Target Launches a Virtual Gift Card
Target (TGT) prides itself on defining the cutting edge among big-box retailers. Now it is taking this attitude into cyberspace.
Consumers can now download gift cards onto a site access from mobile devices, such as phones and Blackberries. By making its gift cards mobile, Target takes care of a couple of basic consumer issues.
First, customers don't have to worry about losing the gift cards because a physical, losable card is no longer necessary to redeem a gift.
The Target Mobile GiftCard saves gift card information in a PIN number-secured account. The money can be accessed though the Target.com mobile site.
Second, there is convenience. Customers can use Target Mobile GiftCards right at the retailer's checkout stands to add value. The technology also can handle multiple card and allows consumers to update their accounts whenever they want to add money.
Target will be encouraging customers to use their mobile devices to check product availability, find store locations, manage gift registry accounts, browse the weekly circular ad, and receive text and e-mail deal notifications.
Target contends that it is the first major retailer that can scan bar codes from mobile devices in all of its stores. As a result, it has declared itself a leader in mobile retail.
That's a good thing, a new study suggests. Sterling Commerce, a division of AT&T (T), just released a study on electronic retailing and asked consumers if they might use mobile phones to shop. Although these capabilities are fairly new, 27 percent of respondents said they were extremely likely to compare prices using a mobile device; 24 percent said they were likely to check if an item is in stock; 23 percent to access information about an item or to check another retailer on an out-of-stock product and 13 percent to order.
Consumers 18 to 44--people Target would like to establish as regular, long-term patrons-- were the most likely to use their mobile phones for shopping. So, with its mobile initiatives, Target is in position to give a big chunk of the consuming public something it wants. And, the cell phone connection makes it appear hip and ahead of the pack even to consumers who can't or won't use them.