Target Tests New Cartwheel Perks Loyalty Program in Four Markets

Target’s Cartwheel deals app is one of retail’s most downloaded and widely used apps. Cartwheel makes saving money easy and fun by allowing guests to choose from hundreds of offers at a Target store and redeem with a single barcode scan.

Since Target launched Cartwheel three years ago, more than 27 million guests have signed up for Cartwheel and saved more than $600 million on their Target purchases. As a result, Target wanted to integrate a mobile loyalty program into its Cartwheel deals app, and now it has.

Starting this month, Target is making its popular Cartwheel deals app even better by testing a new rewards feature called Cartwheel Perks. Customers in the pilot markets can now use Cartwheel to receive rewards on every purchase at Target.

The four regional markets are:

Denver (41 stores)
Houston (40 stores)
St. Louis (23 stores)
San Diego (22 stores)

“We wanted to thank guests and reward them for being loyal guests,” Target spokesman Eddie Baeb told Loyalty360. “One of the top requests from the more than 27 million Cartwheel users has been to add a rewards component. This provides additional benefits to Cartwheel users, beyond the hundreds of offers guests can choose to save on throughout the store. We know target guests are mobile-savvy, so we wanted to design a mobile-based rewards program that was simple and fun and that makes it easy for guests to feel more rewarded for shopping at Target.”

Here’s how Cartwheel Perks works:

Guests in pilot markets will see a “Perks” page once they download the most recent version of the Cartwheel app.

Guests in the pilot market will receive points for almost every dollar they spend shopping at Target whether there’s a Cartwheel deal applied or not. (CVS pharmacy purchases and purchases of gift cards are excluded.)

To obtain points, all guests have to do is scan their Cartwheel barcode at checkout – the same way they redeem offers at checkout in a store. One scan gets guests their points and their Cartwheel offers.

Guests receive 10 Perks points per dollar spent at Target. With the initial pilot, guests are able to redeem and collect the reward of their choice at 5,000 points.

During the initial pilot, guests can choose from a list of 25 Perks. Perks range in value from $10-$20 dollars. Examples include:

  • Free C9 athletic apparel
  • Free toy
  • Free earbuds and fitness headphones
  • Free sunglasses
  • Free laundry detergent
  • Free seasonal items – such as kids’ Halloween costumes

“We want to see how guests in the pilot markets respond to the program as we try different tactics and approaches,” Baeb added. “We don’t have specifics to share on future plans at this time. We chose markets that had various characteristics and traits, in terms of geography and demographic and use of Cartwheel.”
Baeb said company officials believe that guests will appreciate the convenience and value in bringing savings and rewards together in one app, and in getting to choose their rewards.

“Over time, we will be offering more personalized and relevant reward choices to guests to enhance the experience,” he explained. “Millennials make up a significant part of Cartwheel’s user base and we hope they’ll be equally enthusiastic about the Perks offering.”

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