Retailers know the importance of developing a strong connection to customers, and Target’s customer base is a prime example of how extending that loyalty can benefit partners. The Target Circle program is rapidly evolving to create an even easier and impactful shopping experience for Target guests. With greater loyalty comes a more engaged guest and an increase in robust first-party data.
Leveraging full funnel, omnichannel solutions allows retail media to go beyond metrics to build connections with consumers in more meaningful ways. Discover how Roundel, Target’s retail media network (RMN), helps brands unlock more sustained customer loyalty and drive tangible results for advertisers.
1. Establish Strong Emotional Connection
Building strong customer engagement starts by creating more personalized shopping experiences that keep customers returning for more. Retailers continue to foster strong customer connections through personalized loyalty programs that encourage customers to drive more product purchases. Target released a newly revamped program, Target Circle, to deliver an even easier, more personalized shopping and saving experience.
Target Circle contributes to a sustainable bottom line through retention, higher spend, and enhanced data, with Target Circle members spending 5x more and driving nearly 5x more shopping trips than nonmembers in 2023, according to internal Target data. Brands who lean into Target Circle offers can see 2-3x ROI, which highlights the importance of programs for fostering deeper engagement.
Guests are incentivized to use Target Circle even when transacting on cash or gift cards, which contributes to Target being able to measure >90% of sales dollars. This enables better optimization and the ability to extend personalized experiences to customers, however they choose to spend, according to internal Target data. RMNs, such as Roundel, can extend this valuable first-party data as part of brand campaigns to connect relevant messaging to customers at the right time. From personalization to media campaigns using first-party data, Target honors applicable guest privacy choices and adjusts to an ever-changing legal landscape to deliver the right experiences to guests.
2. Extend Loyalty Through Strategic Storytelling
Co-branded storytelling is one of the ways advertisers can leverage the strong trust and affinity customers have for retailers, like Target, to deepen consumer connection. By leaning into the Target brand with co-branded retail media campaigns, advertisers can tap into the loyal Target audience and get access to enhanced insights from first-party data.
In a recent campaign, Chobani leveraged Roundel’s robust first-party data to connect with relevant shoppers—including yogurt category purchasers, breakfast purchasers, and health-conscious guests. Co-branded media messages focused on every day and seasonal moments, incorporating yogurt into post-workout routines or as a staple of Mother’s Day breakfast in bed.
Using AI-driven personalization and sophisticated search algorithms, Roundel delivered content that resonated with shoppers wherever they were, driving 184% year-over-year growth in return on ad spend and 161% year-over-year growth in incremental sales, according to 2023 Roundel and Chobani campaign data. That partnership allowed Chobani to lean into the Target brand, connect to the customer mindset with personalized media messaging, and spark inspiration.
3. Focus on Continued Future Success
There are unique opportunities arising for brands with new retailer initiatives that deepen personalized shopping experiences, like the re-introduction of the Target Circle Program. One way to lean into these new opportunities includes weaving in brand initiatives to loyalty programs. When amplifying Roundel media that features Target Circle Week promos, brands see a >30% average increase in ROAS compared to the median, according to internal Target data.
Based on these results, we predict that brands can continue to see strong performance by aligning with retailer initiatives built to foster greater connections with customers. By leaning into the shared story with a notable retailer, brands can unlock opportunities, including enhanced consumer shopping experiences and stronger campaign performance.