To help consumers find those red-hot deals, Target is trying out its REDperks mobile loyalty app with hopes that the tech-friendly consumer will use it to drive up the retailer’s in-store sales.
The app is only currently being used at Targets in the Raleigh/Durham, North Carolina area — and by invite only — as it’s in beta version to see if it’s worth spreading to the rest of Target’s national market. The app allows users to earn 10 points for every dollar spent, and once a shopper hits 5,000 points they’ll be able to cash in those rewards for 5 percent off their purchase. There will also be various opportunities for shoppers to earn bonus points for special in-store offers based on how much a consumer is spending during a visit.
"REDperks is designed to be an easy and fun way to deliver even more value to guests by rewarding them for doing what they already love to do — shop at Target,” Target spokesman Eddie Baeb told Mobile Commerce Daily. “We see REDperks as another way mobile apps can enhance the shopping experience. …These points can be used for discounts on future purchases. The program also includes other rewards and bonus perks."
Target has demonstrated itself as a bricks-and-mortar retailer with a dominating mobile commerce presence as it has managed to combine the perks of traditional shopping into its mobile experience. In Target’s most recent earnings report last week (Feb. 26), its executive team discussed Target’s focus on driving in-store shopping, but with a mobile touch.
"Mobile experience needs to make commerce as easy as possible,” said Jamil Ghani, Target’s VP of enterprise strategy — who noted that Target’s mobile-engaged customers make four times as many store visits per year. “We call it bricks-and-mobile, and we’re really excited to see how far we can take it."
Target’s investments in digital channels have helped bring more customers in its store, according to Kathee Tesija — Target’s chief merchandising and supply chain officer, who added that consumers are actually using its mobile app to shop while in the store (and then buy there, too). Combining mobile commerce with its traditional retail is giving Target’s commerce revenue a larger digital share. Target reported that 40 percent of its total digital order volume came from mobile in its fourth quarter sales, and the company said its mobile traffic growth was up by 50 percent.
Target launched its new iPhone app for the holiday selling period, and shoppers used the app’s product-locating function more than 400,000 times before the end of the year. The next place the retailer will take it is likely to be its Android app, which hasn’t yet been upgraded with the new features for driving store traffic and sales.
Clearly, Target’s loyalty focus and drive toward building its “brick-and-mobile” strategy is expected to grow as Target aligns its digital strategy with traditional retail offerings.