Nordstrom’s Rewards: Nordy or Nice?
If you are not familiar with Nordstrom’s and Nordstrom Rack stores, they are department stores with over 350 physical locations across 43 state, plus an online/app presence. They are known not only for their wide range of apparel, shoes and accessories, but also for their generous customer service. So we wondered if their rewards program would continue that generosity.
It took us a while to get used to Nordstrom’s rewards program name, The Nordy Club. Maybe it’s because we’ve never heard anyone use "Nordy" as a nickname for the store, or perhaps it’s just a little too close to “naughty” for our liking. Unfortunately, this program leans that way when it comes to value for its members—maybe their executives were trying to warn us.
Here at RoR we don’t normally dive into credit or debit card benefits when reviewing loyalty programs, but we’re making an exception here due to them being a huge part of the program’s value proposition.
Image Credit: Shutterstock
How YOU EARN:
The Nordy Club is free to join, and your phone number conveniently serves as your membership number, making it easy to ensure you earn rewards in-store and online. The program applies to Nordstrom and Nordstrom Rack purchases.
There are three main membership tiers:
Member (Base Level) – Earn 1 point per $1 spent.
Influencer – Spend $500 annually. Earn 1 point per $1 spent.
Ambassador – Spend $5,000 annually. Earn 1 point per $1 spent.
Now, you might be thinking, Wait, I move up tiers, and I still don’t earn points faster? Unfortunately, you’re correct. Most brands reward their best customers with higher earning rates, but Nordstrom bucks the trend. Why? Likely to push members toward getting a Nordstrom Credit or Debit Card, the only way to unlock higher point multipliers.
Here’s how cardholders fare:
Nordstrom Credit/Debit Cardholders – Automatically get Influencer status and earn 2 points per $1 spent on their card.
Ambassador Status Cardholders – Earn 3 points per $1 spent.
Nordstrom Visa Cardholders – Earn 1 point per $1 on purchases outside Nordstrom.
There’s also an Icon Tier, not widely promoted, requiring $15,000 in Nordstrom spending plus being a cardholder.
This chart shows the earning summary:
Image Credit: Nordstroms.com
Earning points are not the only benefit to the Nordy Club. Base members get free 2-day shipping, early access to Clear the Rack (a Nordstrom Rack sale event) and something called “Beauty Benefits” which has no details to be found anywhere so we assume it’s as useless as two left shoes.
Higher tiers get a few extra perks:
Influencer – 3 personal Double Point Days per year, priority access to style events.
Ambassador – 4 personal Double Point Days per year, plus an in-home stylist.
Icon – 5 personal Double Point Days, same-day delivery, and unlimited free alterations.
Image Credit: Nordstroms.com
How you Redeem:
The Nordy Club automatically converts points to ‘Nordstrom Notes’ when you hit these thresholds:
Base & Influencer – 1,000 points = $10 Note
Ambassador & Icon – 2,000 points = $20 Note
Using the Nordstrom or Nordstrom Rack apps may allow different redemptions, such as 500 points for $5 or 1,500 points for $15.
Nordstrom Notes can be applied easily online or in-store—finally, some good news!
What’s the Value?
(Note: by “return value” we mean how much are you save relative to how much you had to spend to earn it. For example, if you spent $100 to earn enough points to redeem $10, that’s a 10% return value).
The value of this program is where things get worse than finding out skinny jeans could be making a comeback.
Non-cardholders earn just 1% back. That means spending $1,000 earns you a measly $10. If Nordstrom advertised a "1% off sale," would you rush to the store? Didn’t think so.
Better retail loyalty programs start at 3-4% return value, increasing with higher tiers and promotions.
You can boost Nordy Club returns slightly by strategically using your Double Point Days, but even then, you’re maxing out at 2% back, and there are only 3-5 (based on your tier) Double Point days allowed annually per member. Ouch. Not really enticing to visit very often.
The stinginess in the # double point bonus days for higher tiers is clearly an enticement to get the credit or debit card where you can earn 2x or 3x points every day when using your card, which can then double to 4x or 6x points on Double Point Days.
Still, not everyone can—or wants to—open another credit card just for rewards. If you’re offering a free non-card dependent program it should be valuable on its own, and this one simply isn’t good enough in our opinion.
Let’s look at the full value of a non-cardholder Ambassador spending $5000 annually:
They earn $50-$100 in notes depending upon Double Points Days used.
Priority early access or access to events but value of this is unknown.
In-home stylist appointment once a year, valued at $350 .
Total confirmed value: $400-$450 off $5000 in spend. That’s much better at an 8%-9% but pales in comparison to brands like Ulta which are giving twice the return to their top tier members.
🕵️♂️ ANY Fine Print?
Yes, and none of it is good news.
Notes expire 12 months after issuance. Use it or lose it.
Lowest redemption option is $5 for 500 points. Spend $1,300 in a year? You’ll still only get $10 in Notes, further reducing your value return.
Promotions cannot be stacked.
THE VERDICT:
Regardless of your spending level, if you’re not using a Nordstrom credit or debit card, this program doesn’t provide enough value to be worth your loyalty. The 1% return is abysmal, and the limited number of Double Point Days don’t do enough to make up for it.
Cardholders can earn enough to make it worthwhile, but here at RoR, we focus on programs all consumers can benefit from, not just those willing to open store credit cards.
Rewarded or Robbed?
🚫 ROBBED!
Leave us a comment! Do you agree or disagree? Any further tips about the Nordy Club?
