Target’s Revamped Circle Loyalty Program: What You Need to Know

Growth is top of mind for Target, with the retailer now talking about the “consumer” as well as the “guest” for the first time this year. They’re aiming to increase the number of people shopping at Target, the frequency of visits, and the number of categories purchased per trip, And their mindset has shifted from “While you are at Target” to “Why you Shop at Target.”

To that end, Target turned the game on its head this April, relaunching its Circle Loyalty Program. As Target explained, “The new Target Circle experience was designed to flex and grow with our guests to deliver more value and ease — no matter how they choose to shop with us — so every visit feels personal, rewarding, and made just for you.” Early results indicate it’s working. Target reported adding 1 million new signups in Q1 alone—incremental growth on top of an already impressive and existing 100 million user base. Target Circle members visit three times more often and spend five times more than non-members.

What are the new opportunities for brands with the revamped program? What early learnings can you apply to your 2025 planning? We sat down with Mike Koski, SVP, Sales, CPG by MPG, to explore how your brands can best leverage these changes to accelerate their Target business. Mike has spent over 20 years driving sales with Target, first in merchandise planning for the retailer and later managing the Target business for national and owned brands of leading manufacturers in Food & Beverage, and Essentials categories.

Snapshot: Target Circle Loyalty Program

Target Circle:

remains a free loyalty program but now offers new perks, including automatic deals at checkout.

Target Circle Card (previously RedCard):

provides an additional 5% off every purchase, free two-day shipping, and more.

Target Circle 360:

the latest addition—a paid membership at $99/year offering unlimited free same-day delivery and other benefits. Special launch offer: Sign-ups during Circle Weeks (April, July, and October, 10/6-12) receive membership for $49 for year one.

Target Circle Partnerships:

give members access to free trials of various Apple services and allow them to link to their Ulta Beauty Rewards account to earn rewards when buying from Ulta at Target.

For brands looking to accelerate their growth at Target, what do you see as the most significant changes to the Circle Loyalty Program?

Aligning your brand’s offerings with Target Circle’s objectives helps reinforce Target’s mission of delivering “affordable joy” while optimizing your brand purpose. There are a number of new opportunities to consider. For example, Target has significantly increased its weekly offers—by 20% this year, and we’re seeing a greater number of categories like electronics and home goods featured, in addition to health, essentials and food & beverage. This means new opportunities for brands traditionally locked out while bringing greater value to Circle members and broadening the appeal to attract new shoppers.

Also a big enhancement: Target is automatically applying discounts at checkout. Thanks to this more streamlined shopping experience, we’re seeing a boost in offer usage rates this year – up to 2.5 times higher than before.

Plus, the Circle program is integrated into Target's app, which allows brands to engage consumers digitally with personalized messaging, targeted ads, and interactive content.

Any program challenges that suppliers should be prepared to address in their 2025 planning?

Growth is top of mind for Target, with the retailer now talking about the “consumer” as well as the “guest” for the first time this year. They’re aiming to increase the number of people shopping at Target, the frequency of visits, and the number of categories purchased per trip. And their mindset has shifted from “While you are at Target” to “Why you Shop at Target.”

Can you talk a little bit about how to work effectively with Roundel, which works hand-in-glove with the Target Circle Loyalty Program?

Roundel, Target’s demand-side platform (DSP), is important in effectively connecting brands with Target's valuable guest demographic. By leveraging Target Circle’s in-depth data, Roundel is critical in delivering personalized guest experiences online and in-store. If you have an effective program with Roundel, you can better target your promotions and tailor offers to specific customer segments for greater engagement. Starting this October, Roundel Media Studio advertisers will have first-look bidding or priority access to Target Product Ads inventory. Advertisers activating their Roundel Media Studio account through a bid management platform will also realize this benefit. Given our extensive experience working with Roundel Media Studio, we’re currently helping a number of clients transition the management of their Target Product Ads to MPG, and we’re providing insights on the best Roundel media offerings to drive business growth next year.

The key here is to carefully manage your budget allocation to ensure that your promotions are giving you the necessary return. Understanding how your brand measures up and adjusting along the way is critical. Regularly monitor your campaign performance against KPIs, using detailed analytics and reporting to understand audience behavior, and act on insights to make informed campaign adjustments like budget reallocation, ad refreshes, or audience retargeting. Tailor promotions to specific guest demographics. Incorporate BOGOs

into your plan, as these remain a strong performer and basket builders.

Interested in learning more about specific Target Circle Program opportunities that can grow your brand?

Reach out to Mike Koski, mike@thecpgretail.com.