Kohl's Cash

In this difficult economic time, many consumers are sensitive to prices, but shows such as “Extreme Couponing” seem to have put somewhat of a stigma on couponing by focusing on people who spend hours and hours finding and organizing coupons. Many consumers might not want to be associated with obsessive couponers, but still enjoy savings and loyalty programs which keep them coming back to certain stores.

An example of a store that I think has done a great job capturing consumers who are concerned about saving money is Kohl’s, which has a program called “Kohl’s Cash”. During specific weeks throughout the year you get $10 in Kohl’s Cash for every $50 you spend in the store or online. According to Kohl’s, the program is like you are getting paid to shop. You don’t have to sign up for anything and the Kohl’s Cash can be combined and used on any purchase made during certain days. A commercial about Kohl’s Cash can be seen here: http://www.youtube.com/watch?v=E60lHyNLFhA .

Over the summer I spent about $50 at Kohl’s buying sheets and towels for my apartment and when I checked out I received $10 in Kohl’s Cash. I kept the Kohl’s Cash in my wallet and the next time I passed a Kohl’s store I decided to go in and find something to spend it on before the “cash” expired. I bought a $10 t-shirt which I gave as a birthday gift to my 8-year-old neighbor and while walking to the checkout I saw a $20 decorative pillow I bought as well. Without the Kohl’s Cash in my wallet, I probably wouldn’t have gone to Kohl’s, and although I don’t shop at the store often, I thought the experience was easy and customer friendly. I could see myself coordinating a more expensive purchase, such as a small kitchen appliance, with a Kohl’s Cash promotion.

Kohl’s Cash helps create shoppers who go to Kohl’s regularly, much the way a loyalty card where each purchase is punched on a card does, but in a way that is less work for the customer. In high school, a friend’s mom always shopped at Kohl’s and would save up purchases until a Kohl’s Cash promotion and then go back to spend her Kohl’s Cash and repeat the cycle with each promotion. Many customers don’t care enough or have enough time to search for and cut out coupons, but they do love savings and would go back to a store to use a reward they have already earned. It reminds me of how if a person gets a gift card, they would likely go to the store to use it before it runs out, even if they don’t really need anything. They might even end up spending more money than the gift card was for. It’s the same idea with Kohl’s Cash, because people want to spend the money before it runs out instead of wasting it, which brings them back to the store, where they might spend more than the Kohl’s Cash they have. The loyalty Kohl’s has gained through this program might be passive loyalty, meaning that customers might leave if a competitor offered a similar program. However, I think passive loyalty might be enough for Kohl’s for now since I know many customers who love Kohl’s and have continued to stop at there for years because of this program.  

Does getting rewards like Kohl’s Cash keep you going back to a certain store? Do you know any other stores with similar programs?

Claire Dunn

BEM Marketing major, Sociology minor