A Look at Nordstrom's Relaunched Loyalty Program

Nordstrom announced last month the evolution of its customer loyalty program, The Nordy Club, launching this fall. The program incorporates the traditional point system and favorite benefits of Nordstrom's previous loyalty program, while offering customers personalized and enhanced service and experiences, including exclusive access to product and events as well as more convenient ways to shop with the upscale department store chain.

Credit: Nordstrom

Starting later this fall, Nordstrom credit cardmembers will earn three points per dollar for purchases at Nordstrom, a 50 percent increase in earn rate, and members paying with cash or a non-Nordstrom card will receive one point for every dollar spent. Customers will also have access to new product launches; be “first to shop” the company’s off-price clearance event, Clear the Rack; and more. Along with the new rewards and services, 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, all-encompassing 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.

"We're always keeping a pulse on services to help enhance and evolve our customers’ experiences with Nordstrom," a company spokesperson said in an interview with Total Retail. "The Nordy Club is designed to provide more personalization, access and service no matter how customers choose to shop. We evolved the loyalty program to continue to deepen relationships with existing customers and give new customers a reason to engage with us. Whether it’s sparking curiosity and a sense of discovery by introducing new products and services or offering programs to engage, attract and retain customers, we’re constantly evolving to try and help solve their needs in new and relevant ways."

The Nordy Club will feature four tiers of membership 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 pickup.
• Insider ($500-$2,000): Member benefits plus a personal bonus points day and ”First to Shop” Clear the Rack sale events.
• Influencer ($2,000-$5,000): Insider benefits plus an additional personal bonus points day and priority access to style events.
• Ambassador ($5,000-plus): 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.

With customer loyalty a challenge for many brands in today's competitive retail environment, particularly online where your competition is a mere click away, Nordstrom's investment in The Nordy Club is a step in the right direction. Consumers want more than bonus points; yes, they want special deals and discounts, but they also want access to products and services that can help simplify and improve their lives. The Nordy Club hopes to deliver both.

Nordstrom currently has more than 10 million unique active rewards members, and the retailer believes its revamped loyalty program will attract more customers to join.