The Nordstrom Way to Customer Service Excellence - Essay Example

? Nordstrom affiliation Nordstrom Nordstrom Inc is an American echelon grand department fashion retailer store that sellsthe finest products for affluent consumers (Spector, 2005). Nordstrom’s headquarters are in Seattle, Washington and was founded by John W. Nordstrom and Carl F Walin. Nordstrom has been listed among top 100 in the Fortune Magazine’s 100 Best Companies to work for (Spector, 2005). Nordstrom Inc started in 1901 as a shoe retailer store and later on expanded into a wealthy store of accessories, handbags, jewelry, clothing, fragrances and cosmetics (Spector, 2005). Moreover, there are select Nordstrom stores that have furnishing and wedding departments and it is known as one of the most popular fashionable stores in the United States. Nordstrom Inc Company is big in size and has a variety of operating stores in different states. It has 252 stores which function in 34 states which consist of 117 full line stores and 132 Nordstrom Racks (Spector and McCarthy, 2012). The Nordstrom Company has future plans of opening 5 stores in Canada by 2014. The company competes with a number of luxury retailers such as Marcus, Lord and Taylor, Saks Fifth Avenue, Bloomingdale’s, and Dillard’s are in competition with Nordstrom’s, but do not carry the same high quality merchandise (Spector and McCarthy, 2012). Nordstrom has the largest number of stores and the largest geographic footprint. All of these retailers offer items such as jewelry, cosmetics, perfume, clothing, shoes, and accessories. Nordstrom is rated as a chief department store in the United States. According to Spector and McCarthy (2012) Nordstrom’s mission statement values the prosperity that diversity contributes to the workforce; thus, efficient service to the clients (Spector and McCarthy, 1996). Nordstrom’s mission is all about supporting their employees in order to give their customers quality services. They are focused in providing outstanding services to their client in order to remain on top. They hire and train the best staff in order to realize their mission of provision of effective service at all times (Spector and McCarthy, 1996). They value both their clients and employees and that is why they will always remain on top of their competitors. The role of the HR in fostering the organization’s mission statement is by hiring qualified staff and equipping them with the right knowledge in order to serve their customers excellently (Spector, 2005). Moreover, the HR can also train the staff occasionally on how to handle their clientele and treat them with due respect and this will create conducive environment for them to serve the clients well. Moreover, the HR should make sure that the Nordstrom employees are well paid and this will make them feel valued an appreciated and they will do their work of serving customers outstandingly. Nordstrom serves wealthy customers in the United States. It has a highly trained staff that provides customers with superior customer service that no other store can compete on their level. They strive to make every customer’s experience enjoyable and upscale, so that the customer feels as if they are treating themselves upon every visit to the store. Nordstrom’s stocks are inclined to be more fashionable and upscale for their exclusive customers. Nordstrom also offers exceptional delivery on products upon request from a customer. Nordstrom’s carries a wide-ranging inventory on its floor, offering choices for men, women, and children (Spector and McCarthy, 2012). Nordstrom faces challenges just like other retailers face in the current retail climate. Their number one challenge would be the downturn in the economy particularly because Nordstrom sells high end products. Nonetheless, Nordstrom is able to meet this challenge head on by making a customer’s experience rousing and fashionable, so as the clients feel owned y the organization’s management (Spector, 2005). One big challenge being faced by Nordstrom is the economy. This is forcing the HR department to have to underpay their employees. There is a high rate of inflation and depression. Many consumers are seeking for lower prices and buying less what they used to buy as they think twice before spending what they have. With all these, many companies are recording low sales and this might in turn lead to companies letting go of some of their employees and also paying them less this affects Nordstrom too. In addition to that challenge, another challenge Nordstrom could face is the location for their stores depending on the social class or classes surrounding their location (Spector, 2005). The company might need to adjust their inventory, not to only satisfy their needs, but their budget since they are known to serve affluent clientele. Another major challenge the Nordstrom organization is facing is today’s retail climate is competition from other affluent stores like Brick and Mortar stores which have similar products like them. Moreover, there are other upcoming stores that may soon mirror Nordstrom’s exceptional service and in the end lure their customers. They should highly train their staff on how to attract and convince their customers that their products are the best in order to beat this competition from other department stores. Also, online shopping experience has become a bit more main stream; it is growing as the clientele ages. Moreover, the Nordstrom human resource department should be fully aware of the United States consumers and global consumers who are growing each and every day (Spector, 2005). The changes and effects the customer experiences in their personal budgets may curtail extravagant spending habits. Inventories will need to be carefully managed to match the times. In addition, another primary challenge Nordstrom faces in the current retail climate is price-competitiveness. Nordstrom faces fierce price challenges from other major department stores. Even though Nordstrom’s name and service speaks for its self, they must remain competitive in the retail business. The prices of products are changing as many stores offer better and lower prices in order to lure customers to their stores. Nordstrom Company should adjust their prices in order to be able to accommodate all people and not the wealthy alone or else they will lose most of their client to their competitors. Moreover, many clients have turned into buying products online and this will lead to a decrease in their sales. They should establish online buying in order to retain all their clients and increase their turn over. The HR strategy I would recommend for Nordstrom Inc is the Personnel Strategy. I believe this is the number one component and most important to Nordstrom’s. Their number one goal is to go above what other retailers in their marketplace are willing to do for their customer (Spector, 2005). Employees should be empowered to grant virtually all customer requests without failing. In addition, clients should be assisted with fittings, accessory guidance, make-up clinics and advice, and many other service oriented tasks. Sales personnel may suggest related items at the proper time. The sales experience should be leisurely and the customer should not be rushed for bigger sales experience that they take away once the sale is completed (Spector, 2005). For Nordstrom to compete in the U.S. market, they need to plan how they will deal with irrepressible forces by spotting and monitoring those forces that are pertinent to their operations. They also must estimate and predict market changes in these forces if they are to develop and expand effectual marketing plans and strategies. It is important for Nordstrom to understand what is going on in the social and cultural environment. The customer’s insights and behaviors are constantly changing and they should grow with all these changes. Nordstrom should increase its level of customer service to stay ahead of the competition and make the consumer content even if they are paying a premium for shopping at Nordstrom’s. Their customer care level can only be increased by hiring qualified staff and paying them well which will motivate their working. Another recommendation for Nordstrom is that the company should always have ethical business practices, take advantage of every opportunity to do free advertising, use technology to create more ways to meet the demands of consumers and hire Human Resource professionals to help the company save money by hiring other qualified employees. Moreover, the company should integrate marketing communication through promotional advertising. Nordstrom does not do much advertising or promotion; they only rely on their customers and their relation with them to promote the company (Spector and McCarthy, 2012). They rather spend their money on pleasing their customers meaning that if they need to take a loss but keep their relationship with their customers they will. They need to focus on advertising and promoting their company’s products in order to remain on top of the game. Nordstrom has a social responsibility and can do well in foreign markets and it can be done by being well known for its high standards clientele service and it is through advertising. Promotional advertising will be good for customers as well as gaining support from the outside world (Spector and McCarthy, 2012). However much they are known for an excellent presentation and being equipped with computerized inventory, they still need to advertise and promote their company’s products. They should also market their qualified staff worldwide in order to attract more customers. I believe the above recommendations will make Nordstrom Company be more competitive. This is because, when they are able to advertise and promote their products, they will maintain and get many customers around the world as they will be having a more qualified staff. Moreover, selling their products online will help retain their clients and also market their products making it more competitive. Nordstrom Company will have a competitive advantage over other major department stores by predicting marketing changes and conforming to the changes in advance (Spector and McCarthy, 2012). When their staff is motivated by the HR department and paid well, they will serve their clients outstandingly and this will increase their sales. Nordstrom is a renowned company that is outstanding and hiring and training a well equipped staff will make them remain on top of their competitors. However, Nordstrom Inc is a strong retailer that has been successful over the years. The great customer service, personnel, and the ability to meet all variables of the retailing mix make Nordstrom one of the main attractions in the retail business. Nordstrom functions at the full service continuum level. Not only do they offer great customer service according to the rating of their shoppers but also extend to their customers flexible return policies and credit services. Many other services are available to customers to make sure that their experience is enjoyable and personal. They should work with their Hr department in hiring the best staff and giving them a good salary package. This will motivate them into giving their customers the best thus making them more competitive. References Spector, R. (2005).The Nordstrom Way to Customer Service Excellence: A Handbook for Implementing Great Service in Your Organization. New Jersey: Wiley. Spector, R. and McCarthy, P. (1996). The Nordstrom Way: The Inside Story of America's #1 Customer Service Company. New Jersey: John Wiley and Sons. -------------------- (2012). The Nordstrom Way to Customer Service Excellence: The Handbook for Becoming the "Nordstrom" of Your Industry. New Jersey: John Wiley and Sons. Read More