Nordstrom Customer Service Essay

Nordstrom has remained ahead of their competitors for one reason only: their impeccable customer service. Even though their current customer service strategies have created great customer loyalty, there are methods to increase this loyalty. One approach would be to enhance the customer's online experience. For instance, the company could provide a personalized experience by having shoppers choose from a variety of standard styles in order to understand their preference. After the analyzation, Nordstrom could pull all items from their inventory and suggest them one page to the shopper. The service would resemble a personal concierge service, but online. Not only does the personalization increase customer satisfaction, but it removes the hassle

of sorting through the clothes the shopper will not like. Since Nordstrom has a wide range of apparel, eliminating part of the browsing experience would not be detrimental to sales. In fact, it might encourage customers to spend more because they would constantly be shown items they like and wouldn’t be overwhelmed by a number of options available.

For example, it's best for restaurants to have a narrow menu because too many similar options can overwhelm the diner– the same concept applies here. Furthermore, this form of marketing would have to be permission-based because a customer might want to browse through the entire Nordstrom catalog and taking that experience away would harm the company. In addition, by combining this service with location data, Norstrom marketers have better insights on what styles their local retail stores should be stocked with. Next, in order to heighten customer interaction, Nordstroms could open a small cafe/lounge (Starbucks), or open a beauty boutique where customers can come for a one-stop shop. In doing so, Norstrom would become more than just a place to shop it would be an experience. Unless shoppers are extremely loyal to the brand, losing customers is inevitable even if customer satisfaction is high. Thus, to combat this Nordstrom could send out discounts or a free 15 dollar in-store reward to entice them to shop at the store

again. To do this, Nordstrom would need an advance customer value management system to tell the markets how long has a customer been away, and tell the markets how to reach this consumer in order to present them with a coupon. Overall, Nordstrom has great customer satisfaction. In fact, when googling “Nordstrom customer service” their toll-free line was the first link presented and the links that followed were filled with examples of their flawless service. However, just because Nordstrom might be the leader in customer service now, doesn’t mean they will always be. Thus, they should always be looking for new ways to improve and the suggestions above can help them do just that.
Since there are so many examples of Nordstrom's customer experiences, it makes it easy for competitors to copy their strategy. Ergo, one of Nordstrom’s greatest risks would be having their competitors create an equal or more exceptional customer service. If this were to happen, then Nordstroms would no longer be the leader in customer satisfaction and would just be an expensive clothing store with fashionable clothes. Likewise, another risk is if a competitor provides exceptional customer service and contains lower prices. Similar companies could very well beat Nordstrom in customer service and prices if they focused hard enough. High-end retailers such as Bloomingdale's, Neiman Marcus, Lord and Taylor, and Saks Fifth Avenue are all a threat to Nordstroms. Thus, it may be beneficial for Nordstrom to great differentiation by offering experiences such as a coffee lounge or a beauty boutique. Furthermore, Nordstrom's autonomy is a great risk. Even though it is currently working for the company, if employees are not trained right or given the proper tool, they may make the wrong decisions thus hurting the company. For instance, if their managers are not given the right tools then their freedom to choose whichever clothing they want in their stores may be completely different than what the customer actually wants. Likewise, if managers aren't trained properly then they may accidentally hire individuals who are unpassionate and unfriendly. Since, autonomy can be both a risk and benefit, the company must constantly be evaluating their training programs to ensure quality. In order for Nordstroms to remain successful, they need to be aware.
Tesco
The Tesco supermarkets and their excellent customer service are most important to the Tesco brand.

According to the Tesco website, they are focused on “serving Britain's shoppers a little better every day” (Tesco). To do this the brand is devoted to quality, training, appearance, and customization. The company is also fixated on going back to their roots. For instance, being a supermarket that focuses on providing the best value, is how they became a successful brand in the first place. Here, they also used customization to provide superior value and designed discounts to individual consumers. This type of customization is something the Tesco brand should focus on once again. Furthermore, the company’s attention is always directed towards delivering high-value products, easily to consumers. The company completes this in three steps. First by knowing their customers. Second by being the initial company to meet their demands. Finally, by contributing responsibly to the community (Tesco). Besides excellent customer service, they are committed to treating people right and making a difference. To do this, the company concentrates on lowering food cost, obtaining sustainable products and helping their neighborhoods (Tesco). Honing in on customer's needs, store quality, product value and the community is how Tesco has become the third largest company in the world (Kotler, Keller

155).
Tesco can grow in a number of ways without losing focus on its core customer. The first is by defining and measuring the company’s retention rate (Kotler, Keller 140). Once this is completed Tesco then understand the customer's apprehension and put policies in place to fix the problem. One of the best ways to understand a problem is through customer complaints. One of the best methods to improving a business is by making it easier for customers to voice their opinions, listening to the unhappy customers and responding/resolving the issue quickly. Complaints represent a flawed process in the organization, and by fixing it they are strengthening the company. Moreover, the company can use the data from their Clubcards to determine if there is a barrier between stages in the marketing funnel. This can help the company to identify a problem and help to deliver greater customer value. Furthermore, one of the most important methods to improving the organization is by improving the data they obtain from their Clubcards. Meaning, they can use the information provided to determine which customers are high-profit and low-profit customers. For the customer’s who are not profitable, they can use coupons to suggest a product that is profitable or suggests a discount when they spend a certain amount of money. For instance, the coupon could be for “five dollars off your purchase of 50 dollars or more”. A discount such as this would entice the low-profit customer to spend more, thus converting them into a profitable consumer. Likewise, the data from the Clubcard can show marketers what products are popular and which are not. In this case, they can determine which products they are making money on, which products they need to push more, and which products they need to remove because they are costing the organization money. Before removing an item, the Clubcard can offer a discount/suggest a similar product to the consumers who currently purchase the item. This way they are not angry when the item is removed because they have discovered a substitute. Which means, customers will not look elsewhere for the product and will remain a loyal customer.
Some important methods on how to improve the customer loyalty program were already mentioned previously. However, to add on to this the company could turn their Clubcards into an application. This would remove the hassle of having to carry a card or keychain around. Some consumers like to carry light wallets, and only bring what they need out. Thus, on occasion, they could forget their cards. Having a mobile app would ensure they always have their card with them. Furthermore, customers could easily see what discounts are available to them and when they are going to expire. Likewise, the application prevents customers from losing their beloved coupons. Most of us have been in a situation where they lost a coupon they wanted before getting to use it–it’s a frustrating situation. Thus, this application will remove all hassle and aggravation from the typical paper coupon. In addition, per suggestion by the Entrepreneur, a mobile club card would allow for easier communication and feedback (Lord). Having this mode of communication can build a strong customer relationship. As stated earlier, it's important for customers to have an easy way to voice complaints. If it is a hassle than they will mostly not voice their aggravations and avoid the organization completely. Overall, the Clubcards provide an immense amount of data that Tesco can use to improve its customer service as well as the organization as a whole. Improving the Clubcards will only aid in helping customers move across the marketing funnel and into the loyal customer stage.