Key CCG Services
Back when stand-alone department store Kohl’s was a middle-market regional player, the retailer wanted to increase penetration in its existing markets while building its customer base in expansion markets. The store also sought to increase customer loyalty to its proprietary credit card.
Compared to comparable store year-over-year sales, Kohl’s was leading the pack. But the retailer knew it needed a strong loyalty strategy to successfully meet its store expansion goals. Specifically, an attractive program that would entice new customers to use their store credit card over and over again.
Bring in the CRM Retail Loyalty Experts
That’s when the Kohl’s team reached out to CCG. Based on CCG’s experience developing, implementing and refining successful loyalty programs for retailers across the country, this growing regional retailer knew that CCG would be the perfect partner to help them create a CRM plan to align with their objectives.
Specifically, Kohl’s asked CCG for the following deliverables:
- A detailed CRM plan
- A multi-tiered program for all Kohl’s customers and a best customer program for Kohl’s top customers
- A Kohl’s credit card value proposition to incorporate into all Kohl’s marketing communications for consistent messaging
- Extensive database analysis relating to …
- Departments shopped and dollars spent by segment
- Lifetime sales of Kohl’s credit card customers and bank card customers
- Seasonality of purchases by department and month
Putting the CRM Loyalty Plan into Action
CCG created a CRM program that capitalized on the retailer’s family orientation, its positioning of convenience and value, and its desire to become more involved in the local communities it served. Strategies were created to allow the retailer to recognize and reward best customers, while at the same time build aspirational momentum among medium- and low-spend customers by communicating program benefits frequently and consistently.
Before CCG stepped in, Kohl’s had a preconceived idea that their customers were very discount oriented and that their customer segments were mid- to lower income. Kohl’s was surprised to learn, following CCG’s segmentation analysis, that the retailer also appealed to wealthier segments.
An element of exclusivity was included for the program’s proprietary credit card customers who spent at specified levels. Impact and excitement were generated by incorporating customer benefits into the program that were not typical department store loyalty program fare.
Results: The CRM Program More Than Exceeded Expectations
Shortly after incorporating CCG’s CRM program recommendations into their growth strategy, Kohl’s became a leader in comparable store sales and were looked at as the retailer to beat.
Looking back at the objectives set at the beginning of the project, the results clearly showed that the CRM program far exceeded the retailer’s expectations:
- Annual incremental sales resulting from the program exceeded $80 million
- Incremental profits from the program came in at $24 million
- Overall return on investment for the program was 295%
Even better, with the success of the CRM loyalty program, CCG helped Kohl’s expand into the national chain they are today.
Key CCG Services
Strategic CRM consulting
Loyalty program development, refinement & management
Traffic-building program development
CRM business case development
Database analysis & mining
Segmentation & cluster analysis
Content strategy & planning
Are you next?
Are you ready to take a fresh approach to customer loyalty or revamp an existing rewards program? CCG’s retail marketing experts can provide everything from competitive analysis to strategy, development and implementation, to measurement and refinement. Complete the form below or call us at 303.986.3000 to schedule a free consultation and see how we can help you.