Nordstorm is an upscale retailer whose value proposition can be describes as:
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.
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.
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
Selective Store Locations
Personal Attention and Hospitality
employees "do whatever it takes" to help customers
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:
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:
- Catalog