Category: Mobile Commerce

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.

Target Mobile Rewards - Target Shopping CartsThere 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.

Mobile commerce experience most important factor to app developers

Application developers felt that providing consumers with a smooth experience was by far the most important consideration.

Adding a mobile commerce experience to apps has given developers a whole new way to monetize their products. Now, they aren’t simply reliant upon the purchase price of the application to make money. Furthermore, enabling ads is also not the only route available to them, particularly when offering a free app.

That said, the choice to include an m-commerce checkout option also comes with several additional decisions.

For the vast majority of app developers, providing a smooth and seamless mobile commerce experience is the highest priority. They strive to provide the consumer with a frictionless experience. The hope is to add to the experience for the user, instead of detracting from it. This, according to The Evolving State of Mobile Commerce study by VisionMobile.

mobile commerce experience - appsThat research provided insight based on the participation of 1,986 app developers. These developers all used the VisionMobile platform for the m-commerce component of their apps.

The mobile commerce experience survey revealed that there are certain strategies that most developers have in common.

Among the respondents, 53 percent said they used app-store billing. This made it by far the most popular among the mobile payments options available. Geography played a role in the most popular billing methods. In emerging markets, operator billing – also known as carrier billing – were most common. This was because those are markets in which it is not commonplace to have credit cards. Thirty three percent of app developers in Africa and the Middle East used that form of payment method for their mobile commerce apps.

The survey revealed that there are three main considerations for app developers when choosing m-commerce payment methods. Those considerations were:

• Seamless and frictionless user experience – easily the most important factor, taking a top priority by 66 percent of respondents. In fact 53 percent said smooth mobile commerce experience was more important than cost.
• Security and the ability to prove it – they need to be able to enable secure payments and show that to consumers.
• Capabilities for international expansion – apps need the potential to grow beyond specific borders or regions.