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Nordstrom Announces New Loyalty Program

Nordstrom Overhauls its Loyalty Program

Nordstrom Inc. announces a new customer loyalty program, The Nordy Club. The program replaces Nordstrom Rewards and incorporates the traditional point system and favorite benefits of its previous loyalty program while offering customers personalized and enhanced service and experiences including exclusive access to product and events, along with more convenient ways to shop.

New Program Replaces Nordstrom Rewards

Nordstrom Rewards Program

Related Article: Retailers Make the Switch to Multi-tender Loyalty Programs

“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+ 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.”

How Nordstrom Rewards Points Work

Nordy Club is Tender Neutral

The tender neutral program rewards customers regardless of their payment methods. It makes sense that Nordstrom continues to offer a multi-tender program as it enables Norstrom to achieve higher penetration and engagement than a loyalty program tied to just its proprietary Norstrom Credit card.

With the new Nordy Club, Nordstrom Credit Cardmembers e earn rewards at a faster earn rate. Nordstrom Credit Cardmembers 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 receive one point for every dollar spent.

Related Article: Retailers Make the Switch to Multi-tender Loyalty Programs

Customers also have access to new product launches, be “First to Shop” the company’s off-price clearance event, Clear the Rack, and more. Through the Nordstrom app, customers can collect Notes faster at $5$10, and $15 increments or wait to be issued a $20 Note. The program will continue to offer Personal Bonus Point Days and Nordstrom Notes spending rewards.

Customers are Rewarded with Experiental Rewards

Personalized Nordy PortraitAlong with the new rewards and services, The Nordy Club offers personalized experiences for every customer, highlighted by an experience enabling them to create their very own ‘Nordy Portrait’. The Nordstrom App features an integrated, dashboard allowing customers to easily see and interact with the loyalty program– providing access to their status, points balance and spend-to-next-level at all times, including seeing what Notes are available to redeem on the spot and the ability to schedule their Personal Double Points Days.

Related Article: How to Revamp Your Loyalty Program

“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 loyal customers have to our brand drives us to ensure we’re providing the best experience possible.”

Nordy Tiered Loyalty Program

Tiered Nordy Club Reward Levels

The Nordy Club has four published tiers 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 automatically received Icon status when the new program was launched.

Related Article:  What are the Different Types of Loyalty Programs?

Nordstrom Credit Card RewardsWhile The Nordy Club provides greater accessibility to status and benefits for customers that choose not to own a Nordstrom credit card, 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. Customers using the Nordstrom Visa card, which can be used anywhere Visa is accepted, will earn two points per dollar on dining, entertainment and travel, and one point per dollar at all other retailers.