Target is looking to expand its circle of loyal shoppers.
In October, the Minneapolis-based retailer will roll out Target Circle, a free nationwide loyalty program that offers personalized deals and supports local non-profits, Target officials announced Monday.
“Our goal is to motivate all guests to choose Target more often by providing meaningful benefits,” said Rick Gomez, Target’s chief marketing and digital officer, in a call with reporters.
With the new program, Gomez said shoppers will earn 1% on every purchase to redeem on a future Target trip. They’ll also get personalized offers like a birthday discount of 5% and can cast votes to help direct Target’s giving to approximately 800 nonprofit organizations.
However, shoppers with a Target RedCard aren’t eligible to earn 1% when they pay with the store-branded card but will continue to get 5% off purchases and can take advantage of the other Target Circle perks.
“We see Target Circle as complementary to RedCard, our credit and debit offering, because it provides a wide range of benefits and is available to all guests regardless of whether they choose to have a RedCard,” Gomez said.
RedCard holders can earn 1% back when they use another form of payment like a store gift card. (Savings tip: Target typically holds a one-day gift card sale in early December and offers 10% off store gift cards.)
Cartwheel's new name
With the national expansion, Target is integrating its Cartwheel savings tool into Target Circle and rebranding its deals as “Target Circle offers.”
Since Cartwheel launched in May 2013, shoppers have cashed in on more than $1.6 billion in discounts, redeeming offers ranging from 5% off a pack of cheese to up to 50% off select toys.
In April 2018, Target Circle launched as a pilot in the Dallas-Fort Worth area, and in February it expanded to Indianapolis; Phoenix; Denver; Charlotte, North Carolina; Kansas City, Missouri; and Kansas City, Kansas.
“The program has been incredibly successful, exceeding our expectations,” Gomez said. “Over the last 18 months, more than 2 million guests have enrolled in Target Circle, completing more than 14 million transactions ... spending more money at Target compared to guests who aren’t enrolled in the program.”
According to a study from BRP Consulting titled, “Keeping Loyal Customers Happy,” consumers are more willing to trade privacy in exchange for specialized offers, with 68% of consumers surveyed saying they prefer personalized rewards.
“We see this as something that offers tremendous benefit to Target’s business, but most importantly great value to every guest who chooses Target,” Gomez said.
New Target brand coming: The first items from the new Good & Gather food and beverage brand arrive Sept. 15
How it works
Signing up: Starting Oct. 6, shoppers nationwide with a Target.com, Cartwheel or RedCard credit or debit card will automatically be enrolled into Target Circle. Shoppers also can join by making a Target.com account or by giving their phone number in a Target store.
Non-RedCard loyalty members earn 1% on every Target run to redeem later. RedCard holders still save 5% off purchases made with their Target credit or debit cards.
Earning rewards: To start accruing earnings and votes, scan the Wallet barcode in the Target app or use your phone number at checkout in stores, or log into their Target.com account when shopping online.
Giving back: All members earn a vote per transaction and cast votes to direct Target’s community giving initiatives using the Target app or Target.com.
Redeeming rewards: To redeem the 1%, scan the Wallet barcode in the Target app, give your phone number or log into your account when shopping online. Earnings cannot be redeemed on some items including, adult beverage purchases, dairy product purchases, prescriptions, Same Day Delivery purchases and gift cards.
Birthday reward: With a Target Circle account, you’ll get a reward for 5% off a shopping trip on or near your birthday. Learn more at Target.com/Circle.
Follow USA TODAY reporter Kelly Tyko on Twitter: @KellyTyko
This article originally appeared on USA TODAY: Target Circle: Loyalty program goes nationwide in October with perks