Target tests new loyalty concept

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Target tests new loyalty concept

By Deena M. Amato-McCoy - 03/26/2018
Target is introducing a new way to drive loyalty.

The discount retailer will test a new rewards program, called “Target Red,” in the Dallas-Fort Worth, Texas area next month. The program offers a variety of perks, including 1% back on every purchase, and the ability to help direct Target’s community giving.

In addition to the perks, members are also entitled to free next-day deliveries from the company’s Target Restock program, which delivers household essentials and dry groceries in a day. They also will receive 50% off their first year of their membership to Shipt, Target’s same-day delivery service. Shipt typically runs $99 a year.

Unlike its original REDcard however, Target’s new loyalty program is not tied to a payment card. While the program’s 1% back is not stackable, REDcard holders enrolled in Target Red still receive the new loyalty perks, along with still saving 5% when using their REDcard, according to the blog.

“When developing Target Red, we went straight to our guests to better understand what would be most meaningful to them in a loyalty program,” Target executive VP and chief marketing officer Rick Gomez said in a blog on the company’s website. “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.”

Here’s how the new program works: Customers enroll in the test program via the Target app. Once registered, they can re-deem accrued rewards online or in stores through their wallet in the Target app. They can also use this functionality to vote on which local organizations should receive donations from Target’s community giving program.