Target isn't the only one looking to give more shoppers rewards without forcing them to sign up for a credit card.
Kohl's is testing out a new loyalty program that combines and simplifies its three rewards programs. One of the changes includes making its 15 to 30 percent off sales events, previously reserved for holders of its payment cards, open to all Kohl's Rewards members.
The rewards program revamps are one of the latest ways retailers are looking to build more loyalty among shoppers. Kohl's said that about 60 percent of its sales already come through its charge card, so most people who want that card probably already have one.
The Twin Cities is one of eight markets around the U.S. where Kohl's has been piloting its revamped rewards program in recent weeks. After making some tweaks, the retailer plans to roll it out nationwide next year.
"We believe Kohl's Rewards will become the new standard in loyalty — simple, compelling and rooted in value customers will find only at Kohl's," Greg Revelle, Kohl's chief marketing officer (who previously held that same role at Best Buy), said in a statement. "It's designed to give every customer an opportunity to win."
Still, customers will get more benefits by paying with the Kohl's card. With it, they will earn 10 percent worth of Kohl's Cash on every purchase compared to rewards members without the charge card who will earn 5 percent in Kohl's cash.
In the new program, Kohl's is dropping its Yes2You Rewards program, which gave members points based on how much they spent, leading to rewards. With three different programs layered on top of one another, it could often be confusing for customers.
The new system focuses more on Kohl's Cash.