Following the launch of a pilot a program in Dallas-Fort Worth last year, Target is expanding the test of its new loyalty programme, Target Circle, to additional cities.
Launching the programme in six additional cities
Later this month, Target will launch the pilot programme in Charlotte, Denver, Indianapolis, Kansas City and Phoenix. Target Circle enables shoppers to receive 1% cash back on purchases, vote on community giving initiatives and receive personalised offers. This includes exclusive deals on the most relevant categories for each shopper and a birthday reward.
Simplified approach to loyalty
Target has run a successful loyalty program, REDcard, for several years, providing customers with a 5% discount on most purchases. However, customers are required to link a debit or credit card to their REDcard to participate. This new programme brings a more simplified approach to loyalty while expanding the range of benefits. This aligns with its strategic goal of being ‘America’s easiest place to shop.’ Target Circle will be made available through the Target app.
The expansion of the pilot also sees an evolution of the name from Target Red to Target Circle, helping to distinguish between the two programmes. REDcard holders will still be able to claim the 5% discount but will be ineligible for the 1% cash back.
Opportunity to develop broader loyalty ecosystem
The expansion of this programme comes as Target continues to grow and develop its Shipt on-demand delivery model, a business it acquired in 2017. Operating as a membership-based model, Shipt continues to work with a range of retailers beyond Target. This year it will expand the range of categories it offers for delivery from Target stores beyond its food and consumables offer and add selected non-food items. Optimising this programme alongside Target Circle could enable the retailer to create a powerful loyalty-based ecosystem and rewards program which stretches beyond its core business.
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