The company noted that over two million people enrolled in the program over an 18-month period and have made over 14 million transactions. (The offering does not require a person to have a Target credit card or pay a membership fee.) Loyalty users are said to be spending more (at brick-and-mortar locations as well as through eCommerce) than those who are not signed up for the program.
Target Chief Marketing and Digital Officer Rick Gomez said, per the report, “We are seeing a benefit in building our guest base.” He also noted that “engagement [has] exceeded our expectations” over the pilot stage. The current Cartwheel platform for coupons will be integrated into Target Circle with the nationwide rollout.
Target Circle also provides users with early access to deal days, 1 percent back on all purchases to redeem on future trips and the chance to select local nonprofit organizations to receive donations. The retailer is said to join other merchants such as Nordstrom, Kohl’s, Nike and Macy’s, which have made bigger investments in loyalty efforts.
In February, news surfaced that Target had been quietly testing the new loyalty program for its Dallas members. The program was to debut on Feb. 19 in five cities: Kansas City, Phoenix, Denver, Indianapolis and Charlotte, North Carolina. In Dallas, customers have donated about $250,000 to 50 different nonprofit groups via the program.
“We wanted a program that was … not just about collecting points to get savings,” Gomez said, per reports at the time. “We think this is a much bigger platform to build relationships with our guests.”