Target mobile rewards pilot launched in 4 cities

The giant retail chain is testing the new smartphone based program following the release of its Cartwheel app.

The Cartwheel app first debuted three years ago and now Target mobile rewards appear to be the next step. In the company’s ongoing effort to promote a better m-commerce experience, a pilot program is underway in locations in four cities.

The Minneapolis based retailer is testing the new mobile commerce feature in four stores.

There will be 126 stores with the new Cartwheel Perks Target mobile rewards program. This is the largest update the company’s mobile app has ever experienced. If it proves to be successful, it may experience a nationwide rollout. The current version of the mobile app makes it possible for customers to find product deals on their smartphones. Then, when they reach the checkout counter, they can apply the savings and pay less for their purchases.

There have already been 27 million people who have signed up for the mobile commerce app and its benefits. There are discounts available for up to 700 Target products with this application. Since it was first introduced, Cartwheel has generated a total saving of about $600 million for Target customer purchases.

Now the retailer is testing to see if the Target mobile rewards program can be equally successful.

The pilot for the mobile shopping rewards program is running at the stores located in Houston, San Diego, Denver and St. Louis. The feature is available to customers who update their mobile app to the latest version of Cartwheel. The program makes it possible for customers to collect rewards that can be redeemed for merchandise. Reward merchandise ranges from $10 to $20 in value. They can include free laundry detergent, sunglasses, athletic apparel and other items.

Customers use Cartwheel Perks to collect 10 points each time they spend a dollar at Target. Exceptions include gift cards and CVS pharmacy purchases. The first redemption level is at 5,000 points, at which time they can select from among 25 possible reward items.

A spokesperson for the company, Eddie Baeb, explained that “We’ll continue to test it and see how guests respond.” He explained that the Target mobile rewards program may one day extend to other stores and possibly to online purchases, too.