With Cartwheel, Target Spins Out Of Slow-Moving Culture
In a year of high-profile stumbles, Cartwheel has been one of Target Corp.’s biggest wins.
The digital coupon app has generated droves of traffic at a time when smartphones are becoming an increasingly important shopping tool. Cartwheel, which allows customers to select deals that can be redeemed in the check-out line, has a devoted and growing user base of 8.5 million people who have used it to rack up more than $95 million in savings.
And none of Target’s competitors – not Wal-Mart or Amazon – have anything quite like it. […]
By most measures, Cartwheel has been a huge success.
Target soon expects it will touch about $1 billion in sales. It’s doing the kind of things brands desperately want: deepening engagement and loyalty. It’s been especially popular among millennials, a highly-coveted demographic. Target says active Cartwheel users on average increase their spending and trips to its store by 30%.
“Consumers seem to be responding to it in a pretty profound way,” said Andrew Lipsman, vice president of marketing and insights for comScore, which measures online traffic and sales. “It’s been very, very successful.”
In the last year, Target saw a 251% in increase in time spent with Target on mobile devices, with Cartwheel contributing 80% to that increase, according to comScore data.
Until Cartwheel, there had not been a strong example of a brick-and-mortar store with a super popular app, Lipsman said. For most retailers, the vast majority of their mobile traffic still comes through a website. But with Cartwheel, Target has managed to flip that with nearly 75% of its mobile traffic now coming to its app, joining the ranks of Amazon and eBay. […]
Cartwheel took off the beta tag last month and is now being promoted in Target’s weekly ads. It has added new features such as a leader board where users can see how much their Facebook friends have saved. And it has begun testing online redemption of deals.