Target's Potential Paid Membership Program Looks to Stop Its Skid, Is It Too Little Too Late?
Bloomberg and others are reporting that Target is weighing the launch of a new program called "Trident", designed to be a paid membership program for its top subscribers.
After many years of a great run under CEO Brian Cornell, Target has struggled this last year under the great consumer spending reprioritization. No one goes to Target for the absolute lowest prices.
In terms of its loyalty program, Target has a two great and two "yeah, it's alright" programs which have been independent for some time -- Target's RED Card, which has 5% cash back and free day shipping under a threshold, and Target's Same-Day Delivery and Pickup (which is the fastest growing portion of Target). And then there's Shipt. That Instacart/Doordash competitor which does well but the world seems to forget about. People do forget - Shipt is already Target's $99 unlimited same-day delivery program. And Target Circle?
Yeah don't forget Target Circle -- that's another program for their best customers which earns you 1% for non-RED Card purchases.
Why are all these programs separate? Really no idea.🤷. It's kind of embarassing actually. Which one should a loyal Target customer sign up for? Literally how much more confusing could they make it?
Regardless of Target's recent struggles, it has a loyal following. Still, let's be clear, Target is no Walmart in this economy, when it comes to low prices. And Target is no Amazon when it comes to add-on offerings and an increasing catalog of (sometimes decent) exclusive video content, and nearly limitless product selection, combined with flawless logistics.
Let's just say it: the lack of clear focus on Target's most loyal customers has been a huge problem for the firm. Here's hoping Target's "Prime" solves that problem with clear tiers. Even if they likely won't have video, the firm's assets are still sizable.
And a revamp could make them clear enough to lift Target's AOV and repeat purchase rate from its most loyal customers -- a formula every retailer is trying to crack.
To be clear, it is a good idea. And it should grow the business. I just can't shake the feeling that they should have done it 5 years ago.
