In the book one of the questions is “what are the design characteristics of an effective loyalty program.” The structure of their loyalty program and how they use the data collected through the program to make informed product, marketing and customer experience decisions are key to its success. The store’s frequent customers will be able to get perks like custom shopping parties and tickets to in-store fashion shows after shelling out just half as much as they used to spend to qualify for rewards. Loyalty marketing is and should always be much bigger than points, thresholds or incentives. It is about changing and influencing behavior in a proactive manner that creates long-term brand advocates who, in turn, enter into a dialogue with the brand. Nordstrom’s program is effective for a number of key reasons. First, even the lower levels of Nordstrom’s loyalty program are engaging because they offer meaningful soft benefits and because it’s aspirational, members remain engaged; they aspire to be at the higher tiers in the program so they can get the bigger rewards.
Another question asks is the Nordstrom program worth what it spends to reward customers. I think it does because when you reward your customers then they would want to come into the store and buy their supplies to build up their points. When they do that then they get awards. Example would be I have a credit card and I receive points, the more I spend then the more money I get off from that store. I use my card all the time and I go and pay it off. I would get a credit card from any store I shop at if they reward me to use