It’s been almost a year since Target announced it was revamping its loyalty program.
Now the big-box retailer, which has been experimenting with its rewards system in the Dallas-Fort Worth metroplex since March, has expanded the program into the newly named Target Circle. (It was formerly dubbed Target Red.)
The test run is expected to roll out in five other major metropolitan cities — Charlotte, Denver, Indianapolis, Kansas City and Phoenix — two weeks from today.
Free for members who sign up on the site or through the Target app, the loyalty program offers customers birthday rewards for the first time as well as discounts tailored to their shopping preferences. It will also give back 1 percent on all purchases that they can redeem at a later date. (Target’s Redcard holders will be able to save 5 percent off purchases but are not eligible to earn the additional 1 percent savings.)
Separately, the Minneapolis-based company promises donations to local nonprofits that customers choose, with loyalty program members already directing nearly $250,000 to about 50 charities in the Dallas region.
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“A Target run is much more than checking items off your list — it’s about discovery, inspiration and an effortlessly joyful shopping experience. And we’re out to make that experience even more rewarding with Target Circle, offering guests more benefits and attracting new shoppers,” EVP and chief marketing officer Rick Gomez said in a statement. “We’re building deeper relationships with guests and serving up the most personalized way to shop Target yet, all while encouraging everyone to choose Target again and again.”
In the March announcement, Target added that the program’s benefits would include 50 percent off same-day delivery with a one-year membership with Shipt and free next-day delivery on essentials through its Restock service. Although initially limited to groceries, home, electronics and other items, the company shared plans to extend its courier service to every product category this year.
Other retailers including Vans, Macy’s and DSW have also put extra investments behind launching or revamping their rewards systems in today’s highly competitive retail environment. In addition to driving sales and winning over first-time customers, new-age companies are recognizing that effective loyalty programs can be a major catalyst for building long-term connections with consumers.
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