How can Nordstrom continue providing quality customer service and increase its brand loyalty?
Nordstrom has been portraying the best practice in consumer loyalty and service delivery. This case study describes how “Nordstrom accepted a set of tires purchased by a customer at Northern Commercial Company” (Kotler & Keller, 2012, p. 148). The company decided to accept the tires and compensate the customer. Nordstrom should continue with similar practices in order to remain competitive. Nordstrom’s No Questions Asked return policy will continue making the company a leading player in the industry.
Nordstrom employs many sales representatives across the county. The company also sends Thank-You cards to its loyal customers. Nordstrom should always use this practice to attract more customers. The practice will also increase the company’s brand loyalty. The company also keeps a Personal Book for its customers. Nordstrom’s sales representatives use this book to provide personalized services and shopping opportunities for every customer. This practice will always make Nordstrom a leading provider of quality services. The company also provides “multi-channels to make shopping much easier for every customer” (Kotler & Keller, 2012, p. 148).
The company’s online shopping experience ensures every customer gets his or her products in a timely manner. The company’s Customer Loyalty and Fashion Rewards Program ensures every customer is satisfied with its products and services. Such reward programs will always make Nordstrom a market leader. Nordstrom’s “free shipping, personalized customer services, and 24-hour emergency hotline ensures the company satisfies every customer” (Kotler & Keller, 2012, p. 148).
Nordstrom should always provide customized experiences and services to its customers. Nordstrom should also use these practices to attract more customers. Many citizens shop at Nordstrom because it offers the best customer support. The company’s return policy is also hassle-free. This practice will always attract more consumers. The approach will also make Nordstrom a leading competitor in the fashion industry (Zhang, Lu, & Li, 2011).
The company has devised new strategies to connect with more customers whenever it opens a new store. Nordstrom uses opening parties to achieve their objectives. These opening parties also include “live entertainment and ultimate shopping opportunities to raise funds for charity or local events” (Kotler & Keller, 2012, p. 148). These events give every customer an opportunity to understand Nordstrom’s core values. The events also encourage consumers to purchase and use the company’s products. This explains how Nordstrom focuses on a business-to-consumer branding practice. The company’s exceptional customer service will always support its branding strategy. This strategy will make Nordstrom a leading marketer.
Nordstrom’s greatest risks and biggest competitors
Nordstrom is a successful chain store in North America. The company markets branded clothes, fragrances, jewelries, and cosmetics (Kotler & Keller, 2012). The company also provides the best support, incentives, and services to its clients. The company achieves this by “providing top-of-the-line merchandise to every customer in the targeted market” (Kotler & Keller, 2012, p. 147).
One of the company’s risks arises from the current wave of globalization. Online marketing helps companies address the needs of their customers (Melchar & Bosco, 2010). According to this case study, Nordstrom has not embraced the value of online marketing. This explains why many apparel companies are becoming successful. The company should do something before it loses its market position.
The company focuses on customer loyalty. This explains why it might become less competitive in the future. Nordstrom has succeeded as a leading provider of customized services to its consumers (Kotler & Keller, 2012). The company has not improved the quality of its products. This risk might affect the company’s future performance. Nordstrom’s customers might decide to shop from other companies in the fashion industry. Nordstrom should also reconsider its branding practices in order to remain significant (Spiess, Joens, Dragnes, Spencer, & Philippart, 2014).
The company has not examined the strategies undertaken by its leading competitors. Nordstrom competes with different companies such as Saks Fifth Avenue, Bloomingdales, and Neiman Marcus (Melchar & Bosco, 2010). Nordstrom is a leading marketer because it has many stores across the nation. The company has failed to present better competitive strategies in order to remain competitive in the industry (Zhang et al., 2011). This risk can affect the company’s future performance and even make it less profitable.
Most of the successful companies in North America have globalized their operations. A globalized company will attract more consumers from different parts of the globe (Zhang et al., 2011). Many companies such as Starbucks Coffee, Cisco, and Hewlett Packard sell their products and services in many parts across the world. This explains why the company might become less competitive in the future. The company should also explore new markets such as South America, Asia, and Europe (Zhang et al., 2011). Nordstrom should also reconsider the best business practices. The company should also examine the business practices employed by its immediate competitors. These recommendations will make Nordstrom a leading player in the industry. The approach will attract and retain more customers. The above strategies will make it easier for Nordstrom to overcome these risks.
Kotler, P., & Keller, K. (2012). Marketing Management. Upper Saddle River, NJ: Prentice Hall.
Melchar, D., & Bosco, S. (2010). Achieving High Organization Performance through Servant Leadership. The Journal of Business Inquiry, 9(1), 74-88.
Spiess, J., Joens, Y., Dragnes, R., Spencer, P., & Philippart, L. (2014). Using Big Data to Improve Customer Experience and Business Performance. Bell Labs Technical Journal, 18(4), 3-17.
Zhang, Z., Lu, X., & Li, Y. (2011). Corporate Governance and Customer Satisfaction. International Journal of Business and Social Science, 2(9), 289-292.