|
|
Like this article? PLEASE +1 it! |  |
|
Nordstrom’s Loyalty Program Creates…. Loyalty
| Guest post by: Mark Johnson |
Article Overview: Nordstrom’s loyalty program has been one of the primary reasons customers are LOYAL to the brand.
 |
Free Download - Customer retention, engagement remain top challenges for 2012 By Mark Johnson |
Nordstrom’s Loyalty Program Creates…. Loyalty
There as an interesting article in today’s Wall
Street Journal about how Nordstrom Inc. in enhancing their loyalty program by
lowering the price of its rewards.
As the article explains, “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 use to spend to qualify for rewards.”
The retailer has always had one of the most loyal
and engaged member bases in the industry. 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.
Nordstrom’s loyalty program has been one of the
primary reasons customers are LOYAL to the brand (sales in 2011 increased 13%
over a similar period in 2010). 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. This dialogue is filled with rich behavioral insight and the
interaction gives Nordstrom the opportunity to listen to and respond in a
manner and channel that these brand participants want and keeps them engaged.
So, lessening the point and spend requirements
for the upper tiers of the four-tier loyalty program (to 5,000 and 10,000
respectively) gives Nordstrom the opportunity to expand the base and, more
importantly, consolidate the spend of their customers.
Nordstrom’s program is effective for a number of
key reasons. First, even the lower
levels of Nordstrom’s loyalty program is engaging because they offer meaningful
soft benefits, such as $100 of free tailoring. 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. Lastly, they offer
different reward values for different stores (Nordstrom Rack has more points
per dollar spend) which gives Nordstom the ability to further differentiate
their program and increase the engagement and loyalty of their customers.
This program change is coming at a time where
consumer spending and consumer credit are picking up. So if people are going to
start borrowing and spending, it is best to use a proactive approach and
develop a program that CHANGES behavior. “Fashion Rewards” members shop twice
as much as the average customer and spend three times the amount; this is
creating a sustainable behavioral change.
It is much easier to engage your audience and
create brand advocates when you develop and/or adapt a program that influences
sustainable behavior change.
Nordstrom’s recent move is the most lucid example in recent memory of a
comprehensive loyalty program that is predicated on voice of the customer. I
predict this is a market leading program that will further enhance the shopping
experience and increase engagement of their audience --- all of which will lead
to long-term loyalty and increased sales.
Revealed key elements of a successful customer loyalty programs
Why Customer Relationship Management (CRM)?
Customer Loyalty
A Unique Simple to Implement Customer Loyalty Program
5 Thoughts On Guest Loyalty
Tips on Building Customer Loyalty
Loyalty
Book Review: Peak: How Great Companies Get Their Mojo From Maslow
Is It's Never Too Late or Early to Build Customer Loyalty
Loyalty Programs
10 Ways To Improve Customer Loyalty
Top 10 Ways To Create A Hot Customer Loyalty Program
Loyalty and Leadership - 8 Ways to Earn The Loyalty of Your Employees
Quiznos and Loyalty Clubs
Inspire loyalty like great sports coaches.
Aeroplan mileage redemption levels to increase
What Makes Neiman Marcus' InCircle Work?
If you don’t take care of your employees… they won’t take care of your customers
Entrepreneurs – Have You Thought About A Loyalty Program?
Effective use of CRM software
Article Tags: Loyalty 360, loyalty marketing, retail, rewards program
|
About the Author: Mark Johnson RSS for Mark's articles - Visit Mark's website Mark Johnson is President and CEO of Loyalty 360 - The Loyalty Marketer’s Association (www.loyalty360.org). Loyalty 360 is the only organization that addresses the full spectrum of both customer and employee loyalty issues. An unbiased, market driven clearinghouse and think-tank for loyalty and engagement opportunities, insights, and responses, Loyalty 360 is the source business leaders trust for industry metrics, market driven research, actionable case studies, and networking opportunities. Prior to founding Loyalty 360, Johnson designed and administered loyalty, CRM and data-driven marketing communications for industry leaders such as Fifth Third Bank, Stored Value Systems and Size Technologies. A sought-after speaker and writer, Johnson is frequently called upon by media worldwide to share his expert insights into customer and employee loyalty issues. Johnson can be reached at markjohnson@loyalty360.org Click here to visit Mark's website   Nordstroms Loyalty Program Creates Loyalty IN THE CONTEXT OF CUSTOMER LOYALTY NEW NIKETIGER WOODS COMMERCIAL IS ON POINT Share of Mind Leads to Share of Wallet Brand loyalty drives higher ROI and stock price 2010 DMA Digital Marketing Days |
Related Forum Posts
Re: From Sales to Marketing
- Loyalty,
Glad to know a little about you. Yes, this forum holds quite a bit of useful information. We hope you will join into the conversations and get to know us. Welcome!
Re: How to develop sales contacts?
- Everyone has the right idea here. Depending on your business, there are different techniques that you could use. For consultants and sales heavy businesses, there are three tactics that I have found especially useful in my business:
1. Attend Networking Events
2. Cold Calling
3. Referral Program
4. Affiliate Program (most successful)
The affiliate program was successful for me, as I hooked up with a franchise consultant, and he gave multiple unit businesses that needed my credit card processing services. I highly suggest you hook up with a sales partner, and give him a cut of the monthly revenue.
Re: New web hosting site- would appreciate feedback
- Hi Jason,
Thanks for feedback. I had a look at Ryzeonline earlier and must say that your promo video is 'outside the box' Creates curiosity and the 'cant have it right now'..........
I have a lot of contacts in psychology/counselling, one of which advises marketing teams. Going to let her take a look and see what she makes of it.
Going to be a love or hate answer.
Think like an Association
- Hey Sebastian,
Maybe you could try thinking like an Association... I would study the structure or formats used by other Associations. What are they doing to add value for their members?
The BBB plays a monitoring role for consumers by gathering data about business' that are behaving badly. And they're pretty successful at it too.
Maybe you can offer a 'Platinum Program' that franchisors buy into. Accredited members only. Criteria could be strict:
1. Age (stability): 10+ years
2. Satisfied franchisees: 85% + satisfaction
3. Size (stability again): 250 units
4. Strong profits
5. Great management
-Maybe a 'Gold Program' for those Franchisors that aren't quite at that level, but can strive to reach it...
-Top 100, 500, 1000 Listing for qualified members... maybe a slap at Entrepreneur.com and their biased top 10 lists...
-Maybe act as a monitor like BBB?
-Maybe team up with FranSurvey OR do something similar for each member (not sure about Fransurvey's rep, but I like the concept)
There's so much discontent within the franchising arena that I think if you were part of the solution, then you could create a win/win with your Association.
The only downside is that this power can get abused if there aren't good checks and balances within the association.
Setting up Revenue Sharing Program
- Hi Martin
I know it must be confusing going through the process of setting up an advertisement when you're not actually going to use it, but it's how it seems to work.
For anyone else who has problems with this process, simply follow these instructions courtesy of magnify.net and make sure you have created your Adsense Account and it has been approved.
To create a [i:1b5dm29n]new channel[/i:1b5dm29n], go the main AdSense web site, login and click "AdSense Setup", then "Channels", then "Add new custom channels". You can call your channel anything e.g. evancarmichael.com
To discover the [i:1b5dm29n]channel number[/i:1b5dm29n] (so you can paste it into the Evan Carmichael Revenue Sharing Program) that has been assigned to your new channel, click "Products" and "AdSense for content", then create an ad (Just hit next, next, next until you reach Get Ad Codes) using your new channel and copy the number from the line that says "google_ad_channel = ".
Now enter that number into Evan Carmichael Revenue Sharing Program and you'll be setup.
Share this article with your friends. Fund someone's dream.
Leave a comment below or share on the left and you'll help support entrepreneurs in Africa through our partnership with Kiva. Over $50,000 raised and counting - Please keep sharing! Learn more.
by: Stan Prokop, Canadian Business Financing
Attitude is Altitude
How To Use Carbon Copy Pro As A Strategic Tool For Your Business
Best Automated Forex Trading Strategy
Build Your List with Joint Venture Giveaway Events
May 2012 Top 100 Social Media Experts to Follow on Twitter
Get advice & tips from famous business
owners, new articles by entrepreneur
experts, my latest website updates, &
special sneak peaks at what's to come!
Email us your ideas on how to make our
website more valuable! Thank you Sharon
from Toronto Salsa Lessons / Classes for
your suggestions to make the newsletter
look like the website and profile younger
entrepreneurs like Jennifer Lopez.