at their top-tier customers and make sure they’re taking care of them. People want to be recognized for their loyalty,” she told The Dallas Morning News.
Ms. Smith said Penney analyzed programs in hospitality and travel as well as retail in developing its own. The last year was used to test and tweak the program before its launch. Regular customers will reap more rewards, something she believes that will help Penney create lasting relationships with its most important shoppers.
Penney has incorporated rewards into its mobile app enabling customers to bring up a barcode for discounts to be scanned at the checkout. Rewards are automatically stored in the app’s mobile wallet, which can also hold electronic coupons and gift cards.
- JCPenney Revamps Rewards Program to Offer More Convenience and Enhanced Mobile Capabilities – J.C. Penney Company, Inc.
- J.C. Penney tries to capture best of Kohl’s in new loyalty program – The Dallas Morning News
- J.C. Penney Making Its Loyalty Program Far More Generous – Fortune
DISCUSSION QUESTIONS: What role do rewards programs play in a retailer’s relationship with its customers? Will a more generous and flexible rewards program help Penney increase shopping visits and expenditures by its best customers?