Nordstrom restructures loyalty rewards program

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Nordstrom Inc. launched a new loyalty program this week called Nordstrom Fashion Rewards that incorporates the upscale department store chain's current points system while adding more benefits based on customers' spending levels.

Recognizing that customers who participate in its loyalty program shop more at Nordstrom, the new program was designed to earn more business from those cardholder clients and increase the retailer's market share.

Customers of Seattle-based Nordstrom earn points on purchases made with a Nordstrom card under the old loyalty program. They receive Nordstrom Notes certificates to use towards the purchase of merchandise or services at any Nordstrom store or Nordstrom Rack.

The new program will still include the points program but will also feature new rewards such as complimentary in-store services and access to red-carpet events.

There are three levels of benefits based on how much customers spend annually at Nordstrom. Some of the added benefits include complimentary standard shipping and alterations, invitations to private shopping events, access to a 24-hour fashion emergency hotline, access to purchase exclusive apparel and accessories, tickets to Nordstrom fashion shows and the opportunity to pre-select merchandise for Nordstrom's annual Anniversary Sale.

The program also lets customers design private shopping parties and buy Nordstrom shopping packages such as trips to store openings, holiday shopping in cities like Chicago and San Francisco and Nordstrom spa-and-shop getaways.

The restructuring of the loyalty program was based on extensive customer research, which included input from stores, a peer group study, focus groups and a customer survey.

Current Nordstrom cardholders will be automatically enrolled in the new program.

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