In this article:
- Since its inception in fall 2019, Target’s Circle Rewards program has proven successful at attracting members and increasing sales
- “Promo FOMO” underlies the strategy of fleeting promotions tailored to customer’s purchase habits
Here’s a loyalty/rewards program you should see what you can steal from – the Target Circle Rewards program, open for all its customers. Unlike the programs that are designed along the lines of Amazon Prime (see Members Only: The Amazon Prime Model) there are no fees or benefits like free shipping but specific deals that become available at particular times.
It’s an especially personalized rewards program. That’s cool.
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The app-centered rewards program that replaced Target Cartwheel has proven to be quite successful at driving up membership and sales. As Modern Retail reported, Target has broken the 100 million mark for membership in under two years, and it is now “looking to build out Circle Rewards’ capabilities further.”
It quoted Christina Hennington, Target’s chief growth officer, who explained the strategy of capitalizing further on “‘Promo FOMO’” in updating the app. It will now have the capability of bringing up “all the applicable Target Circle offers” on the items they have put in their carts.
Modern Retail also quoted Len Covello, CTO at Engage People, who observed how the rewards increase both feelings of loyalty to the brand and actual sales.
“The personalized communications help reinforce the connection program members feel to Target by delivering offers through preferred channels,” Covello told Modern Retail. Then having such “personalized offers” motivates them to “come to Target stores with specific purchase intentions, which often lead to increased conversions.”
Target also allows specific categories of customers to gain additional Target Circle promotions, as it does for teachers in offering a special coupon for back-to-school items during a six-week shopping window. No doubt, the FOMO on high-value promos like these has contributed to the number of Target Circle membership. And, once again, it’s clear how personalized customer communication is key in growing revenue.