"The Nordstorm way",Business Classics Presentation
The Nordstrom way America’s #1 customer service companyJigar patel,Mayank dave,Vijay Bagla,Priya srivastav,krishnakumar
The Nordstrom wayAmerica’s #1 customer service company• Nordstrom offers apparel, shoes, jewellery, cosmetics, fragrances and accessories for women, men and kids.• Nordstrom is the standard against which other competitor companies measure themselves.• Nordstrom is differentiated from its competitors as its employees are full of motivational aspect and self-empowered entrepreneurial men and women.
Cntd… Nordstrom is successful because of the following Initiatives:-• Donald e Peterson ::Nordstrom empower its employees with the freedom to make decisions. Authority and responsibility is the goal of leadership.• Nordstrom concentrates more on individual’s initiative and ideas.
Cntd…• A customer that leaves Nordstrom is always a satisfied customer No space is left for any kind of inconvenience.• Inventory of Nordstrom is equipped with immense amount of variety so that they never run out of stock and customer do not return dissatisfied and with bad word of mouth.• The people who enjoy working in an flexible environment can only be a Nordstrom employee.• Employee relation first then work. Translate pronouncement into performance and then convert percept into profits.
Cntd…• EXAMPLE::• DONNA KARAN-(CUSTOMER) NO STOCKSALES ASS. BOUGHT SHOES FOR HER FROM COMPETITOR AT FULL PRICENO PROFITBUT INVESTMENT IN PROMOTING LOYALTY OF THE CUSTOMER
After the gold rush - A store isborn• Nordstrom began as a small retailer and has continued to run the business with great emphasis on employees comfort and flexibility.• Founder of Nordstrom was John w Nordstrom.• It was then continued by his three sons - Everett, Elmer, and Lloyd who were specialised in each area.
Cntd…• The stores stock high-quality products and treat every item as precious.• Buyers work closely with manufacturers in order to obtain a unique product that is well differentiated from other products. Manufacturer had hard time with Nordstorm as store would return goods to them if not according to needs of customers.• The key idea followed by these intelligent brother was to consider the whole of Nordstrom as one family. E.g.: the conflicts were sorted out behind the floor and the depiction towards customer was UNITY which was seen by Nordstrom employees, by their gestures ,by their way of communicating.
DEDICATION• They never had lunch together as they felt someone should be present at Nordstorm to serve customers.• The major incident was when Tom parker ,Elvis manager came to him saying that shoe needed a repair .Elvis at that moment took shoe in repair department and gave them a VIP treatment. Thus concluding even a pin had its importance in Nordstorm. Profit was not the only motive ,motive was loyalty and “Good word of mouth”.
The Next Generation• The third generation of Nordstrom’s – Bruce, john, and Jim Nordstrom, and jack McMillan –emulated their fathers’ decision-by- a general agreement and in the process, built the company - NORDSTORM.• Each employee is given reward for his achievement .This reward acts as an motivational prospect Promoting from within remains an essential ingredient in Nordstrom’s success.• Women rights and social welfare also plays a vital role in Nordstrom. Today, 40 percent of company officers and 66 percent of store mangers are female.
Cntd…• When the company expands to other regions, it dispatches an advance force of experienced person who carry the culture with them and impart it to new employees.• ”Customer first---company second.” That implies that customer needs ,customer satisfaction his word of mouth are prime importance then comes company