Target Testing New Cartwheel Perks Loyalty Program

By Christine Kern, contributing writer

New program lets customers earn points from purchases.

Target has tweaked its customer loyalty program with “Cartwheel Perks,” in a beta test being offered in the San Diego, Denver, Houston, and St. Louis marketplaces, according to The San Diego Union Tribune. Since it was launched in 2013, the original Cartwheel app has provided Target customers with a variety of ways to save including manufacturer’s coupons and sale notifications. The new Perks program will expand those savings.

“We think of Cartwheel as a way of taking what, for many people, had been a process of clipping the paper coupon from a circular and bringing it the store, and integrating that experience into one digital, seamless app on your phone,” said Eddie Baeb, a spokesperson for Target. Cartwheel has been downloaded more than 27 million times.

The St. Louis Post-Dispatch reports that under the program, customers will earn 10 reward points for every dollar spent at the store, excluding pharmacy and gift card purchases. Once a shopper accumulates 5,000 points, they can select from 25 pre-determined rewards, including free sunglasses, laundry detergent, and athletic apparel.

The logic behind offering free merchandise rather than a percentage off future awards is to make the program more impactful, according to a Target spokesperson. “There’s more value perception with rewards,” he explained.

Currently, the rewards are valued from $10 to $20, and customers will spend approximately $500 in order to accumulate the 5,000 points necessary to redeem a reward. The program also only applies to in-store purchases, at least for now, but it could expand to online purchases in the future.

To earn their points, shoppers who have downloaded the Cartwheel Perks app scan their Cartwheel barcode at checkout, just like they would to redeem available deals. The new Perks program is similar to the REDperks rewards program previously rolled out by Target. The company will transition all REDperks users to the new Cartwheel program, according to a spokesperson.