After quickly losing their grip on the market in the icy north, Target is introducing a loyalty program south of the border in an effort to keep a firm hold on their American customer base.
Called REDperks, the mobile program rewards shoppers when their purchases reach certain levels. The REDperks beta is being rolled out by invitation only on iOS in select markets. REDcard holders retain their five percent discount – on top of the REDPerks benefits – which are awarded based on dollars spent at Target and can be redeemed to a maximum of 5,000 points/$500 worth of merchandise. There will be additional RED perks rewards along the way.
The REDperks is being compared by some analysts to Whole Foods’ ongoing test of its Market Rewards affinity program at 12 stores in Princeton, NJ and the Philadelphia region. Whole Foods shoppers have the choice of using a rewards card or a mobile app downloaded from Apple. Points they earn in the program can be exchanged for discounts or “experiential” rewards, such as free cooking classes. Type of rewards is based on personal preferences.
Whole Foods spokesperson Michael Silverman told USA Today last year. “With such strong existing customer demand for a program like this, we believe it will enhance existing customer loyalty and drive new customers to shop Whole Foods Market stores.”
While a few big grocers such as Safeway offer perks like discounts for gas based on grocery purchases, points-based programs are not common at US supermarkets.
Canada’s PC Plus program is well ahead of the field, and Shopper Optimum Program is arguably one of the most successful in the world.
More than one person has observed that the greatest value Loblaws gets from their acquisition of Shoppers Drug Mart may be learning how to operate a first rate customer loyalty program.
