Target is giving loyalty programs another go after a disastrous data breach with Redcard in 2013. The new Target Red program is less generous than its predecessor, offering just 1% cash back rather than 5%. Yet given that Redcard was once so popular that it accounted for nearly a quarter of all Target purchases, the new program could help regain customer trust and refresh loyalty for the retailer.

While 26% of brands integrate a branded credit card into their loyalty programs, Target Red isn’t linked to a card, hinting that Target may have learned from its data mishap. (Redcard still exists, but its popularity has declined significantly since the data breach.) The program is also a good step to keep up with competitors. An impressive 86% of retailers tracked in L2’s Digital IQ Index: Big Box offer loyalty programs through customer accounts, branded credit cards, or tiered programs.

Given that a well-executed loyalty program can help brands collect valuable CRM data and encourage repeat purchases, this sounds like a sound strategy. However, many of those brands require customers to fill in more than a dozen fields just to create an account. Wayfair and Amazon are exceptions, requiring fewer than five fields. When building out its loyalty program, Target should look to emulate its best-in-class peers.

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