Target Tests New Multi-Tender Loyalty Program
Starting this April, Target guests in the Dallas-Fort Worth area could enroll in Target Red, a new pilot multi-tender loyalty program. Loyalty expert, Sallie Burnett noted that “Target recognizes that by limiting their loyalty efforts to just Target REDcard credit cardholders, they’re also limiting the customer’s engagement with the brand. A multi-tender loyalty program captures more customer data that can be strategically used to drive sales and profits.”
Target has designed the multi-tender loyalty program to stand separate from its Redcard store credit card. “We know not everyone wants another credit card,” said Joshua Thomas, a Target spokesman, in the Star-Tribune story. “So we want to find a way to grow our relationship and affinity with those guests.”
Guests in the Dallas-Fort Worth area can enroll in the test program via the Target app. Once registered, they’ll be able to start redeeming rewards online or in stores through their Wallet in the Target app, as well as vote for local organizations to help direct Target’s community giving.
Perks of the program included 1 percent back on every purchase that can be redeemed at a later trip, and the chance to vote for one of three local organizations to help direct Target’s community giving. Guests also can save 50 percent off a first-year membership on same-day delivery with Shipt, and receive free next-day delivery on essentials with Restock.
“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, Target. “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.”
Good news for Target REDcard holders: cardholders can register for Target Red. And while the program’s 1 percent back is not stackable, members can enjoy all the other perks while continuing to save 5 percent when using your REDcard.
Target is always exploring ways to generate more loyalty. In 2016, tested Cartwheel Perks. The pilot program allowed shoppers to accumulate points each time they made purchases, and redeem them for digital coupons in the Cartwheel app for 5 to 50 percent off items throughout the store. The rewards program was tested in Denver, Houston, Raleigh-Durham, San Diego and St. Louis.
Target’s pilot loyalty efforts are in line with retail tender-neutral loyalty programs from JCPenney, Stein Mart, Nordstrom and Kohl’s. Multi-tender loyalty programs are increasingly considered a best practice in retail loyalty because of the ability to reach more customers, learn more about their needs and to tailor personalized messages to drive sales and profitable customer loyalty.
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Filed under: Loyalty Marketing