Nordstrom’s New Twist on Loyalty

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Nordstrom’s New Twist on Loyalty

By Jamie Grill-Goodman - 09/24/2018

Nordstrom, which has been working to personalize the retail experience, will launch a new loyalty program in October—with a twist. The Nordy Club will help the department store retailer paint a portrait of each loyalty member to drive its personalization efforts.

The Nordy Club will offer personalized experiences for every customer, highlighted by an experience enabling them to create their very own 'Nordy Portrait'.

The Nordstrom App will feature an integrated, dashboard allowing customers to easily see the loyalty program– providing access to their status, points balance and spend-to-next-level at all times. They will also be able to see what Notes, Nordstrom’s digital rewards, are available to redeem on the spot and have the ability to schedule their Personal Double Points Days. Through the Nordstrom app, customers can collect Notes faster at $5, $10, and $15 increments or wait to be issued a $20 Note.

"Our loyalty program is our opportunity to not only thank customers for shopping with us, but to serve them in a more personalized way," said Dave Sims, Nordstrom vice president, retention and loyalty. "When thinking about this evolution, a guiding principle was to offer something for everyone, no matter how much they spend or where they interact with us. The name, The Nordy Club, is directly inspired by how our most loyal customers and even some employees refer to being a 'Nordy'. The strong connection our loyalty customers have to our brand drives us to ensure we're providing the best experience possible."

The new loyalty program incorporates the traditional point system and benefits of Nordstrom’s previous program, while offering personalized and enhanced experiences, including exclusive access to product and events, along with more convenient ways to shop. Customers will have access to new product launches and be "First to Shop" the company's off- price clearance event, Clear the Rack.

Starting later this fall, Nordstrom Credit Cardmembers will earn three points per dollar for purchases at Nordstrom, a 50% increase in earn rate, and members paying with cash or a non-Nordstrom card will receive one point for every dollar spent.

"With the launch of The Nordy Club, we're excited to go beyond the model of points for Notes and enhance our relationships with existing customers, while giving new customers more reasons to engage with us," said Scott Meden, Nordstrom chief marketing officer. "We've seen significant growth in our program over the last few years and our 10-plus million active members spend four times more and shop with us three times more than non-members. We're constantly evolving to help meet customers' needs and we're excited to do that in new and relevant ways with The Nordy Club."

The Four Club Levels
The Nordy Club has four levels based on annual spending:

  • Member ($0 - 500): All Members get "First to Shop" select brand and product launches, access to beauty and style workshops, free basic alterations, and can reserve online and try on in-store or use curbside pick-up.
  • Insider ($500+): Member benefits plus a personal bonus points day and "First to Shop" Clear the Rack sale events.
  • Influencer ($2,000+): Insider benefits plus an additional personal bonus points day and priority access to style events.
  • Ambassador ($5,000+): Influencer benefits plus a total of three personal bonus points days, access to invite-only events, and the use of Nordstrom to You – In Home Stylists.

There is also an invite-only Icon status for top Nordstrom Cardmembers, giving access to more exclusive experiences. Nordstrom's current Level 4 customers will automatically receive Icon status when the new program launches in the fall.

Nordstrom Cardmembers will continue to receive much more from the new program. In addition to the benefits above, Cardmembers receive a $40 Bonus Note upon credit approval, automatically receive Insider status, and get an annual $100 alteration benefit – which increases by $100 with each status tier.