Will a loyalty program give Americans more reasons to shop at Target?
Target announced yesterday that it would roll out its new Target Circle rewards program nationwide following an 18-month test that produced “overwhelmingly positive” results.
More than two million people joined Target Circle as a result of the pilot run at stores in the Charlotte, Dallas-Ft. Worth, Denver, Indianapolis, Kansas City and Phoenix markets. More than 14 million Circle transactions have been conducted to date.
Target, which will launch its rewards program on Oct. 6, is looking to give consumers more reasons to buy from the retailer heading into the Christmas selling season. The program, which is free, will enable Target Circle members to earn one percent back on purchases that can be used on future shopping trips. Other perks include personalized deals and perks, including a surprise on members’ birthdays. Members will also receive early access to sales conducted by Target over the course of a year.
“Our guests are at the center of everything we do, and we’re always looking for ways to create even easier, more rewarding shopping experiences that give them another reason to choose Target,” said Rick Gomez, Target’s chief marketing and digital officer, in a statement.
Individuals who have accounts on Target.com, Target’s Cartwheel digital discount and coupon program or who make purchases using the chain’s REDcard will be automatically enrolled in the new program when it goes live next month.
The retailer said the new loyalty scheme is meant to complement its successful REDcard debit and credit card program. That program provides cardholders with a five percent discount on purchases made from the retailer’s stores and website along with other perks, such as free shipping on online orders.
- Target Expands Loyalty Program Nationwide, Making it Easier than Ever for Guests to Save and Give Back – Target Corporation
- Will a new rewards program expand Target’s circle of guests? – RetailWire
DISCUSSION QUESTIONS: How do you think the launch of Target Circle will affect the retailer’s business going into the Christmas holiday and beyond? Do you expect other large retailers not currently offering a rewards program will follow suit?