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October 21, 2012

Nordstrom: How to Succeed by Selling Just One Shoe


Nordstrom: How to Succeed by Selling Just One Shoe
Nordstrom, Inc. is the leading fashion specialty retailers; the organization is founded in 1901 as a shoe store in USA. Now eighty six Nordstrom Racks, two Jeffrey boutiques, one clearance store and one hundred and fifteen Full-Line Stores is being operated under the management of the Nordstrom, Inc. Nordstrom also engaged in providing its services via online channels using secured transaction facilities. For information, Nordstrom’s shares are traded in NYSE as the stock symbol “JWN”. (Nordstrom, 2010)
Thesis Statement
Although Nordstrom, Inc. is enjoying the growth and income by providing outstanding products, customized services and consultancy but the current dynamic competition that is the major outcome of online transaction is creating the big challenge for the future prospect of the company.
Nordstrom's level of services, its type and the characteristic that its shares with other retailers.
It has almost the same characteristics in providing versatile customer services as other renowned retailers have such as Whole Foods Market, Festival Bay Mall that is located at Orlando, Florida as well as the Ethel’s Chocolate Lounges. All above entities have almost the same characteristic in providing the facility, gaining and retaining the customer confidence as well as maintaining and enhancing the good and long lasting relationships with their existing and prospects clienteles by announcing different offers and schemes.
Another common thing among the Whole Foods Market, Ethel’s Chocolate Lounges and Nordstrom is their origination. All of those three big giants of their domain started their business in USA from the scratch and now enjoying the benefits of persistent work and customer satisfactions.
 Nordstrom's level of service is remarkable as also described in book that “Patrick McCarthy, who was the first salesperson to generate $1 million, cites an example of a customer who was traveling and accidentally left his plane tickets in the store. An employee who found them paid for a cab to the airport with her own money so that the customer wouldn’t miss his plane. This, McCarthy says, is an example of “heroic service,” and at Nordstrom they expect nothing less.” That level of service is the complete example of providing full customer service that is delivered. Furthermore, it’s online shopping, personal stylist, live help and catalogue option feature is that type of flexible self services that it is hard to find any other place. Especially its personal stylist service that makes it unique from its rivals and that is the key catalyst to retain and enhance the clientele.
If Nordstrom's service is compared with the whole food market, here it should be remembered that it is discussing about the customer service and nature of products not the type of products. Therefore, as far as the product nature concern; both stores offer consumer goods. Therefore, the main difference that seems lack in whole food market is its customer services. Although the whole foods market stores claims about the fresh and quality by promulgating to follow the rules and regulations but most of the fresh products and items are gathered from different suburb areas and sources then accumulated and freeze to maintain the freshness than these items sold by tagging as a organic foods. Furthermore, there is no nay chance to have meeting with the real producers while the Nordstrom's stylist service has the ideal opportunity to have thorough discussion and meeting with proper appointments facility.
Exchange policy
Nordstrom is famous because of its generous exchange policy. “In a familiar story that has been forwarded around the Internet for years, a man claims he was allowed to return snow tires, even though the store never sold auto parts. It may be an urban myth, but it reinforces the company’s reputation for putting customers first. Even though the company loses some money on returns, they believe it’s worth it to keep customers coming back.”
Undivided attention
Lior Arussy, an Industry observer pronounced the Nordstrom’s business policy as “greed through love.” He expressed his observation in that words “Nordstrom have perfected the art of focusing on the right customers and giving them undivided attention.”
Customers Relationship
The Store has the long and interesting stories to build a healthy relationship with the customers such as their salespersons has special skills to build and continue the relationship for years. “Robert Spector, coauthor of The Nordstrom Way, says his favorite story is of a woman with one leg who jokingly bet a Nordstrom salesperson that he wouldn’t sell her just one shoe. He was more than happy to split up the pair, though, to her surprise, and Nordstrom gained a life-long customer in the process. “Who knows how many times she’s told that story?” Spector asks. “Do you think that that’s worth the price of a shoe? I do.” This kind of word-of-mouth publicity means that Nordstrom spends much less on traditional advertising than its competitors do. And the stories told by satisfied customers are much more persuasive than an ad in the Sunday paper.”
Consultancy
The Nordstrom has the proper consultancy and advisory services that give it the edge against it rivals. For this purpose Nordstrom sets future shopping dates, inform the customers about the new arrivals. “It’s a heart experience,” says McCarthy, who kept handwritten notes on all 12,000 of his personal customers over the years. “Most companies are head experiences bean counters are running them. When the heart is running them, it becomes exciting.”
Online Business
Their online system gave it the new shape and flexibility to the customers to shop in convenient style with saving money and time. At the result, this facility pushed the Nordstrom profit to another mile with happy clientele.
Customized Care
Nordstrom is famous because of its nurturing habit. Its personal stylist offer is such innovative that give the new shape to the customer service domain. Through this facility one can consult and take advices about the products with peace of mind that what should be chosen. This offer has the flexibility to customize your choices according to the budget. It Offer professional consultancy according to the occasions. Personal stylist shops for you in different department to satisfy your need with gift offering without any extra charges.
The primary challenge that is being faced by the Nordstrom is numerous but to be precise here I would like to discuss about the key factor that may cause to disturb the whole reputation. This factor is the Nordstrom’s online shopping feature. According to the observations, the customers who did online purchasing and transactions, most of the time they are unable to find that particular product inside the brick and mortar premises. According to my viewpoint it is the most critical element that may disturb the whole clientele’s confidence and trust.
According to the Nordstrom direct President Jamie Nordstrom,” We see the way people shop changing very dramatically”. The key reason of dynamistic in competition is the arrival of online facility and shopping opportunities that provide the ease to customers to easily analyze and compare the prices and products with different stores on just a click away. This trend is also changing the customer expectations about the product prices, variety and flexibility to have these, now the customer wants more customized solutions according to their needs and demand that could be ideally suited to their budget and preferences. On the other side this online flexibility is the big challenge for Nordstrom to stand still in the current highly tidal waves of rivalry.
Conclusion
After discussing in detail one thing in obvious that has the principal role of business success that is the customer trust and satisfactions that maintain and enhance the business. the online transaction facilities that further intense the competition must be address and managed properly because in current dynamic competitive business environment no firm could be succeeded without customer trust and satisfactions because these elements convince the customer to change or not to change their preferences.

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