PaymentsJournal
SUBSCRIBE
  • Analysts Coverage
  • Truth In Data
  • Podcasts
  • Videos
  • Industry Opinions
  • News
  • Resources
No Result
View All Result
PaymentsJournal
  • Analysts Coverage
  • Truth In Data
  • Podcasts
  • Videos
  • Industry Opinions
  • News
  • Resources
No Result
View All Result
PaymentsJournal
No Result
View All Result

Target Checking Out New Loyalty Program

Raymond Pucci by Raymond Pucci
March 26, 2018
in Analysts Coverage
0
Mercator Advisory Group Issues Research on Growing Market for Combined Private Label Debit and Rewards

Mercator Advisory Group Issues Research on Growing Market for Combined Private Label Debit and Rewards

3
SHARES
0
VIEWS
Share on FacebookShare on TwitterShare on LinkedIn

Big retailers are scrambling to generate both in-store traffic as well as online activity and Target is no exception. So the bullseye-logo merchant is kicking the tires on a new store loyalty variant—Target Red—as the following article describes.

Target  has begun to test a new loyalty program, “Target Red,” that combines discounts on delivery with cash back on later purchases. The program will serve as an alternative to the existing REDcard program which requires customers to sign up for a Target credit or debit card. With Target Red, customers instead earn 1 percent back on purchases that they can redeem on their next visit, as well as receive 50 percent off a Shipt membership, and free next-day delivery through Target Restock.

The retailer had acquired same-day delivery service Shipt in December for $550 million, and has continued to operate it as usual, after adding Target to the list of available stores, of course. It’s also now helping to push customers who were shopping rival grocers on Shipt  over to Target by pricing its own items the same as they are on the Target website, while others remain marked up.

Meanwhile, Target Restock is the retailer’s own entry in next-day delivery, which allows consumers to fill a box with everyday essentials – like household goods and pantry staples – and take delivery for $4.99 per box. (For comparison, Prime Pantry is now$7.99 per order, unless paying a $4.99 per month membership, which makes order over $40 ship free.)

However, Target Restock is only available in select metros at this time – following an expansion last fall, it now reaches over 70 million people, Target said. Target Red loyalty program members will be able to waive that $5 delivery fee on Restock, and can take half off the cost of the typically $99 per year Shipt membership, too.

More importantly, perhaps, is the one percent back, as a way to lure in shoppers who won’t sign up for REDcard. Target REDcard is already quite popular – as of the company’s latest earnings, it accounts for 24 percent of sales, with 12.7 percent from Target Debit Card, and 11.4 percent from Target Credit cards. But those figures aren’t climbing much these days. That’s where Red comes in.

Target has been on the rebound of late by introducing several new or enhanced initiatives from mobile payments to store re-design. So it’s no surprise that they have rolled out a pilot version of a new loyalty program that looks to leverage its recent acquisition of Shipt, the mobile order and delivery company. Target Red members will get 1% cash back, a Shipt discount, and delivery deals. However the 5% cash discount using the in-house REDcard will not be offered. Perhaps Target is using this as a way to segment in-store vs. online shoppers to meet their different needs. Not a bad idea, as it allows the customer to decide what works best for them. Customer engagement activity and sales results will reveal how things work out. Stay tuned.

Overview by Raymond Pucci, Associate Director, Research Services at Mercator Advisory Group

Read the quoted story here

Tags: Loyalty ProgramTarget
3
SHARES
0
VIEWS
Share on FacebookShare on TwitterShare on LinkedIn

    Analyst Coverage, Payments Data, and News Delivered Daily

    Sign up for the PaymentsJournal Newsletter to get exclusive insight and data from Mercator Advisory Group analysts and industry professionals.

    Must Reads

    faster payments

    Faster Payments Are Set to Revolutionize Modern Digital Payments

    January 26, 2023
    How AI can Help Manage Payments Risk in 2023

    How AI can Help Manage Payments Risk in 2023

    January 25, 2023
    cross-border payments

    How to Implement Effective and Innovative Cross-Border Payment Strategies

    January 24, 2023
    credit card experiences, digital payments, b2b payments

    Will Consumer-to-Business Payment Trends Drive B2B Global Growth in 2023?

    January 23, 2023
    Faster Payments Faster Identity Verification, connected car, payments

    2023 Predictions: Authentication, Digital Identity, and In-Car Payments

    January 20, 2023
    bank data

    Interconnectivity, Data Sharing, and Security Are Vital for Banks to Thrive

    January 19, 2023
    B2B Payments, cryptocurrency

    Crypto as a Practical Solution to B2B Payments

    January 18, 2023
    AR, accounts receivable

    Digitizing AR Would Address One of Executives’ Biggest Concerns About Economic Instability

    January 17, 2023

    • Advertise With Us
    • About Us
    • Terms of Use
    • Privacy Policy
    • Subscribe
    ADVERTISEMENT
    • Analysts Coverage
    • Truth In Data
    • Podcasts
    • Videos
    • Industry Opinions
    • News
    • Resources

    © 2022 PaymentsJournal.com

    • Analysts Coverage
    • Truth In Data
    • Podcasts
    • Industry Opinions
    • Faster Payments
    • News
    • Jobs
    • Events
    No Result
    View All Result

      Register to download the Brighterion eBook - The power of today’s market-ready AI to reduce transaction fraud