In Insight, Marketing, Retail

Nordstrom is the standard bearer for customer service among retailers. We’ve all heard the retail urban legend of a customer pushing the envelope on Nordstrom’s liberal return policy with the return of a tire. Nordstrom has been built on a foundation of customer service and is counting on the newly revamped loyalty program to attract new customers and get them to stay.

The Nordy Club will launch this fall, and is focused on personalization. The centerpiece of the new initiative is the “Nordy Portrait,” which will allow the consumer to create a unique user profile through the loyalty mobile app. The points in the program have also become more generous, with consumers receiving three points per dollar spent on their Nordstrom Credit Card, a 50 percent increase over the previous rate.

So do loyalty programs really work? According to Scott Menden, Nordstrom CMO, there are more than 10 million active members in the retailer’s current program, and they spend four times more and shop three times as often than non-member customers.

“Really, our loyalty program is a key part of our brand,” Menden told Glossy, speaking to investors earlier this year. “And it’s something that’s been vital to us for quite some time. Five years ago, 35 percent of our business was done through our loyalty program. It is now at 55 percent and growing rapidly.”

Read the full piece on Digiday.

Photo: William White via Unsplash

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