Target Testing New “Cartwheel Perks” Rewards Program

Image courtesy of Steve

Since its launch in 2013, Target’s Cartwheel app has provided customers with several avenues of savings: from clipping manufacturer’s coupons to sending notices of what’s on sale near them. Now, the company is testing another feature that rewards customers for using the app.

The St. Louis Post-Dispatch reports that Target will test “Cartwheel Perks” starting this week in St. Louis, Denver, Houston, and San Diego, allowing customers to earn points redeemable for merchandise based on how much they spend at the register.

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.

A spokesperson for the company says that by offering free merchandise rather than a percentage off future awards, the program aims to be more impactful.

“There’s more value perception with rewards,” he said.

Still, the Post-Dispatch reports that rewards will range from $10 to $20 in value. If customers have to accumulate 5,000 points, that means they’ll spend roughly $500 in order to receive a $20 pair of sunglasses.

For now, the program is only available for in-store purchases, but could expand to online purchases in the future.

The system is similar to a rewards program Target previously tested called REDperks, that provided guests with a 5% off coupon after accumulating 5,000 points. The company says it will transition those users to the new Cartwheel Perks program.

Target tests new mobile rewards at St. Louis stores [St. Louis Post Dispatch]