A pivot away from blanket e-commerce discounts is paying dividends for JCPenney.
By switching to an AI modeling-based solution, the retailer has generated a 40% increase in new cart creation, an 18% reduction in cart abandonment, and a 10% improvement in revenue on targeted visits.
Pratik Kodial, JCPenney’s VP of marketing effectiveness, said JCPenney worked with Metrical to focus on customers who had the highest intent of purchase but were potentially going to abandon their transactions.
“We’re not necessarily throwing out coupons but being more targeted with our approach,” he added.
Because the company is privately held, Kodial did not disclose total sales figures.
JCPenney store closures in 2020 and 2021 reduced its physical store footprint to just over 650 stores and began working to enhance its online business. Earlier this year, it hired executives from Neiman Marcus and The Gap to accelerate innovation in its e-commerce and omnichannel operations.
The AI modeling, which involves predictive shopper behavior engagement solutions in real times, has provided some surprises, said Kodial.
“One of the other things that we were looking into is the aspect of customer experience. I don’t believe customers like pop-ups, but what we saw in the context of the Metrical customers and their messaging was no degradation in Net Promoter Score (NPS). which is what we use to measure customer experience. This was quite interesting, and we believe this program is successful.”
Home Textiles Today is the market-leading brand covering the home and textiles markets, offering a comprehensive package of print and online products. Home Textiles Today provides industry news, product trends and introductions, exclusive industry research, consumer data, store operations solutions, trade show news and much more.