Nordstrom Value Proposition

Nordstorm is an upscale retailer whose value proposition can be describes as:

 Quality
Value
Selection
Service

When you think of customer service, Nordstrom is one company that always stands out. 

 John W. Nordstrom, (the founder of Nordstrom) had a business approach that was to "provide exceptional service, selection, quality and value" to its customers. To this day, personalized customer service is seen as a key part of Nordstrom's value proposition.

Nordstrom uses customer solutions focused on making customers feel that the company understands them and is capable of providing them with customized products and services tailored to their needs. They value customers and want shopping to be pleasurable and hassle-free whether it's done in store or online. 

Nordstrom noticed through the years that customers wanted the same experience online as they'd get in the store. This made Nordstrom reflect and make changes and more features available to customers online. Nordstrom is always making adjustments to provide online customers with the same customer service.

In 2009, Nordstrom began allowing customers to make purchases online and be able to pick the product up in stores. Last year they also added free shipping and returns. Nordstrom is taking advantage of all their channels (store, online, mobile, and catalog) in order to integrate their customers' shopping experience across all these channels. Nordstrom stressed that "whatever the digital wallet is, we'll further evolve with it," meaning Nordstrom will continue to make adjustments based on current shopping trends and technology advancements. This is all done in order to ensure that every customer is presented with the best value, quality, selection, and of course customer service, no matter how they choose to shop at Nordstrom. 

Positioning

"Just because you have a great brick and mortar store, customers won't give you credit for that while they're shopping your lousy online store, and vice versa." said Jamie Nordstrom, president of Nordstrom Direct and great-grandson of Nordstrom's founder John Nordstrom.

Nordstrom positions itself as a purveyor of upscale fashion merchandise. They differentiate themselves  from others in that category by characterizing themselves as the upscale fashion merchandiser with unmatched customer service. Nordstrom knows that customers can go to other stores to get the same clothes for less money, but they will not get the same level of service. They know that people are willing to pay more for that specialized service.

The above chart shows Nordstrom.com's unique website visitors for the past year. They have pretty much remained steady over the past 13 months with a slightly higher increase during the month of December which would appear to be normal during the holidays. Nordstrom consistently provides online customers with excellent service, product selection, and assortment, as well as keeps their customers coming back and increasing new customer traffic.
 
Both in store and online we see that Nordstrom has evolved its brand positioning by building upon its initial equities, shoes, and service. Nordstrom first developed a reputation for having the largest section of shoe styles and sizes. It has also prided itself on impressive customer service and making sure they are doing everything possible to provide customers with desired merchandise.

Store vs. Online

Both online and in stores, Nordstrom offers customers a wide selection of merchandise with convenient category shopping and excellent customer service.

Online:

Nordstrom cited that 80% of the growth in its space will occur online. Their e-commerce sales  are up 40% from last year. They see e-commerce playing a huge role in their future. This is why they will continue to invest heavily in e-commerce and mobile commerce. Both e-commerce and mobile represent the changing nature of how consumers want to shop Nordstrom. "Direct is our fastest growing part of the business, which is reflective of how customers increasingly want to shop" said president Blake Nordstrom. He also said that a significant amount of future growth will come from online, which is why they will make necessary investments to stay relevant with their customers.

Nordstrom.com and Nordstrom brick-and-mortar stores mostly sell the same merchandise. There is a small assortment of products that are online exclusives and a small assortment of products that are in-store exclusives.

Online Exclusives
Nordstrom.com offers many online exclusives that provides customers with a larger merchandise selection when shopping on the website. Topshop is one brand that Nordstrom has created a partnership with. Only a very select few physical store locations sell Topshop merchandise. The majority of it is only sold online.  

Advance search engine - easy to navigate through product assortment

Same Quality Customer Service Online As In store 

Private Label Brands 

Nordstrom Rack

Brick and Mortar:

 Selective Store Locations 

Personal Attention and Hospitality
 employees "do whatever it takes" to help customers

 

 Nordstrom Rack Stores
Discounted merchandise sold in a separate Nordstrom store location

Multichannel Marketing Concepts:

Nordstrom exposes their full inventory to customers through their stores, the Internet, mobile devices, and catalogs, to reach customers on all channels. They are giving their customers a full picture of what's for sale.  Nordstrom makes a clear point that "you can't sell what you don't have, or what your customer thinks you don't have."

Nordstrom improved its multi-channel capabilities to enhance their already superior customer service. Nordstrom connects shopping channels in many ways. One being that customers who purchase a product online have the option to pick that item up in a near by store.  This connects their online customers' experience with an in store experience all in one purchase.

Nordstrom incorporates other multi-channel concepts through: 

Mobile Apps

Pick up in store

Catalog 

 

Aesthetics

Whether in stores or online, Nordstrom's presentation is always visually impressive.

 

Nordstrom.com is very visually appealing to customers from the moment they enter the website. The background on their website is a crisp white that lets the bold product images really stand out.  The basic black font is a nice contrast and keeps the website sleek. The navigation bar is easy to locate and is very convenient to find and shop different categories.

They offer trending recommendations, Lookbooks, advanced search, detailed product images, and multiple zoom options on products. 

Basic navigation exists for trending products.  A select arrow allows you to view more products. Products include clear images, product details, color options, prices, short product description, and customer ratings. 

 

Lookbook's offer a fun unique feel to shopping. It provide customers with unique styling and trend ideas, as well as adds an editorial feel to Nordstrom.com.

Products are shown on models, flat, and on mannequins. Product pages are organized and customer ratings are easy to find as are product descriptions, sizes, price, color options, add to shopping bag or wish list, and use an advanced zoom feature. 

Customers are also offered various options when viewing a product for other items to complete a look, and/or similar products to the one they are currently viewing.

Editorial/ Descriptive Writing

Blogs:

Nordstrom has four different blogs within their website for its shoppers to read, learn about new products, see behind the scene, follow Nordstrom through fashion week, get styling and trend tips, watch videos, and more!

Product Description:
Nordstrom's product descriptions are detailed and to the point. They provide details  about the product's materials, measurements, and other basic information. The product is also described with a fun sentence explaining what exactly it is and does and how it  will look when you wear it. This definitely adds personality to the product descriptions making  each product feel individualized and more appealing to the customer. 

Advertorials:

Nordstrom does many different types of features on their Blog; The Thread. One Advertorial that stood out was a collaboration called NYLON x Nordstrom, with Nylon TV and blogger Olivia Lopez from Lust For Life. They created a video where Olivia is  shown shopping and selecting  merchandise from Nordstrom's Savvy department styling and creating  different looks. Although this form of Advertorial was not in a written format, she was able to share her thoughts through a video, which can be even more personal to viewers and shoppers of Nordstrom's Savvy department. She discusses why and what she loves about these Nordstrom products. Olivia stated that with Nordstrom's Savvy department she can create "killer looks with killer prices, that are perfect for whatever you're up to, whether it's date night or just a casual hangout with friends". Not only is Nordstrom drawing attention to their Savvy department but they have someone who can relate  to these shoppers. She shared her opinion regarding what makes this department so great to shop at. 

Trend Info:

Nordstrom's Blog is filled with trend tips for its customers. The "Trend Note" page on "The Thread" shares stylist's picks, what items to wear now, inspirations, new products, street style, how to videos, and more.  

Supply Chain

Nordstrom has multiple  distribution centers including locations in Florida, Iowa, California, Maryland, Oregon, and Utah. Their distribution centers are what keeps products moving for Nordstrom. They are located nationwide and send merchandise directly to stores and to customers. 

Nordstrom.com's fulfillment and contact center is located in Cedar Rapids, Iowa. The Iowa facility has a large role in the Nordstrom supply chain as it not only processing customer orders, but returns and inbound merchandise as well. 


Example supply chain, similar to Nordstrom's

If a shopper is looking at a designer handbag on Nordstrom.com, they could see where it is available at nearby stores, and reserve it for pickup the same day. In addition, if the web warehouse is out of that bag, it does  not matter. Inventory from Nordstrom’s 115 regular stores is also included. Even if there is  just one handbag left in the entire company, at one store location, it will still be displayed online and store employees will ship it to the online customer once it is purchased.

Nordstrom has extremely detailed and specific rules that it requires each of its suppliers to follow. The handbook which can be viewed here, includes how to properly label, measure, fold, ship, etc., each package and its products. They monitor all their supply chain vendors, distributors, and wholesalers very carefully as they believe when producing merchandise it is important that they are ensuring their core business standards are being practiced and that "all applicable laws regarding health, safety, and fair workplaces are upheld." As part of this, Nodstrom takes part in the California Transparency in Supply Chains Act (2012). With this, Nordstrom expects all their business suppliers to act and conduct business with the proper regulations and safety measures for all workers. 

E-Commerce Customer Relationship Management

 Addressability

Nordstrom is able to acknowledge specific shoppers when they first enter the website. They target customers with specific interests and recommendations. Information is also provided about their products for customer needs and wants before they make a purchase. 

Interactivity

 Nordstrom.com is very interactive and keeps customers interested and on the site longer. They offer customers with live chats to ask about products, find out more information, or any other questions or concerns they may have. This can all be done instantly and at the same time the customer is shopping and browsing the merchandise. 

The website also has a feature where customers can be helped to find their best size in each brand's merchandise. It makes online shopping easier and more convenient for customers to avoid purchasing the wrong size.

Nordstrom offers all customers a recommendations page regardless if they are logged into an account or not. Recommendations pages include previously viewed items (for account users), trending items, and best selling products. All of their interactivity efforts help maintain high quality relationships with each existing customer.

Memory

The Nordstrom website is able to record previously viewed merchandise when a customer is signed into an account. It is also able to locate customer's profile in the database, and then display the customer's past purchases and offer new product suggestions while the customer is still visiting the site. The customers' account page will also provide them with a history of their past orders. 

Control

The site allows for customers to have control over their own shopping experience. It offers features to search items based upon category, color, price, and brand. This can be very helpful when looking for a specific product. It pulls customers to do more refined searches in order to provide for a more pleasant shopping experience on Nordstrom.com  

Customers can shop the website through categories such as clothing, shoes, accessories, beauty & fragrance, designer collections, or wedding. They can also shop by trends, Lookbooks, and brands. Within each category, customers can choose other categories. For example, in the clothing category, a customer can shop new arrivals, tops, dresses, sweaters, complete looks, active wear, work apparel, etc.

Accessibility

When viewing a specific product, customers are provided with detailed information to help determine if they are interested in purchasing this item. To the right of the picture there is a box with information that includes product material, measurements, description, where the product was made, and other relevant details. Customers are able to select product color and size, and are also provided with more detailed sizing information below. The product image page also displays details about shipping, returns, and the in-store pick up option. Product pages also include Nordstrom's social media icons which allows for customers to easily share products. 

Digitalization

Nordstrom.com has fast web page speed and clear detailed product photos. Nordstrom also has mobile applications which load quickly and have clear images with bold colors. The mobile app has a bar code scanner for customers to search a product quickly. This can be an advantage when shopping in the store to see if other sizes or colors are available. The application also has a sort feature for customers to select merchandise from newest, price high to low/low to high, sale, and ratings. Another feature on the mobile app is a filter feature. This allows customers to pick a specific price point, color, category, brand, and store location based on zip code. 

SWOT

Strengths: Offers the best possible customer service, selection, quality, and value Clear images Excellent product zoom options Easy site navigation Provides customers multiple ways to shop and view product categories Allows customers to shop from an online catalog Provides customers with recommendations Free shipping and returns ·	Weaknesses: Video images only on certain product pages Hardly any sales promotions Not many user generated reviews	Turn weaknesses into strengths: Have video images includes for all products Remind customer to review products purchased through email.  Offer a 10% discount on their next online purchase after their first product review.
Opportunities: Although they do advertise well to women, they should expand and target younger children and males because they offer so many products for people of those categories too. Nordstrom does have a social media presence but it isn't very visible or mentioned often on the website. Make it more visible on the top of page instead of the bottom . It could increase their following on social media platforms and traffic to their website Addition of more online exclusives such as Topshop	Threats: Wide range of product assortment can become difficult to maintain There are other department stores that sell identical items for a much cheaper price. There are also department stores, for example Bloomingdales and Niemen Marcus that sell identical high quality products for the same expensive price. Nordstrom has a lot of competition.	Turn treats into opportunity: Nordstrom already created a pricing policy, that if a customer finds the exact product somewhere else for a cheaper price they will match the price. They should continue to advertise this to stay ahead of competitors.  However, it is only currently available for certain merchandise. This should be made available for more products.

Globalization

Currently Nordstrom only has stores located within the United States. However, their website  is available to customers in 44 countries. 

Nordstrom has partnered with a company called FiftyOne, which allows for online retailers to sell internationally by providing international customers with access to products found in the United States. FiftyOne provides customers who are shopping worldwide  with local currency prices that are  visible on the Nordstrom website while they are shopping. At checkout, FiftyOne shows customs tarrifs, taxes, and shipping fees all up front to avoid any additional price confusions. 

Fraud/Security

Nordstrom wants to protect its customers, so they provide detailed information about how they secure their information, and keep customers' account information private and secure. If a customer does, however, have concerns about personal or account information errors they can contact Nordstrom through the Nordstrom customer service phone number or a specific fraud email. 

Nordstrom does not share customer information (such as e-mail address) outside of the Nordstrom family of companies which include Nordstrom, Nordstrom Rack, Nordstrom Direct and Nordstrom FSB, HauteLook  Inc., and Treasure & Bond. And, even within this family of companies the account and personal information has restricted access to individuals who may need it when providing customer service. Third party companies will never have access to  a customer's personal information. Personal information that is collected is only used for the business to provide customers with the best possible products, services, and experience. Now, they even offer a privacy policy for Nordstrom's mobile applications as these may also collect personal information such as a customer's zip code to find a local product.  

The Nordstrom website does use "cookie" and "web beacon" technology to distinguish customers from other visitors, track their IP address and usage of the site. This is done to identify the name of the website that sent the customer to the Nordstrom.com website. Nordstrom "cookies" may contain information like an e-mail address and unique user ID to track a customer's usage of the website. However, this is only obtained when a customer registers for an account at Nordstrom.com. Nordstrom uses "cookies" to monitor and maintain account information, however, a customer can disable cookies at any time in their web browser's options. If this is turned off, Nordstorm.com will be unable to recognize a registered user.

Nordstrom uses ethical practices, as they are only taking customers information to benefit and better provide for each individual customers needs. Nordstrom explains to its customers that its "your information, your choice". They definitely do not take advantage of behavioral analytics in using too much personal information about customers. Customers have the options to opt out of e-mail advertisements, special promotions, periodic catalogs, etc, and they are able to update privacy settings at any time. When creating an account at Nordstrom.com, they only ask very basic information. Nordstrom accounts provide customers with access to purchase history, wish list accounts, requesting catalogs or subscribing to e-mail updates, using mobile site, allowing sales associates to assist customers with online shopping needs, and creating an overall ease of shopping. However, customers are never required to create an account, and can always purchase items as a guest. 

Innovation

Nordstrom has what they call the "Innovation Lab" which is a flexible, independent division that tests and creates new concepts each week for Nordstrom, such as adding sales floor mobile devices and the iPhone app. 

They use advancements in technology  to benefit customers online and in stores. It promotes more customer loyalty and keeps Nordstrom.com on top and ahead of other retailers with their "Innovation Lab" always working to make things better and more convenient for its customers. 

Virtual Dressing Room

I think Nordstrom should continue to make advancements and possibly add a virtual dressing room where customers would be able to virtually try on the products they wish to purchase. This would increase customers' confidence in purchasing a product before trying it on. Although Nordstrom.com has a size finder feature, this virtual fitting room will fit nicely along with that and physically show customers what that product and size will look like when on.