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Nordstrom has announced a complete overhaul of its loyalty program and will launch its new and improved Nordy Club this fall. The program incorporates the traditional point-based system and benefits of its previous program, but also offers personalized services and experiences, including exclusive access to products and events and more convenient ways to shop. The department store boasts more than 10 million loyalty customers as of last month, an almost 20 percent increase year over year.
“We’ve seen significant growth in our program over the last few years,” says Chief Marketing Officer Scott Meden. “With the launch of the Nordy Club, we’re excited to enhance our relationships with existing customers, while giving new customers more reasons to engage with us.”
The upgrade provides perks for its credit card holders, but also offers substantial perks for non-card holders as well. Once the new program is launched in October, Nordstrom Credit Card members will earn three points per dollar in purchases (a 50 percent increase from previous terms) and non-card-carrying members will receive one point for every dollar spent.
Nordy Club perks are based on annual spending levels, with the highest spending level being the Ambassador level for customers that spend more than $5,000 a year. Customers will also have access to new product launches and be first to shop at the company’s major clearance event, Clear the Rack.
The new Nordy Club application also looks set up to be a core component of how members will engage with the brand. Through the app, customers can collect Notes faster at $5, $10, and $15 increments or wait to be issued a $20 Note.
The app will also feature an integrated dashboard that enables customers to easily see and interact with the loyalty program. It provides access to status, points balance, and spend-to-next-level at all times.
The Nordy Club has four published levels based on annual spending. Members spend up to $500 per year. Insiders spend between $500 and $2,000. Influencers spend over $2,000, and Ambassadors spend $5,000 or more. Each tiers comes with its own benefits. There is also an invite-only Icon status for top Nordstrom cardmembers.
While 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. This benefit increases by $100 with each tier. Customers using the Nordstrom Visa card will earn two points per dollar on dining, entertainment, and travel, and one point per dollar at all other retailers.
“Our loyalty program is our opportunity to not only thank customers for shopping with us, but to serve them in a more personalized way,” says Dave Sims, Nordstrom Vice president of 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.”
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