You’re probably aware of the high profile executive ouster that occurred recently at retailer JC Penney. It was newsworthy because the ousted CEO was one of the most successful executives at Apple—Ron Johnson was the VP of Retail Operations at Apple from January 2000 to November 2011. He is widely credited with conceiving and overseeing the successful rollout of Apple’s retail stores. Before joining Apple, he had served as VP of merchandising at Target. So the JC Penney board probably assumed he knew how to cater to value shoppers. It appears that Johnson failed to turn JC Penney around in particular because he tried to switch bargain shoppers—who had been trained to expect 20% off coupons and sales—into “everyday low price” shoppers. But the mentality of the two groups is very different. Bargain hunters love the hunt as much as the bargain. Everyday low price shoppers care most about convenience and trust. They don’t want to spend time shopping for bargains. They want to trust that they’re getting a good deal. So the moral of the story: know how your customers are wired emotionally!

CX Audit: JCP.com
Is Jcp.com Strong Enough to Help Save JC Penney?
By Ronni T. Marshak, EVP and Sr. Consultant, Patricia Seybold Group, April 18, 2013