Antavo published a deep-dive into Nordstrom's loyalty program, The Nordy Club.
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AntavoAntavo published a deep-dive into Nordstrom’s loyalty program, The Nordy Club.
Read full article here.
Key takeaways:
- Brand Overview:
- Nordstrom has been a retail icon since 1901, associated with luxury and excellence in customer service.
- The Nordy Club loyalty program represents a significant aspect of its brand value.
- Program Visibility:
- Nordstrom demonstrates transparency and accessibility through a dedicated Nordy Club Rewards webpage, providing:
- Clear information on how the program operates.
- Details on point earning, tier structure, and available benefits via the Nordstrom app and card options.
- A comprehensive FAQ section for further clarity.
- Nordstrom demonstrates transparency and accessibility through a dedicated Nordy Club Rewards webpage, providing:
- Enrollment Process:
- Enrollment in the Nordy Club is seamless, available online and in-store.
- General membership requires minimal information (name, email, phone).
- Cardholders are automatically placed in a higher tier (Influencer).
- Enrollment in the Nordy Club is seamless, available online and in-store.
- User Experience:
- The membership page is user-friendly, allowing customers to track orders, manage cards, and view tier statuses and benefits in one place.
- Clickable info bars provide instant insights into point collection and tier advancement requirements.
- Tier Structure:
- The Nordy Club has four tiers: Member, Influencer, Ambassador, and Icon, with advancement based on net spending rather than just points.
- The tiered structure motivates members to increase their spending to unlock greater rewards.
- Icon Tier Details:
- The Icon status (highest tier) is exclusive to cardholders and requires a minimum spending of $15,000.
- Icon members enjoy significant perks, such as unlimited free alterations and access to exclusive events.
- Points and Rewards Mechanics:
- Points accumulation translates into Nordstrom Notes, which provide monetary value for future purchases.
- Example: 1000 points = $10 in Nordstrom Notes.
- Points can be redeemed for rewards in Nordstrom and Nordstrom Rack, but cannot be converted to cash.
- Points accumulation translates into Nordstrom Notes, which provide monetary value for future purchases.
- Point Expiration Policy:
- Points and Nordstrom Notes expire after 12 months of inactivity, encouraging customers to make regular purchases.
- Suggestion for improvement: Notify customers 30 days before point expiration to enhance engagement.
- Rewards Structure:
- The rewards program is well-aligned with customer expectations of exclusivity and convenience:
- All members receive access to lifestyle workshops and free alterations.
- Higher-tier members enjoy more exclusive benefits, prompting ongoing customer engagement.
- The rewards program is well-aligned with customer expectations of exclusivity and convenience:
- Potential Improvements:
- Introduce gamified features to the loyalty program to boost customer interaction beyond spending.
- Enhance communication regarding points expiration and clarify access to Icon tier benefits on the website.
- Card Offerings:
- Nordstrom provides three types of cards (Visa Credit, Retail Credit, Debit) with various exclusive benefits, making them appealing to customers due to higher earning ratios and the ability to start in higher loyalty tiers.
- Mobile App Features:
- The Nordstrom app facilitates customer identification, purchase tracking, and real-time updates about loyalty membership.
- Suggestions include adding more gamified elements for increased engagement and deeper customer insights through profiling quizzes.
- Conclusion:
- Nordstrom’s Nordy Club loyalty program is effective in cultivating brand loyalty through its well-structured rewards, exclusive perks, and a tier-based system.
- While it excels in many areas, there is room for enhancement through improved communication, gamification, and increased app engagement features.
Source: Antavo.
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