nordstrom customer service case study

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15.1: Building a Customer Service Culture: The Case of Nordstrom

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Nordstrom Inc. (NYSE: JWN) is a Seattle-based department store rivaling the likes of Saks Fifth Avenue, Neiman Marcus, and Bloomingdale’s. Nordstrom is a Hall of Fame member of Fortune magazine’s “100 Best Companies to Work For” list, including being ranked 34th in 2008. Nordstrom is known for its quality apparel, upscale environment, and generous employee rewards. However, what Nordstrom is most famous for is its delivery of customer service above and beyond the norms of the retail industry. Stories about Nordstrom service abound. For example, according to one story the company confirms, in 1975 Nordstrom moved into a new location that had formerly been a tire store. A customer brought a set of tires into the store to return them. Without a word about the mix-up, the tires were accepted, and the customer was fully refunded the purchase price. In a different story, a customer tried on several pairs of shoes but failed to find the right combination of size and color. As she was about to leave, the clerk called other Nordstrom stores but could only locate the right pair at Macy’s, a nearby competitor. The clerk had Macy’s ship the shoes to the customer’s home at Nordstrom’s expense. In a third story, a customer describes wandering into a Portland, Oregon, Nordstrom looking for an Armani tuxedo for his daughter’s wedding. The sales associate took his measurements just in case one was found. The next day, the customer got a phone call, informing him that the tux was available. When pressed, she revealed that using her connections she found one in New York, had it put on a truck destined to Chicago, and dispatched someone to meet the truck in Chicago at a rest stop. The next day she shipped the tux to the customer’s address, and the customer found that the tux had already been altered for his measurements and was ready to wear. What is even more impressive about this story is that Nordstrom does not sell Armani tuxedos.

How does Nordstrom persist in creating these stories? If you guessed that they have a large number of rules and regulations designed to emphasize quality in customer service, you’d be wrong. In fact, the company gives employees a 5½-inch by 7½-inch card as the employee handbook. On one side of the card, the company welcomes employees to Nordstrom and states that their number one goal is to provide outstanding customer service, and for this they have only one rule. On the other side of the card, the single rule is stated: “Use good judgment in all situations.” By leaving it in the hands of Nordstrom associates, the company seems to have empowered employees who deliver customer service heroics every day.

Based on information from Chatman, J. A., & Eunyoung Cha, S. (2003). Leading by leveraging culture. California Management Review, 45 , 19–34; McCarthy, P. D., & Spector, R. (2005). The Nordstrom way to customer service excellence: A handbook for implementing great service in your organization . Hoboken, NJ: John Wiley; Pfeffer, J. (2005). Producing sustainable competitive advantage through the effective management of people. Academy of Management Executive, 19 , 95–106.

Discussion Questions

Describe Nordstrom’s organizational culture.
Despite the low wages and long hours that are typical of retail employment, Nordstrom still has the ability to motivate its staff to exhibit exemplary customer service. How might this be explained?
What suggestions would you give Nordstrom for maintaining and evolving the organizational culture that has contributed to its success?
What type of organizational culture do you view as most important?
What attributes of Nordstrom’s culture do you find most appealing?

More From Forbes

What any business can learn from nordstrom customer service.

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To improve the customer experience and customer service at your business –whatever your size, whatever the nature of your business–I suggest benchmarking the greats of customer service wherever you can find them. And Seattle-based Nordstrom has been serving up a superior customer experience to customers ever since John Nordstrom cashed in his Alaskan Gold Rush claim to fund his first store in – I kid you not – 1901.

So, whether you’re in retail, hospitality, construction, banking, or technology, here are five quick lessons to take home right now for turning yourself into “the Nordstrom of [fill in the blank].”

1. Hire right, and then empower your employees. Sadly, I need to pause her for a mythbusting moment. That thing about Nordstrom’s employee handbook consisting of just one line ( “Use your best judgment in all situations. There will be no additional rules.”) isn’t true. Sorry. [You can read the 12-page Nordstrom Code Of Conduct here ; the line, "Use your best judgment" is just part of the remaining thousands of words of the Code .] However, sometimes myths get started because they reflect an essential reality. And this idea of a single-line employee directive to “use your own best judgment” does reflect the right way to succeed as a customer-focused business: Hire the right people and then empower them to be creative in support of their company and their customers, rather than micro-policying every moment. And I mean empowerment not as an add-on, but as their job ; make it clear to your employees that it is their job to take creative action, without asking permission, to think up the right solutions to issues that couldn’t really be fully encapsulated by a predetermined set of policies anyway. This is how you get the most out of your employees–and how your customers get the most out of your organization.

2. Make it personal: When you shop at Nordstrom, you have “your” person, by and large. This can be ad hoc, as in the salesperson who moves swiftly with you to help you select and ring up your purchases when you rushing into the store on your lunch break, or it can be longer-term and more comprehensive attention from a personal shopper who selects clothes she thinks will work with you, alerts you of the latest arrivals, and diplomatically warns you of what should be on your personal “what not to wear” list. So assuming that your business isn’t a clothing store, how can you make it personal? Simple ways include always sending marketing from an email address that can actually be replied to; having actual employees (with actual names, at least first names) handle your online chats, allowing employees to respond authentically to customers rather than slavishly having to follow scripts.

3. Charge what you’re worth, by minimizing price as a consideration.

Years ago, my friends and I used to joke that Nordstrom’s marketing slogan should be “We Will Not Be Oversold.” Our juvenile snark aside, don’t be afraid to charge what you’re worth, or what you need to charge to keep the lights on. To be able to do this, though, takes two elements: guts and providing an experience for your customers that minimizes price as a consideration. The “guts” element is what lets you charge what you’re worth; the experience is what makes paying those prices worthwhile to your customers. The more your business “thinks like Nordstrom” –makes it clear to customers that you have their back, makes the experience pleasurable and safe and personal – the more price fades into the background rather than being the central consideration.

… though you can still have fun with pricing. Nordstrom does have its half-yearly sales for men and for women. Does this fit with what I’ve written above about minimizing price as a consideration? Maybe not exactly, but…the Nordstrom sales are an experience , a chance to bring some excitement to the retail experience. They’re also a chance for a brand to show good faith; my personal Nordstrom shopper (Joanne Hassis at the King of Prussia, PA store, if you’re curious) makes a point of refunding the difference between full price and the sale price for anything I loyally bought from her at full price in the weeks leading up to the sale.

4. Use technology to streamline the customer experience and achieve “digital parity.” Department stores are a venerable business model, yet Nordstrom has an entire technology team devoted to streamlining the experience of retail for its customers. Specifically, Nordstrom is taking an approach that you need to embrace as well: striving for what I call “digital parity.” This is the idea that every business, offline or on, needs to be as good as the best purely online companies. One specific example from Nordstrom: They’re eliminating the need to wait in line to pay; with their mobile technology you can pay wherever you are–for example, as you are trying on shoes–with no queuing up needed. (You don’t have to wait in line when you’re online to pay, so why should you have to in the physical world?) Another example? Nordstrom’s embrace of 3D foot-scanning sizer technology to uncover your unique foot criteria (the precise height of your arches, for example) in order to match you to the perfect shoe without the need to try on every pair in the house.

5. Stay modest and always think how much better you can be than you are now. When you’re great at something, you can become narcissistic and prance around and preen, or you can do the opposite. Nordstrom, in my experience, studiously takes the second approach. They never—never—talk about how great they are, how great their customer service is. (They’re very much the un-Zappos in this regard.) No press releases, no nothing on this subject. Yet they’re held up as one of the true paragons of a great customer experience by so many (including me).

And this modesty keeps them open to improving. When I’ve covered Nordstrom in the past, I've received some lovely comments from Nordstrom employees, often running the following lines: “Thank you for recognizing us; it’s heartening to hear; we’re always trying to improve and be better than we’ve been before—for the benefit of our customers.” Now that’s a recipe for success

Micah Solomon is a Seattle-based keynote speaker, customer experience consultant, customer service consultant, trainer, and bestselling author .

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Nordstrom Case Study: How You Can Copy Nordstrom’s Retail Success

American upscale fashion retailer Nordstrom is outperforming every other retail company. Nordstrom’s success is built on excellent customer service. But is its employee handbook really only a single line long, as the widespread legend goes? We think there is more to it.

Retail Business Profile

Nordstrom’s success story is remarkably unswerving. Its sales are increasing every year, coming from $US 8 Billion in 2009 to $US 13 Billion in 2014. It has long been ranked around #250 in Fortune 50.

Nordstrom is said to have the highest sales per square foot performance in the retail industry.

It is listed on NYSE, with a market capitalization of almost $US 10 Billion.

Nordstrom, Inc. was founded more than century ago, in 1901. John W. Nordstrom and Carl F. Wallin started the company, headquartered in Seattle, Washington, as a shoe retailer. It has since expanded its inventory to include clothing, accessories, handbags, jewellery, cosmetics, and fragrances.

Some Nordstrom stores have a wedding and home furnishing departments, too.

Altogether, there are 323 stores operating in 39 states, including 119 full-line stores and 194 Nordstrom Racks, the latter expanding rapidly.

Despite its age, the company has adopted the innovative multichannel retail business model. It serves its customers through Nordstrom.com , the newly developed e-commerce site nordstromrack.com, and its online private sale site, HauteLook. For now, the online sales make 3% of total sales.

What to Say in Customer Service Handbook?

For many years, Nordstrom’s new employees were given a copy of the Nordstrom’s Employee Handbook, a single 5-by-8-inch (130 mm × 200 mm) grey card containing 75 words.

Nowadays retailer’s handbook has been streamlined to the company’s “One Rule”: “Use good judgment in all situations.”

Nordstrom is very focused on hiring nice, capable people whose judgment can be trusted to represent the company. This reflects in favourable salaries and working conditions, too.

Besides great financial results, the company has been present in Fortune’s “Best Companies to Work For” Top 100 for years, ranking around 90th .

While the “One Rule” truly exists, there actually are many rules and standards that are communicated by overseeing personnel or in other documentation.

A Nordstrom employee has listed some of these statistics:

– A Nordstrom salesperson rarely points. If you have a question about where something is located, they walk you there.

– salespeople are taught to walk your bagged purchased around the counter to you vs. just handing it across the counter., – salespeople can offer to ring up your purchase without you ever having to stand in line. this particularly happens a lot in the shoe departments., – departments are generally trained to answer the phone on no more than the 2nd ring..

How to Build Successful Customer Service?

As written by Micah Solomon in Forbes , Nordstrom and every other great organization have standards. Yes, the employees are encouraged to be flexible and adaptive, but there indeed are additional guidelines and internal, the codified knowledge that support the employees and multiply the power of their “best judgment.”

“Employee autonomy — “ using your best judgment ” — is extremely important to delivering Nordstrom-quality customer service,” Solomon writes. “And it crucially comes into play on the more complex and unpredictable tasks, of which there are many: selecting items for a customer’s wardrobe makeover, walking the line between honesty and not insulting a customer when she’s trying on clothes, finding ways to go the extra mile for a customer.”

Mr. Solomon provides this highly illustrative story: “For example, do you know who’s legally responsible if a common carrier leaves your Nordstrom delivery in the rain and your $200 shoes are ruined? Well, the responsible party might be you or it might be the trucking company, but it’s absolutely not Nordstrom. Yet, when this happened to me, not for an instant did my salesperson /…/ consider saying “You need to file a claim with the trucking company.”

The example ends with a pleasant and quick solution for Mr. Solomon:

” She instead told me, without hesitation, the following: “ I’m so incredibly sorry that happened, and I’m bringing over a brand new pair of shoes–will you be home in forty-five minutes? “”

This is actually a policy, not an initiative by the salesperson. Nordstrom will take back any merchandise people bring back, no questions asked.

In any Nordstrom retail store, you can easily notice that employees are clearly empowered, but it’s equally clear that Nordstrom is running a really tight — maybe the tightest there is — retail ship. Nordstrom-level customer experience is impossible to accomplish solely by empowering employees. There are standards and training, where the employees work with examples and model cases.

How to Build Business Standards?

There’s a refresher on standards in the Forbes article by Mr. Solomon: Standards help you ensure that each aspect of your service at your company reflects the best way your company knows to deliver it.

The summary of each standard should include three points:

1. Why the service is of value (why we’re doing this in the first place)

2. The emotional response the customer should feel

3. The expected method for accomplishing the service in question.

It’s important to use this exact formulation so that your employees — your empowered employees — know when and why it may be appropriate to deviate from the service delivery method you have recommended. “Most of all, it’s important to realize that standards and employee autonomy aren’t conflicting forces, ” Mr. Solomon concludes. “You need autonomy and you need standards, and the two need to work in harmony.”

Are there Other Keys to Retail Success?

Sure it cannot be just about customer management and employee policy. Business Insider lists 3 key factors that help Nordstrom to beat retailers from Macy’s to T.J. Maxx. Great customer service, i.e. factor #1 is what we know the best and already researched.

Besides that, Business Insider points of the retail outlet business. According to the company’s 2014 Investor Presentation, Nordstrom Rack that has grown from 17% to 24% of company’s operations in five years. Consider that Nordstrom has increased sales from $US 8 Billion in 2009 to $US 13 Billion in 2014, so the Nordstrom Rack is a huge cash machine for the company.

There is only a 10-20% overlap between Nordstrom Rack customers and the high-end department store, meaning that plenty of people are still paying full-price too. The Nordstrom Racks are a small operation that can be set up quickly. Nordstrom has opened more than 70 Rack locations since 2010 and has plans to build dozens more.

There’s obviously a great deal of supply chain optimization going on Nordstrom’s back office, provided by enterprise resource management software. Inventory management, central price lists, product information management, customer relations software, and integrated POS software are all essential tools for getting these results.

Retail Outlets to Reach Youth

Robin Lewis, CEO of The Robin Report, points out that Nordstrom has solved one of the biggest problems facing retailers: reaching millennial customers.

“The outlet business gives Nordstrom exposure to young customers who are seeking a deal and otherwise wouldn’t be shopping there,” Lewis told Business Insider. “The company believes that the younger customer will migrate into the full-line stores as they grow older.”

While Lewis believes there is a risk of the outlet business diluting the brand’s image, he says that brands like Nordstrom that offer a variety of brands are less at-risk than name brands like Michael Kors.

Omni-Channel Retail Experience

Part of excellent customer service to not to limit, where and when the customer can shop. While some retailers see online commerce as a threat, companies like Nordstrom are a proof that online and offline retail business can co-exists, and even benefit each other.

Nordstrom is apparently determined to be amongst the world’s top omnichannel retailers. Contemporary retail management software is perfectly geared to solving any supply chain problems. Evidently, omnichannel retail business does not mean just a possibility to shop both online and offline. A strong customer relations management backbone is vitally important, so Nordstrom can provide its notoriously great customer service.

“This company is at the forefront of e-commerce and omnichannel retail,” Robin Lewis has said. Nordstrom is innovating the shopping experience: recently made it possible to instantly buy the items featured on Instagram.

Employees also merchandise stores using input from its Pinterest page. Items that are popular on the social media site are featured more prominently on the sales floor.

Nordstrom has also aggressively invested in e-commerce, investing in men’s brand’s Bonobos and Trunk Club and its own flash-sale site, Hautelook.

“Nordstrom has spent more than a billion dollars investing in this aspect of the business, and it’s paying off,” Edward Hertzman, founder and publisher of retail publication Sourcing Journal, has told.

Conclusions

To sum up, how the retail giant has maintained its success story, we should detach retail policy and retail management tools. Nordstrom’s retail business policy is focused on their clients.

Their goal is to provide excellent customer service, so people not only buy more at one time, but come always back for more. For this, a set of internal standards is set, like the no-questions-asked return policy. It is true that Nordstrom’s main customer service handbook is virtually a one-liner, but other methods, notably training are used to communicate the rules to employees. Also, employees need to be more capable, and are rewarded accordingly.

Below the clearly visible retail customer service layer, there are retail management software tools. It would be impossible to personalize the experience without proper Customer Relations Management software.

The use of retail management software does not stop with CRM software.

As the company has big full-price stores, small retail outlets, discount outlets, and online channels, advanced Inventory Management software is inevitable. You have to match your supply and demand and be able to handle prices across different sales channels.

As pointed out, Nordstrom exploits different retail models and several trademarks, all of which have a similar set of suppliers. To manage the wide range of clothing and accessories, the company needs centralized software for Product Information Management.

Being an innovator in omnichannel retailing, Nordstrom has naturally complex, yet easily manageable Stock and Point of Sales (POS) system that support simultaneous online and offline retail experience.

So, to put it short, to copy the success story of Nordstrom, you need to build your business policy around customer service, and start using a retail management software system that is rich in features, integrates smoothly and facilitates growth.

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12.1 Building a Customer Service Culture: The Case of Nordstrom

Figure 12.1

Wikimedia Commons – CC BY 2.0 .

Nordstrom Inc. (NYSE: JWN) is a Seattle-based department store rivaling the likes of Saks Fifth Avenue, Neiman Marcus, and Bloomingdale’s. Nordstrom is a Hall of Fame member of Fortune magazine’s “100 Best Companies to Work For” list. Nordstrom is known for its quality apparel, upscale environment, and generous employee rewards. However, what Nordstrom is most famous for is its delivery of customer service above and beyond the norms of the retail industry. For example, according to one story the company confirms, in 1975 Nordstrom moved into a new location that had formerly been a tire store. A customer brought a set of tires into the store to return them. Without a word about the mix-up, the tires were accepted, and the customer was fully refunded the purchase price. In a different story, a customer tried on several pairs of shoes but failed to find the right combination of size and color. As she was about to leave, the clerk called other Nordstrom stores but could only locate the right pair at Macy’s, a nearby competitor. The clerk had Macy’s ship the shoes to the customer’s home at Nordstrom’s expense. In a third story, a customer describes wandering into a Portland, Oregon, Nordstrom looking for an Armani tuxedo for his daughter’s wedding. The sales associate took his measurements just in case one was found. The next day, the customer got a phone call, informing him that the tux was available. When pressed, she revealed that using her connections she found one in New York, had it put on a truck destined to Chicago, and dispatched someone to meet the truck in Chicago at a rest stop. The next day she shipped the tux to the customer’s address, and the customer found that the tux had already been altered for his measurements and was ready to wear. What is even more impressive about this story is that Nordstrom does not sell Armani tuxedos.

Discussion Questions

Despite the low wages and long hours that are typical of retail employment, Nordstrom still has the ability to motivate its staff to exhibit exemplary customer service. How might this be explained? How does Nordstrom maintain the organizational culture that has contributed to its success as they grow and do more and more business online? Are there elements of their customer service that you would suggest they evolve or adapt over time?

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What Is World Class? Customer Service Case Study at Nordstrom NYC

Access My FREE 5-Part Retail Sales Training Email Course!

It’s easy to bemoan retail right now and the lack of good customer service.

Disney just closed 60 stores as of September 15 - leaving only 25 from their fleet of 300 - to concentrate on ecom.

I think it is short-sighted – especially after all the fanfare Disney made about rescuing their stores from Children’s Place a dozen years ago and implementing their Imagineers to craft a unique space.

All sorts of digital-native brands like Allbirds and Warby-Parker are opening hundreds of stores as they realize the limits of direct-to-consumer (DTC).

But if you’re going to have a brick-and-mortar store, you have to do more than simply have a bunch of products made by a bunch of vendors who sell to you along with the rest of the world.

Otherwise, you end up like Sears who once dominated retail, innovated buy-by-phone or catalog and pick-up-at-store, and taught the world about how to deliver the last mile now a pile of broken strategies, selloffs, and stores.

You must have world-class customer service.

What is world-class customer service?

It is making a shopper feel like they are the most important person in the world. It’s that simple.

What does it take to create world-class customer service in retail?

The associate knows how to relate to the customer they are helping
The associate knows how to build rapport
The associate knows how to listen
The associate knows how to present additional options
The associate limits choices to groups of three
The associate adds the element of surprise
The associate knows the products inside and out
The associate enjoys the sales process
The associate keeps the energy going throughout the sale
The associate is used to selling more expensive items

Where do most retailers go wrong with their customer service?

The associate expects the customer will tell them what they want to buy
The associate points to where items are located
The associate hasn’t tried on, played with, or figured out the products they sell.
The associate needs voice lessons on how to talk to strangers
The associate hides from customers
The associate waits to be asked

Here’s the thing, you may think it is efficient to have your employee ask, “What can I help you with today?” on the off chance the customer knows exactly what they want and the associate can save their time.

But 90% of customers don’t know exactly what they want, if they did, they bought it online.

Retailers are being told at most every conference, podcast, special report, and webinar that what will rescue their business will be the latest last-mile Instacart partnership, using a new micro fulfillment company, robots in the aisles, or other tech-heavy investment.

Many of the digital initiatives touted as must-haves are distractions from the very core of your business, the brick-and-mortar stores are still responsible for 90% of your revenue.

Shoppers notice when they aren’t greeted.

When they have to find someone.

When they find someone and that person can’t converse.

When they are told the out-of-stocks have no alternative.

When they purchased what was on sale only to find it didn’t do the job.

And due to the last 18 months of the pandemic, those shoppers’ fuses are short for you to make up for it.

But how do you capture the interest of the customer who is making fewer trips to stores but buying more when they do ?

You become brilliant on the basics of making someone else’s day…

A case study in excellent customer service

Bill and I visited the New York City Nordstrom Men’s store. When we got off the elevator on the second floor, a smiling young guy said, “Welcome to the designer floor. Please let me know if you have any questions.”

I looked around while Bill told the guy he was looking for a new sports coat. The young man brought him to the middle of the store where an older salesman was just finishing up. His name was Matt.

Matt asked questions about what Bill had now and what he wanted differently. After giving Bill his full attention, he pulled out three different jackets. He assessed Bill’s size and corrected it as Bill tried things on.

He never stopped the conversation as he told a runner what he wanted and what size.

The three jackets were very different at the onset but as Matt worked, he honed into the right brand – Canali – and the right size.

He engaged me as well, asking where we were from, and I told Matt I was taking a few vacation days to visit the city. Matt shared that he and his wife had just returned from a cruise to the Bahamas and were glad to get back to work.

It turns out Matt had had his own women’s garment company in China. He learned how to build rapport and make the sale - he was a natural at it. A few years ago, a friend offered to buy him out, but then, after some time passed, Matt missed the fun of selling.

I must confess I have been to this Nordstrom a dozen times and never met anyone as engaged as Matt.

We looked for a shirt that worked with the jacket, but Bill didn’t want a dress shirt. Matt suggested a t-shirt which was something Bill had never done. “You just said you’d lost weight. Try it.”

That was Matt’s go-to line, “Just try it.”

So many people who work in retail never help a customer push through their own misgivings that it won’t fit, I’m too (old, young, tall, short) to pull it off, etc. No one knows until it is on their body.

Matt got the perfect t-shirt to try with the jacket, which was a hit.

We then moved on to the pants. Mind you, Bill did not say he wanted pants. He had not looked at pants. Matt had said, “Yes, you can just wear what you have on, and it will look fine.” But then he suggested a different fit.

He had his runner go down to the first floor and pick up three jeans – there’s the magic number of options.

The runner came back with the pants but they didn’t fit quite right. Matt got the tailor over to start on Bill’s jacket and he personally went downstairs to get one specific AG jean.

He returned as Bill was finishing up so I asked Matt why my new Canali jacket had no buttons on the sleeves. “They’re in the inside coat pocket. They must be sewn on after you buy it. Where did you get it?” I answered, “Another Nordstrom. Can I bring it in, and they can put them on while I’m in the city?” Matt answered, “Of course.”

Jacket done. Shirt done. Pants done.

I went off to look around. One thing luxury retailers like Nordstrom do is limit the number of sizes on the floor. It provides a cleaner look to the section and keeps the shopper squarely considering an item, not a rack. As I picked up a sweater in medium and asked if they had it in large what did Matt say to me? Try it on, it runs large . A jacket that was only in XL? Try it on .

I ended up with a Dior sweater.

When I returned to the store an hour later with my jacket, Matt introduced me to a different tailor. He showed me how my jacket needed more alteration than just buttons. He adjusted the shoulders and the jacket took on a different shape. “We need to move the buttons to balance the V it naturally wants to do.” He explained how he could put kissing buttons where one overlaps the other on the cuffs rather than standard.

I told the tailor I needed the jacket back for dinner that night by 4. It was 11. “That is impossible,” he said. Then looked at Matt. “It will be ready by 4.” I had become one of those demanding New Yorkers.

Yes, you can use a rental or subscription service for nameless, faceless people to make recommendations for you or you can encounter a human who truly knows what good customer service entails.

Why do I share this story?

There is a whole generation of untrained people running store operations these days. They don’t know what customer service – true customer service – looks like.

They don’t notice, understand, or appreciate all the micro-steps Matt took to make the shopping experience enjoyable.

They are so busy listening to their digital vendors about the new shiny object they feel they can only connect with a customer if they put in a rock climbing wall or Instagram background or a bar.

Sorry, activity doesn’t solve the problem…

The art and science of engaging a stranger, of building rapport, and making the sale are extinct from many retailers these days. It’s just an asked-and-answered world.

On top of that many frontline workers don’t seem to know what it feels like to be the customer. They are numb to how much shade they endure when they go shopping in their personal lives.

The time has never been better for retailers to become brilliant on the basics.

Bad news: Retail isn’t going to get easier.

Good news: While everyone has the ability to provide world-class retail customer service , only 2% of the world can do it naturally like Matt.

What did Matt do?

Had a team to assist and run
They also observed
Shared his trip to the Bahamas story
Knew the fit of his clothes and pants
Just try it on
Only three options at a time

For most of us, we must work at building rapport, being authentic and so must follow a process.

Instead of looking for more ways to follow the tech, store board rooms need to be focused on store teams if they want to gain market share.

And if you’d like help with that, whether through in-person training or my online portal SalesRX, you can find a time here to discuss .

Hey Retailers! Nordstrom Customer Service Problems Are Yours Too

3 Retail Customer Service Stories To Get You From Cringing To Caring

What To Do When Your Retail Customer Service Fails Miserably

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The Nordstrom Way: The Inside Story of America's #1 Customer Service Company Hardcover – May 1, 1995

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The Nordstrom Way: The Inside Story of America's # 1 Customer Service Company (NORDDSTROM WAY)

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"Nobody does it better than Nordstrom. And this is the first thorough, close-up look at its service secrets. A real winner."— Tom Peters President The Tom Peters Group

"Outstanding customer service and Nordstrom's are synonymous. The innovative approach has allowed them to find out what the customers want and then do it. Their standards of service are what we all shoot for."— David D. Glass President and Chief Executive Officer Wal-Mart Stores, Inc.

"Nordstrom is a national model for outstanding customer service. American business should use this book as a primer to learn how to make and keep happy, satisfied customers."— J. Willard Marriott, Jr. Chairman and President Marriott International, Inc.

"When you run a family business that includes your customers as extended family, you're unbeatable. This book outlines an American family saga that has become the admiration of the world."— Leonard A. Lauder President and Chief Executive Officer Estée Lauder Companies

"Nordstrom's business is built on one-to-one communication with the customer. Their professional salespeople bridge the gap between the designer and the consumer. The Nordstrom Way is what the '90s are all about!"— Donna Karan Designer and Chief Executive Officer Donna Karan Company

"The Nordstroms 'wrote the book' on customer service. Now we have a chance to read, chapter by chapter, how through four generations, this family has established one of the finest retail institutions in the world."— Peter Strom, Vice Chairman Polo/Ralph Lauren

When it comes to customer service, Nordstrom's standards are "what we all shoot for," declares David Glass, President and CEO of Wal-Mart. "The Nordstrom Way," marveled correspondent Morley Safer in a "60 Minutes" profile, is "not service like it used to be, but service like it never was."

What makes Nordstrom so special? What, exactly, does this retail giant do that so clearly distinguishes it from the competition? How does the Nordstrom customer service culture work? And, most importantly, what lessons can industry learn from Nordstrom's example?

The Nordstrom Way answers these questions and more. Coauthored by top Nordstrom salesman Patrick McCarthy and based on veteran journalist Robert Spector's exclusive, in-depth interviews with the Nordstrom family, senior executives, directors, and salespeople, The Nordstrom Way offers the first inside, uncensored book about this much admired— and much feared— retail powerhouse.

Working at Nordstrom is not for everyone. The authors describe a hotly competitive "Darwinian" culture where 35,000 employees are given freedom to either think and act like entrepreneurs or pass into extinction.

In the course of their analysis, the authors isolate practical lessons that readers can apply to both their professional and personal lives, including:

Becoming "other-centered" rather than "self-centered"
Valuing the nobility of service
Finding and bonding with customers
Serving and keeping those customers
Giving frontline people the freedom to make decisions

The Nordstrom Way is a vivid, richly anecdotal chronicle of an American business success story.

Print length 256 pages
Language English
Publisher Wiley
Publication date May 1, 1995
Dimensions 5.75 x 0.97 x 8.66 inches
ISBN-10 0471584967
ISBN-13 978-0471584964
See all details

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The Nordstrom Way to Customer Experience Excellence: Creating a Values-Driven Service Culture

Editorial Reviews

From library journal, from the back cover, about the author.

PATRICK D. McCARTHY, of Seattle, has been Nordstrom's top salesperson over the past 20 years.

Product details

Publisher ‏ : ‎ Wiley; 1st edition (May 1, 1995)
Language ‏ : ‎ English
Hardcover ‏ : ‎ 256 pages
ISBN-10 ‏ : ‎ 0471584967
ISBN-13 ‏ : ‎ 978-0471584964
Item Weight ‏ : ‎ 1 pounds
Dimensions ‏ : ‎ 5.75 x 0.97 x 8.66 inches
#1,117 in Retailing Industry (Books)
#2,313 in Customer Relations (Books)
#81,266 in Business Management & Leadership (Books)

About the authors

Patrick d mccarthy.

Discover more of the author’s books, see similar authors, read author blogs and more

Robert Spector

Robert Spector is recognized worldwide as the ultimate authority on The Nordstrom Way to Customer Service Excellence. His best-selling business classic The Nordstrom Way: The Inside Story of America's #1 Customer Service Company is the first and only up-close and personal look at how this company became the national standard of customer service. BusinessWeek said it "bubbles with customer service insights."

In March 2012, a completely new edition of the book The Nordstrom Way to Customer Service Excellence: How to Become the Nordstrom of Your Industry was released. Please watch Robert's author video to learn more about what's new - for YOU - in the new edition.

Robert has been involved in customer service since the age of 13, when he first went to work in his mother and father's butcher shop in the farmers' market in Perth Amboy, New Jersey. Working alongside his parents, he learned firsthand what it takes to take care of customers--and to keep them loyal. Those lessons inspired his latest book, The Mom & Pop Store, which features interviews with successful independent retailers from all over the world. Robert believes that the elements of world-class customer service are the same, whether they come from Spector's Meat Market, Nordstrom, or Amazon.com, the subject of his international bestseller Amazon.com: Get Big Fast.

Robert has been published in The New York Times, The Wall Street Journal, and USA Today, among others. When he is not speaking, training and consulting internationally about customer service, he lives in Seattle.

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15.1 Building a Customer Service Culture: The Case of Nordstrom

Figure 15.1

Wikimedia Commons – CC BY 2.0.

Discussion Questions

Describe Nordstrom’s organizational culture.
Despite the low wages and long hours that are typical of retail employment, Nordstrom still has the ability to motivate its staff to exhibit exemplary customer service. How might this be explained?
What suggestions would you give Nordstrom for maintaining and evolving the organizational culture that has contributed to its success?
What type of organizational culture do you view as most important?
What attributes of Nordstrom’s culture do you find most appealing?

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Nordstrom: Focusing on a Culture of Service

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Research Outline

Nordstrom customer experience superiority.

Quantitative and qualitative data point showing Nordstrom's customer satisfaction.
Case studies of how Nordstrom approaches its customer experience/service.
Case studies of how other retail stores operate their customer experience/service a lower level than Nordstrom's.

Early Findings

Data availability.

Our initial research suggests that data on Nordstrom's customer service quality is adequate however, data on how other retail stores operate their customer experience/service at a lower level than Nordstrom's may be limited.

Nordstrom's Customer Service

According to the American Consumer Satisfaction Index study, Nordstrom was the third-best retailer in terms of customer satisfaction with a score of 79.
Nordstrom scored 82 in customer satisfaction in 2020 in terms of internet retail, which was one point above the 2019 average of 81.
Nordstrom's customer experience is built on its simple proposition of taking care of its customers.
Nordstrom's customer service agents are taught to aim to answer the phone on no more than two rings .
Nordstrom's culture is to take back any merchandise a customer returns for either a refund or replacement , no questions asked.
We have provided some quantitative and qualitative data showing the excellence of Nordstrom's customer service.
Our initial research suggests that finding case studies on how Nordstrom's competitors provide
To provide more in-depth details and case studies on Nordstrom's and Nordstrom's competitor customer experience/, we recommend additional research. Details on our recommended research paths have been provided in our proposals below. Please select one or more proposals from those provided.

Nordstrom SWOT Analysis

Before we dive deep into the SWOT analysis, let us get the business overview of Nordstrom. Nordstrom, Inc. is a leading fashion retailer based in the United States, offering a wide range of products, including clothing, shoes, accessories, and beauty items.

Founded in 1901 by John W. Nordstrom and Carl F. Wallin as a small shoe store in Seattle, Washington, the company has since expanded significantly. It now operates over 350 stores across the US, Canada, and Puerto Rico, as well as an online presence.

Nordstrom’s primary focus is on providing high customer service and offering an extensive assortment of products from well-known and emerging brands. The company operates through several retail formats, including:

Full-Line Stores: These are traditional department stores offering a vast selection of products, ranging from designer wear to affordable fashion, cosmetics, accessories, and home goods.
Nordstrom Rack: A discounted off-price retail chain offering customers significant savings on designer and branded products. Nordstrom Rack caters to price-conscious consumers seeking high-quality products at reduced prices.
Trunk Club: A personalized styling service that provides curated, handpicked clothing selections based on individual customer preferences. Customers can choose to receive shipments periodically or schedule appointments with a stylist.
Jeffrey: A luxury boutique chain acquired by Nordstrom in 2005, offering high-end designer products in a curated and personalized shopping environment.
Online and Mobile Channels: Nordstrom operates an e-commerce platform through its websites, Nordstrom.com and Nordstromrack.com, as well as mobile applications, allowing customers to shop from anywhere and offering a seamless omnichannel experience.

Financial Performance : For the fiscal year ended January 28, 2023, net earnings were $245 million, and diluted EPS was $1.51, with EBIT of $465 million, or 3.1 percent of sales. Full-year revenue for fiscal 2022, including retail sales and credit card revenues, increased 5.0 percent compared with fiscal 2021. GMV increased by 5.0 percent in fiscal 2022 compared to 2021.

Here is a SWOT analysis for Nordstrom :

A SWOT analysis is a strategic planning tool used to evaluate the Strengths, Weaknesses, Opportunities, and Threats of a business, project, or individual. It involves identifying the internal and external factors that can affect a venture’s success or failure and analyzing them to develop a strategic plan. In this article, we do a SWOT Analysis of Nordstrom.

SWOT Analysis: Meaning, Importance, and Examples

Strong brand reputation : Nordstrom has built a solid reputation for offering high-quality products and exceptional customer service. The company has consistently received accolades for its dedication to customer satisfaction and its ability to provide a seamless and personalized shopping experience.
Diverse product offering : The company offers a wide range of products, from luxury brands to more affordable options, catering to a broad customer base with different preferences and budgets. This diverse product offering allows Nordstrom to attract various customer segments and maintain a loyal customer base.
Multiple retail formats : Nordstrom operates through several retail formats, including full-line stores, Nordstrom Rack, Trunk Club, and Jeffrey. This diversification allows the company to cater to different customer needs and preferences while minimizing the impact of a decline in a single retail segment.
Omnichannel presence : Nordstrom has invested in its digital capabilities, resulting in a solid online and mobile presence. The company’s seamless integration of brick-and-mortar stores with its online platforms enhances the customer experience and allows it to reach a wider audience, catering to their shopping preferences.
Innovative initiatives : Nordstrom is committed to staying ahead of the curve regarding technology and customer experience. The company has implemented several innovative initiatives, such as using AI-powered chatbots, virtual stylists, and personalized styling services like Trunk Club, to create a unique and engaging shopping experience for its customers.
Employee culture : Nordstrom places a strong emphasis on employee satisfaction and empowerment. The company is known for its positive work environment and offers employees training, development opportunities, and competitive benefits. A motivated workforce allows Nordstrom to maintain its high level of customer service.
Strategic partnerships and acquisitions : Nordstrom has pursued strategic partnerships and acquisitions to expand its product offering, enhance its customer experience, and stay competitive in the retail landscape. For example, the acquisition of Trunk Club and the partnership with Rent the Runway have allowed the company to diversify its services and cater to new customer segments.

Dependence on the US market : Nordstrom derives a significant portion of its revenue from the US market, making it vulnerable to economic fluctuations and changes in consumer spending habits within the country. This geographic concentration could impact the company’s growth and profitability during economic downturns.
Competition : The retail industry is highly competitive, with numerous players offering similar products at various prices. Nordstrom faces competition from traditional department stores, specialty retailers, discount stores, and e-commerce platforms. As a result, the company must constantly innovate and adapt to maintain its market position and stay relevant to consumers.
Slow international expansion : Compared to some of its competitors, Nordstrom’s global presence is relatively limited, with a few stores in Canada and none in other countries. This slow international expansion limits the company’s growth potential and exposes it to risks associated with a heavy reliance on the US market.
High operating costs : Operating large brick-and-mortar stores, particularly full-line department stores, can be expensive due to rent, utilities, and staffing costs. As a result, Nordstrom’s profitability may be impacted by these high operating costs, especially if sales decline or there is a shift toward online shopping.
Vulnerability to fashion trends : As a fashion retailer, Nordstrom is susceptible to consumers’ changing tastes and preferences. If the company fails to predict or quickly adapt to new fashion trends accurately, it may experience a decline in sales and customer loyalty.
Challenges in the off-price segment : Nordstrom Rack faces intense competition from other off-price retailers like TJ Maxx, Ross, and Burlington. Ensuring a consistent flow of high-quality inventory at discounted prices can be challenging, and any shortcomings in this area could negatively impact the company’s reputation and sales.
Supply chain risks : Nordstrom’s supply chain is susceptible to disruptions caused by factors such as global economic conditions, natural disasters, or geopolitical issues. Any disruptions in the supply chain could lead to delays, increased costs, or inventory shortages, which could harm the company’s operations and reputation.

Opportunities

International expansion : Expanding into new international markets can provide Nordstrom with a broader customer base and increased revenue streams. By strategically entering high-potential markets, the company can reduce its dependence on the US market and diversify its geographic risk.
E-commerce growth : Nordstrom can further invest in its e-commerce and digital capabilities to provide a seamless shopping experience for customers. Enhancing its online presence and leveraging innovative technologies can help the company attract more customers, improve customer retention, and increase sales.
Personalization and customer experience : Nordstrom can continue to enhance the customer experience by offering more personalized services, such as AI-driven recommendations, virtual styling, and tailored loyalty programs. These efforts can help build customer loyalty and differentiate the company from its competitors.
Expansion of private-label brands : Developing and expanding its portfolio of private-label brands can help Nordstrom increase profit margins and offer unique products that cater to different customer segments. This approach can also help the company differentiate itself from competitors and enhance customer loyalty.
Sustainable and ethical practices : As consumers become increasingly conscious of the environmental and social impact of the products they purchase, Nordstrom has an opportunity to position itself as a leader sustainably and ethically. This can involve offering more eco-friendly products, ensuring fair labor practices in the supply chain, and implementing sustainable packaging and store operations.
Partnerships and collaborations : Nordstrom can explore strategic partnerships and alliances with emerging brands, designers, or technology providers to enhance its product offerings, improve the customer experience, and gain a competitive advantage.
Strengthening the off-price segment : Nordstrom can focus on strengthening its off-price segment, Nordstrom Rack, by improving inventory management, enhancing the in-store and online shopping experience, and expanding its store network. This can help the company attract price-conscious customers and capitalize on the growing popularity of off-price retail.
Intense competition : The retail industry is highly competitive, with numerous players vying for market share. Nordstrom faces competition from traditional department stores, specialty retailers, discount stores, and e-commerce platforms. Increased competition can lead to price wars, reduced profit margins, and a potential loss of market share.
Economic fluctuations : As a retailer primarily focused on discretionary spending, Nordstrom is susceptible to economic downturns and changes in consumer spending habits. Reduced consumer spending due to economic uncertainty or recessions could negatively impact the company’s sales and profitability.
Shift towards online shopping : The rapid growth of e-commerce has led to declining foot traffic at brick-and-mortar stores. If Nordstrom fails to adapt to consumers’ changing shopping habits and enhances its online presence, it may struggle to retain customers and maintain sales.
Fast-fashion and changing consumer preferences : The rise of fast-fashion retailers and ever-changing consumer preferences threaten Nordstrom’s business model. If the company fails to keep up with the latest trends and cater to the evolving needs of its customers, it may lose market share to more agile competitors.
Supply chain disruptions : Nordstrom’s supply chain is susceptible to disruptions due to various factors such as global economic conditions, natural disasters, geopolitical issues, or labor disputes. Any disruptions in the supply chain could lead to delays, increased costs, or inventory shortages, which could negatively impact the company’s operations and reputation.
Cybersecurity risks : As Nordstrom expands its digital presence, the company becomes more vulnerable to cybersecurity threats, such as data breaches or cyberattacks. Any security incidents could lead to the loss of customer trust, legal issues, and financial losses.
Regulatory changes and compliance : Nordstrom operates in a highly regulated environment and must comply with various laws and regulations related to labor, health and safety, consumer protection, and environmental practices. Changes in regulations or failure to comply with existing regulations could lead to fines, legal issues, and damage to the company’s reputation.

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7.1 Building a Customer Service Culture

The case of nordstrom [1].

Nordstrom Inc. (NYSE: JWN) is a Seattle-based department store rivaling the likes of Saks Fifth Avenue, Neiman Marcus, and Bloomingdale’s. Nordstrom is a Hall of Fame member of Fortune magazine’s “100 Best Companies to Work For” list, including being ranked 34th in 2008. Nordstrom is known for its quality apparel, upscale environment, and generous employee rewards. However, what Nordstrom is most famous for is its delivery of customer service above and beyond the norms of the retail industry. Stories about Nordstrom service abound. For example, according to one story the company confirms, in 1975 Nordstrom moved into a new location that had formerly been a tire store. A customer brought a set of tires into the store to return them. Without a word about the mix-up, the tires were accepted, and the customer was fully refunded the purchase price. In a different story, a customer tried on several pairs of shoes but failed to find the right combination of size and colour. As she was about to leave, the clerk called other Nordstrom stores but could only locate the right pair at Macy’s, a nearby competitor. The clerk had Macy’s ship the shoes to the customer’s home at Nordstrom’s expense. In a third story, a customer describes wandering into a Portland, Oregon, Nordstrom looking for an Armani tuxedo for his daughter’s wedding. The sales associate took his measurements just in case one was found. The next day, the customer got a phone call, informing him that the tux was available. When pressed, she revealed that using her connections she found one in New York, had it put on a truck destined to Chicago, and dispatched someone to meet the truck in Chicago at a rest stop. The next day she shipped the tux to the customer’s address, and the customer found that the tux had already been altered for his measurements and was ready to wear. What is even more impressive about this story is that Nordstrom does not sell Armani tuxedos.

Discussion Questions

Describe Nordstrom’s organizational culture.
Despite the low wages and long hours that are typical of retail employment, Nordstrom still has the ability to motivate its staff to exhibit exemplary customer service. How might this be explained?
What suggestions would you give Nordstrom for maintaining and evolving the organizational culture that has contributed to its success?
What type of organizational culture do you view as most important?
What attributes of Nordstrom’s culture do you find most appealing?
Based on information from Chatman, J. A., & Eunyoung Cha, S. (2003). Leading by leveraging culture. California Management Review, 45, 19–34; McCarthy, P. D., & Spector, R. (2005). The Nordstrom way to customer service excellence: A handbook for implementing great service in your organization. Hoboken, NJ: John Wiley; Pfeffer, J. (2005). Producing sustainable competitive advantage through the effective management of people. Academy of Management Executive, 19, 95–106. ↵

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Nordstrom History Case Study- The Department Store Giant

Written by 440 Industries
Case Study , Experiential Branding , Nordstrom
March 15, 2022

Ask anyone in the retail industry, the biggest department store, and most of them will immediately mention Nordstrom. This upscale retailer has been around for more than a century and has successfully built a reputation for a great shopping experience. Throughout Nordstrom history, the brand has been synonymous with customer service. However, few people know Nordstrom history and how the brand became the department store giant. In this article, we’ll explore Nordstrom history and the company’s strategy for success. Without further ado, let’s dive in.

Nordstrom History: Opening of the Shoe Store in 1901

John Nordstrom, who was a 16-year-old Sweden, arrived in Minnesota in 1887 with only $5 to his name. After working across the United States for a while, he finally settled in Seattle. In 1897, he started heading north to Alaska, searching for gold, and he was lucky enough to find it. He opened a shoe store with Carl Wallin, a shoemaker he met in Alaska. The partners sold $1250 in shoes on the first day of opening in 1901. This made him $13,000 richer, and he decided to move back to Seattle in 1899.

It didn’t take too long before business began to pick up. By 1905, the business made up to $80,000 annually. The partners decided to open another store in 1923. However, Nordstrom decided to retire in 1928 and passed his business shares to Elmer and Everett. The following year, Carl Willin did the same and sold his shares to Nordstrom’s next generation. The new owners decided to rename the place Nordstrom in 1930. Three years later, Nordstrom’s youngest son Lloyd joined the family business.

Although Nordstrom left a large business to the new generation, it was up to them to build on their father’s success. They decided to increase the store’s size in 1929. Despite 1930 beginning with the Great Depression, the two Nordstrom stores made over $250,000 in sales. The stores survived the Depression and had to find a way to survive World War II. The leather rationing prevented US consumers from buying more than three pairs of shoes yearly. Therefore, the brothers had to search for shoe supplies around the country.

Nordstrom History – Expansion and Diversification

Decades after the war, the brothers built the company into the largest independent shoe chain in the country. The brothers decided to open two new shoe stores in 1950. One was in Portland, while the other was in a Seattle suburb. They remodeled the flagship store and stocked it with 100,000 pairs of shoes, the most extensive inventory in the United States. By 1961, Nordstrom had eight shoe stores and 13 shoe departments in California, Washington, and Oregon. That year, the company made $12 million in sales and boasted 600 employees.

However, in the 1960s, the Nordstrom brothers were at a crossroads. They didn’t know if they should expand their business into other retailing areas or expand the shoe business to the East and the South. In the end, they chose to diversify and bought a Seattle-based women’s clothing store called Best Apparel. They opened a new Best Apparel store next to one of their shoe stores in Suburban Seattle. Additionally, they purchased a Portland retail fashion outlet and merged it with their shoe store in Portland, which they renamed Nordstrom Best.

Late into the 1960s, the new department store started to take shape. The company opened five additional stores that offered a mix of shoes and apparel. By the time annual sales reached $40 million, they had changed the department store chain’s name to Nordstrom Best. The company continued to diversify over the years, and soon, they also offered children’s and men’s clothing.

Nordstrom History – The Third Generation

Everett turned 65 in 1968, and in agreement with his brothers, they decided to hand over the company’s reins to the next generation. Their sons Bruce, James, and John, family friend Robert Bender, and Lloyd’s son-in-law John McMillan took over the company’s reins. The company went public in 1971, offering Nordstrom Best stock in the market. However, the family members retained a majority of the stock. When sales topped $100 million, the company changed its name to Nordstrom, Inc and opened the first Nordstrom Rack . This was an outlet store the company used to sell old inventories at discount prices. The first Nordstrom rack was in the basement of the Seattle store.

Nordstrom continued to grow steadily and opened new stores while still diversifying and increasing the volume in the existing stores. It wasn’t long before the company hit $130 million in annual sales and decided to open three more stores in Alaska. The company also launched Place Two, a division that featured smaller stores offering a few shoes and men and women apparel. By 1977, Nordstrom had over 24 stores and made $246 million in annual sales.

Growth Fueled by Customer Service

By 1980, Nordstrom was already the third-largest specialty retailer in the United States and had 31 stores. Over the years, the store came to be known as an efficient, full-service department store. The company’s excellent customer service brought results as they maintained the highest sales in the industry. Although the company maintained huge inventories, its decentralized corporate structure allowed local buyers who knew their consumer’s preferences to make inventory selections. The company’s management also encouraged an aggressive sales force. Most of their clerks worked on commission and made up to $24,000 annually. Additionally, most managers were promoted from the salespeople rank, which intensified the desire to sell.

Nordstrom’s customer service became legendary as there were several tales of the salespeople’s heroic efforts. Clerks were famous for paying shoppers’ parking tickets, lending cash to strapped customers, rushing deliveries to offices, sending tailors to customers’ homes, and accepting returns. Motivational exercises were a routine at Nordstrom. Additionally, the company created a customer-friendly environment. Some stores offered free coat check services, piano players, and even concierge. Due to this and the economy’s boom in the 1980s, Nordstrom sales continued to climb till the company topped sales of $1.3 billion in 1985.

Transition in the Family’s Business

In the early 1990s, the five partners owned 40% of the business and maintained tight control over Nordstrom. Although the company suffered from the early 1990s recession, it continued expanding and opening new stores in the Midwest and East. However, there was a management transition in 1995. James, Bruce, and Jon Nordstrom, alongside John McMillan, decided to retire. Ray Johnson and John Whitacre replaced them as co-chairmen. Johnson retired in 1996, and the new generation replaced these co-chairmen, Blake, Erik, Bill, Pete, Dan, and Jim A. Nordstrom. These new generations were all in their early 30s and struggled with taking over in the sluggish and highly competitive sales environment of the mid-1990s. They found it hard to maintain Nordstrom’s position as one of the leading retailers in the country.

The company’s struggling continued during this period. Sales were lacking, and the company’s earnings were down. Most customers began to view Nordstrom’s merchandise as formal and didn’t keep up with their lifestyle changes, nor did it offer pacesetting fashion. The company decided to introduce a private label fashion line for women. They also replaced the company’s advertising with its first television campaign. However, it all backfired as the advertising campaign emphasized youthful fashions that the 20-somethings found appealing. However, the campaign alienated their core baby-boomer shoppers.

This led to Bruce retiring in Nordstrom history to take the chairman’s position while his son Blake became president. It wasn’t till 2003 that Nordstrom regained some of its lost lusters. Through new technology initiatives, it refocused its niche: luxury goods at affordable prices and cost containment. The new technology initiative allows the company to track sales minute by minute in all its stores. This system allows the company better target what they offer customers while reducing their markdowns.

Nordstrom’s Strategy for Success

Nordstrom history shows that Nordstrom is quite strong and has survived many downfalls over the years. If you want to know how this company remained relevant over the decades, Nordstrom’s strategies for success are below.

An Integration Between the Offline and Online Channel

The key to boosting online sales is an efficient offline presence. Over the years, Nordstrom continually integrated its online and offline channels. This department store giant was amongst the first retailers to offer curbside pickup. The company also entered into a partnership where they started accepting returns of online orders from competitors like Macy’s and Kohl. This was the company’s way of thinking about the customer’s needs. In return, most customers would end up shopping when they dropped off a return.

Nordstrom went a step further with its mobile app’s functionality by allowing customers to reserve products online that they would try on in stores. Customers could reserve a maximum of ten items they wanted to try on when they finally arrived at the store. When the customer is only 0.2 miles away, a sales associate will place their items in a fitting room and notify the customer when it’s set up. The company pushed the convenience feature further through its flagship store in New York City. It allowed customers to pick up orders at all times, whether the store was open or closed.

Nordstrom Innovative Store Formats

Another strategy that was successful throughout Nordstrom history was its innovative store formats. In 2017, the company launched Nordstrom Locals, which were small stores. This store’s focus was service and a great shopping experience. You could get a personal stylist at the Nordstrom local store. The store also offered pickup for online orders, alterations, shoe repairs, manicures, returns, charity drop-offs for used items, gift wrappings, and complimentary refreshments. These stores were popular because they made it easy to pick up and return online orders.

Partnerships with Trending Brands

When the beauty brand Glossier wanted to increase sales by introducing its fragrance to more customers, they chose Nordstrom as their partner. This led to the brand setting up pop-up shops in Nordstrom stores all over the country. Most department stores are viewed as outdated, but these partnerships allow Nordstrom to remain relevant to the younger generation. This is because Glossier already engages with a younger customer base. Through this partnership, they introduce this set of customers to Nordstrom when they visit the stores searching for Glossier’s merchandise.

Final Thoughts

As retail sales are shifting online, only department stores that pay attention to all business segments benefit the most. This is the case with Nordstrom, as Nordstrom’s history shows how the brand continued to grow and evolve over the decades. One of the company’s most notable features is its impressive customer experience. This allows the company to obtain new customers while retaining existing ones. There’s hope that opportunities will continue to appear for Nordstrom with growth in the fashion retail industry.

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Nordstrom continue to provide exceptional customer service

How else can Nordstrom continue to provide exceptional customer service and increase brand loyalty? Every retail company should want to strive to distribute great customer service. Customer service is basically the way employees interact with customers. Good customer service to me is greeting me with a smile when I enter the store, ask is there anything that I need assistance with, upon checking out ask if I found everything k and welcome me back to shop In that store again.

I hate going Into tortes where the sells representatives do not acknowledge customers when entering the store. I also feel it is rude for employees to hold personal conversations with other employees in front of customers. Personal telephone conversations are not good characteristics for good customer service. I think every company that works with the public should require their employees to take customer service classes as a prerequisite before starting on the job. The customer service field can be challenging at times, especially when dealing with irate customers.

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Employees must always remember to maintain the customer is always right mentality.

Nordstrom has been acknowledged on numerous occasions about their exceptional customer service. It’s evident that Nordstrom is above average with their customer service skills. My suggestion for the company is to keep doing whatever it is they are doing. My philosophy is if it’s not broke than don’t fix it. Build personal relationships with loyal customers. This will help you be able to assist the customer with their shopping needs and you would be able to make recommendations to them on new researched.

Nordstrom already provides a friendly, comforting environment which will automatically draw the customer back into the store. It is important for the customer to know that the focus Is on them. It Is suggested that Nordstrom can increase brand loyalty lowering the point and spending requirements for tier loyalty program. Nordstrom loyalty program engages customers and provide genuine benefits to frequent buyers. Loyalty customers are given early access to sales, free tailoring and other discounts.

Their eerie program encourages customers to remain loyal by encouraging them to spend more in order to gain further benefits. References Conning, Megan. (2012). Customer Service is Changing, and So is Nordstrom. Retrieved from http://blob.

Shop. Org/2012/09/12/customer-service-is-changing-and-so-is- Nordstrom/ Johnson, Mark. (2012). Nordstrom Loyalty Program Creates…

Loyalty. Retrieved from http://loyalty. Org/loyalty-directional/Nordstrom-lithography creates-loyalty Kettle, P.. ; Keller, K. L.

(2012). Marketing management (14th De. Upper Saddle River, NJ: Prentice Hall. 2 want are Nordstrom greatest rills, Ana won are It Deluges competitors? Every retail business will eventually face risk in the industry. One of the greatest risk Nordstrom may face is economic slowdown. The economic depression has caused a decline in consumers spending habits.

Job layoffs are causing consumers to cut back on spending and several retail companies are noticing the cutback with their decline in sales. The rise in gas prices and energy cost are affecting household exposable income.

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15.1 Building a Customer Service Culture: The Case of Nordstrom

Figure 15.1

Source: http://en.wikipedia.org/wiki/File:Nordstrom.jpg .

Case written by [citation redacted per publisher request] . Based on information from Chatman, J. A., & Eunyoung Cha, S. (2003). Leading by leveraging culture. California Management Review, 45 , 19–34; McCarthy, P. D., & Spector, R. (2005). The Nordstrom way to customer service excellence: A handbook for implementing great service in your organization . Hoboken, NJ: John Wiley; Pfeffer, J. (2005). Producing sustainable competitive advantage through the effective management of people. Academy of Management Executive, 19 , 95–106.

Discussion Questions

Describe Nordstrom’s organizational culture.
Despite the low wages and long hours that are typical of retail employment, Nordstrom still has the ability to motivate its staff to exhibit exemplary customer service. How might this be explained?
What suggestions would you give Nordstrom for maintaining and evolving the organizational culture that has contributed to its success?
What type of organizational culture do you view as most important?
What attributes of Nordstrom’s culture do you find most appealing?

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COMMENTS

15.1: Building a Customer Service Culture: The Case of Nordstrom
15.1: Building a Customer Service Culture: The Case of Nordstrom. Nordstrom Inc. (NYSE: JWN) is a Seattle-based department store rivaling the likes of Saks Fifth Avenue, Neiman Marcus, and Bloomingdale's. Nordstrom is a Hall of Fame member of Fortune magazine's "100 Best Companies to Work For" list, including being ranked 34th in 2008.
Business Case Study: Nordstrom's Culture of Customer Service
Nordstrom's Legendary Customer Service. Based in Seattle, Washington, Nordstrom is a multinational retail company that employs nearly 70,000 employees and has 200 locations. The company is known ...
What Any Business Can Learn From Nordstrom Customer Service
Now that's a recipe for success. Micah Solomon is a Seattle-based keynote speaker, customer experience consultant, customer service consultant, trainer, and bestselling author. Micah Solomon ...
The four secrets to Nordstrom's CX success
1. Happy employees, happy customers. When it comes to the tangible CX strategies that Nordstrom applies, Spector says that first and foremost, it's about living and breathing those principles every single day. It's also imperative to look after your staff, so they're better equipped to look after the customers.
Nordstrom Case Study: How You Can Copy Nordstrom's Retail Success
What to Say in Customer Service Handbook? For many years, Nordstrom's new employees were given a copy of the Nordstrom's Employee Handbook, a single 5-by-8-inch (130 mm × 200 mm) grey card containing 75 words. Nowadays retailer's handbook has been streamlined to the company's "One Rule": "Use good judgment in all situations."
12.1 Building a Customer Service Culture: The Case of Nordstrom
12.1 Building a Customer Service Culture: The Case of Nordstrom. Figure 12.1. Wikimedia Commons - CC BY 2.0. Nordstrom Inc. (NYSE: JWN) is a Seattle-based department store rivaling the likes of Saks Fifth Avenue, Neiman Marcus, and Bloomingdale's. Nordstrom is a Hall of Fame member of Fortune magazine's "100 Best Companies to Work For ...
Nordstrom: A culture of service
While Nordstrom's customer service was widely admired, the pace of change in retailing was accelerating and expectations around customer service were rising. Mobile shopping (or m-commerce) was quickly becoming the fastest growing space online. And the unparalleled access consumers had to information was tipping the balance of power in favor of customers. In response, Nordstrom
Building a Customer Service Culture: The Case of Nordstrom
However, what Nordstrom is most famous for is its delivery of customer service above and beyond the norms of the retail industry. Stories about Nordstrom service abound. For example, according to one story the company confirms, in 1975 Nordstrom moved into a new location that had formerly been a tire store.
What Is World Class? Customer Service Case Study at Nordstrom NYC
A case study in excellent customer service Bill and I visited the New York City Nordstrom Men's store. When we got off the elevator on the second floor, a smiling young guy said, "Welcome to the designer floor.
The Nordstrom Way: The Inside Story of America's #1 Customer Service
When it comes to customer service, Nordstrom's standards are "what we all shoot for," declares David Glass, President and CEO of Wal-Mart. ... tells how Nordstrom's earned that reputation. The work combines case studies and personal narrative with some history of the store. Each chapter helps the reader see one or more aspects of what has made ...
15.1 Building a Customer Service Culture: The Case of Nordstrom
15.1 Building a Customer Service Culture: The Case of Nordstrom. Figure 15.1. Wikimedia Commons - CC BY 2.0. Nordstrom Inc. (NYSE: JWN) is a Seattle-based department store rivaling the likes of Saks Fifth Avenue, Neiman Marcus, and Bloomingdale's. Nordstrom is a Hall of Fame member of Fortune magazine's "100 Best Companies to Work For ...
Nordstrom: Focusing on a Culture of Service
Seattle, US-based specialty fashion retailer Nordstrom Inc. (Nordstrom) was renowned for its exceptional customer service. Since its inception in 1901, the company's customer service philosophy had focused on doing everything to satisfy a customer. ... Case study Duration 0 sec Format Text Original Publication Date 2013 Page Count 17 ...
Nordstrom Customer Experience Superiority
Nordstrom's Customer Service. According to the American Consumer Satisfaction Index study, Nordstrom was the third-best retailer in terms of customer satisfaction with a score of 79. Nordstrom scored 82 in customer satisfaction in 2020 in terms of internet retail, which was one point above the 2019 average of 81.
Nordstrom: Focusing on a Culture of Service
In early 2013, US-based specialty fashion retailer Nordstrom Inc. (Nordstrom) was chosen as America's favorite fashion chain in a customer study conducted by research firm Market Force Information . In the survey conducted among 4,000 customers, Nordstrom was ranked high on attributes like customer service, ambiance, return policy, merchandise selection, ease of finding items, designer lines ...
Nordstrom SWOT Analysis
SWOT Analysis: Meaning, Importance, and Examples. Strengths. Strong brand reputation: Nordstrom has built a solid reputation for offering high-quality products and exceptional customer service.The company has consistently received accolades for its dedication to customer satisfaction and its ability to provide a seamless and personalized shopping experience.
7.1 Building a Customer Service Culture
7.1 Building a Customer Service Culture. The Case of Nordstrom [1] Wikimedia Commons - CC BY 2.0. Nordstrom Inc. (NYSE: JWN) is a Seattle-based department store rivaling the likes of Saks Fifth Avenue, Neiman Marcus, and Bloomingdale's. Nordstrom is a Hall of Fame member of Fortune magazine's "100 Best Companies to Work For" list ...
Nordstrom History Case Study- The Department Store Giant
Growth Fueled by Customer Service. By 1980, Nordstrom was already the third-largest specialty retailer in the United States and had 31 stores. Over the years, the store came to be known as an efficient, full-service department store. ... Nordstrom History Case Study- The Department Store Giant This article covers the beginning of the retail ...
Nordstrom continue to provide exceptional customer service
We Will Write a Custom Case Study Specifically. For You For Only $13.90/page! order now. Employees must always remember to maintain the customer is always right mentality. Nordstrom has been acknowledged on numerous occasions about their exceptional customer service. It's evident that Nordstrom is above average with their customer service skills.
Building a Customer Service Culture: The Case of Nordstrom
Case written by [citation redacted per publisher request].Based on information from Chatman, J. A., & Eunyoung Cha, S. (2003). Leading by leveraging culture. California Management Review, 45, 19-34; McCarthy, P. D., & Spector, R. (2005).The Nordstrom way to customer service excellence: A handbook for implementing great service in your organization
Conflict Management: A Case Study Of Nordstrom's Culture
Nordstrom displays the approach of competing as well. Returns are subsequently handled on a case-by-case basis with the customer succeeding with the return. "Nordstrom knows it is not the price but the customer service that gains and retains loyalty customers that generate strong profit" (Nelson and Quick, 2015, p 508).
Case Study: Nordstrom's Customer Service
Case Study: Nordstrom's Customer Service. Satisfactory Essays. 479 Words. 2 Pages. Open Document. Nordstrom support for customers built as a strategy. Customer service is the most useful offer Nordstrom has insisted to put in to use as you will want to utilize it on the web store to get your deals that make an impact on people who are called ...
Nordstrom Case Study
Essay on Nordstrom Case Study With 50,000 employees and 170 stores throughout the United States Nordstrom is a major player in the luxury goods department. Founded originally as a shoe ... Nordstrom's approach to customer service and customer relationship management is intended to build relationships that result in customers returning to make ...

15.1: Building a Customer Service Culture: The Case of Nordstrom

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Nordstrom Case Study: How You Can Copy Nordstrom’s Retail Success

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Nordstrom History Case Study- The Department Store Giant

Nordstrom History: Opening of the Shoe Store in 1901

Nordstrom History – Expansion and Diversification

Nordstrom History – The Third Generation

Growth Fueled by Customer Service

Transition in the Family’s Business

Nordstrom’s Strategy for Success

An Integration Between the Offline and Online Channel

Nordstrom Innovative Store Formats

Partnerships with Trending Brands

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