Target Expands Dallas Test of New Loyalty Program After Success With Local Shoppers

Editor's note: This story, originally published on April 9, has been republished to reflect Target's plan to expand the program. Target on Feb. 5 expanded this Dallas-Fort Worth loyalty program test to Charlotte, Denver, Indianapolis, Kansas City, Phoenix. It changed the program's name from Target Red to Target Circle and added a personalized birthday "surprise." So far, Target said, D-FW users of the loyalty program made 3.6 million transactions and voted more than 600,000 times to help direct $250,000 in giving to local community programs. Those "promising results" encouraged the retailer to take it to other cities, said a spokeswoman for Target. Target began testing a new loyalty program in April that it hoped will lead to increased shopper loyalty, including more customers becoming holders of its credit card.Until now, the Target Red program is limited to D-FW where, Target spokesman Joshua Thomas said, the market is diverse enough to gather a wide range of responses and where the program can evolve. Target has designed the loyalty program to stand separate from its Redcard store credit card, which comes with a 5 percent discount."We know not everyone wants a credit card," Thomas said, but shoppers like to be rewarded. Eventually, he said, shoppers who join the program could apply for a Target credit card. Shoppers can sign up for Target Red by supplying their email address in the retailer's phone app where it also recently moved its discount Cartwheel program. It's a beta test now, Thomas said, and shoppers may be asked for more information as the test progresses. Retailers say their store-branded credit card shoppers are their best customers. J.C. Penney said shoppers who use its store credit card spend twice as much in a year as other shoppers. And for some stores, it's much higher. About 40 percent of Neiman Marcus' annual sales are generated from its InCircle customers. These customers spend 11 times more each year than the retailer's other shoppers.But the growth in Target Redcard sales slowed last year to 24.3 percent of total sales, up just slightly from 24 percent in 2016 and 22.3 percent in 2015. Here's what Target Red offers:   Continue reading...

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