In 250 words 1. how else can Nordstrom continue to provide exceptional customer service and increase brand loyalty? 2. What are Nordstrom’s greatest risks and who are its biggest competitors? Show transcribed image text CREATING LONG-TERM LOYALTY RELATIONSHIPS CHAPTER MarketingE >>Nordstrom Nordstrom had never carried or sold tres, it happily accepted the return and instantly provided the customer cash for his purchase. In another example, a saleswoman noticed that a customer had left her plane ticket on the Excellence 001, John W. Nordstrom founded a small shoe store store’s counter. She called the airport and asked the air- Seattle that eventualy grew into a fashion specialty Ine to issue the customer another ticket, but the airline store called Nordstrom. Nordstrom has remained in refused. The saleswomen immediately jumped into a amily for four generations and now sells top-quality cab and hand-delivered the ticket to the customer at the brand-name clothing. accessories, jewelry, cosmetics, airport There are many other examples of its exceptional John W. Nordstrom built his company on the belef customer service, and Nordstrom’s “no questions asked nst it should always provide the highest possible level of return policy remains intact today. Its sales representa- oustomer service, along with top-of-the-line, high-quality tives send thank-you cards to customers who shop to fit almost everyone’s needs and bud there, warm up their customers’ cars on cold days, and get. When he retired, his sons Everett, Elmer, and Loyd have hand-delivered special orders to customers homes. to run the business with the same customer- Nordstrom instaled a tool called Personal Book at its attitude their father shared. As the company registers that allows salespeople to enter and rocal cus- expanded into fashion, stores were stocked with a wide tomers’ specific preferences in order to better personalize Nordstrom believed it was better to cary too many sizes lowed to sell merchandise in any department, giving them high-quality clothes at various price points. their shopping experiences. Sales associates are also a ach style than not enough so a customer didn’t get even more opportunities to develop relationships rustrated it his or her size wasn’t available. The brothers customers. Nordstrom also provides multiple channels for tuted a policy tiled “decision by consensus,’ shopping, allowing customers to buy something online Nordstrom believes it has 15 seconds to capture also which helped move the company along even when dis- and pick it up at a store within an hour s arose. Nordstrom grew into the billion-dollar retaler it is to- the excitement of a customer with “a memorable day under the leadership of the family’s third generation: ence when he or she walks in the door. Aisles are neat Bruce, John, and Jim Nordstrom and Jack McMilan. and uncluttered, big display windows create a bright and Their philosophy focused on empowering the manag- open atmosphere, and the layout is efficient and easily ers and sales force to make decisions that favored the navigated. Dressing rooms are large and iluminated to customer, not the company. The company rewarded en- imitate natural light, escalators are wide to allow couples ergetic individuals who attained an entrepreneurial spirit, or parents with children to stand next to each other preferring to hire “nice” people who could be trained to and each foxture is chosen to create a homelike feeling. sell rather than seasoned “salespeople” who weren’t When a new store opens, Nordstrom connects with the surrounding community by hosting an opening night entertainment, a runway fashion purchasing process, giving regional managers the show, and the ultimate shopping experience to help raise seen as nice During this time the company also decentralized gala complete with live freedom to purchase styles that fit the needs and tastes money for local charities. in Minnesota Nordstrom’s Fashion Rewards Program repays loya from managers in customers on four levels based on their annual spend- could ad did, buy very differently encouraged its sales force to continuously ask custom- ers what products and styles they see in market, our first buy is the worst.” southern California. To cater to each region, the company ing. Customers who spend $10,000 annually receive 4-hour fashion emergency would like to see in hotline, and access to a personal concierge service. Nordstrom explained.”When we go into a Customers at the highest level 20,000 annualy) also receive private shopping trips complete with dressing he fourth Nordstrom rooms pre-stocked in their size, champagne, live piano complimentary alterations, a 2 Today, Nordstrom is run by t Nordstrom’s runway fashion shows, and travel and fashion packages, includ he standard in customer music, tickets to and continues to set t service and loyalty. In fact, the company is so well known access to exclusive 1 for its customer service that true tales of “heroics” still cir. ing red carpet events. culate today. Perhaps the best-known tells 1975 The a customer came into the store aft purchased an Alaska-based company called Northern Nordstrom Commercial. The customer wan fres originally bought at The company’s long-term and often costly customer s how in 1975 er Nordstrom had focus approach has reaped great benefits. Not only has emerged as a luxury brand known for quality trust, and service, but its customers remain loyal even in hard times. During the economic crisis in 2008 and 2009 ted to return a set of n Commercial. Although rther