Target

Unlocking Human Insights to Deepen Customer Connections

Target sought to uncover opportunities to improve and optimize its flagship Circle loyalty program, which has over 100 million members worldwide. Looking to develop a roadmap for Circle’s evolution, the retailer turned to Material to design a customer research approach that would reveal guests’ attitudes and unmet needs, along with broader perceptions of loyalty and value.

Our multipart challenge was to uncover insights to pave the way for a revamped, customer-centric strategy that would ensure the Circle program aligned with — and expanded — all the reasons why customers love Target.

WHAT WE DID

Customer + Consumer Insights
UX Research
Loyalty

Approach

To better understand what loyalty means to consumers, we conducted exploratory research mapping the intersections of customers’ personal reasons for shopping at Target with their perceptions of the Circle loyalty program. We then leveraged a discrete choice model to gain insights into options for systems of earning, redemption and reward within the loyalty program, deepening our exploration of how to organize loyalty tiers through focus groups and other mixed-method customer insights exercises.

Additionally, our team conducted various mixed-method approaches that included in-store shop-along sessions and creative ideation groups to help refine and finalize the latest iteration of the program.

Outcomes

From initial qualitative research to UX optimization, Material helped Target reimagine what Circle could be to its millions of members, then set a path to activation. Relaunched in April 2024, the new-and-improved Circle program is driving significant growth in member acquisition, engagement and retention.

Powered by deep human insights, the optimized program delivers deep relevance, emotional connection, value and a frictionless shopping experience to Target’s loyal customers. The relaunch marks the latest milestone in a longstanding relationship with Target, and a proof point for what insight-led loyalty transformation can accomplish.

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