An American Icon, been around since 1901, a retail legend synonymous with luxury itself. Can you guess the brand I was describing? Well, the title kind of gives it away, but even if it didn’t, there’s truly no one else like Nordstrom. A significant player on the North American department store landscape, they’re famous for providing excellence on every front, including their Nordy Club program. So we’ve decided to take a look at their illustrious concept and give you a highly requested Nordstrom loyalty program review. Without further ado, let’s jump in!
In case you get immediately inspired to create a program like The Nordy Club, we have a downloadable worksheet ready for you to start brainstorming.
Table of Contents
A Dedicated Page to the Nordy Club Loyalty Program – Transparency Is Key
One of the most significant indicators of how much a brand values its own loyalty program is how visible it actually is to the customers. As for Nordstrom, the answer is: very much. The dedicated Nordy Club Rewards webpage is not only informative and accessible but also testifies to the program’s importance to Nordstrom, which then lends credibility in the eyes of the customers as well.
The landing page is centered around clarity. It’s not leading visitors on a wild goose chase but instead provides all the necessary information about:
- How the program works,
- How shoppers can earn points,
- What the tier structure looks like,
- Plus key elements like the Nordstrom app, and available Nordstrom card options.
Going above and beyond, Nordstrom also created an entire FAQ page, where the brand provides an even more in-depth breakdown of the loyalty proposition from opting in, to cancellation.
Tips to try:
- Providing a transparent and thorough explanation of your loyalty program fosters trust and credibility with your customers.
- A dedicated loyalty program page likely heightens opt-in rates, for shoppers are immediately able to see how the process works, and what benefits they’ll gain.
- Constructing an additional page for FAQs not only provides further clarification in an orderly fashion but also saves valuable time for both customers and CS representatives.
Enrollment Process – Make It Easy, Make It Quick
Enrolling in the Nordy Club Rewards Program is a fast and easy process, which customers can complete both online and in-store. There are two approaches to the program: one for general program membership and one for card membership. For non-cardholder, opting in is only one simple step away. All they have to do is provide the necessary information (name, email, phone number), and they are immediately rewarded with Member status and its benefits.
In case the customer is a Nordstrom Credit or Debit Card member, they are automatically enrolled into a higher tier (Influencer). Nordstrom card owners are able to enjoy both general membership benefits – such as lifestyle workshops, personal double point, and priority event access – plus exclusive, cardmember-only offers like double or triple points/dollar spend, alterations reimbursement, and early access to the Anniversary Sale.
Tips to try:
- Customers want to start earning and enjoying benefits as soon as possible, which is why setting up an enrollment process with as few steps as possible is crucial for success.
- Instead of asking for extensive additional information, stay with the basics, and use gamified surveys for zero-data collection later on.
- Providing a co-branded credit card is a great idea, especially in the US market, but make sure to always clarify additional fees, designated benefits, and cancellation options.
Membership Page – An Easy-To-Browse Solution
After enrolling in the program, loyalty members are greeted by a user-friendly, informative, and practical membership page. It’s nestled very nicely into the main account page, where members can track their orders, create wishlists, and manage their Nordstrom cards.
On the Nordy Club Rewards membership page users are updated on their Nordy Club ID, current tier status, points, Notes, benefits, and special perks, such as how many Personal Double Points Days they’re eligible for. Great features here are the clickable info bars, where users can get instant insights into how they can collect points, and how many points they need to reach the next level.
Tips to try:
- Presenting a user-friendly and easy-to-browse membership page is key in providing transparency to members.
- Make sure to include live updates, member ID, plus a run-down on accessible perks and additional information on how users can level up to higher tiers.
- Letting users know exactly what they need and what they can gain by advancing will provide ample motivation for them to act.
Program Structure – The Foundation That Holds Up The Nordy Club
There are four different levels in Nordstrom’s tier-based loyalty program: Member, Influencer, Ambassador, and Icon. Coming up with creative names instead of staying with basic titles immediately makes joining more attractive. Tier advancement is spend-based, which means loyalty members gain access to higher tier status and more delectable benefits based on net spend (and in Nordstrom’s case: cardholder status), instead of their points balance.
Creating a tier-based proposition was a clever strategy from the brand since this type of progression-focused logic works as a constant reminder and considerable motivation for members to want to advance higher, and attain even more delectable benefits. There is a catch though! Something Nordstrom managed quite well (although further differentiation never hurts), is to create a big enough difference between the four levels to get customers actively invested in wanting to move higher up and reach those rewards.
What About the Icons?
The only part of the brand’s tier structure that might be harder for shoppers to immediately comprehend is the Icon status. While its benefits are clear to see, the availability and attainability could potentially use a bit more clarification on its website.
The Icon status is the program’s highest tier level. Only cardholder members can reach it since the threshold requires a minimum of $15,000 net spend at Nordstrom on a Nordstrom card. It comes with multiple exclusive rewards, like unlimited free alterations, dining or spa experiences, and Icon-only events.
Tips to try:
- Make sure to truly differentiate your tiers. If program members aren’t motivated enough to gain access to higher-level benefits, they will stop engaging with the program and sooner or later churn altogether.
- In case there are certain levels or benefits attainable only to a select few members, issue your list of criteria in an easily understandable way.
- The highest tier should hold truly one-of-a-kind rewards that provide a premium experience and exclusivity to your most valued customers.
Points, Points, Points – If Not Point-Based, Why Point Shaped?
Since we know that Nordstrom’s loyalty program is spend-based and not point-based, it’s only natural to ask: What do the points signify, if not the tier structure’s foundation? In the Nordy Club, points are a way for loyalty members to earn Nordstrom Notes. How, you ask? Let’s see!
This is how Nordstrom Notes work:
- For every $1 net spend, customers gain 1 point (this number is multiplied in higher tiers).
- During promotional periods customers can earn bonus points and Nordstrom Notes.
- After reaching the appropriate threshold, their points will be automatically converted into Nordstrom Notes (1000 points = $10, 2000 points = $20 Nordstrom Notes).
- App users can redeem Nordstrom Notes already from 500pts instead of the minimum 1000pts.
- Where can Nordstrom Notes be spent? In stores, and online at Nordstrom and Nordstrom Rack. They cannot be reverted to actual cash.
Keep Your Customers in the Loop
Self-identification is essential to earn points. You have to ID yourself in-store by providing your mobile number or email address to the cashier, and online by linking your online shopping account to your Nordy Club membership.
Another important aspect to note: according to the brand’s current policy, all points and Nordstrom Notes expire if there’s no activity to the member’s account for 12 consecutive months. They ask customers to keep track of their points, although a better way to ensure points get used is to send out an email notification at least 30 days before the expiration date as a gentle reminder.
Tips to try:
- Introduce a branded discount structure, like Nordstrom Notes, to offer financial benefits to members while keeping the brand top of mind.
- Expand in-house discounts to partner offers, creating an even more valuable proposition for customers.
- Prevent points from going to waste by reminding loyalty members about their points’ expiration date at least 30 days before they get nullified.
Rewards Structure – Where Value Meets Convenience and Exclusivity
The true crown jewel of the Nordy Club program? Its rewards. Besides the financial benefits represented by Nordstrom Notes, tier members are eligible for several valuable advantages depending on their current status. These perks get more and more exclusive and precious as customers advance through the hierarchy. It also ensures that shoppers – being aware of these coveted prizes – will want to actively engage with the program and advance to a higher tier.
Here’s a quick breakdown of the Nordy Club’s hierarchy:
- Some perks are available to every loyalty member: Lifestyle workshops, Early access to “Clear the Rack” events, Free alterations
- Others are eligible only for Influencer, Ambassador, and Icon members, but they receive different ratios: Personal Double Points Days: 3-4-5, Early access to Nordstrom Anniversary Sale in 3 different time periods
- Yet others are accessible exclusively to the top two tiers: Invite-only events, In-home stylist
- Plus, there are several Icons-only benefits: Dining or Spa experience, Icon customer care, After-Hours stylist appointments
What We Love About the Nordy Club’s Rewards – And Where They Could Improve
It’s incredibly well-tailored to their audience. As a leading American luxury department store chain, Nordstrom 100% understood the assignment. Their clients’ priorities lie in receiving the utmost convenience, a seamless customer experience, special care and pampering, plus ultimate exclusivity, befitting their social status. By building out a tier and rewards structure as they did, the brand ensured their customers continued happiness and investment in keeping their status.
On the other hand, it could be a refreshing idea to incorporate more gamified elements (like challenges, quizzes, or arcade-style games) into their program so that tier advancement (and gaining better rewards) wouldn’t be solely tied to net spending. Plus these gamified features would help drive more engagement to the program even outside of the buying cycle.
Tips to try:
- Tailor your rewards to your own customers, not the general public. Get to know them, and their behavior, lifestyle, and create a system that accommodates and elevates that.
- Offer rewards that reflect your brand values. As a luxury retailer, they should revolve around exclusivity, seamless purchase experience, and extra customer care.
- Provide multiple ways for customers to gain access to rewards, so their interest and engagement stay high at all times.
Nordstrom Card x Loyalty Program – Playing Your Ace
Yet another joker up its sleeves, Nordstrom also offers several card options to its loyalty members, with additional benefits each. Currently, the three cards in their portfolio are:
- Nordstrom Visa Credit Card
- Nordstrom Retail Credit Card
- Nordstrom Debit Card
Looking at the benefits they offer, it’s easy to see why customers would opt in:
- Starting from the Influencer tier instead of the lowest Member tier
- New cardholders receive a welcome perk: a $40 Bonus Note
- Higher point earning ratio on net spend (2 or 3 points per 1$)
- Additional point earning ability: 1 point per dollar, where Visa credit cards are accepted (restrictions apply)
- Cardmember Exclusive Benefits, like Early access to the Anniversary Sale
- Reaching Icon status with the most valuable benefits
Key Details to Be Mindful Of
Nordstrom’s card offering paints an enchanting option for customers, with a great set of valuable perks. The co-branded credit card system is well-tailored to its audience (with a longstanding tradition in the US), and fits their lifestyle choices and preferences well.
The only note we would make is to make sure to present every detail, condition, and perk in an easily digestible way, to avoid any confusion among shoppers. This is true for the website, and for properly educating in-store employees as well. The reason why it’s so important is that when customers feel like the offered proposition might be too complicated, they could easily abandon the idea of signing up altogether.
Tips to try:
- Incorporate co-branded credit or debit cards only if it makes sense for your vertical and customer base.
- Properly educate your in-store employees about the different card options that are available.
- Make it genuinely beneficial for customers to opt for cardholder membership with exclusive discounts and benefits, even specific tiers only they can reach.
Nordstrom Mobile App – Keeping Check
A must-have feature for modern omnichannel loyalty programs, a mobile app creates a seamless connection between customers and brands. In Nordstrom’s case, the app allows users to easily identify themselves at stores, track purchases, create wishlists, get style inspiration, and most importantly, receive live updates on their loyalty membership.
Loyalty members can keep track of their current status and benefits, while also being gently reminded of how they can advance to the next level and what desirable benefits await them there. To further elevate the app, and make it even more engaging, the company could incorporate gamified features.
On one hand, surveys and in-depth gamified profiling would provide a valuable look into customers’ preferences and valuable data to further personalize the experience (currently they only have a Style quiz available). On the other hand, they could add randomized Prize Wheels, delightful Scratch Cards, or challenges, where loyalty members could compete for VIP Nordstrom rewards, special high-value Golden Nordstrom Notes, or try an exclusive luxury perk only Icon members get to enjoy normally. All these features would be mutually beneficial, driving engagement, strengthening emotional loyalty, and elevating the overall customer experience.
Tips to try:
- Connecting your online and offline storefronts seamlessly with an omnichannel proposition allows you to gain a lot more actionable insights, while also enhancing your customers’ experience.
- Make sure to provide live updates to your customers in-app, while also reminding them precisely how they can get to the next level, and what exclusive rewards await them there.
- Incorporating gamified features in a cookieless world will offer the zero-party data you need to fully personalize your program.
Final Judgment – Are We in or Are Out?
Nordstrom’s complex Nordy Club loyalty program is objectively one of the most popular propositions out there. Having meticulously gone through each feature and offering, let’s quickly summarize which ones we love, and where might there be potential to grow.
Features we love:
- Rewards structure: Perfectly tailored to the audience, differentiated enough through the tiers to be motivational for members.
- Icon tier: The program’s most exclusive, highest tier boasts a truly spectacular reward offering, representing the “Diamond of the ton”
- Tiers & Points: The Nordy Club’s proposition excels at offering both a well-differentiated spend-based tier structure and an independently valuable points concept
Where we think there’s potential to grow:
- Email communication about points expiration: A 30-day notice would allow customers to utilize their points, complete extra purchases, and engage with the program again.
- Icon tier: While its benefits are undeniable, we feel there could be a bit more clarification on the website about the terms and conditions of how program members could attain this status.
- Lack of gamified features: These modules can not only drive more engagement but also serve as data resources for a more thrilling experience.
Ready to try your hand at creating a loyalty program like The Nordy Club? Connect with our expert team, who will provide all the necessary information, and answer any questions you might have. Make sure to book a demo or include Antavo in your RFP process.
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Can’t wait to start brainstorming? Download our practical and user-friendly Loyalty Program Concept Worksheet and explore key features.
Zsuzsanna is a Loyalty Specialist with years of experience in digital marketing and e-commerce. Zsuzsanna is known for having an analytic approach and high-level communication skills, helping her deliver engaging content. In her free time, she enjoys watching Formula 1 and listening to endless Taylor Swift playlists.
