Lewisville, Texas and El Cerrito, Calif. – A pivot away from general e-commerce discounts is paying dividends for JCPenney.
By switching to an AI-based modeling solution, retail saw 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 vice president of marketing effectiveness, said JCPenney was working with Metrical to focus on customers who had the highest purchase intent but were at risk of abandoning their transactions.
“We don’t necessarily throw out coupons, but our approach is more targeted,” he added.
Because the company is privately held, Kodial did not disclose total sales figures.
JCPenney store closures in 2020 and 2021, it reduced its physical store footprint to just over 650 stores and began working to improve 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.
AI modeling, which involves engagement solutions that predict real-time buyer behavior, held some surprises, Kodial said.
“One of the other things we’ve looked at is the customer experience aspect. I don’t believe customers like pop-ups, but what we saw in the context of Metrical customers and their messaging was not a Net Promoter Score (NPS) degradation. this is what we use to measure customer experience. It was quite interesting, and we believe this program is a success.
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