To encourage more sign-ups, the company is now prescreening shoppers to see if they meet the requirements to qualify. Kohl's then tells shoppers what type of discounts they could receive as a member.
In an effort to further build allegiance to its stores, the retailer has integrated its loyalty program into the updated Kohl's mobile app, providing customers with a wallet where they can see their rewards and other offers. Then, by scanning an item's bar code, shoppers can see not only the initial price tag, but how much it would ultimately cost them.
The majority of the 9 million people who have downloaded the retailer's app use it to view their wallet, or to see how many reward points they have, said Krista Berry, chief digital officer of Kohl's.
Mark Taylor, an expert on digital customer experience at Capgemini Consulting, said the team at Kohl's is applying "interesting techniques" to build customer loyalty. He emphasized that for loyalty programs in general to truly engage with customers, they need to offer more than purchase-based rewards.
Some examples of what Taylor considers best practices — including rewarding customers for interacting with the brand on social media, or creating a central place to house all of their interactions with the retailer — are being employed by Kohl's.
"They've really made some tremendous strides," Taylor said.