HOW TO NAVIGATE THE NEW TARGET CIRCLE LANDSCAPE
Target recently made waves in the retail world with the announcement of a Circle relaunch, leaving sales and retail media executives scrambling to adapt to the new landscape. If you’re feeling unsure about how to navigate these changes, fear not! DIGITS, the leading Target Retail Media agency, is here to guide you through it. Here are 4 steps on how to navigate the new Target Circle landscape.
1. REDUCE YOUR MASS DEALS DUE TO INSTORE SUBSIDIZATION
With the implementation of auto-applied mass offers within stores, the risk of subsidization has skyrocketed. Shoppers may be in for a mystery surprise at the register, which could be good for them but potentially not so good for your brand. Historically, about 15% of in-store shoppers used Circle deals when the UPC was on deal, but with auto-apply, this number is estimated to rise to around 60%.
Furthermore, Target’s reluctance to reduce vendor fees on these non-marketed, auto-applied deals is concerning. Vendors are being asked to fund deals and pay fees for discounts that shoppers may not even be aware of. With the expected increase in usage and no additional marketing efforts, DIGITS is concerned that incremental sales won’t justify the increased spend, ultimately leading to a reduction in ROI. Vendors should consider canceling a significant amount of mass offers to mitigate these risks.
2. PERSONALIZE YOUR APPROACH
Now more than ever, personalization is key. Targeting your offers and messages to specific shopper segments can help cut through the noise and drive engagement. By leveraging data and insights, you can tailor your promotions to resonate with your target audience, increasing the likelihood of conversion and have control over your investment.
3. RE-BUDGET YOUR QUOTIENT DEALS – THEY NOW WORK ONLINE!
Without any formal announcement, Target has flipped Quotient manufacturer deals to work for online originated orders. While this is great news for brands, the lack of communication from Target has left many in the vendor community unaware of this change. As a result, redemption costs and click fees are expected to rise, and redemption budgets may run out sooner than anticipated. Brands should adjust their budgets accordingly to account for these changes.
4. DON’T BE SCARED AWAY, FIND WAYS TO USE THE CHANNEL TO WIN SHARE
Despite the uncertainty posed by the new Circle landscape, it’s important not to shy away from the channel. With 100 million shoppers and executive-level priority at Target, Circle remains a valuable marketing vehicle for brands. Instead of retreating, brands should pivot to new strategies and offer types that align with the new rules. By adapting and innovating, brands can continue to leverage Circle to drive sales and customer engagement. Request a Target Circle Market Share Report here.
At DIGITS, we understand the complexities of the retail media landscape, and we’re here to help you navigate the new Target Circle landscape. Interested in driving sales and customer engagement with Circle? Contact us today to learn more about our comprehensive Circle strategy solutions. Let’s work together to unlock the full potential of Target Circle!
Dave Glaza, Founder & CEO of DIGITS, remains committed to bringing digital capabilities to physical stores!
LinkedIn: https://www.linkedin.com/in/davidglaza/
Follow DIGITS on LinkedIn: https://www.linkedin.com/company/digits-agency/
