Nordstrom has unveiled a revamped tiered loyalty program, The Nordy Club, launching this fall. The program incorporates the traditional point system and benefits of its existing program, while offering personalized services and experiences, enabling shoppers to create their own “Nordy Portrait.”
Nordstrom’s existing loyalty program is already a success for the department store: Nordstrom Rewards shoppers represented 58% of all sales during Q2, up from 56% in 2017. The company’s anniversary sale was also a success, with the first day’s digital demand surpassing the previous record by 80%.
“We’ve seen significant growth in our program over the last few years and our 10+ million active members spend 4X more and shop with us 3X times more than non-members,” said Scott Meden, CMO of Nordstrom in a statement.
But with the new program, Nordstrom seeks to accelerate members’ ability to accumulate perks and also extend engagement beyond the purchase. Nordstrom Cardmembers will earn three points per dollar for purchases, a 50% increase in earn rate, and members paying with cash or a non-Nordstrom card will receive one point for every dollar spent. Customers also will have access to new product launches, and be “First to Shop” the company’s off-price clearance event, Clear the Rack.
The “Nordy Portrait,” included with the Nordstrom mobile app, will feature a dashboard that enables customers to gain access to their status, points balance and spend-to-next-level at all times.
“If I am rewarded X number of points, I can go see those points at any given time,” a Nordstrom spokesperson told Retail TouchPoints. “Our old program had similar functionalities, but this is streamlining that process. In the past, with the existing program, you earned points which would go to what we call ‘notes,’ and those notes could be spent at Nordstrom. For example, it was X number of points to reach a $20 note. With the Nordy Club, you’re going to be able to spend those notes faster so you don’t have to wait for that $20 anymore. You’ll be able to spend at $5, $10, $15 and $20 increments, and you can track that the whole way.”
The Nordy Club has four published levels based on annual spending, with more benefits for each tier:
- 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; and
- 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.
Top Nordstrom Cardmembers also can reach an invite-only “Icon” status, where they gain access to more exclusive experiences. Nordstrom’s current “Level 4” customers will automatically receive Icon status when the new program launches in the fall.