Nordstrom launches enhanced loyalty programme
In the US, the fashion retailer Nordstrom has announced an enhancement to its existing loyalty programme, incorporating the current points system while adding more benefits under the newly named 'Nordstrom Fashion Rewards' scheme.
Extra benefits are being added for programme members shopping at Nordstrom, with rewards being based on customers' spending levels using Nordstrom credit or debit cards. The programme is part of the company's stated strategy of earning a greater share of wallet from its customers and increasing its market share overall.
Research, restructure, relaunch The restructuring of the programme came after extensive customer research, which included input from stores, a peer group study, and focus groups. Nordstrom also surveyed its customers to determine which additional benefits would best motivate them to strengthen their relationship with the company.
According to Kevin Knight, president for Nordstrom Credit Inc., "We tried to stay as close to our customers as possible in our research and found that they are interested in rewards that are tangible and available to them now, such as complimentary shipping and alterations. We know that customers who participate in our programme shop more with us, and Fashion Rewards is a way for Nordstrom to provide additional benefits."
Programme enrolment Current Nordstrom cardholders will be automatically enrolled in the new programme. Customers' level within the programme will be based on their annual spend at Nordstrom stores using any of their Nordstrom credit or debit cards. Programme members can also move to higher levels based on their Nordstrom store spending each quarter.
New customers become members once they are approved for a Nordstrom card, and can apply for any Nordstrom credit card at any Nordstrom store, including the Nordstrom Rack or online at NordstromBank.com.
Tiered membership In the existing Nordstrom Rewards programme, customers have been earning points for purchases made with a Nordstrom card, and have been receiving Nordstrom Notes certificates to use toward purchases of goods and services at any Nordstrom store or Nordstrom Rack.
From now on, Nordstrom Fashion Rewards will also include the same points programme but it will also feature new rewards such as free in-store services and access to 'red carpet' events. The programme offers three new levels of cumulative benefits for those customers who qualify for them.
New member benefits Some of the new benefits include free standard shipping and alterations, invitations to private shopping events, Nordstrom On Call (a 24-hour 'fashion emergency' hotline), access to exclusive apparel and accessories, tickets to Nordstrom fashion shows, and the opportunity to pre-select merchandise from Nordstrom's biggest sale of the year (the Anniversary Sale).
At its highest levels, the programme offers customers the ability to design private shopping parties and to purchase Nordstrom shopping packages (such as trips to store openings, holiday shopping in cities like Chicago or San Francisco, and Nordstrom spa-and-shop getaways). Members also have the option of purchasing packages for red carpet events, including all the necessary travel and accommodation arrangements, as well as a personal wardrobe stylist to help prepare for the occasion.