Wal-Mart created the idea of retail power behind prepaid services when they introduced Straight-Talk. Now, Target is a taking a hint from their competitor’s playbook. Starting October 6, Target will be launching Brightspot – a prepaid cell phone service with low cost plans. As with all things Target, a Rewards program will also be implemented to draw interest. To demonstrate the savings, see the below plans.
Brightspot Prepaid Plans
- $35 will provide Unlimited Talk and Text with no access to data.
- $50 will provide users with Unlimited Talk, Text and Data. The first 1GB of data will be 4G speed.
- $65 will provide Unlimited Talk, Text and Data. For the first 4GB the data will power on the 4G network.
- International Calling and Texting can be added for a mere $10 monthly.
- The 4G will be LTE, for those curious.
Target is offering the plans this coming Sunday as a new way to deliver affordable prepaid services. For now, many customers are rendered to Tracfone, Straight Talk, GoPhone and an array of other pay per minute carriers. To draw more interest into the Brightspot prepaid plans, Target is launching a rewards program for customers to sign up.
Rewards Program for Prepaid
- Customers will love receiving a $25 Target gift card for every six months of dedicated payments.
- Target is opening their text line for customers to text BRIGHT (827438) from their phones to sign-up for additional discount savings and coupons. These savings will be applied to other departments in the stores.
- Once the program is launched, Target is rumored to sell affordable phones.
The Good, Bad and Ugly of Prepaid
Prepaid can either be a fantastic thing or a double-edged sword for many customers. Tracfone is starting to fall to larger competitors who apply more plan for less costs. Many providers, like AT&T’s GoPhone plan offers $.10 per minute plans for basic phones. As data becomes more in demand, coverage does as well. For customers who enjoy T-Mobile’s prepaid plan- $30 monthly for 100 Talk minutes, Unlimited Texting and Unlimited Data (the first 5GB up to 4G speeds) coverage can always be an issue. Only time will determine if Target’s prepaid service will join the arena of stronger competitors like T-Mobile and AT&T or fall to lesser in demand services like Tracfone.
Trends of Retail
Wal-Mart started Vudu, the digital streaming service which houses a paid viewing of the latest shows and movies. Customers can purchase full season shows like Sons of Anarchy or pay per episode. Vudu is a strong app and is useful for buyers who purchase digital stream machines like Roku. Target then joined the melee of digital streamers and launched Target Ticket.
Target touted extras like behind the scenes features, and offered news user 10 free downloads for their initial sign-up. In addition, REDcard holders would receive 5 percent off each of their video purchases, enthralling the mass Target shoppers to check out the beta service. The service touts the latest releases with over 30,000 titles across the board. Now, Target is following Wal-Mart’s steps into the world of mobile prepaid.
The Gift Card Win
While naysayers can discard the idea of Target and their all too often seen prepaid plans, there is one item that cannot be dismissed. Customers receiving money back from their subscribers every six months is well, unheard of. Receiving the Target gift card sends a consumer into the store, purchasing items and remaining faithful to the Target brand. It is a brilliant idea of return on investment- a customer rarely takes a gift card and spends that amount. The idea is to spend more and receive a reduced rate at checkout.
With Brightspot launching this Sunday, Target will give their competitors a run for their money and way for their customers to earn back. The prepaid plans are competitive and offer a variance from Straight Talk with flexibility of a non-data plan. If one is curious about the carrier network behind Target, look no further than T partner- T-Mobile.