The Nordstrom Way To Customer Service Excellence

Gary McNeilVice President of Marketing The Nordstrom Way toParature Customer ServiceRobert SpectorInternational Best Selling ExcellenceAuthor and Trainer

THE COLLAPSE OF DEMAND …customers are Although there buying less –may be signs of a demand is recovery… recovering slowly

THE CUSTOMER HAS NEVER BEEN MORE IMPORTANT• In light of sales teams selling less - organizations are focused on:  Customer retention  Customer upsell and cross sell opportunities  Lifetime value of a customer  Overall revenue from the customer base

THE SHIFTING FOCUS: FROM HUNTERS TO FARMERS Falling Disproportionally on the Customer Support FunctionThe focus has shifted to furthermonetizing the customer base… …placing new found responsibilities on the support function

THE CHANGING PREFERENCES OF YOUR CUSTOMER If You Build it They Will ComeThe challenge isn’t driving customers to leverage self-service… … it’s keeping them there

THE IMPLICATIONS OF GETTING IT WRONG Costing You Money Now and Later

SERVICE HAS BECOME A MAJOR DIFFERENTIATOR• Improving the customer experience  Multi-channel support • Providing support in the manner by which the customer wants it• Reducing customer effort  Delivering on the promise of first contact resolution • The result is reduced frustration• Increasing customer loyalty  By reducing customer effort you increase customer loyalty • Increased loyalty is a game changer

PARATURE Parature is a global leader in on- demand software (SaaS) for customer service and support Parature enables organizations to: • Reduce the cost of supporting their customers • Have a 360 view of customer issues • Retain their customers • Improve customer loyalty • Generate more revenue from their base • Deliver ―great‖ customer service

PARATURE: AN INTEGRATED SUPPORT SUITE Customer Touch Points Service Desk Delivering Multi-Channel Support For your CSR’s to Manage All Customer Interactions Metrics & Deploy Feedback Reports Surveys Chat Ticket Forums ?Downloads Your Customer Your CSR Mobile E-Mail Knowledge- 360º Customer Intelligent base and FAQ’s Workflow History Phone Service Desk

800 CUSTOMERS ACROSS INDUSTRIES & MARKET SEGMENTSTechnology Business Services Gaming and Digital MediaEducation Associations Healthcare

The Nordstrom Way to CustomerService Excellence

ASK YOURSELF 3 QUESTIONS:1. Am I offering a better product or service than my competitors? 2. Am I selling a less expensive product or service than my competitors?3. Am I offering customer service that is superior to that of my competitors?

Customer service is not a strategy.

Customer service is a way of life.

―CONSUMERS ARE STATISTICS. CUSTOMERS ARE PEOPLE.‖ -Stanley Marcus

TheCustomer Service Department

Each and Every one of you is in the Customer Service Department.

The Key: Think likethe customer

“THE NORDSTROM OF…”• Tanning Salons• Hot tubs• Collision repair• Down payment assistance• Tree farms• Plumbers• Dentists• Real estate• Garbage

―Eyes may be thewindows to the soul, butshoes are the gateway to the psyche.‖ -Linda O’Keefe, Shoes

PETE, BLAKE AND ERIK NORDSTROM

NINE MANAGEMENT PRINCIPLES OF CUSTOMER SERVICE

PART I Romancing Your Customer1. Create an inviting placein person, online and on the phone.2. Provide your customers with choices- of products, services, and service channels.3. Sell the relationship: Service your customers through the products and services you offer.

PART II Energizing Your Employees4. Hire nice, motivated people.5. Empower employees to take ownership.6. Sustain the people on the frontlines through a culture of support and mentoring.

PART IIIBuilding Your Customer Service Culture7. Celebrate company heroes through recognition and praise.8. Advocate teamwork through internal customer service.9. Commit 100% to customer service.

1. Provide your customers with choices- of products, services, and service channels.2. Create an inviting placein person, online and on the phone.3. Sell the relationship: Service your customers through the products and services you offer.4. Hire nice, motivated people.5. Empower employees to take ownership.6. Sustain the people on the frontlines through a culture of support and mentorship.7. Celebrate company heroes through recognition and praise.8. Advocate teamwork through internal customer service.9. Commit 100% to customer service.

Part One-Romancing Your Customer

#1 Provide your customers with choices-of products, services, and service channels.

#2 Create an inviting placein person, online,and on the phone.

―The Nordstrom pianodoesn’t take up muchroom. It’s a small idea,but it’s a genius idea.‖ -Leonard Lauder, Retired Chairman, Estee Lauder Cos.

“A PLACE TO REST”I followed my wife while she shopped.From store to store she went.I, the great man, was spent.The flesh pulled on my bones like two bags of cement.At last I found a chair.Heaven only could have been more fair.Of all the stores, Nordstrom was best.They gave a husband a place to rest.

Have you created aninviting place for your customers?

Have you created an inviting, easy-to-use Web sitefor your customers?

THE TELEPHONE

#3Sell The RelationshipService your customers through the productsand services you offer.

MEASURE BOTH FEET

Nurture your relationship (partnership) with your vendors and suppliers.

Part II-Energizing Your Employees

#4 Hirenice, motivated people.

Hire the smile. Train the skill.

#5Empower employees to take ownership.

―I like the freedom.It’s like I have myown little business-my own men’sstore.‖ -Salesman, Men’s Furnishings

―The minute you come up with a ruleyou give an employee a reason to say no to a customer. That’s the reason we hate rules.‖ -James F. Nordstrom, former co-chairman

It all starts with the culture.

―The same principles that were herebefore I got here will be in place after Iretire….You can’t teach culture. You have tolive it, experience it and show it.‖ -Brent Harris, Vice President and Regional Manager

The Importance of Values

―People always ask me, how do youteach core values?The answer is, you don’t. The goal isnot to convince people to share yourcore values. It’s to hire people whoalready share your core values.‖ -James Collins, Author, “Built to Last”

#6 Sustain the peopleon the frontlines through a culture of support and mentoring.

MENTORING EMPLOYEES• Show videotaped interviews with top salespeople who offer tips and advice.• Use frequent staff meetings as workshops for salespeople to compare, examine, and discuss sales techniques.• Act out skits in which employees play the roles of salesperson and customer.• Encourage top salespeople to talk to fellow employees about goal-setting, marketing, selling, using the phone, and customer service.

CUSTOMERS SALES & SUPPORT PEOPLE DEPARTMENT MANAGERSSTORE MANAGERS, BUYERS, ETC. BOARD OF DIRECTORS

Part III-Romancing Your Customer

#7Celebrate company heroes through recognition and praise.

―Whatever their level of theInverted Pyramid, employees wantto feel needed and valued.Recognition reinforces the areasthat we want to focus on all thetime, like service.‖ -A Nordstrom Store Manager

Recognition Meetings

ELEMENTS OF GOOD RECOGNITION MEETINGSDemonstrate sincere, authenticappreciation for the people you arehonoring.Emphasize team spirit.Teach people something new.Perpetuate the culture—What makesyour company unique?

#8Advocate teamwork through internal customer service.

Teamwork creates asense of ownership.

What’s the key to internal customer service and teamwork?

Communication

―My customer service is to mymanagers and my salespeoplebecause they are talking to thecustomers. I need their feedback tohelp shape my buy.‖ -Women’s Sportswear Buyer

#9 Commit 100% tocustomer service.

1. Provide your customers with choices- of products, services, and service channels.2. Create an inviting placein person, online and on the phone.3. Sell the relationship: Service your customers through the products and services you offer.4. Hire nice, motivated people.5. Empower employees to take ownership.6. Sustain the people on the frontlines through a culture of support and mentorship.7. Celebrate company heroes through recognition and praise.8. Advocate teamwork through internal customer service.9. Commit 100% to customer service.

Be nice.

Robert Spector www.robertspector.comThinkLikeTheCustomer.com

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