Loyalty programs, no matter how big or small, all have two goals–to provide value to customers and to retain customers. Nordstrom is a multi-billion dollar company with retail stores across North America as well as its ecommerce store which serves customers in 98 countries. Nordstrom is one of those rare brands that screams both luxury and comfort. Between their apparel, home, and beauty products, it’s easy to find everything you need in one location.
Nordstrom is considered a high-end luxury department store, yet it’s not immune to the challenges most retail brands face such as churn rates, cart abandonment (online), and the chance customers don’t return for a second purchase. Nordstrom has developed a retention marketing strategy that targets its best customers through its rewards program, The Nordy Club.
What is The Nordy Club?
The Nordy Club is Nordstrom’s loyalty program that lets customers earn up to 3x the points and offers three rewards tiers ranging from Member, Influencer, and Ambassador.
Depending on how much you spend with Nordstrom, you can fall into a reward tier and earn Nordstrom Notes, (AKA cash back rewards) ranging from $10-$20 off, access to exclusive events, and opportunities for double points days. With The Nordy Club, customers can earn a wide range of transactional and experiential rewards with every purchase.
Let’s dive deeper into The Nordy Club, and find out what makes it a hit among its members, and the lessons any business can take away from Nordstrom.
The benefits of The Nordy Club
Like any loyalty program, The Nordy Club is designed to make customers happy. However, unlike other rewards programs, Nordstrom excels at different points in its program and goes the extra mile, which sets it apart from its competitors.
According to insights, it’s estimated Nordstrom has more than 13 million program members who spend four times more and make three times more visits than non-members.
Rewards are actually meaningful
The key to a successful reward and loyalty program is to provide rewards that your customers actually want to redeem. Reward members can earn up to $20 off their order, or unlock experiences that will elevate the shopping experience at Nordstrom more than if you went to another department store.
Some rewards all members can earn are free alterations to their clothes, lifestyle workshops, and access to shopping for select brands before anyone else. Higher tier members are able to earn access to even more experiences including an in-home stylist, various double points days, and invite to events IRL. Nordstrom hosts a Mother’s Day brunch for Nordy Club members, private in-store shopping events, and seats at fashion shows.
Some of our locations will be hosting A Beautiful Morning with Mom for Nordy Club members on Sunday, May 14th. Please contact your local store for more details. -Trevor
— Nordstrom (@Nordstrom) April 13, 2023
Reward tiers are worth the spend
The perks and reward benefits get even better the higher the tier you are in The Nordy Club. Combined with using Nordstrom’s credit card, you can have access to free 2-day shipping and up to $200-$300 off. Nordstrom truly has built a loyalty program that caters to every type of its customer and makes them feel valued.
Rewards tiers are effective because they give off status to customers who are already spending. Making their purchase more valuable and playing on the psychology of status and feeling important. Tiers or status levels give exclusivity to customers and increase engagement levels by encouraging members to move on to the next level.
Triple bonus points
The Nordy Club host 3-4 personal double points days depending on which type of member you are in the Nordy Club. Bonus points events can also be considered an event-based marketing strategy, which is great for brands that can not offer large discounts. For Nordstrom, it’s a great opportunity to engage reward program members, and It’s also a great way to get shoppers in during slow seasons for retail.
The Nordy Club hosted a triple points event that is tied to a weekend, which makes the bonus points more exclusive. The “Fear of Missing Out” makes customers more likely to participate in a bonus points campaign because they don’t want to miss a reward they feel others are receiving. In addition to the sense of exclusivity that bonus campaigns create, offering additional points also adds more value to your customers’ purchases.
Lessons to take from The Nordy Club
Any ecommerce business can take lessons from Nordstrom’s loyalty and rewards program, The Nordy Club. The Nordy Club has distinguished itself as a top rewards program for Nordstrom with more than 13 million program members. Nordstrom has curated a great list of rewards that customers can earn and obtain through its purchases, that go beyond a simple discount.
Earning repeat customers through its program, The Nordy Club is perfect because it caters to every type of customer no matter if they shop once every few months, once a month, or every weekend. Here are five key points that every business can take when launching its own loyalty and rewards program.
- Provide meaningful rewards.
- Run bonus points events.
- Create reward tiers for loyalty program members.
- Make your program accessible to every type of customer.
- Allow earnings on in-store and online purchases.
Bringing It all together
All points listed here are what make Nordstrom a strong rewards and loyalty program for its customers. Revamped in 2018, The Nordy Club has proven to be a hit for Norstrom and its members. Nordstrom has crafted rewards as experiences that engage and make members want to come back for a repeat purchase.
Editor’s Note: This post was originally published on November 15, 2016, and was updated for accuracy and comprehensiveness on May 9, 2023.
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