US retailer Target is expanding its popular mobile couponing app Cartwheel to include a new points-based reward scheme that enables users to claim rewards based on usage.
Cartwheel is already one of the most popular retail apps in the US, with 27m registered users who have saved over $600m (£454m) using the app since it launched three years ago.
The reward scheme is being piloted in four markets, Denver, Houston, St. Louis and San Diego, covering 125 stores. Users in these areas will be able to access a new 'Perks' page upon downloading the latest version of the app, and can receive points on almost every product bought at Target, regardless of whether or not it has a Cartwheel deal applied to it.
The app enables users to select offers they wish to apply during their shop then produces a single barcode which can be scanned to discount multiple items at checkout. The Perks system will use the same barcode to apply points to users' accounts.
Upon reaching 5,000 points, users can select from a list of 25 rewards including athletic apparel, toys, sunglasses and seasonal items like childrens' Halloween costumes.
While Target plans to continue testing, iterating and updating the Perks scheme based on feedback, if it proves successful it could quickly be rolled out to the rest of the US with an expanded choice of rewards.