Target Circle Rewards Program to Launch for All Guests in October
Target is readying its stores for the holiday shopping season with the launch of a new loyalty program scheduled to go live on Oct. 6. The Target Circle rewards program lets users earn 1 percent back on Target purchases to redeem on future visits, a 5 percent birthday discount, early access to deal days, personalized coupons, and the ability to vote for nonprofits they think Target should donate toward. The best part is the service does not require users to pay a membership fee or own a REDcard.
“Our goal is to motivate all guests to choose Target more often by providing meaningful benefits,” said Rick Gomez, Target’s chief marketing and digital officer, on a call with reporters.
The downside for Target debit and credit card holders though is that they won’t be able to take advantage of the 1 percent earnings when using their REDcard. They will continue to receive the normal 5 percent discount however, and can earn the 1 percent back when they use another form of payment, like a gift card.
“We see Target Circle as complementary to RedCard, our credit and debit offering, because it provides a wide range of benefits and is available to all guests regardless of whether they choose to have a RedCard,” Gomez said.
Many Target shoppers are accustomed to choosing from a variety of coupons through the Cartwheel section of Target.com and within the Target app. With the national expansion of its new rewards program, Target has decided to integrate its Cartwheel savings feature into Targert Circle with deals rebranded as “Target Circle offers.”
“When we talked to our guests about Cartwheel, the name Cartwheel wasn’t critical but what was important was the personalized offers,” said Gomez.
The chief marketing and digital officer said the company has seen a magnitude of success when Target Circle launched in beta some 18 months ago. Target piloted its rewards program in the Dallas-Fort Worth area in April 2018 followed by Indianapolis; Phoenix; Denver; Charlotte, North Carolina; Kansas City, Missouri; and Kansas City, Kansas. In that time more than 2 million guests enrolled in Target Circle and collectively, they performed more than 14 million transactions. Those enrolled in the program were more likely to shop at Target than those who were not enrolled.
“We are seeing a benefit in building our guest base,” Gomez said. “Engagement [has] exceeded our expectations.”