Nordstrom expands rewards to non-card holders

Nordstrom last week expanded its rewards program to allow customers without a Nordstrom card to earn points toward rewards. Customers now have two ways to earn $20 Nordstrom Notes:

• Without the card: Earn one point per dollar when paying without a Nordstrom card. Providing a mobile number enables members to earn points on purchases and redeem any accumulated $20 Nordstrom Notes.
• With the card: Earn two points per dollar when using the Nordstrom Visa credit card, Nordstrom retail card or Nordstrom debit card. Cardholders also earn early access to the Anniversary Sale, private holiday shopping parties, free alterations and personal bonus point days.

At 2,000 points, members receive a $20 Nordstrom Note to spend on anything at Nordstrom, Nordstrom Rack or HauteLook. "As customers' definition of service continues to evolve, we are focused on being responsive and delivering services and experiences that are important to them," said Erik Nordstrom, co-president, Nordstrom Inc., in a statement. He noted that more flexible rewards had been a customer request. On its first-quarter conference call in mid-May, Nordstrom officials noted that only about one out of five customers are part of its rewards program, but they account for roughly 40 percent of sales. “There's an opportunity to engage in a whole other pool of customers and to bring them into our loyalty program,” said Michael Koppel, CFO and EVP, on the call. “We have seen over time a multiple increase in spend, roughly four times spend and three times more trips of those that are engaged in our loyalty program.” Among its upscale competitors, Bloomingdale’s in 2012 introduced The Loyalist program that doesn't require a credit card, but Neiman Marcus still requires one. Macy’s, Kohl’s and Penney have programs for non-card holders as well as richer ones for cardholders.

• Nordstrom Expands Loyalty Program; Customers Can Now Earn Rewards Regardless Of How They Choose To Pay – Nordstrom Inc.
• Nordstrom Rewards – Nordstrom
• Nordstrom expands rewards program to lure customers – The Seattle Times (tiered sub.)
• Nordstrom (JWN) Q1 2016 Results - Earnings Call Transcript – Seeking Alpha
• At Bloomies, Loyalty for All – The Wall Street Journal (sub. required)

Source: Nordstrom