Customer Service & Relationship Management at Nordstorm
.0 Learning Issues
. What is "inverted pyramid?"
Inverting the organization pyramid chart, the bottom level of the chart which is normally the front-liner become the top of the chart whereas the board of director which is initially at the top shift to the bottom. It means that the company is empowering the employees, moving the responsibility and decision making down to the people that have direct contact to the customers. It increased the importance of the front-liner. Besides, it also gains the employees satisfaction through this inverted pyramid.
2. Why Nordstrom provide freedom, resources and support to employees to make decision?
Nordstrom implementing customer-focused services strategy, front-line employees are those who interact face-to-face with the customers. By empowering the employees; any problem occurs can be solved on the spot by the employees without going through the process to inform the superior. Besides, it can fulfill the employees' intrinsic need and let them that their personal contribution is as important as their work.
3. What is "up-channel policies"?
From the reading, this "up-channel policies" is a set of agreement between Nordstrom and its suppliers. This agreement is positioned on maximizing customer satisfaction as well as building a close relationship between the company and the suppliers. Actually, this "up-channel policies" is associated with the "unconditional return policy". Former CEO Bruce Nordstrom said: "If somebody has worn a shoe and it doesn't wear satisfactorily for them, and we think that person is honest about it, then we will send it back." Nordstrom is built around a customer-oriented philosophy. This explains if suppliers are going to do business with them, they have to accept the commitment of the return policy. In other words, they should liberally accept the returned goods. Of course, if Nordstrom found out there is someone who abuse this "unconditional return policy", Nordstrom will not impose that abuse onto their vendors. This is how Nordstrom show their concerns and appreciations on top of the vendors' efforts.
4. What is the meaning "customer comes second"?
According to Berry, Parasuraman and Zeithmal, the quality of service that internal customers receive strongly influences the quality of service that external customer receive. This further clarifies internal service quality drives employees' satisfactions, which in turn enables the delivery of high-value service, resulting in customer satisfaction and leading to customer loyalty (Refer to figure 1)
Exhibit 1
Nordstrom is a customer oriented philosophy that put up it focuses on people; its policies and selections designed to satisfy its customers. However, without good and well functioning internal relationship, external customer relationships will not develop successfully. Thus, Nordstrom understands that customers will be treated well, only if the employees are treated well by the company.
5. What is Nordstrom's merchandising and purchasing policies?
In Nordstrom, few products are centrally purchased for all stores. Regional buyers are the one who in-charge throughout the purchasing process as they are closer to the customer and understand about the customer preferences. Besides, Nordstrom also provides a full selection of merchandise in a wide variety of sizes to ensure the products always available when customer want or need it. In Nordstrom merchandising and purchasing policies, Nordstrom only stock high-quality merchandise. If Nordstrom found there is a defect in merchandise, all the merchandise in the entire delivery will return back to the suppliers. This shows Nordstrom is extremely customer-focused.
6. What is 60 minutes segment?
60 minutes segment is the most successful broadcast in television history in United States. 60 Minutes was created in 1968 by Don Hewitt and premiered on CBS on September 24 of that year. Jeff Fager is the program's current executive producer. It is a production of CBS News providing a blend of hard-hitting investigative reports, interviews, feature segments and profiles of people in the news.
7. What is personal shopper?
Personal shopper is one of Nordstrom's customer services where customers are treated individually. Personal shopper exists in Nordstrom physical store as well as in Nordstrom's website. In physical store, the salespeople become the personal shoppers where the salespeople assist individual customer in making purchase decision by giving advice. The Nordstrom personal shopper staff, referred to as "Personal Touch," ensures that patrons find what they are looking for with the customized assistance they deserve. Unlike other stores, Nordstrom requires no minimum purchase to have a personal shopper's help. The Atlanta location in decidedly upscale Phipps Plaza hosts events like new perfume launches that your personal shopper can also help you with. A customer can even get advice from a personal shopper by phone if he or she is shopping online. Consumers can e-mail questions and purchase requests to their own Nordstrom personal shoppers. Personal shoppers do everything from answer questions about a specific item to help customers selecting complete wardrobes.
8. What is unconditional return policy?
Unconditional return policy is Nordstrom's policy where customers can return their merchandise, whether new or heavily used, to Nordstrom at anytime for a full refund. Under this policy, items that could have been bought at Nordstrom are accepted without question.
9. Why "never say no"?
"Never Say No" is the slogan of Nordstrom's employees. The employees try not to say no to each customer's request. The purpose is to satisfy each customer. For example, Nordstrom's salesperson went to get a slack for his customer from Nordstrom's competitor as the size desired by the customer was not available in Nordstrom. When employees try their best to satisfy the customers, this will create a happy experience for the customers. Consequently, the Nordstrom can retain this group of happy customers.
0. Why does Nordstrom focus on customer lifetime value?
Customer lifetime value represents exactly how much each customer is worth in monetary terms. Nordstrom sees customer lifetime value of a customer as the sum of all sales generated from that customer, directly or indirectly. Although little money may be made from the first sale, but when the lifetime value of a customer is calculated, the positive dollar amount of a loyal customer is huge. Thus, to keep customer for a "lifetime", Nordstrom employees do their best to satisfy the customers.
2.0 Current Scenario
Nordstrom, Inc. is an upscale department store chain in the United States. Initially a shoe retailer, the company today also sells clothing, accessories, handbags, jewelry, cosmetics, fragrances, and in some locations, home furnishings. It competes at a lower price level than that of Neiman Marcus or Saks Fifth Avenue, and at a slightly higher price level than Lord and Taylor. The corporate headquarters and the flagship store are located in Downtown Seattle, Washington. (Nordstrom Inc., 2008)
Nordstrom is very famous in customer service. It maintains the customer-focused philosophy which is flow from the founder, Johan Nordstrom's values. Nordstrom focuses on people, the policies, emphasize on customers' and employees' satisfaction. Nordstrom's organization chart is an inverted pyramid. Customers are at the top of the chart follow by the salespeople, department managers, and general managers. Nordstrom believe that customer delight drives the value of the company. To fulfill customer satisfaction, employees must be satisfied first. Salespeople play a very important role in Nordstrom. They can act as a "personal shopper" of the customers. Employees are treated as the most important asset in Nordstrom. Thus, employees have a lot of chances to be promoted and they are empowered to make independent decisions.
Nordstrom's policies focus on the concept of the "Life-time Value of the Customer." To keep the customers for a "Lifetime", Nordstrom's employees try to "Never Say No" to the customers. There is an advice of "Use good judgment in all situation" and an unwritten rule of "doing what is right" for the employees during the process of dealing with the customers.
Nordstrom maximize customer satisfaction by providing unconditional return policy, up-channel policies and merchandising and purchasing policies. All these policies are customer-focused which is coping with company value.
3.0 Answers to Question
Q1. Evaluate Nordstrom customer service approaches.
(a) Employees as "personal shopper"
From the case, Nordstrom are offering its customers a very personalized service. Employees act like "personal shopper" of the customers where they treat their customer individually. They show their customer merchandise and provide them product expertise. For example, a Nordstrom salesperson assists a woman shopping for business apparel by helping her shop for suits, blouses, shoes, hosiery, and accessories. The salesperson can travel from one department to another within the store in order to help the customer. In Nordstrom, the salespeople are not tied to one department, but to the customer. The salespeople in Nordstrom act like friends of the customer where they follow the customer to different departments and advise them on choosing the products.
This type of personalized service is very useful in creating positive experience among the customers, which would lead to customer satisfaction. As the salesperson serves the customer individually, there are direct and face-to-face interaction between the customer and the salesperson. Direct contact between the salesperson and the customer is essential as it offers the opportunity for them to start building relationships with one another through the service encounter. Human interaction in the service experience offers a chance to deepen customers' emotional connection to the service provider. When a salesperson meets a new customer, direct communication offers an opportunity for the salesperson to learn about the customer's wishes, preferences, and capabilities. This may sharpen the knowledge of the expectations about the customer. For example, when the salesperson knows that the customer likes dark colours, he may show the customer more clothes in dark colours. Direct interaction enables the salesperson to quickly responses to the customer's needs and wants and solves his or her problems.
Once they build a relationship, the relationship may function as a means to retain customers. A relationship is built when the salesperson and customer understand each other well. The service provider's knowledge, skills and capacity is a way of understanding services. A customer would prefer to go to a service provider who understands them rather than a new one. Besides, he or she may recommend to others about the quality service that he or she has received. Since the salesperson has specific knowledge, skills and understandings of the customers' needs and preference, it can attract his existing customer to come back to him. "Personal shopper" can enhance the customer perception of Nordstrom service quality. "Customer perception of employee effort in delivering a service has a strong impact on service satisfaction and loyalty." (Keaveney, Mohr&Bitner, 1995). Thus, having "personal shopper" as a personalized service, Nordstrom can create customer loyalty as well as positive word of mouth.
(b) Unconditional Return Policy
Nordstrom has an unconditional return policy and this return policy is one of the most important customer services. Customer can return any merchandise, whether new or used, at anytime for a full refund if he or she is not satisfied with the merchandise. This service is important as it gives customers confidence of Nordstrom's merchandise. Since Nordstrom offers good quality product, Nordstrom may add value to its service by offering this unconditional return policy. By having unconditional return policy, customers would reduce their worries and financial risk because they can return the merchandise to Nordstrom for refund if they are not satisfied. Nordstrom's unconditional return policy ensures each customer from Nordstrom is satisfied. Customer satisfaction is very important as it can create customer retention. According to Anderson and Sullivan (1993), the more satisfied the customers are, the greater is their retention.
Nordstrom's unconditional return policy could affect the customer's purchase process especially the post-purchase stage. During the post-purchase stage, the customer evaluates the service quality and their satisfaction or dissatisfaction with the service experience. Customers evaluate service quality by comparing what they expected with what they received. At Nordstrom, every customer has the right to return merchandise until they are satisfied. Hence, Nordstrom's unconditional return policy can ensure every customer to be satisfied. Thus, this group of satisfied customers will be likely to make repeat purchase and pass on positive recommendation to family members and friends. When customers continually have positive experience each time they make purchase in Nordstrom, they will satisfy with the service and may become loyal customer.
For customers who do not have prior experience with Nordstrom, they may base their pre-purchase expectations. Factors like word-of-mouth comments or the news stories may affect a customer's expectation. When customer is new to Nordstrom, they tend to face greater uncertainty and feel uncomfortable with risks. Thus, Nordstrom's unconditional return policy could reduce the perceived risk of the customers. Positive word of mouth generated from satisfied customer may make first-time customer to visit Nordstrom. Hence, Nordstrom's unconditional return policy can attract new customer as well as retain existing customer.
(c) "Never Say No"
"Never Say No" is one of the customer services in Nordstrom where customer can get almost everything they want in Nordstrom. In order to enhance customer experience, Nordstrom's employees would try their best to satisfy the customer needs no matter what is requested. From the case, it is stated that in a Nordstrom store in Seatle, a customer wanted to buy a pair of brand-name slacks that has gone on sale. The store was out of her size and the salesperson was unable to locate a pair at other Nordstrom stores. The sales clerk quickly went to the rival and purchased the slacks at full price using cash from her department. The slacks were sold to the customer at Nordstrom's sales price. Although this sale caused an immediate loss for the store, it helps to promote the loyalty of the happy customer.
The salespeople in Nordstrom show their courtesy to the customer with politeness, respect, consideration and friendliness. When the customers are treated politely and with respect, this can enhance the customer experience in Nordstrom. Besides, this can also improve the customer perceptions of Nordstrom service quality. When the salespeople in Nordstrom perform their roles by trying to meet customer expectation, it can enhance the service encounter and create satisfied customer.
Empathy is also one of the attributes of Nordstrom's customer service when they employee try to "never say no". Nordstrom provides care and individualized attention to its customers. Nordstrom pays great attention to communication where the Nordstrom's employees listen to its customers and acknowledges their comments. When a customer does not prefer a certain design of a shirt, they salesperson would never say no and argue but listens to the customer's comment. Besides, the employees keep their customers informed in a language that they can understand. For example, when the customers has a problem with the rules of ...
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Empathy is also one of the attributes of Nordstrom's customer service when they employee try to "never say no". Nordstrom provides care and individualized attention to its customers. Nordstrom pays great attention to communication where the Nordstrom's employees listen to its customers and acknowledges their comments. When a customer does not prefer a certain design of a shirt, they salesperson would never say no and argue but listens to the customer's comment. Besides, the employees keep their customers informed in a language that they can understand. For example, when the customers has a problem with the rules of washing a blouse, the salesperson would listen to the customer's problem and demonstrate concern by telling her the right way of washing it. Nordstrom's salespeople avoid using technical jargon when speaking with the customers so that the customers can understand. This would make the customers feel comfortable with the customer service. When the customers feel comfortable with the service, they would come again in the future.
(d) Free shipping
Free shipping is an additional customer service available in Nordstrom. This has added value for Nordstrom's customer service. It creates convenience for the customers as customers do not have to travel all the way to Nordstrom stores to make purchase. Besides, it helps customers to save heir traveling cost and time. This can create customer satisfaction of its service. When Nordstrom offers free shipping, customers can save time and cost. According to Berry (2002), consumers' perceived expenditure of time and effort would influence their perceptions of service convenience. Convenience will have a positive influence on their satisfaction with the service. Nordstrom promises that the order would arrive within 4 business days. This is another added value in Nordstrom's service as Nordstrom has the value of reliability where Nordstrom has the ability to perform Promised service accurately.
However, Nordstrom's free shipping has some terms and conditions. The free shipping service does not include international orders. This may affect the perception of customer service quality among customers in other countries. Foreign customer may feel unhappy of Nordstrom's service standard. Some customers may want to make purchase at Nordstrom but due to different location, they may not be able to visit Nordstrom store. Nordstrom may lose this group of customers as they are not entitled for free shipping service. Some local customers may want to make purchase at Nordstrom online when they are traveling abroad. For example, a loyal local customer may want to purchase a business suit in his business trip to foreign country to meet an important customer. However, Nordstrom does not provide free shipping service which is within the customer expectation. The customer may feel upset with Nordstrom service and become disloyal to Nordstrom. According to the servuction model, the organization rules, regulation and processes may have a very profound effect on the customer experience. Thus, the free shipping service that does not include international orders may affect a customer's service experience with Nordstrom.
(e) Buy Online, Pick up in Store
As consumers are becoming busier than ever before, many consumers cannot afford the time to do shopping. Thus, Nordstrom has been offering online buying service for the convenience of customers. However, after making an order in Nordstrom's website, a customer had to wait for the ordered products to be delivered. Some customers may have the feelings of insecure and still find this inconvenient because the delivery normally takes some days. Now, customers are able to make order through the internet and pick up the order at one of Nordstrom's stores. This is a new customer service from Nordstrom. Nordstrom is making an effort to know the customers and their needs. Hence, Nordstrom is said to have understanding of the customer as Nordstrom is creating the most convenient and secure way for the customers to do shopping.
After making an order in Nordstrom's website, customers can choose a store in a designated area which is most convenient for the customers to pick up the order. Once a store is chosen, a customer will go through a same online checkout process. The order can contain items to be picked up, items that are shipping to you, items that are being shipped to someone else as a gift, or a combination of all of these. Once the order has been processed, Nordstrom will send you an order confirmation e-mail that summarizes the customer's purchases. Besides, the customer can expect to receive a phone call by Nordstrom within one hour after placing an order online. Besides the quality of Nordstrom's merchandise, Nordstrom has designed a very convenient way for online shopping. The online buying process may create a satisfying experience for the customers. The positive customer experience can retain satisfied customers (Khalifa, M & Liu, V 2005).
Q2. How does its human resource strategy complement the quality of customer service delivered by its employees? Examine the significant impact of Nordstrom's internal service quality toward customer satisfaction. Provide relevant examples to elaborate your answer.
Part 1
Faced with rapid change organizations need to develop a more focused and coherent approach to managing people. In just the same way a business requires a marketing or information technology strategy it also requires a human resource or people strategy in order to deliver greater service quality to the customers and satisfied them. There is several human resource strategy used by Nordstrom to complement the quality of customer service delivered by its employees. It includes:
(a) Employee rewards and recognition
It is an important internal marketing instrument to rewards employees for their good service provide to the customers. This reward system implies that employees' good service is appreciated by the company. It also serves as a way to motivate employees to provide superior service to the customers.
Besides, if a company wants the strongest service performer to stay with the organization, it must reward and promote them. Based on the case study, Nordstrom have provided incentive to their employees as an employee reward. Employee's incentives are tied to the customer service. Provide employee incentive can motivate employees to provide superior service to the external customer while employees are satisfied with Nordstrom reward system. Furthermore, employees will feel and know that company is appreciated their service and value them. Thus, they will continue to provide good quality of service to the customers because they know it is valuable. By this way, it will complement the quality of customer service delivered by its employees.
For example, Nordstrom sales associates can earn well through commissions and sales provide by company as a reward. In addition, there are also numerous status rewards such as being elected as Employee of the Month or being nominated to the V.I.P. Club to appreciate the employees and as recognition of the employees.
(b) Job design
In Nordstrom, salesperson are not tied to their respective departments, they are tied to the customers. Sales representatives can travel from one department to another to assist customer if it is needed. This job design enables sales associates to maximize sales and commissions, while providing superior customer service. It will create customer satisfaction when salesperson provides one-stop service to the customers. Because it can reduce the time customers purchase the product and rest customers in the convenient way.
For example, a Nordstrom salesperson assisting a woman shopping for business apparel helps her shop for suits, blouses, shoes, hosiery, and accessories. The salesperson becomes the "personal shopper" of the customer to show her merchandise and provide fashion expertise to them. It will build a long-term relationship with the customer, as over time, the salespeople will understands the customer's fashion sense and personality. Hence, they can introduce the product that is suitable and satisfy the customers.
(c) Empowering employees
Nordstrom's employees are treated like businesspeople, and they are empowered to make independent decision. They have the latitude to do anything they believe it is right, with the customers' best interest at heart. Besides, all employees in Nordstrom are given tools and authority to do anything necessary to satisfy their customers, and management always backs their subordinates' decisions. In addition, employees are also encouraged to find their own style, niche, and way to take care their business.
With empowering employees to make their own decision, it can provide a direct response to customer in the service process. Customers will experience a felling of spontaneity and willingness to help by employees and will have a positive impact on perceived service quality. Furthermore, empowering employees can satisfy the employees. Employees will be more satisfied with their job and feel better, because they take ownership of their job and know that they are trusting by the company. This may also lead to decrease absenteeism and employees turnover. Moreover, employees will treat customers more enthusiastically, because they are more motivated to do their job with making own decision. By this way, it can complement quality of service delivered by Nordstrom employees.
For example, the customers had purchased tires from a Northern Commercial Company Store and want to refund at Nordstrom, the employees does not want to disappointed that customer, so, he have make decision to refunded the price of the tires to that customer. This action has conducted high service quality that Nordstrom's employees provided to the customers.
(d) Mentoring employees
Nordstrom encourages their employees to select a successful salesperson as a mentor to guide the ways they perform business. This successful salesperson can provide the knowledge, opinion, and experience for the employees. Besides, they can correct the way, attitude, or even behavior of the employees if they practices the business or serves customers in the wrong way. By this way, employees can generate rich information, knowledge, opinion, and experience from their mentor.
Other that, employees also can perform the business in the right way under guidance by mentor and learn how to solve the complicated problem. As a result, it can enhance service quality of the employees and provide superior service to satisfy customers.
(e) Employee selection and development
Basically, an employee's attitude in serving the customers will be directly influence the customer experience. It will destroy a company's image and reputation if the employee shows he/she negative attitude while serving the customers. The customer will satisfy with an employee service, only if that employee is patient, responsible, honest and sincere, and willingness listen to the customer. Hence, in the way that Nordstrom hires employees, it hires people with positive attitude, such as a sense of ownership, initiative, heroism, and the ability to handle high expectation. Employee that provides service to the customers with having positive attitude can have positive impact on customer experience and satisfaction. Thus, it will lead to higher service quality delivered by the employees.
Besides, "Nordstrom is known for promoting employees from within its ranks." Nordstrom salespersons are given the rights to help recruit, select, or even promote employees. That is because salesperson has better understanding about characteristic; attitude, behavior, and personality that a salesperson need to fulfill in order to carry out a good and quality service to the customers. Thus, the employees that salesperson promoting will provide greater service quality to the customers.
(f) Treat employee as customers
Many companies have adopted the idea that employees as customer for the organization and that basic marketing strategies can be directed at them. For Nordstrom, it treated employees almost like the extended Nordstrom family, and business variable is closely watched by employee satisfaction. Nordstrom understand that employees will treated customers well if they are treated well buy the company. That is because when employees satisfy with their job and company, they are more willingness to work and serve the customers. Furthermore, they will provide superior service to the customers as a way that they appreciate the company. Thus, it will complement quality of service delivered by the employees.
(g) Training employees
If companies want to provide quality service, its employees need ongoing training in the necessary technical skills and knowledge and in process or interactive skills. Employees need to train in interactive skills that allow them to provide courteous, caring, responsive, and empathetic service. In Nordstrom, the management relies on extensive on-the-job training rather than provide formal classroom training to the employees. With this approach, employees can train and learn while they interact with customers. They can observe and understand customer behavior, attitude, needs, and want with this type of training. Thus, they can generate ideas how to serve a particular customer and solve a particular problem. In addition, this is also conductive to provide high quality service and build long-term relationship with the customer.
(h) Company policies
Other than the human resource strategies described above, company policies also play an important role in complement quality of service delivered by the employees to the customers. It serves as deliberate plan of action to guide employee's decision and achieve rational outcomes. Basically, Nordstrom policies focus on the concept of the "Life-time Value of the Customer"--- (Customer-Focus Policies). Although that is only little money can be generated on the first time, however as over time, it can be staggering. That is because customers will re-patronage the company if employees provide good service quality to the customers. For example, in a Nordstrom store In Seattle, a customer wanted to buy a pair of slacks but it had gone on sale. The sales clerk went to the rival and purchased it with high price and sold it to customer at Nordstrom's sale price. Although it had causing lose for Nordstrom, but the investment in promoting loyalty of the happy customer went a long way.
Nordstrom has an unconditional return policy, employees try to "Never Say No" to their customer. Customer can refund for the merchandise purchased if they are not completely satisfied however it is heavily used. Paradoxically, this is not a company policy, it's implemented at the discretion of the salespeople to satisfy customer. By this way, it can conduct high service quality provided to the customer.
Part 2: Examine the significant impact of Nordstrom's internal service quality toward customer satisfaction. Provide relevant examples to elaborate your answer.
The significant impact of Nordstrom's internal service quality toward customer satisfaction can be examined by utilizing service profit chain. The service profit chain establishes relationships between profitability, customer loyalty, and employee satisfaction, retention, and productivity. Stated simply, the service profit chain assert that satisfied and motivated employees produce satisfied customers tend to purchase more, increasing the revenue and profit of the organization. Heskett, Sasser, and Schlesinger (1997), define the profit chain as ' involving direct and strong relationship[ between profit, growth, customer loyalty, customer satisfaction, the value of goods and services delivered to customers, and employee capability, satisfaction, loyalty and productivity.' The links in the chain are as follow: (Refer to the chart below)
Source: Heskett, J. L., Jones, T. O., Loveman, G. W., Sasser, W. E., Jr.,
Schlesinger, L.A. (2008). Putting the Service-Profit Chain to Work.
Internal Service Quality Drives Employee Satisfaction
Internal service quality of a working environment contributes most to the employee satisfaction. It is measured by the feeling that employees have toward their jobs, colleagues, and companies. Internal service quality can thus be defined as employee satisfaction with the service received from internal service provider (Hallowell, Schlesinger, and Zornitsky, 1996).
Employees satisfaction results from several factors, the most important of which are the "fairness" of management; the quality of one's peers in the workplace; the opportunity for personal growth on the job; capability, the latitude within limits to deliver results to customers; levels of customer satisfaction achieved in customer facing jobs; and compensation. Thus, if Nordstrom understand these factors and provide employees greater benefits, it will result and create employee satisfaction toward their jobs and company.
At Nordstrom, employees are treated almost like Nordstrom's extended family. Nordstrom sales associates can earn well through commissions and sales provide by company as a reward. In addition, there are also numerous status rewards such as being elected as Employee of the Month or being nominated to the V.I.P. Club to appreciate the employees and as recognition of the employees.
By this way, employee will feel that they are part of Nordstrom's member and valuable for Nordstrom. Thus, it will result in employee satisfaction.
Besides, Nordstrom's employees are empowered to make independent decision. They are given the latitude to do anything that they believe is the right thing, with the customer's best interest at heart. For example, Nordstrom's customer can return and refund the product purchased if they are not satisfied however it is heavily used. It is implemented at the discretion of the salesperson to maximize customer satisfaction. By encourage employees to make their own decisions; employees are free to perform in their jobs by using their own decision.
In addition, Nordstrom's salesperson's job design is absolutely different with other companies. Salespeople can travel from department to other department while serving customers. It enables salespeople to maximize sales and commission, while providing superior service. Employee satisfaction can be created if they can earn more in Nordstrom as compared to other companies.
Employee Satisfaction Drives Employee Retention/Productivity
Employee retention/productivity is directly affected by the employee satisfaction. An employee will stay longer in an organization while they are treated well and satisfied with the company. Dissatisfaction of the employee will causes high rates of employee turnover. Employees will lost their interest and reluctant to stay continually in the company. Employees will shift to other companies if better treatment provided. Employee will strive in doing their job when they are receiving greater benefits from the internal service provider.
At Nordstrom, employees have received greater benefits from the company, as human resource strategies using by Nordstrom described above. Employees will fell that is worthy to continue stay at Nordstrom because the services and benefits that Nordstrom paid to the employee is hard to obtain from other company. Thus, it will drive employee retention. For example, job design that enables Nordstrom's salespeople travel from department to other department and intention to maximizes salespeople's commissions. Furthermore, it also will drive employee productivity. For example, Nordstrom's employees empowered to make independent decision. The employees will strive to perform well and done their jobs perfectly because they are trusted by the company and satisfied with that.
Employee Retention Drives Employee Productivity
Traditional measures of the losses incurred by employee turnover are only concentrating on the cost of recruiting, hiring, and training replacement. In recent service jobs, the real cost of employee turnover is the loss of productivity and decreased customer satisfaction.
Retain a company's employee can improve employee productivity, because existing employee have better experience, knowledge, and skills in doing their jobs. They know how to serve a particular customer or solve the complex problem. Thus, they can complete the jobs faster and better. Besides, hiring the new employee can increase company's training cost and that during the training period and a time following, the employee is not functioning at maximum efficiency.
Employees working at Nordstrom for long time period have better knowledge, experience, and skills in serving customers. For example, Nordstrom's employee travel from department to another to assist customer shop for suits, blouses, shoes, and so on. It can building long term relationship with customers, as long time, the salesperson can understands the customer's fashion sense and personality. As a result, it can drives employee productivity.
Employee Retention/Productivity Drives Value
Employee retention/productivity, when viewed in the context of the service profit chain, it may represent the greatest source of value-added to customers. This is because loyal employee or even employee with higher productivity will have ability, necessary skill, experience, and knowledge to deliver high service value to satisfy needs and wants of the customers. Therefore, Customer can receive higher service value from a company if the company's employee productivity/retention rate is high and vice versa.
Nordstrom provide customer fairly pricey clothing, offset by personalized service and an overall service guarantee that can't be beat: customer can return an item for any reason and refund promptly is provided with a smile, no questions asked. How can they do this? That is because Nordstrom have the utmost confidence in their value proposition. A Tommy Bahama shirt can whether purchased at Nordstrom, Robinson-May or Macy's. The difference is the value of the service provided to the customer. One famous example of Nordstrom's customer service, Nordstrom's salespeople gladly took back a set of used tires and refund money to the customer, although Nordstrom does not sell tires. With this action, customer had perceived utmost service value delivered by Nordstrom's salespeople.
Value Drives Customer Satisfaction
Neal (1998) defines customer satisfaction as the attitude resulting from what customers think should happen (expectation) interacting with what customers think did happen (performance perceptions). Clearly, the two concepts are related. Customer satisfaction includes, but not limited to, evaluation of service value.
Customers today are strongly value oriented. They tell us that value means the results they receive in relation to the total cost. Customer satisfaction can be achieved, only if value delivered by the company is higher than the total cost they spend. Customer will not be satisfy if they have spent more but receive fewer benefits from the company. Therefore, if company wants to satisfy customer, they need to deliver high service value to them.
Nordstrom understand that service value is important to satisfy customer. Thus, they have focused on delivered high service quality to the customer. Nordstrom's customer-focused policy, unconditional return policy, up-channel policy, and merchandising and purchasing policy are extremely customer-focused. Customer can receive superior service value while they are visiting Nordstrom. For example, in a Nordstrom store in Seattle, a customer wanted to buy a pair of branded slack that had been sold out. Knowing that the same slacks were available at a competitor nearby, the salesperson went to rival and purchases it with full price using petty cash of department, and sold it to that customer at Nordstrom sale price. Although it resulted in an immediate loss for the store, however, the investment in promoting the loyalty of the happy customer went a long way. Furthermore, for previous tires example, the salespeople who refund for customer also indicates utmost service value deliver to customer and drives customer satisfaction.
Finally, we can conclude that Nordstrom's internal service quality is indirectly related to customer satisfaction.
Q3. What are some of the cues used by customers to evaluate customer experience at Nordstrom? Discuss.
Basically Nordstrom customers evaluate Nordstrom's services based on three main categories of cues: functional cues, mechanic cues, and humanic cues. Anything that customers can hear, see, taste, smell, feel or touch and perceive the presence of it in Nordstrom's physical store and website is consider an experience cues.
Customers will process and organize the cues in the service experience into a set of feelings before decide to purchase the product or evaluate it after purchase. Functional, mechanic, and humanic cues can influence both rational and emotional perceptions of service quality. Functional cues primarily influence Nordstrom customers' cognitive or calculative perceptions of service quality while mechanic and humanic cues primarily influence customers' emotional or affective perceptions.
The figure below shows the role of these three cues.
(a) Functional Cues
Functional cues are more concerned on the technical quality of the service provided. Nordstrom's customers do not expect to meet any service failure or error for any visit to Nordstrom, basically no error or mistake is the expectation of the customers. As Nordstrom is targeting on high-end customers, this group of customers always react strongly to the service failure.
Customers go to Nordstrom is to relax, shopping, and enjoy the social action of shopping in the store. The basic requirement is the pleased shopping experience with all those power operations are functioning well. During the visit to the Nordstrom department store, any service error of plumbing, air-conditioning, lighting or noise problem will lead to customer dissatisfaction, and even lose the customers. If the error occurs, it will not be just affect one of the customers but all customers that presence at the particular time.
The other common functional cues are those billing, pricing, tax and payment systems. Transaction accuracy is the essential for every transaction. In customers' perception, Nordstrom is reliable or not can be depended on whether it able to conduct the transaction accurately and dependably. Once any mistake occurs, customers normally will not accept the reason of the mistake. If there is a serious mistake, such as the cashier charged double price on the customer, the customer might lose confidence to the company and end up with brand switching. Other than transaction accuracy, customers also look into the speed of the transaction. They might be frustrated if a single transaction takes for a long time. For instance, Nordstrom takes half an hour for a single payment.
One of the intangible functional cues is the accuracy of the information. Information flow from Nordstrom must be very accurate. Not only the information from internet, publicity, advertisement is important, salespeople must provide accurate information to the customers as well. Nordstrom salespeople must tell the right information while dealing with the customers, such as telling the accurate price to the customers. The other information is including terms and conditions, return and exchange policy, online catalog and etc, Nordstrom must ensure that they providing accurate information.
Nordstrom offering free shipping's service to the customers. The driver plays a role to make sure they are delivering the right product to right customers at the right place on time. This is served as one of the functional cues as well. Free shipping is an added value service for the customers. When the driver cannot complete the task to deliver the goods to the customers, the services are performing below customers' expectation, it might lead to customer have bad impression to the company.
Nordstrom official website is one of the functional cues. Nowadays, many customers like to conduct online shopping. Thus, the website must be always ready for customer and user friendly. If the website always under service maintenance or system down, it might results in customers lost their patience and choose to shop on another website. Besides, the same consequences will be happened if the website is not user friendly, the customers might find some difficulty to comprehend it and then switch website.
Generally, functional cues can build and preserve the customer's confidence to it competence. However, it has several limitations. First, functional cues are insufficient to operate alone, no matter how good the functionality; it cannot exceed the customers' service expectations. If there is no service error of failure, it will not add value to the customers. Customers perceived that well functioning air-conditioner, lighting, billing and etc are necessary; it does not evoke any surprise experience for customers.
Secondly, although functional cues do not provide additional value, but an error occurred in functionality might results in customer dissatisfaction or lost of the customers. For instance, a customer chooses to switch brand when he realized that Nordstrom's always charged higher tax than what it has been promised.
Functional cues need to be assisted by the other two cues which is mechanic and humanic cues to provide added value service to the customers.
(b) Mechanic cues
Mechanic cues offer a physical representation of the intangible service. Any non-human elements such as machines, facilities and even servicescape that can stimulate customers' senses are considering mechanic cues. Those senses are sight, hearing, smell, touch and taste. Mechanic cues can influence customers' emotional perceptions of quality and customers' service expectation.
Since Nordstrom is an upscale company, customers will have higher expectation of more distinctive experience. Customers will start to evaluate Nordstrom as the first step into its store. Thus, servicescape of Nordstrom store plays the important role to provide positive first impression to the customers. Other than the servicescape, the other tangible things in the store also can be the mechanic cues.
Servicescape can be divided into three dimensions which are ambient conditions, space/function and signs, symbols and artifacts. Ambient conditions include Nordstrom's background characteristics of the environment such as temperature, lighting, noise, music, scent and color. These factors can affect how customer think, feel and respond to the particular service establishment. (Zeithaml, A. V., & Bitner, J. M. ,2006) For example, music can affect customers' perception in terms of how long they have waited for the service, and how much they have spent. Nordstrom's customers generally will be relax, shop leisurely and tend to spend more if the music is soft, slower music tempos at lower volumes. Customers will be uncomfortable when there is any condition such as hot temperature or bad smell, it always stop the customers to have further interaction with Nordstrom.
Customers also evaluate Nordstrom's layout in terms of the size or shape of furnishings, the ways it is arranged, and the spatial relationships among them. Functionality refers to the ability of these items to facilitate performance. (Zeithaml, A. V., & Bitner, J. M. ,2006) All of these will affect customers' satisfaction and the consumers' behavior. For instance, the location of the fitting room in Nordstrom's store is very important. Customers expect to get a place that they perceived it is safe for them to try the apparels, if the fitting room is located at the starring area, it will generate negative feeling of the customers. The arrangement of entrance, cashier counter, rack, and etc are other examples.
Signs, symbols and artifacts served as a communication channel with the customers. It conveys the implicit and explicit signals about the place to the customers. Nordstrom's provided the label of showing the location of apparel, shoes and accessories for men, women and children. This sign work as the explicit signal and able to reduce customers perceived stress due to the customers might not sure that he or she is in the right area or not. Nordstrom customers will look into the implicit signals as well. For instance, the good quality of wood material of the rack might serve as a metaphor of the company image.
Other than servicescape, customers might observe the name card, catalog, billing statements and etc which are the other tangible objects and it will affect customers feeling in the store. For example, if Nordstrom process the transaction manually and the billing statement is handwriting billing statement, the customers might perceive that Nordstrom provided bad, out-dated and lousy services. It will lead to customer dissatisfaction. Another example for Nordstrom, it is very important to have a mirror. Without a mirror, customers might unwilling to spend in Nordstrom because they need to visualize whether the apparels match them or not. However, if the mirror is dust, customers might perceive that Nordstrom is misesteeming the customers and cause a bad impression to the customers.
Other than the physical store, Nordstrom's website also can serve as one of the mechanic cues. The colors, pictures, and even the font of the website can influence customers' perception of the company as well.
Mechanic cues can add value to the customer's experience. Besides, customers can have different sight view while communicating with the company. Sometimes, it can stimulate customers' senses and create memorable experience for the customers. However, mechanic cues are insufficient to work alone. It needs to corporate with the other two cues in order to create memorable experience. Other than that, mechanic cues could be subjective due to the signals that had been designed might be accepted by some of the customers but some of the customers might not like it.
Other than mechanic cues, humanic cues is the other cues that can create memorable experience to the customers.
(c) Humanic cues
Nordstrom is very famous in it customer service. Customers suppose that it will provide higher more value and service quality. Positive humanic cues assist Nordstrom in providing good customer service and meet customer requirement. The behavior and appearance of the service provider are humanic cues. It included the choice of words, tone of voice, level of enthusiasm, body language, neatness and appropriate dress of the employees.
Nordstrom customers can notice a very different phenomenon in Nordstrom compare to other retailer stores, that is Nordstrom do not provide uniform for the employees. It just provide a wardrobe guidelines to the employees, such as who works in department that selling jeans can wear jeans, but those selling suits cannot dress so casually. (Smith, K. S., 2007) How the employees dressed will affect the customers' impression towards the company. If the employees dress neatly and appropriately, it might add value to his or her appearance and then enhance the company image. Customers will have a lot of interactions with the employees; employees without uniform sometimes will break the communication gap between both parties. Customers might perceive that employees without uniform will not be difficult to communicate and form closer relationship with the employees.
How the employees behave to the customers is one of the most important service cues. Employees are representing the company to interact face to face with the customers. Once the customers are not satisfied with the services, they might dissatisfy the company. Employees in Nordstrom should take care of the words, tone of voice and body language they are using. For instance, when the customers requesting something from the salespeople, the salespeople should listen carefully to their request and provide eye contact. If he or she does not pay attention, customers will think that they have been insulted and quit the relationship with the company.
Nordstrom targeting on high-end customers, this group of customers preferred soft tone of voice and cultivation employees. Attitude of the employees such as their kindness, caring, resourcefulness and enthusiasm can produce desirable variability in a service. Customers will look into how the salespeople delivering the service. This will have strong impact on service satisfaction and loyalty of the customers. For example, after a purchase in men's wear department, the customer wants to buy a pair of women's jeans. The salesperson entertains the customer patiently and assists the customer to shop for the rest of the requirement. Customers will have positive feeling and have good impression about the company mediated the salespeople.
Humanic cues can generate exceeding experience to the customers if Nordstrom able to evoke pleasant surprise. For instance, as mentioned in the case, the salespeople refunded the price of the tires even though Nordstrom had never sold tires. Customers will be delighted and become Nordstrom's customers. These interactions allows the salespeople to trigger the emotional connectivity that can extend respect and esteem to customers, exceed their expectations, strengthen their trust and deeper their loyalty. (Zeithaml, A. V., & Bitner, J. M. ,2006)
Different customers perceived differently. That is very hard for Nordstrom to design the service to fulfill all customers' needs and wants. Thus, it is very common that Nordstrom employees modify their service to serve different customers. However, it is just to decrease the possibility to offense customers but it is impossible to eliminate it.
As discussed above, every single cue will not work efficiently without assisting by the other two cues. Customers will concern about all these cues while dealing with Nordstrom. If Nordstrom able to manipulate all these cues well, it will only become reliable to the customers and generate memorable experience for the customers in Nordstrom.
4. What are the pros and cons of Nordstrom's approach to developing a competitive advantage through customer service?
(a) Unconditional Return Policy
United States is a low-context culture country. The Americans are rule oriented and they tend to separate the responsibility and the relationships. Nordstrom's as an up-scale department store chain providing unconditional return policy has been seen favorable to most of the customers in Western countries because it reflects Nordstrom is offering quality merchandise to their valued customers and serves as part of the tools to help the customer to build a sense of confidence towards the product offered.
Besides, it has a direct positive impact in the customers' post-purchase intention. Most of the customers will feel doubtful with their decision made after making purchasing. However, most of the department stores do not allow their customers to return the products that are sold. As a result, most of the customer might feel upset and thus lead to customer dissatisfaction and there is a higher possibility the customers might turn to another department store. Therefore, policy helps the store to keep high level of customer satisfaction and good customer experience. This will enhance the relationships through the accumulated customer experience and customer satisfaction they receive from the policy over a period of time, which, in turn may lead to customer loyalty - generate positive dollars from repeat customers.
However, there is a potential risk whereby less experience or knowledge front-line employees might misinterpret the policy and lead to wrong decision making. For example, a stingy customer who forces to return the merchandise bought from other department store for a full refund from Nordstrom. But the new salesperson that has no idea a prepaid RETURN LABEL (evidence to show the merchandise is purchased from Nordstrom) is required from the customer whenever a return for refund or exchange is made, thus he takes back the merchandise and refunds the money to the customer because he misinterpret the meaning of the policy.
Apart from that, there is a potential risk customer will abuse or misuse the unconditional return policy that is set on behalf the benefits of the customer. Especially for those who are not willing to spend their dollars but would like to own the merchandises for a short time period. In this sense, they will visit the store and try to purchase the merchandise. After days, they will return the merchandise and ask for refund with the reason 'unsatisfied with the merchandise purchased'. As a result, it might directly affect the sales volume in the store.
(b) Employees as "personal shopper"
From the reading, the role as 'personal shopper' of the customer to is to show the customer merchandise and provide fashion expertise. There is a face to face communication between the salesperson and the customer, this one to one direct interaction is conductive to the building of a long-term relationship with the customer. The proliferation of technology devices has resulted in the number of personal contacts decreasing. The lasting 'moment of truth' becomes more and more important. It offers salesperson an opportunity to learn about customer's wishes, whims, and preference. This may sharpen the salesperson's knowledge of expectation about the customer involved in the interaction. Hence, the salesperson can show the right and suitable merchandise to the customer when he/she comes back for the next purchase.
Besides, .the 'personal shopper' is not fixed to his/her department enables salespeople to maximize sales and commission, while providing superior customer service to the customers. The target markets are professionals, doctors, businesspeople, and executives. With the superior customer service approach, it allows the salesperson to take off the pressure in selecting merchandises and allows the customers to make more impulse purchase. At the same time, it helps the customers to reduce their shopping duration.
. "Nordstrom's product is its people. The loyal Nordstrom shopper goes to Nordstrom for the service received - not necessarily the products". It helps Nordstrom to create more loyal customers and greater the sensory stimulation of the customer, which, in turn, may turn into the experience and lead to customer trust and loyalty. Throughout this high-contact service, the customer can feel the service received and the environment of the store, touch the physical products, see the displays, salesperson, as well as the store layout and listen to the ambience and music played in the store. All these sensors are generated from the service encounters the customer interacts with the servicescape, contact personnel, other customers, and the organization system.
Conversely, this approach might cause dissatisfaction to other customers who do not receive such superior customer service from the salesperson. Especially during peak season, company usually will not have sufficient salesperson to provide the "personal shopper" service to each of the customers. Mostly customers make decision and evaluate their experience based on their mood and emotion. They will think it's unfair and they must be treated the same way as how other customers are treated well by the salesperson. As a result, customers will feel frustrated and upset and greatly affect the customer experience in Nordstrom; risk customer will turn to the competitors.
Apart from that, it is challenging for people-dominant interfaces to deliver consistent excellent service. Especially when they are required to continually provide service beyond the customer expectations; lead to salespersons' emotional burnout. Besides, in most situations, a person including professional will provide suggestions and comments based on his/her own judgment and preference. The comments and suggestions might be bias and does not meet the customers' preference. For example, the Nordstrom's salesperson believes and recommends that a pair of black leather shoes is more suitable to wear in office. However, the customer prefers the one in brown color. Therefore, the customer will think that the salesperson does not understand him and he will leave the store unhappily.
(c) "Never Say No"
This slogan emphasizes the employees in Nordstrom to maximize the customer satisfactions and experiences. For example, "In a Nordstrom store in Seattle, a customer wanted to buy a pair of brand-name slacks that has gone on sale. The store was out of her size and the salesperson was unable to locate a pair at other Nordstrom stores. Knowing the same slacks were available at competitor nearby, the sales clerk went to the rival, purchased the slacks at full price using petty cash from her department and sold the slacks to the customer at Nordstrom's sales price." The investment in promoting the loyalty of the customer went a long way because they are praised with the actions taken by the salesperson to enable them to obtain their desired products from the store.
Besides, the "Never Say No" also helps to motivate the employees and maintain a good relationship between the company and the customers. When a salesperson is able to fulfill the customer's requirements such as getting a pair of slacks which is out of stock in the store, it will generate a positive mood and emotion in the heart of the customer. In return, the customer trusts and believes Nordstrom's superior customer service will return to the store again. This may directly generate sales to the salesperson and motivate them because their earnings are closely tied with the purchases done by the customer.
However, this "Never Say No" has a risk it might destroy the relationship. When visiting the store, the customer will have numbers of service encounters connected with the Nordstrom. If there is one encounter such as unable to allocate the merchandise that is suppose available, it may cause the customer angry or upset, thus screw up the customer's total experience and leave the store for forever.
Other than that, the "Never Say No" customer service approach sometimes resulted in an immediate loss to Nordstrom. This disadvantage can be explained from the example mentioned above whereby the salesperson went to the rival to purchase the slacks using cash retrieved from the department, and then sell it to the customer at sales price.
(d) Alterations ("alter first, pay later" method)
Nordstrom encourage their customer to alter their wears (if necessary) and fees are determined after the item has fitted, where most of the department stores "pay first, alter later". This becomes one of their competitive advantages because the apparels sold are expensive as compare to other department stores. Customer experience and memory are emotionally influenced by the quality of service and products provided. They tend to act emotionally when they have paid for the services or the physical products qualities do not meet up or go beyond their expectation. In order to retain the customers and provide a good customer experience, Nordstrom ensure the customers are fully satisfied with the service received and product offered before check out from the store. This will provide an added value in the mind of the customers because they know Nordstrom will take them seriously for every customer contact points. This will directly increase the organization's credibility and trustworthiness as well enhances the store image.
In contrast, it will expose the risk of the pessimistic and high level of uncertainty customers' misconception or misunderstanding about the commitment of this customer service approach. This happens when these customer relates the "alter first, pay later" with professionalism of the tailor. They might think that Nordstrom offers this system because they have no confidence in altering the customers' wears and thus provides this method as a persuasion to keep the customers with them.
(e) Shipping
Basically, Nordstrom offers four shipping options: Standard (free for purchases of $200 and above, $8 for those under $200), Two Business Day ($15), Next Business Day ($25) and Saturday ($35) Delivery.
* Only applicable in the States.
Nordstrom offers a series of delivery options to show its concerns about customer's needs and wants because they know customers have become more demanding and sophisticated about the services delivered to them. If the organization can fulfill their requirements, they will evaluate the organization as a good customer-oriented organization through this possession processing. For example, a customer who needs a set of dress for tomorrow night dinner can order a dress through Nordstrom.com and ask the store to send the item ordered by using Next Business Day Delivery. As long as Nordstrom made the promise, it will keep the customer happy, excited, and satisfied with the performance. Thus, it will generate positive word of mouth to other customers and directly bring more businesses to Nordstrom.
Latest, Nordstrom delivery service is available internationally. This means the customers not only limited to the States, but around the world (except for certain locations such as military addresses). This can be a good approach to both company and customers. For company, they can expand their business worldwide using Nordstrom.com, while for customers, they can learn a new shopping experience from Nordstrom.com and evaluate the service quality, overall impressions of the company through the outcomes of the service delivery process.
Nordstrom also allows the customers to ship their items to multiple addresses. For example, the woman can insert few addresses and specified the items to be sent to which address. This is a unique feature that none of the direct competitors in the same industry has provides this feature until now. This directly helps the customer to save cost, time and effort to get the items to the third party. In other words, the feature is an alternate for customers who dislike and lazy to visit stores. With the credibility gained from the public, it also helps the customer to reduce the pressure thinking of "how to delivery the items to other parties", and "will the items arrive on time?"
However, there are disadvantages of the service provided. In store, customers can hold the merchandise immediately after payment made. For a standard delivery mode, the customer has to wait for 4-5 days (in the States) or 7-10 days (for International) to receive the merchandise bought from Nordstrom.com. It lengthens the waiting time of the customers to receive the merchandise ordered. This might not be a good idea because some customers will question the efficiency of the staffs' performance and compare them with the perceived service quality of the company. Thus, it might affect the customer evaluation about the company, the experience generated from the heart and mind of the customer about the service, and the level of satisfaction.
Since the shipping is available only for online purchases, the customers cannot feel and touch the product before the purchase. Besides, the customers are not physically involved throughout the purchasing and delivery processes. It is hard for customers to evaluate the perceived service quality and the facilities of the company. Some customers worry whether the merchandise ordered will arrive on time, is the size ordered match with received one or etc. Although Nordstrom has a high credit in providing excellent customer service, but the high uncertainty surroundings such as accident, natural disasters and etc may affect the delivery process.
(f) Gift Orders
Upon the checkout process, customer will be asked automatically if the item(s) is/are gift. Basically, Nordstrom.com offers three options: Nordstrom Gift Box ($5 - item(s) ready boxed with tissue paper, a Nordstrom gift seal, topped with a bow and a blank gift tag; printed or handwriting, for you to personalize), Nordstrom Gift Kit ($2 - An easy-to-assemble Nordstrom gift box with tissue paper, Nordstrom gift seal, bow and a blank gift tag for you to personalize) and Gift Message (free - a message of 8-12 words).
With these available options, it serves as a one-stop center for the customers. Customers can wrap their item(s) purchased in the store or through the web without having them to search for gift box or wrapping paper outside the store. This helps the customers to save their precious time and effort while having the item readily and nicely wrapped. This can be a good approach to enable customers further evaluate the quality of service objectively (where services are intangible and hard to evaluate).
Besides, this service also provides an opportunity for the customer to build a relationship with the company. Given an example, when the family members, friends or the lovely one receive the gift from the sender by knowing the gift is bought from Nordstrom. They will happily accept the item (knowing Nordstrom offers excellent quality of merchandise). In this sense, the sender (also known as the Nordstrom's customer) will feel happy upon the acceptance; generate a positive feeling and mood. Hence, the customer will form an overall evaluation; Nordstrom done a good job, and start to build relationship with Nordstrom (patronage the store).
(g) Live Help (The Web)
Recognizing the high customer service expectations of the Nordstrom customer, Nordstrom.com has built it site with a "Live Help" to ensure that help is always available when the customer needs it. This "Live Help" feature is operated by twenty personal shoppers who are trained in all Nordstrom products. They help people navigate to make their purchases and allow customers to ask any question. For example, a visitor would click on "Live Help" and asked "I need something to wear to a wedding". Instead of just pointing the customer to the formal dresses section, the personal shopper would send a reply to ask whether the dress is for day use or night use and how formal it is.
Besides, this "Live Help" allow customers to chat online with the salesperson in real time. Customer can interact with the Nordstrom's salespeople at any location as long as there is an internet service available. This may reduce the customer's waiting time; keep the customer always satisfied with the act in response of Nordstrom, and closer the relationship between Nordstrom and customers. Due to the customer can ask any question, the salesperson navigate the customer to the specified product and the real time conversation, it also gives the customers a feeling as though a salesperson is right there to assist them.
Because "Live Help" is a technology-facilitated service encounter, the customer and salesperson are no longer physically together (no face-to-face contacts, less customer touch points, less sensory stimulations). Customer and salesperson communicate through "words typing". Customers are holding off from the salesperson's attitudes, the poise, voice tone and the appearance. Customer cannot evaluate the service provided objectively. Thus, it will affect the overall impression and service experience they have with Nordstrom.
As a conclusion, although there are advantages and disadvantages in these customer approaches, but Nordstrom has made the right decision to provide such superior customer services to the customers. These unique customer services aim at providing a memorable experience to the customers, which, in turn will lead to customer satisfaction and customer loyalty, and ultimately, long term profit and growth.
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