Kohl's strategy reveals secrets to keeping shoppers coming back

You want your customers to keep coming back. Kohl's strategy shows you how to make this happen. When you look at the numbers, you see real results:

• Net Promoter Score (NPS): 32

• Retail industry average NPS: 37

• Promoters: 48%

• Passives: 36%

• Detractors: 16%

You can learn from these numbers. Kohl’s recent turnaround and focus on sustainability prove that smart changes bring loyal shoppers back. If you want to build loyalty, you need to adapt and take action.

Key Takeaways

• Personalized shopping helps customers feel important. Stores use customer data to make special offers that fit what people like.

• A good loyalty program makes people come back. Stores give rewards, birthday presents, and special deals to help customers feel unique.

• Connect online and store shopping for ease. Let customers buy easily on both websites and in stores to make shopping better.

• Shoppers care about sustainability. Use eco-friendly actions and tell customers about them to bring in people who care about the environment.

• Change quickly to meet customer needs. Watch shopping habits and change products so customers find what they want when they need it.

Personalized Shopping

Personalized shopping helps you feel important. When you go to a store or shop online, you want to see deals that fit your style and needs. Kohl's strategy puts you first in every shopping trip. This way, you want to come back again.

Tailored Offers

You like deals that match your life. Kohl’s looks at what you buy and what you like. Then, they make special deals just for you. You get discounts on things you want. When you see these deals, you feel noticed and special.

Tip: Use customer data to make deals that fit your shoppers. This helps build trust and keeps shoppers coming back.

Here is how personalized shopping helps keep customers loyal:

You can see that special deals do more than help sales. They help you make loyal shoppers who come back again and again.

Custom Communications

You want messages that matter to you. Kohl’s uses custom messages to keep you interested. The company sends emails and texts based on what you like and buy. You get reminders about sales, new items, and events that fit your taste.

Kohl’s uses smart tools to make these messages better:

When you get messages that feel made for you, you pay attention. You go to the store more and feel close to the brand. This is how shoppers become loyal fans.

Kohl's Strategy for Loyalty Programs

Kohl's strategy for loyalty programs gives you a reason to return again and again. When you join, you get more than just points. You feel valued every time you shop. This approach helps you build a real connection with the brand and keeps you coming back for more.

Rewards That Engage

You want rewards that matter. Kohl's gives you cashback on every purchase. If you use a Kohl's Card, you earn even more. The program also gives you special gifts for your birthday and exclusive savings just for members. These perks make every shopping trip feel special.

Here is a look at what you get as a member:

You see the difference right away. These rewards are not just about saving money. They make you feel like you belong. You get perks that fit your life and shopping habits.

Tip: Give your customers rewards that feel personal. Offer special deals, birthday gifts, and exclusive savings. This makes them feel important and keeps them coming back.

Kohl's strategy works. Over 30 million people have joined the loyalty program. Members spend more than non-members. You see more people signing up and using their rewards every year. The Yes2You rewards program lets you earn points on every purchase. This keeps you engaged and excited to shop.

Building Lasting Loyalty

You want to feel valued, not just once, but every time you shop. Kohl's strategy uses data to make your experience better. The company tracks what you like and sends you offers that match your needs. You get a two-way conversation with the brand, not just a one-time deal.

Here are some best practices you can use to build loyalty like Kohl's:

You can see the results in the numbers:

• 35.2 million members take part in the loyalty program.

• The program brings in $6.2 billion in annual revenue.

• 60% of repeat customers come back because of the loyalty program, making 3.5 extra purchases each year.

• 91% of shoppers say they would shop elsewhere if a store did not offer rewards.

When you use these ideas, you keep your customers happy and loyal. You also grow your business. Track your customer retention rate and customer lifetime value. These numbers show how well your loyalty program works.

Note: Make your loyalty program simple, rewarding, and easy to use. Give your customers reasons to return, and they will choose you over the competition.

Kohl's strategy proves that a strong loyalty program can turn shoppers into lifelong fans. When you focus on rewards that matter and build real connections, you create a brand people trust and love.

Omnichannel Experience

You want shopping to feel easy, fast, and personal. Kohl’s gives you that by connecting online and in-store experiences. When you shop at Kohl’s, you get the best of both worlds. You can browse online, check what’s in stock, and pick up your order at your local store. This seamless blend keeps you coming back.

Online and In-Store Integration

Kohl’s knows you want choices. You can shop from your phone, computer, or in person. The Kohl’s mobile app lets you check prices, find deals, and see what’s available at your favorite store. You can even use your mobile wallet to keep track of rewards and promo codes. If you want your order right away, you can buy online and pick it up in-store. Kohl’s also tests same-day delivery in some areas, so you get what you need even faster.

This integration means you always know what’s in stock and never miss a deal. You get a smooth, reliable shopping trip every time.

Enhancing Convenience

You want shopping to fit your busy life. Kohl’s makes it simple. The company matches online inventory with what’s in stores, so you never waste time. Promotions are easier to understand, with fewer confusing rules. You get clear savings and more value.

• Omnichannel shoppers stay loyal. Retailers who use this approach keep 89% of their customers, compared to only 33% for those who do not.

• You become four times more productive when you shop across channels.

• Click-and-collect options save you money and time.

Kohl’s digital tools help you find deals, manage rewards, and shop how you want. This convenience builds trust and keeps you coming back for more. When shopping feels easy, you choose Kohl’s again and again.

Value Promotions

You want to save money every time you shop. Kohl’s gives you that chance with smart value promotions. These deals make you feel like a winner. You see real savings, and you want to come back for more.

Targeted Discounts

Kohl’s knows what you like. The store uses your shopping habits to send you discounts that match your needs. You get offers on the brands and products you love. This makes every trip to Kohl’s feel special.

You can see how these promotions work for you:

• Kohl’s Cash and Kohl’s Rewards give you money back when you shop.

• You earn rewards every time you buy, so you want to return and use them.

• In Q1 2024, loyalty program members spent more than non-members. This shows that these programs help you save and shop more often.

You get more than just a good deal. You feel valued. Kohl’s makes sure you see the benefits right away. When you know you can save, you choose Kohl’s over other stores.

Tip: Look for personalized offers in your email or app. These deals are made just for you.

Event-Based Offers

Special events at Kohl’s bring even bigger savings. You get excited for these sales because you know you will find great deals. Kohl’s plans these events to match what you want and when you want it.

These events give you reasons to shop now. You see limited-time offers and extra rewards. You feel the excitement and do not want to miss out. Kohl’s uses these events to keep you engaged and coming back for more.

Note: Mark your calendar for big sales events. You can save more and enjoy shopping even more.

Community & Brand Connection

Emotional Engagement

You want to feel close to the brands you pick. Kohl’s knows this and tries to make you feel special. The 'Yes2You' loyalty program is more than just points. You can get cool rewards and fun experiences that make Kohl’s different. You might win tickets to a movie premiere or get VIP treatment at an event. In 2016, ten 'Yes2You' members went to the American Music Awards as VIPs. These moments are exciting and help you feel important.

• You get special rewards, not just money off.

• You can go to events that you will remember for a long time.

• You join a group of over 40 million people who share your excitement.

When you feel close to a brand, you want to come back. You trust the brand and look forward to new things. This makes shopping feel special and fun.

Tip: Pick brands that give you more than just stuff. Find ones that make you feel important with cool experiences.

Fostering Loyalty

You want loyalty to be more than just buying again. Kohl’s helps you feel part of a bigger group. The partnership with Sephora adds beauty and style to your shopping. You can find over 1,000 shop-in-shop spots, so every visit is fun. The loyalty programs work together, so you earn rewards and try new things.

• You get 5% back in rewards with Kohl’s Rewards.

• You get offers that fit what you like.

• You use a simple rewards system that makes saving easy.

Kohl’s helps you feel like you belong. You are part of something bigger. The brand listens to you and gives you rewards for coming back. When you see these good things, you pick Kohl’s again and again.

Note: Loyalty grows when you feel like you matter. Choose brands that care about you and give you reasons to return.

Kohl's Strategy for Sustainability

You want to shop at stores that care about the planet. Kohl's strategy puts sustainability first in its business. You see real action, not just words. When you pick Kohl's, you support a company that works to protect the earth and make a better future.

Renewable Energy Initiatives

You help the planet when you shop at Kohl's. The company leads in using renewable energy. You see solar panels on store roofs and know your favorite store uses clean power. Kohl's has 160 solar setups at its stores. These panels make 52 megawatts of energy. That is enough to power thousands of homes.

Kohl's offsets 109% of its energy use with solar and wind. You can feel proud because the company makes over 1.4 billion kilowatt-hours of energy from solar and wind each year. This makes Kohl's a leader in renewable energy.

• 160 solar setups at Kohl's stores

• 52 megawatts of solar power

• 109% of energy use offset by solar and wind

• 1.4 billion kWh of clean energy made each year

Kohl's strategy shows big changes are possible. You see a company that invests in the future and sets an example for others.

Sustainable Supply Chain

You want products that are good for you and the planet. Kohl's builds a supply chain that supports sustainability from start to finish. The company works with suppliers who use eco-friendly materials and save energy. You get items made from recycled or biodegradable stuff. You see products that use less energy and water.

Kohl's sets clear goals for climate action and energy savings. You can see the progress in the table below:

Kohl's checks that suppliers follow strict environmental rules. You see regular checks and green projects together. The company asks suppliers to use green methods and rewards those who do.

You want to know your choices matter. Recent surveys show most shoppers like brands that care about sustainability. You are not alone. Many people feel the same way.

You want stores to make a difference in the world. You are willing to pay more for products that match your values. Kohl's listens to you and acts on what you care about.

Tip: Pick brands that use recycled materials and energy-saving products. Your choices help the planet and push more companies to do the same.

How You Can Integrate Sustainability Into Your Business

You can follow Kohl's strategy and make your business greener. Start with small steps and grow from there. Here are some ways you can help:

• Education and Training: Teach your team about green goals and how they can help.

• Incentive Programs: Reward workers who use or suggest green ideas.

• Green Teams: Make groups that work on green projects together.

• Sustainable Sourcing: Ask suppliers to use eco-friendly ways.

• Supplier Audits: Check that suppliers meet your green standards.

• Joint Sustainability Initiatives: Work with suppliers on green projects.

• Eco-Friendly Materials: Use recycled or biodegradable stuff in your products.

• Energy-Efficient Products: Design things that use less energy or water.

• Product Lifecycle Management: Make products easy to recycle or reuse.

Sustainability helps you build a business that lasts. You become better at handling changes in the market. You attract customers who care about the planet. You also meet new rules more easily. Investors look for companies with strong environmental, social, and governance values. When you make sustainability part of your business, you set yourself up for success.

Note: You do not have to do everything at once. Start with one or two changes. You will see results and inspire others to join you.

Turnaround & Inventory Management

Adapting to Customer Needs

You want your favorite store to know what you like. Kohl’s listens to you and changes fast. The company noticed shoppers wanted more of their favorite brands and better deals. Kohl’s shifted its focus back to loyal customers. You see more private labels and brands you trust. The store brings back popular discounts, making you feel valued.

Kohl’s faced tough times. Over the past five years, the company lost about 1.3 million customers. Sales dropped by 5.3% year-over-year, and comparable sales fell by 4.4%. Even with these challenges, Kohl’s did not give up. The team worked hard to win you back.

“We operate so that we have plenty of room to chase receipts,” said CEO Tom Kingsbury. This means Kohl’s keeps shelves ready for what you want most.

You can learn from this. Always listen to your customers. Change your products and offers to match their needs. When you do, you keep shoppers coming back.

Strategic Stock Control

You want stores to have what you need, when you need it. Kohl’s uses smart inventory management to make this happen. The company reduced inventory by 5% while sales only dropped by 1.7%. This shows strong control and less waste.

• Gross profit reached $1.39 billion, showing good cost management.

• Inventory turnover hit 3.1, so products move quickly.

• Gross margin rose to 39.6% thanks to better stock control.

• Kohl’s keeps $174 million in cash, ready for changes in the market.

Dan Plas, SVP for digital and e-commerce, explained, “We sense and respond, read and react to where consumers are and then quickly partner with our supply partners.” This helps Kohl’s meet your needs fast.

You can use these ideas in your business. Watch what your customers buy. Adjust your stock often. Keep your shelves flexible. When you do, you build loyalty and boost profits.

You can make customers come back by using Kohl's strategy. Pay attention to shoppers who buy from you a lot. Make your deals easy to understand. Give rewards that match what your customers like. Use tools that work online and in stores. Build good partnerships with other brands. Watch your spending and save money. The table below shows ways you can use these ideas:

Begin now. Try these steps to help your customers return.

FAQ

How does Kohl’s keep you coming back?

Kohl’s gives you personalized deals, easy rewards, and fun shopping events. You feel valued every time you visit. You get more reasons to return and save money.

What makes Kohl’s loyalty program special?

You earn rewards on every purchase. You get birthday gifts and exclusive savings. The program is simple and easy to use. You feel important and want to shop more.

Tip: Sign up for Kohl’s Rewards. You unlock extra perks and save more each month.

Can you shop online and in-store with the same rewards?

Yes! Kohl’s links your rewards to your account. You use them online or in-store. You never miss a deal, and you always get credit for your purchases.

How does Kohl’s support sustainability?

Kohl’s uses solar panels and eco-friendly materials. You help the planet when you shop there. The company works with green suppliers and sets strong climate goals.

See Also

Essential Elements of Corner Stores and Their Importance

Navigating Walgreens Self-Checkout: Benefits and Obstacles in Shopping

The Future of Retail: Embracing AI-Driven Stores

Understanding AI-Enhanced Corner Stores: Key Insights for Retailers

Uncovering Cloudpick Treasures at HomeGoods Tysons Corner