Abstract

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. This was supported by the culture in the company that empowered its employees. The employees were asked to function like entrepreneurs and were free to go out of their way to provide the customers with the best service. It was not only direct interaction with the sales personnel but also the exteriors and interiors of the stores that reflected the company’s philosophy of making the customer comfortable. The well lit, wide aisled stores were laid out in such a way that the customers could move across the stores comfortably. Different departments were partitioned with low placed furniture, so that the customer could see the different departments at one glance. The stores also had comfortable rest rooms and dressing rooms. All the stores had spas and restaurants attached with them. Nordstrom stocked a wide range of merchandise to ensure that no customer left the store without finding the item he/she was looking for. The sales associates helped the customers in selecting the merchandize. The associates accompanied the customers to different departments till they had completed their shopping. The sales associates helped the customers in selecting the merchandise, designing a look, choosing the accessories, and even in billing for the items purchased. They built up a long-term association with the customers and kept in touch with them to let them know about discounts, sales, new stock, etc. The sales associates were free to discount the prices of items as and when required. The company had a generous return policy, and customers could return even used goods. To provide such high levels of customer service, the company empowered the employees, who were guided by the simple rule that they should use good judgment in all situations. With not many rules to follow, the employees could concentrate on providing the best service to the customers. The employees were rewarded generously in the form of commissions. Cases of exceptional customer service were recognized and rewarded. As Nordstrom completed a century of existence and entered a new era, it faced a different kind of challenge. With the advent of e-commerce, the role of customer service was minimized. However, Nordstrom continued to maintain that even in the digital era, customer service was still relevant.

Learning Objectives

The case is structured to achieve the following Learning Objectives:

• Understand the importance of customer service, particularly in the retail industry
• Examine the quality customer service provided by Nordstrom.
• Understand Nordstrom’s culture of customer service excellence
• Understand how the customer-centric policies and practices contributed to the success of Nordstrom
• Study the positive elements in the company’s culture and how it had contributed to creating high levels of customer service

Keywords

Nordstrom, customer service excellence, culture, liberal return policy, ambiance, unique clothing, empowered employees, delighting customers, merchandise, store design, restaurants, direct-to-customer, entrepreneurial spirit