Nordstrom: Focusing on a Culture of Service

<< Previous

"We keep it simple and follow a customer-focused strategy. It's not a brand, technology, price, merchandising, or any other kind of corporate strategy at Nordstrom-it's about staying focused on improving customer service and taking care of customers one at a time. While our focus doesn't change, the different tools and opportunities we have available to us continue to evolve, and so we’re taking advantage of them to do a better job of serving the customer. Our hope is that we can find more ways to build on our culture of service going forward".

- Colin Johnson, Public Relations Director, Nordstrom.

"[At] Nordstrom they zero in like a laser pointer on the right customers...and shower them with love".

- Lior Arussy, President of Strativity Group.

"...and if you’ve never experienced the quality of service that is 'normal' there (at Nordstrom), you’ve really missed something special".

- Mitch Schneider, Senior Editor, Motor Age.

Happy Employees - Happier Customers

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, unique clothing, and dressing rooms. According to Janet Eden-Harris, chief marketing officer for Market Force, "Nordstrom has cultivated a distinctive brand over the past century, and while it's known for its selection of designer clothing, its real claim to fame is quality customer service."

The other retailers featured on the list included Kohl's and Macy's. Nordstrom was also rated as one of the best organizations to work for. CareerBliss, an online career community, came out with a list of Happiest Retailers in 2011. Nordstrom was ranked at the number one position . In 2012, Careerbliss considered the reviews of 10,000 employees and once again ranked Nordstrom number one on the list. According to Heidi Golledge, CEO and co-founder of CareerBliss, "Nordstrom is one of the places on the planet that is consistently ranked on both customer service as well as employee happiness."

Since its inception in 1901, Nordstrom had operated on the principles of exceptional service, selection, quality, and value. The company's customer service philosophy focused on doing everything to satisfy a customer. This was supported by the culture in the company that empowered its employees. The company's culture revolved around customer service excellence and all the employees were expected to focus on providing the best service to the customers. The ultimate goal was having satisfied customers. The employees were empowered to take any decision that would benefit the customers. According to Erik Nordstrom, president of stores at Nordstrom, "[Our] sales associates are empowered to make decisions. We have one rule: use good judgment. That covers 99.9 percent of all situations.”

Due to this philosophy, Nordstrom was able to provide exceptional service to its customers. Delighting the customers started right from the time they entered the stores. The huge, brightly lit stores with a lot of space to move around instantly attracted the customers. Nordstrom stocked a wide range of merchandise in various sizes -even uncommon sizes -with the idea of not sending any customer back empty handed from the store. The sales associates helped the customers in selecting the merchandise, designing a look, choosing the accessories, and even in billing for the items purchased.

Serving the customers did not stop when the customers left the store. The sales associates sent a thank you note to them and called them later to find out about their experience with Nordstrom and the products purchased there. Thus, the sales associates built up a long-term connection with the customers and kept in touch with them constantly. Nordstrom's liberal return policy allowed the customers to return the goods purchased without a receipt, even after they had been used. According to Shep Hyken, a customer service expert and business author, "Superior customer service is a cornerstone of what makes Nordstrom Inc. a top retailer. They're not as interested in making money as they are in making their customers happy."

Background Note - Next Pages >>

---

Custom Search

---

Introduction to Human Resource Management Textbook Textbooks Collection	Introduction to Human Resource Management Workbooks Collection	Case Studies in Human Resource Management Volume V Case Study Volumes Collection