The Level of Customer Service at Nordstrom - Assignment Example

? Marketing Case Study: Nordstrom Marketing Case Study: Nordstrom Retail trade involves the final stage in the market chain that entails selling finished products or services to the final consumer. Nordstrom is a retail trader characterized by having many diverse departments under one roof and thus an example of a departmental store like Boscov's, Dillard's, JCPenney, and Lord & Taylor among others. These stores are characterised by the presence of many similar goods from varied manufacturers and varied goods from a single manufacturer. There is an overwhelming choice for shoppers in these stores due to immense variations in quality and prices of products on sale. Nordstrom, like other departmental stores has a central management in Downtown Seattle, Washington with stores spread in many other states. Another defining characteristic of Nordstrom as a departmental store is its high level of customer service, though this comes at a price, making Nordstrom products and services more expensive than in other retail outlets. Customer Service Nordstrom has cultivated a culture of full customer service whereby all the firm’s employees know the true meaning of putting customers first. First, important customers are identified, served well, and measures put in place to ensure they return over and over again to give Nordstrom business. The first measure is sparing no efforts to ensure that the customer leaves the premises with maximum satisfaction. In addition to acquiring goods, the customer gets high quality service utility. Secondly, business cards are exchanged between the customer and the sales person that they interact with. This ensures that the sales person has complete control of this relationship that is free from interference by the management. This sales representative acts as the link between Nordstrom and its customers, with only a rule stating that the former uses their best judgement to ensure customer satisfaction. Another strategy for ensuring a long-term relationship in Nordstrom includes follow up calls on customers informing them of new products. In summary, Nordstrom identifies its customers and gives them undivided attention to ensure a thriving long-term business relationship. On the other hand, there is Target. Target is a business enterprise that does not provide much choice of products for customers. In addition, Target has been widely accused of poor customer service and its lack of concern for customer needs. In contrast to the expensive Nordstrom, Target sells designer merchandise at discount prices but there are stringent rules for their sales. For instance, Nordstrom exchanges goods for customers even if they did not sell the said goods but in Target, after three days, sales are not reversible. Nordstrom encourages its customers to do business with them while in Target a willing customer may get a hard time in an attempt to be served. Factors Contributing To Company Success Six managerial and positional components of service in Nordstrom ensure the survival in a highly competitive environment including the six P’s i.e. product, place, promotion, price, presentation, and personnel. First, on product, the firm only sells according to its customer requirements as Eric Nordstrom said that business has to go on even if only one shoe was in sale. Second is the place consideration whereby the management puts all possible factors including, gut feeling, into consideration before setting up a new business. Promotion is the third factor and Nordstrom uses the customers’ word-of-mouth as their main promotional vehicle, giving customers the best service and counting on them to spread a good word about Nordstrom. The other factor is price and Nordstrom exploits the common belief that a higher price translates to higher quality of goods and services. Prices at Nordstrom are above normal. However, customers flood into the stores expecting premium quality service and Nordstrom does not disappoint. Presentation is the fifth strategy whereby products are presented just the way customers want them, like the customer who bought one of the shoes in a pair and the firm gained a lifelong customer. Finally, Nordstrom ensures that the personnel put the needs of customers first and they use their judgement and innovation to give the best service and support. Primary Challenges Tastes, preferences and fashion trends are the main sources of concern for enterprises in the business in which Nordstrom engages. This means that the biggest challenge is to keep the pace or even predict accurately the changes in the fashion industry for the firm to remain relevant in this industry and make profit. The next challenge is the need for uniformity in the goods and services available for sale in both quality and quantity. A varying degree of both creates an uncomfortable uncertainty in customers. This leads to loss of customers as they move to more familiar and safer grounds. Therefore, the firm has to work to maintain the customers’ interest in this volatile industry and in these hard economic times whereby people are changing their utility preferences while doing their shopping. Nordstrom must avail goods that are appealing to customers and keep up with the on-going changes in the fashion industry. The final challenge is whereby customer preferences and spending ability change due to factors beyond understanding or control of the Nordstrom personnel and management. The firm must act appropriately to eliminate or minimise liability from such incidences (Kotler, Armstrong, Wong and Saunders, 2009). Recent Changes in Competition Recent years have had major changes, some of which have resulted in decrease in business of departmental stores. For instance, there has been a major boom in online shopping and many customers prefer use of e-commerce on their computers, mobile phones and PDAs thereby eliminating the need for personalised customer care. It is a fact that today’s customers are more willing to practice self-service online than ever before (Lamb, Hair and McDaniel, 2011). This has resulted in loss of personal touch available only in traditional departmental stores. Advertisement has become an in thing in all communication media such that any business enterprise ignores the power of advertisement at its own peril. In addition, there are stores in all states offering high quality service at discount prices in response to competition and the hard economic times. The continuing recession has presented many consumers with threats of downsizing and retrenchment. This has made many to prefer cheaper products to fit their reduced financial muscle. References Kotler, P. Gary, A., Veronica, W., & Saunders,  J. (2009). "Marketing defined". Principles of marketing (5th ed.). Lamb, C. W., Hair Jr, J. F., & McDaniel, C. (2011). Marketing. In marketing: 2011 custom. 4th Edn. Mason, OH: South-Western Cengage Learning. Read More