Target Tests New Loyalty Program, Promises Free Delivery & Personalized Experience

Move over, REDcard — there’s a new Target loyalty program in town.

The big-box retailer is prepared to introduce Target Red to its shoppers, starting with those in the Dallas-Fort Worth area in April. The novel rewards system touts exclusive perks, including a 1 percent cash back deal on each purchase, which can be redeemed at a later trip, as well as a chance to vote for one of three local organizations in support of Target’s initiative to give back to the community.

Additional benefits include 50 percent off same-day delivery through a first-year membership with Shipt and even free next-day delivery on essentials with its Restock option. Early last month, the company announced intentions to roll out its grocery courier service in Southern states this quarter and most stores by the end of the holiday season. Although initially limited to groceries, home, electronics and other items, Target plans to extend the service to every product category in 2019.

“When developing Target Red, we went straight to our guests to better understand what would be most meaningful to them in a loyalty program,” said Rick Gomez, executive vice president and chief marketing officer. “That’s what they’ll see reflected in this test — a free and easy way to be rewarded simply for shopping at Target. On top of the shopping benefits, the program also aims to create a more personalized experience for our guests, like giving them a chance to help direct our community giving in their own backyard.”

Customers in the Texas area will be able to enroll in the pilot program through the Target app, where they can start redeeming rewards online or in stores. REDcard holders elsewhere can also register as the company continues its market-test, and subsequently enjoy its perks while saving 5 percent as part of that program’s offerings.

As its REDCard growth plateaus, according to consulting firm Kantar Retail, Red serves as Target’s solution to entice new customers through a rewards system that doesn’t require their signing up for its branded debit or credit cards. It also marks a stronger push by the retailer to leverage its partnership with the newly acquired Shipt. With these benefits, Target becomes the latest to join Vans, Macy’s, DSW and other companies that are putting extra investments behind launching or revamping their loyalty programs, particularly in today’s highly competitive retail environment.

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