The Nordstrom’s case study entails the description of a unique retail store that has become successful on a customer relationship basis. A discussion of the factors that have contributed to the success of the retail store for their long-term reputation has been included in the case study. Nordstrom began as a small shoe store and later embarked on the retail of various products across all its 200 stores and its online platforms that also serve customers. The company has maintained customer loyalty through its conflict management approach that tends to focus on customer satisfaction.
The customer service approach used by Nordstrom is different from the approach utilized by most stores. The unique customer service approach used by Nordstrom is guided by the belief that provision of exceptional customer service leads to customer satisfaction, paving the way to customer loyalty. Having focused on customer satisfaction, Nordstrom stands out, outperforming other retail companies in the industry (Lutz, 2014). Nordstrom has a unique approach that strives to minimize conflict through satisfaction of the customers’ needs and wants. By focusing on customer satisfaction, Nordstrom has managed to establish a long-term relationship with its customers. The successful relationship with the clientele is also attributed to by the approach of no questions inquired about the organization’s return policies. Nordstrom has embraced the perception that customer satisfaction creates an ideal shopping environment that motivates consumers to carry on their shopping experience. The company’s approach to customer service is also effective because it enhances a direct customer relationship at an individual level. Nordstrom has maintained an individual customer relationship through its acceptance of returns, years after the items were bought at the stores. Moreover, the items are accepted without the inclusion of price tags or receipts. The marketing team at the company focuses on customer satisfaction rather than generating profits for the business. The concept of marketing myopia guides the marketing team to believe that the customers will continue to purchase at the Nordstrom’s stores and online platform because of the satisfaction they derive from a variety of products. The profits that Nordstrom generate from their products are as a result of the quality of service and not the prices of the items. Customer loyalty at Nordstrom is also achieved through the exceptional customer service at the stores and on online platforms. The aspects of boldness and cooperativeness in customer service can be dated back to early 1901, a time when John W. Nordstrom came up with the company’s philosophy. The company’s philosophy of customer satisfaction has been maintained as Nordstrom ensures the provision of the best services to its clients (Nelson &Quick, 2012). It was the perception of John W. Nordstrom that the philosophy of customer satisfaction would lead to the success of Nordstrom, a factor that can be proved in the modern world today. Nordstrom has continued to develop their reputation for over a century by up-scaling their retail stores to over 200 locations in the entire country. Nordstrom has grown from a single downtown retail shop for shoes to a retail distributor of different products in the business cycle. The marketing strategy used by Nordstrom has created a positive public image as the company is known for treating its customers as an important factor for their operations. The quality of customer service that Nordstrom strives to achieve ensures customer loyalty, profitability, and an improvement of the company’s public image. Poor quality of service to customers can be devastating to the company’s reputation as the customers tend to detach from companies that do not embrace customer satisfaction. The approach to customer service that is used by Nordstrom focuses on credibility of the services that are offered by the company (Nelson &Quick, 2012).
Customer satisfaction has been the first priority of Nordstrom, a factor that keeps the company thriving in the competitive market. Handling of customer returns as separate cases is a major advantage of the Nordstrom conflict management. The company is on the record for replacing items that were purchased earlier on without the requirement of price tags or receipts. The customer service approach is also of benefit to the company as Nordstrom stands behind all its products to minimize the potential of conflicts with customers. Nordstrom has ensured its customer loyalty by personalizing the experience of each customer. Customers have purchased items from the company’s stores again and again, leading to increased profits in return. The company also keeps the records of its customers to highlight the personalized data for each client. Nordstrom recognizes the fact that each customer has different needs and wants that can be tracked through the use of mobile devices. The use of mobile devices has been effective to the company as it is easier to collect feedback and make necessary changes that are required to improve on company-customer relationship.
Despite the benefits that are associated with the company’s focus on the satisfaction of customer wants and needs, Nordstrom approach to customer service has its drawbacks. The company has mastered the art of hiding its flaws to maintain its good public image. The strategy that the company uses to accept old items that were purchased from its stores could lead to the company incurring losses. Nonetheless, the losses incurred may have a short-term impact on the company as the strategy motivates a long-term relationship with the customers. Being a high-end unique retailer, Nordstrom experiences the shortcoming of the target market that may not be attracted to expensive price tags. Not being able to meet the consumer demands could result in conflict as some customers may attempt to take advantage of the publicly known policy, causing Nordstrom to resolve to other terms that may lead to disappointment among customers.
Nordstrom has ensured the culture of customer satisfaction is promoted among every member of the company’s staff. The culture of company satisfaction embraces the concept of John W. Nordstrom, which asserts that the Nordstrom store would have never achieved its exceptional reputation were it not for its customer focus. The human resource management team at Nordstrom focuses on hiring qualified personnel and training them to be supportive to the company and its customers (Solomon, 2016). Among my friends are some employees of Nordstrom who have shared their experience at the company. For instance, Jessica Batson made it clear that it is of significance to carry out what the customers aspire to achieve by using the company’s items. Jessica Batson reiterates that it is important to accept the wish of the customers no matter the circumstances (Batson, 2016). Batson is a true replica of what the company stands for in ensuring customer satisfaction. For instance, Batson is on the record for trying on clothes for a customer who was the same size as her body. She was obliged to do whatever it takes to ensure that the customer is satisfied from the services offered by the company. She is an example of how the employees can follow a company’s philosophy to ensure the success of the company. Jessica Batson also made it clear that they do not use clientele books for records at her store. Nonetheless, she gave an insight on the personal customer experience by providing information on the need for a first name basis to maintain the personal customer experience. Batson also indicated extreme commitment to customer service when a customer required that his shirt was to be steamed. The work of steaming shirts ought to be conducted in a different section but Batson took the mandate to follow up on the steaming of the shirt. The efforts put in place by Batson indicate how Nordstrom built its reputation. The company may continue to be at the top position as a retailer industry if its philosophy of customer service is to be upheld for another century.