Kohl's boosts reward benefits for card members to 7.5% - The Entrepreneurial Way with A.I.


Monday, May 2, 2022

Kohl's boosts reward benefits for card members to 7.5%


Dive Brief:

  • Kohl’s on Monday announced an enhanced rewards program, according to a company press release.
  • Kohl’s Rewards Members that use their Kohl’s Card will now earn 7.5% in rewards on every purchase. 
  • Rewards members that use alternative payment methods will continue to receive 5% Kohl’s Rewards. Kohl’s Rewards are converted and issued in $5 increments of Kohl’s Cash coupons on the first day of the following month and are valid for 30 days.

Dive Insight:

After testing an enhanced program at over 100 stores across eight markets over the past year, Kohl’s is now rolling out its increased rewards benefits nationwide. 

In pilot markets, the retailer saw an increase of enrollments in Kohl’s Rewards, more Kohl’s Card acquisitions and usage and a boost in overall sales. The new program was “met with an overwhelmingly positive response,” according to the company. 

“We partnered closely with store associates and customers to understand how we could make our benefits even more robust,” Greg Revelle, Kohl's chief marketing officer, said in a statement. “Now, we’re taking our industry-leading Kohl’s Card to the next level by offering customers 50% more in Rewards every time they use their Kohl’s Card, providing them stronger everyday value when they shop at Kohl's.”

Customers who use their Rewards and Kohl’s Card will also receive “a little something special” on their anniversary, access to exclusive monthly savings. A “Most Valued Customer” status will be given for a year when shoppers spend $600 on their Kohl’s Card, and will enable those shoppers to access monthly free shipping events. 

However, when shoppers are issued Kohl’s Cash through the Rewards program, they will not be able to spend it on Sephora at Kohl’s. 

The beauty offering has been a draw for Kohl’s shoppers, as the department store has announced that it will open 850 shop-in-shops by 2023. Four hundred of those locations are scheduled to open this year. 

Kohl’s has been going through a time of operational uncertainty. Last week J.C. Penney owners Simon and Brookfield reportedly bid $68 per share for the company, which would value it at $8.6 billion. 

Activist investors have been pushing for board changes and a potential spinoff of its e-commerce business or a sale of the company. Kohl’s rejected a number of offers, deeming them inadequate, and in February adopted a poison pill plan to prevent a hostile takeover.

via https://www.aiupnow.com

Kaarin Vembar, Khareem Sudlow