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Running Head: CUSTOMER RETENTION/SERVICE TRAINING PROGRAM
The Consumer is Key
Paige N. Connelly
Tarleton State University
HRMT 5303: Managing Human Resource Development
Professor: Dr. Linda Dulin
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CUSTOMER RETENTION/SERVICE TRAINING PROGRAM
Table of Contents
Page
Needs Assessment...........................................................................................................................5
Training Program Need.......................................................................................................5
Brief
Description…………………………………………………………………………………6
Strategic/Organizational Analysis
………………………………………………………….……7 Organizational
Goal………………………………………………………………………7 Organizational
Resources………………………………………………………………7 Organizational
Climate…………………………………………………………………..8 Organizational
Constraints……………………………………………………………….9 Task
Analysis……………………………………………………………………………….……9
Job Description………………………………………………………………………..…9
Task Identification……………………………………………………………………….9
KSAOs…………………………………………………………………………………..10
Training Areas ………………………………………………………………………….11
Prioritized Training Areas……………………………………………………..………..11
Person
Analysis…………………………………………………………………………………11
Summary Person Analysis.....................................................................................11
Diagnostic Person Analysis...................................................................................12
Program
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CUSTOMER RETENTION/SERVICE TRAINING PROGRAM
Design…………………………………………………………………………………13
Training Objectives................................................................................................13
Trainer/Vendor.......................................................................................................13
Lesson Plan............................................................................................................14
Program Method.................................................................................................15
Program Materials..............................................................................................16
Program Schedule...............................................................................................16
Program Implementation..................................................................................................
Training Methods and Techniques.........................................................................
Physical Environment..........................................................................................
Training Program...............................................................................................
Program Evaluation.....................................................................................................
Evaluation Criteria..............................................................................................
Reaction...............................................................................................
Learning....................................................................................................
Job Behavior..............................................................................................
Results.................................................................................................
Evaluation
Instrument……………………………………………………………………………
Training Cost Analysis........................................................................................…
Estimated Training Cost..................................................................................
Direct Cost..........................................................................................
Indirect Cost....................................................................................
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CUSTOMER RETENTION/SERVICE TRAINING PROGRAM
Developmental Cost........................................................................
Overhead Cost................................................................................
Estimated Return on Investment (ROI)...................................................................
Strengths and Limitations....................................................................................
References………………………………………………………………………………………Ap
pendix.................................................................................................................................. Lesson
Plan.........................................................................................................................A
Completed Lesson Plan.......................................................................................................B
Program Announcement......................................................................................................C
Program Outline..................................................................................................................D
Timetable.............................................................................................................................E
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CUSTOMER RETENTION/SERVICE TRAINING PROGRAM
The Consumer is Key
Training Program Need
Essence of the Need
1 The essence of any retail company focuses on satisfying the customer first, last,
and always because they are the focal point of business operations. Customer
retention/service training is needed in order for employees to establish and maintain
relationships with their customers and resolve issues pertaining to performance problems
such as: consumer interactions, convenience, satisfaction, and communication. This type of
training is significant in efforts to maintain brand awareness and monitor consumer
perceptions and attitudes. According to current employees at the Fashion Valley, California
location, Nordstrom has been facing issues with captivating millennial shoppers. Their
current customer retention/service training program needs to be reassessed, due to the
lack of knowledge needed entice a younger crowd.
Management Need Being Examined
2 Management acknowledges the need for this training because they recognize the
importance of maintaining consumer relations. Individual employee performance
contributes to the discernment of the whole organization, and is directly related to
consumer perception. Being in the retail industry, Nordstrom must strive to uphold long-
term relationships with their customers, by providing their employees with the necessary
knowledge and skills to understand customer needs and deliver exceeded expectations.
Management considers customer retention/service training to be a suitable allocation of
organizational time, money, and resources.
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Description of the Training Program
3 Nordstrom Inc. needs to take an organization-wide approach to improve customer
relationship management. Customer retention/service training is needed in order to create
long-term satisfaction, and may be achieved through substantial efforts to convince
consumers that Nordstrom’s products are the best option available by delivering the
greatest experience. Continuous interpersonal skills training, emphasizing customer
service and retention, concentrates on establishing individual relationships with others
and should be integrated throughout current and future customer-contact employees.
Management will conduct group training sessions, at all store locations, in which
employees will learn customer related problems, questions, and attitudes. They will then
be asked to engage in a group activity and given different customer dilemmas, in which
they will have an allocated time to present their proposed solution. This will enable
trainees to discuss the most suitable action. Employees will then have on-the-job training
during their first week on the floor, by a supervisor or sales executive, to observe and assist
in real customer-contact situations.
Organizational Setting and Need
4 Nordstrom, Inc. is a well-established department store that generates business in
many areas of the retail sector. Nordstrom promotes a multi-channel retail strategy,
offering varieties of clothing, shoes, and accessories for men, women, and children.
Nordstrom currently operates 309 stores located in 38 states, 118 full-line stores, 183
Nordstrom Racks, two Jeffrey boutiques, one clearance store, and an online store.
5 Customer service in a retail store can be broken down into three processes: in-
store assistance, transaction processing, and resolving complaints. Customer
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retention/service training is needed to improve customer relationship management in all
three of those processes. Interpersonal skills, focusing on customer retention and service,
promote positive attitudes, effective communication skills, and considerate interactions
with consumers in the workplace. Nordstrom holds a high reputation for exceptional
customer service, but according to current employees at the Fashion Valley, California
location, Nordstrom has been facing issues with captivating millennial shoppers. Their
current customer retention/service training program lacks ways to entice a younger crowd
and needs to be reassessed. Introducing a new training program could potentially enable
employees to posses the knowledge and skills necessary to the enlargement of brand
visibility.
Strategic/Organizational Analysis
Organizational Goals
6 Organizational goals start with identifying and understanding the organization’s
mission, which is based on management’s beliefs and assumptions about why the
organization conducts business. “At Nordstrom, our mission is to provide outstanding
service every day, one customer at a time” (Nordstrom, n.d.). This statement strives
emphasizes the importance of obtaining the most captivating shopping experience. The
goals of Nordstrom are to deliver unsurpassed customer assistance by providing the
customer with the best service, selection, quality, and value and should be emphasized in
training objectives. “We believe fashion is a business of optimism, and in that spirit we
continue to grow and evolve. Fashion changes. Shopping changes. Our commitment to
happy customers doesn't” (Spector & McCarthy, 2012). There are not any
Organizational Resources
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7 Nordstrom has extensive resources available for training practices and relies on
their core competency of superior customer service and product quality. Top management
has placed $750 million, allocated from sales, back into the business in efforts to capitalize
on customer retention opportunities through advancements to online stores and other
virtual channels. Improvements to e-commerce platforms were made to enhance the
customers’ mobile experience. Customer retention/service training is underway so that
employees have the capable skills necessary to maintain and expand virtual relationships.
Organizational Culture and Climate
8 “Culture is the most all-encompassing aspect of our social environment. It is
defined as a complex of values, ideas, attitudes, and other meaningful symbols created by
people, to shape consumer behavior as they are transmitted from one generation to the
next” (Schewe & Hiam, 1998, p. 166). In simple terms it is the values and behaviors that
contribute to the foundation and environment, which builds organizations beliefs and
practices. Consumer behavior is influenced by culture, because it is a major factor in our
decision-making and buying actions. The culture and climate within Nordstrom’s
organization is enormously influential because it empowers employees, by enabling them
to use their own personal good judgment in all situations. They believe in rewarding
exceptional work, encouragement from within, and developing long-lasting employee
relations.
Organizational culture matters to Nordstrom because, it is a major influence on the
way management thinks and conducts business. Possessing a customer-centric culture is a
valuable and contributing factor in determining how successful organizational training will
be. The ability to attract and maintain desirable employees deals directly with the way
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employees think of their relationship with higher management. These relationships are
strongly influenced by the way Nordstrom values and influences employee morals.
Organizational Constraints
9 Nordstrom strives to exceed legal, social, political, and economic expectations by
setting corporate social responsibility goals. They have implemented the Nordstrom Cares
program to show support to their many customers and communities they serve, make
charitable contributions to nonprofit organizations that empower youth, and respect the
environment by diminishing their impact and conserving resources where possible
(Nordstrom, n.d.). These factors will contribute to how customer retention/service training
is conducted. Nordstrom must also comply with all legal standards pertaining to the
privacy of customer information.
Task Analysis
Job Description
10 The job descriptions for retail sales associates are as follows:
 Use their expertise and sense of style to stay up to date with fashion trends.
 Provide excellent customer service skills.
 Have knowledge about the products and services provided by Nordstrom.
 Must possess great communication and team building skills to ensure customer
satisfaction.
 Have exceptional decision-making skills to represent the organization.
 Have the willingness to maintain and present a positive attitude in order to drive sales.
 Connect and build relationships with the customers.
Task Identification
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11 The major tasks of a retail associate are to provide fast, friendly service by
enthusiastically pursuing customers to assess their needs and provide assistance. Sales
associates have prominent department and product knowledge, promote product features,
answer questions about merchandising, and provide options specific to the customer’s
need. The most important task is to make the customer the highest priority, which requires
employees in this position know how to greet, communicate, and make recommendations
to every customer in their department, as well as other departments throughout the store.
Each associate has a responsibility to ensure a safe shopping environment by upholding all
company policies and standards.
KSAOs
12 KSAOs are knowledge, skills, ability, and other characteristics that employees
must have to accomplish their job effectively. The KSAOs for a retail sales associate are:
 Knowledge for providing customer service, needs, and satisfaction.
 Knowledge of sales and marketing principles in order to promote products.
 Knowledge of organizational goals and objectives.
 Skills to effectively communicate with customers.
 Skills to understand and determine social perceptions.
 Skills to make good judgment in decision-making.
 Ability to help the customer find the best suitable option to meet their needs.
 Ability to communicate ideas that the customer will understand.
 Ability to work well with others.
 Stand on the departmental floor for long periods of time.
 Maintaining a positive attitude.
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 Work the cash register.
 Always being presentable and approachable.
Training Areas
13 Training areas that can benefit from a customer retention/service training
program are tasks that focus on building and maintain relationships. From the list of KSAOs
presented in the section above, the most important to this particular HRD program are:
 Knowledge for providing customer service, needs, and satisfaction.
 Skills to effectively communicate with customers.
 Skills to make good judgment in decision-making.
 Ability to help the customer find the best suitable option to meet their needs.
 Maintaining a positive attitude.
 Always being presentable and approachable.
Prioritized Training Areas
14 After determining the job description, tasks, and KSAOs for a sales associate it is
clear which could benefit from a customer retention/service training program. From
highest to lowest priority they are as followed: (1) Knowledge for providing customer
service, needs, and satisfaction; (2) Skills to make good judgment in decision-making; (3)
Skills to effectively communicate with customers; (4) Maintaining a positive attitude; (5)
Ability to help the customer find the best suitable option to meet their needs; and (6)
Always being presentable and approachable.
Person Analysis
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Summary Person Analysis
15 A summary person analysis involves determining the overall success of an
individual employee performance by conducting a 360-degree performance appraisal
(Werner & DeSimone, 2012). The combined information from these assessments relevant
to a customer-centered training program are presented in Table 1. The data shows that the
sales associate’s performance meets company standards. The employee demonstrates
effective communication skills, maintains relationships, and displays product knowledge.
Table 1: Performance Appraisal Aggregate Data
Performance Appraisal Aggregate Data
Position: Sales Associate
Tasks Evaluation Score
Customer service 1 2 3 4 5
Initiative and assertiveness 1 2 3 4 5
Communication skills 1 2 3 4 5
Promotes product knowledge 1 2 3 4 5
Promote long-term customer satisfaction 1 2 3 4 5
Displays a positive attitude in all situations 1 2 3 4 5
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Diagnostic Person Analysis
16 A diagnostic person analysis aims to discover the reasons for an employee’s
performance. The sales associate demonstrates a superior quality of customer service and
strives to build and retain long-lasting relationships with customers. This is important
because consumer perception is everything. Employee can provide the customer with a
good experience by demonstrating superior product knowledge and communication skills.
It is vital to Nordstrom’s organizational strategy to exceed expectations and the sales
associate did just that.
Program Design
Training Objectives
17 The intent of the customer retention/service training program are to improve
customer relationship management, enlarge brand visibility, and capitalize on enticing a
younger crowd. The following are training objectives for customer retention/service
training:
 Given a customer service complaint, the trainee will identify and provide a proper
solution to the problem.
 Given all information (including size, style, and occasion), the trainee will present the
customer with product options to best suit their needs.
 After training is complete the trainee must possess all characteristics necessary to
effectively communicate with customers ensuring the greatest about of satisfaction is
rendered.
Trainer/Vendor
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18 Nordstrom holds the gold standard in the retail industry for ensuring superior
customer service and does not need to purchase a training program from an outside
vendor. The program trainer consists of all department managers who promote self-
motivated and self-efficient models of behavior in a supportive management structure.
There is no need for train-the-trainer programs, or subject matter experts, because
Nordstrom’s empowers employees and sales associates have the freedom to make their
own decisions to create a satisfied customer. On orientation day new employees are given
the employee handbook which states, “Welcome to Nordstrom, we’re glad to have you with
our company, our number one goal is to provide outstanding customer service. Set both
your personal and professional goals high. We have great faith in your ability to achieve
them. Nordstrom Rules: Rule #1: Use your good judgment in all situations. There will be no
additional rules. Please feel free to ask your department manager, store manager or
division general manager any question at any time” (Spector & McCarthy, 2012).
Lesson Plan
19 A lesson plan is needed in order to deliver the trainer with a guide for the
delivery of the training program (Werner & DeSimone, 2012).
a) Content to be covered: The content that will be covered in the training program will
relate to customer service responsiveness, what lines of communication are to be used,
how to build strong relationships, and how to attract younger customers.
b) Sequencing of activities: Orientation will go over organizational goals. Over a week
period trainees will engage in a group activities and given different customer dilemmas,
in which they will have an allocated time to present their proposed solution. This will
enable trainees to discuss the most suitable action. Employees will then have on-the-job
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training during their first week on the floor, by a supervisor or sales executive, to observe
and assist in real customer-contact situations. Training will conclude with an overall
evaluation of trainees’ decision-making skills.
c) Design of training media: The type of media that will be used is real life scenarios
delivered through customer service and departmental video feed. The trainees will be
able to watch how departmental managers interact with potential clients, and determine
where customer service could have been improved.
d) Development of experiential exercises: On-the-job training exercises will be used to
observe and evaluate trainees when placed in stressful situations. This allows
management to determine which trainees have the skills necessary to excel in the field.
e) Timing and planning of activities: Training is covered over the course of a week from
8:00 am -5:00 pm starting with orientation and touring of the store on Monday, video
feed on Tuesday, and real-time training on Wednesday, Thursday, and Friday. Trainees
will be broken up and rotated trough each department to gain personal experience with
each manager’s customer-centric approach.
f) Selection of the method: Methods of learning include lecture-led live programs including
observation, personal experience, conversation, and managerial supervision.
g) Evaluation items: At the end of training program, trainees will be evaluated and assigned
to specific departments based on their particular skill sets to product offerings. This will
enable each new employee to meet organizational goals and excel as a Nordstrom’s
representative.
Program Method
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21 The type of training method used to conduct this training program is an
instructor-led live method based on customer service specific and product knowledge
content.
1. The objectives of the program are to provide training that equips sales associates with
the knowledge, skills, and attitudes that will enhance product knowledge, maximize
problem-solving resources, and provide exceptional customer service to Nordstrom.
2. Time and money available. Although there has been a generous amount of funds
allocated to bettering customer satisfaction strategies. To adequately provide quality
training that maximizes potential for improved employee performance management
needs to utilize those funds efficiently, but also remain cost efficient to other
organizational necessities.
3. Availability of other resources. There is no need to expand to specialized equipment
or facilities for training purposes. Nordstrom has efficient resources for conducting
training procedures.
4. Trainee characteristics and preferences are designed to meet the targeted sales
associate population. In order to become a trainee, potential candidates must posses
certain attributes that make them unique to the organization. Once selected to
participate in the training program, trainees will learn through hands on experience
from readily available department managers.
Program Materials
22 The training program announcement will be distributed via email to the newly
hired sales associates and is located in Appendix B. The program outline will also be
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included in the email and is located in Appendix C. The current Nordstrom training manual
and employee handbook is given to employees on orientation day.
Program Schedule
23 The training program is scheduled Monday through Friday, from 8:00 am to 5:00
pm. Scheduling training during work hours enables trainees to observe and learn from
real-time, in-store customer encounters. The training program is mandatory and all
trainers and trainees will be contacted via email and phone call to confirm participation. 24
See Appendix D for a timetable pertaining to training activities.
Program Implementation
Training Methods and Techniques
25 In order for Nordstrom to take an organization-wide approach to improve
customer retention, classroom and on-the-job training methods will need to be utilized.
The classroom setting enables trainees to participate in lectures, discussions, an
audiovisual materials gaining overall knowledge of superior customer service techniques.
Trainees will then participate in job instruction training, which allows them to observe and
assist in real customer-contact situations. These two training approaches involve active
components to ensure that the trainees meet the Nordstrom standard of superior
individual employee performance and long-term customer satisfaction.
Physical Environment
26 The physical environment pertaining to classroom training is as follows:
Seating:
 Lectures will be conducted in the conference room
 The table will be arranged in a “U” formation.
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 Chairs will be set on each of side in a 3x4x3 formation.
 A desk will be placed at the front of the room for the instructor.
 A projection screen will be at the front of the room visible to all trainees.
Comfort Level:
 The room temperature will be set at 72 degrees Fahrenheit.
 Conference room chairs are padded.
 A variety of beverage options will be provided.
 Adequate lighting will be ensured.
Physical Distractions:
 Training is in a controlled environment therefore noise will be limited.
The physical environment pertaining to on-the-job training will be significantly different,
because training will take place on the department floor where trainees will benefit from
interactions that focus on building and maintain relationships with customers.
Training Program
27 The audiovisual component of the training program will include a PowerPoint
presentation and is located in Attachment A.
Program Evaluation
Evaluation Criteria
The effectiveness of a customer retention/service program may be evaluated
through the Kirkpatrick’s Evaluation Framework Model, which assesses employees at four
progressive levels: (1) reaction measures perceptions; (2) learning is a measure of
acquired knowledge; (3) transfer is a measure of changes in behavior; and (4) results
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quantify improved performance (Vasile &Teodorescu, 2015). These elements pose as
opportunities for corporations to provide training programs that vary in terms of
instructional competence. The results of each level are integrated together to develop an
overall outcome of employee learning and organizational knowledge and skills. The
emphasis of training evaluation is based on delivering results of employee effectiveness
pertaining to management development, skills training, customer service, and new product
development.
Reaction
28 The reaction level serves as a measure of customer satisfaction focusing on the
trainee’s perceptions and attitudes relating to program effectiveness. Characteristics of
reaction include level of participation, comfort of the experience, perceived practicability,
and potential to apply the learning. Feedback is usually gathered by means of forms,
surveys, or questionnaires immediately following training program completion. The overall
reaction to Nordstrom customer retention/service training created positive feedback as
trainees demonstrated qualities to improve customer relationship management, enlarge
brand visibility, and capitalize on enticing a younger crowd.
Cognitive Learning
29 The cognitive learning level serves as a measure to determine improvements in
attitude, knowledge, and skills as a result of attending the training program. Characteristics
of learning include the change in intellectual capability, extent of advancement, and the
intent of the experience. Feedback is gathered through interviews and observations
pertaining to trainee growth over the extent of the program. During the training program,
trainees will be observed and evaluated on their ability to retain the knowledge, skills, and
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attitudes necessary to enhance product knowledge, maximize problem-solving resources,
and provide exceptional customer service to Nordstrom.
Behavior
30 The behavior level serves as a measure behavioral change based on transferring
training efforts to on-the-job performance to ensure organizational effectiveness.
Characteristics of behavior include noticeable change in performance and providing
exceptional judgment in all situations. Feedback is gathered through observation and 360-
degree performance appraisals. At Nordstrom behavior is measured through an employees
ability to embed customer service in all aspects of their performance.
Results
31 The results level serves as a measure of analyzing the final outcome of the
training program on the business environment. Characteristics of results include key
performance indicators such as sales volume, return on investment, and quantifiable
aspects of organizational performance. Nordstrom determines if the HRD effort improved
organizational effectiveness by measuring its employees ability to find innovative ways to
effectively communicate with customers ensuring the greatest amount of satisfaction is
rendered.
Evaluation Instrument
32 The evaluation of the customer retention/service training program at Nordstrom
is conducted using direct observation and questionnaire methods. Direct observation is a
useful data collection method for Nordstrom, because it provides an opportunity for HRD
training to be assessed through an unobtrusive reflection of employee activities, behaviors,
and physical aspects. Observation is the most appropriate method when evaluating
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customer service training. Questionnaires are also useful for Nordstrom to evaluate the
effectiveness of the training program. Both evaluation methods are located in Appendix F.
Training Cost Analysis
33 The evaluation of a training cost analysis aims to provide the valuation of the
outcomes from implementing an HRD intervention. Werner and DeSimone (2012) suggest
that training cost analysis involves two categories of activities: (1) cost-benefit analysis,
which entails comparing the monetary costs of training to nonmonetary terms; and (2)
cost-effectiveness analysis, which places emphasis on the financial benefits. The projected
cost for the customer retention/service training program is $8,500. The specifics of the
costs associated to training are as follows:
34 Direct Costs:
Outside Instructor $0.00
In-house Instructor - $150 per x 5 days $750.00
Fringe Benefits @ 25% of Salary $187.50
Travel and Per-Diem Expenses $0.00
Materials - $3 per person x 5 days $30.00
Classroom Space and Audiovisual $0.00
Food and Beverages - $12.50 per person x 5 day $625.00
Total Direct Costs (rounded to nearest dollar) $1,593
35 Indirect Costs
Training Management $0.00
Clerical/Administrative - $125 per x 5 days $625.00
Fringe Benefits @ 25% of Salary $156.25
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Postage, Shipping, Telephone $0.00
Total Indirect Costs (rounded to nearest dollar) $781
36 Developmental Costs
Fee to Purchase Program $0.00
Instructor Training $0.00
Registration Fee $0.00
Travel and Lodging $0.00
HRD Staff Salary - $20 per x 9 hr x 2 days $360.00
Fringe Benefits @ 25% of Salary $90.00
Total Developmental Costs $450.00
37 Overhead Costs
General Organizational Support (10% of direct,
indirect, and developmental costs) $282.00
Total Overhead Costs $282.00
Compensation for Participants
Participants Salary - $12 per x10 person x 9hr x 5 days $5,400.00
Total Compensation $5,400.00
Total Training Costs $8,506.00
Estimated Return on Investment (ROI)
38 The anticipated operational results of the customer retention/service training
program are to improve customer relationship management and enlarge brand visibility.
These results of these aspects ensure that Nordstrom keeps up with changing consumer
expectations in an exemplary fashion. Customer service is measured based on the
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difference between management’s perceptions of exemplary performance and the
customer’s viewpoint. 39 The results before the training for customer service were
generally good in both categories, but had potential to be outstanding. It is anticipated that
a 33.3% improvement in customer relationship management and a 14.9% improvement in
brand visibility will occur proceeding program implementation. 40 The success of this
program will enhance the Nordstrom organizational philosophy that empowering
employees is the best way to provide superlative service to their customers. A more
detailed description of the results can be found in Table 2.
Table 2: Calculating Training Costs
Operational
Results
How Measured
Results Before
Training
Results After
Training
Differences (+
or-)
Expressed
in $
Customer
Relationship
Management
% of customers
who return for
subsequent visit
4 per month
average sale of
$150 per
shopper
12 per month
average sale
of $150 per
shopper
33.30% $1,200
Brand
Visibility
departmental
sales per month
$238,125 $273,125 $273,125 $35,000
Total Savings: $36,200
41 The Return on Investment (ROI) is distinct type of evaluation in that the effects
of training on business is quantified in dollar terms, and management has the opportunity
to observe training’s contribution to the organization (Keller, 2004). Based on the
projected ROI Nordstrom customer retention/service training program was cost effective
and successful with an ROI of 4.25 as presented in Table 3.
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Table 3: Return on Investment (ROI) Calculation
Training Program Strengths and Limitations
42 Customer service embodies the essence of any retail company focuses on
satisfying the customer first, last, and always because they are the focal point of business
operations. Nordstrom believes that their employees should go above and beyond the point
of the sale. The strengths associated with a training program focusing on customer service
are the ability to influence consumer perception, develop and attitude towards the product,
and create a certain image. When a company stands for something, one thing, they are in a
position to convince potential customers to choose them over other product available on
the market. Excellent customer service has empowered Nordstrom to build an industry-
wide competitive advantage, and aligning the goals of employees with the goals of the
organization will establish organizational effectiveness. The training program works in
efforts to succeed at building strong consumer relations.
There is a struggle to clarify the image of a brand, and value of it only goes as far as
consumers allow. Understanding what a company stands for in the minds of consumers
and maximize their experience is what customer service is all about. Instead of selling
consumers what a company can make, there is power in communication, “because being
first today is no guarantee of being number one tomorrow, a customer-centered approach
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positions the company better” (Murray, 2006, p.55). The consideration of a customer-
centric approach enables companies to build lasting relationships, which compliments the
Nordstrom brand.
43 Limitations pertaining to a customer retention/service training program is that
consumers are not generic when it comes to service. Businesses tend to devote a lot of time
to estimate the influence and importance of consumer’s minds, but they need to remember
that not all minds think alike. Customer service relies on the employees’ ability to connect
directly with customers, individually, rather than blaring at them in groups. The limitation
Nordstrom faces with program implementation is the uncertainty that employees with
posses the skills and attitude necessary to uphold their’ expected level of professional
excellence.
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References
Kelly, J. M. (2004). How to estimate the cost-benefit of training: Calculating return on
investment. Introduction to cost benefit analysis, 1-12. Retrieved from isd-
resource.com
Murray, C. (2006). The marketing gurus: lessons from the best marketing books of all time.
New York, NY: Penguin Group.
Nordstrom, Inc. (n.d.). Our History. Retrieved from.
http://shop.nordstrom.com/c/company- history?origin=leftnav
Schewe, C., & Hiam, A. (1998). The portable MBA in marketing. New York, NY: John Wiley &
Sons.
Spector, R., & McCarthy, P. D. (2012). Nordstrom way to customer service excellence. (2nd
ed.). Hoboken, NJ: Wiley.
Vasile, V., & Teodorescu, I. (2015). Aspects regarding e-Learning in corporate training pro
grams. eLearning and Software for Education, 03(2015), 80-83. Retrieved from
Central and Eastern European Online Library.
Werner, J.M., & DeSimone, R.L. (2012). Human Resource Development, 6th ed. Mason:
South- Western Cengage Learning.
27
CUSTOMER RETENTION/SERVICE TRAINING PROGRAM
Appendix A
20 General Lesson Plan
Program Title: Nordstrom Employee Training Program
Objective: Represent exceptional customer service in the
workplace
Preparation Required:
1. Physical environment Nordstrom - Fashion Valley
6997 Friars Rd
San Diego, CA 92108
3rd Floor, Room 310
2. Equipment and materials Training room equipped with table, chairs,
projection screen, and video/monitor.
3. Instructor Renee Jennings, Human Resources Manager
Antonio Espinosa, Store Manager
4. Trainee(s) 5 Trainees
Time: Monday – Friday, 8:00 – 5:00
Topics: Customer service and product knowledge
Instructor Activity: Lecture, Discussion, Demonstration, and Evaluation
Trainee Activity: Listen, Discussion, Observation, and Presentation
Instructional Strategies: Provide a hands-on experience to ensure successful
training, product understanding, and customer
retention strategies.
28
CUSTOMER RETENTION/SERVICE TRAINING PROGRAM
Appendix B (cont.)
Completed Lesson Plan
Nordstrom Employee Training Program
Time Activity
Mon 8-9:00 Doors Open, Packet Pick-up, Social hour
9-12 Tour of the store
12:00 LUNCH
1-4:00 Go over product lines
4-5:00 Questions
Tues 8-9:30 Lecture relating to customer service responsiveness, what lines of
communication are to be used, how to build strong relationships, and
how to attract younger customers.
9:30-1:00 Video feed of how departmental managers interact with potential clients,
and determine where customer service could have been improved
1:00 LUNCH
2- 5:00 Group activities where trainees are given different customer dilemmas,
in which they will have an allocated time to present their proposed
solution.
29
CUSTOMER RETENTION/SERVICE TRAINING PROGRAM
Wed, Thurs, Fri
8-12:00
On the floor training. Employees will assist departmental managers in
real-time customer oriented interactions.
12:00 LUNCH
1:00-5:00 Evaluation. Departmental managers will evaluate trainees on their ability
to assist customers in real-time interactions.
30
CUSTOMER RETENTION/SERVICE TRAINING PROGRAM
Appendix C
Program Announcement
Employee Training Program Opportunity
Appendix D
Welcome to
“At Nordstrom, our mission is to
provide outstanding service every day,
one customer at a time”
“We believe fashion is a business of
optimism, and in that spirit we
continue to grow and evolve. Fashion
changes. Shopping changes. Our
commitment to happy customers
doesn't”
Location:
Nordstrom - Fashion Valley
6997 Friars Rd
San Diego, CA 92108
3rd Floor, Room 310
Dates:
Monday October 26 – Friday October 30
8:00 am – 5:00 pm
If you have any questions contact Renee Jennings, Human Resources Manager
Email: rjennings@nordstrom.com
31
CUSTOMER RETENTION/SERVICE TRAINING PROGRAM
Program Outline
Goals: The goal of this training program is to teach employees customer service
skills necessary to improve customer relationship management and ensure
the customer receives the best selection, service, quality, and value.
Objectives: - Group training sessions at all store locations.
- Customer related problems, questions, and solutions.
- Represent exceptional customer service in the workplace
- Enhance product knowledge
Expectations: - Mandatory employee training program.
- Trainees are expected to demonstrate effective communication skills and
treat the customer as their highest priority.
Requirements: -Maintain a positive attitude
32
CUSTOMER RETENTION/SERVICE TRAINING PROGRAM
Appendix E
24 Program Timetable
Date Activity Assigned To:
October 15-16 Interview applicants HR Manager
October 17 Needs Assessment HRD
October 19 Strategic/Organizational Analysis HR
October 20 Training Budget Meeting Budget Manager/HRD
October 21 Task Analysis HR
October 22 Develop training objectives HR
October 22 Choose a Program HR
October 23 Develop a Lesson Plan HR
October 23 Program Announcement and
Outline
Emailed to applicants
HR
October 26 Orientation and Tour HR and Trainer
October 27 Conduct Training Trainer
October 28-30 Hands on training Trainer
33
CUSTOMER RETENTION/SERVICE TRAINING PROGRAM
October 30 Evaluation Trainer
34
CUSTOMER RETENTION/SERVICE TRAINING PROGRAM
Appendix F
49 Observation Evaluation Instrument
Customer Service and Communication Skills:
Instructions to the observer: Observe employeeon departmental floor
Employee Name:
Job Title: Location:
Reviewer: Date:
Key Needs Fair Good
Excellent
Concepts 1 2 3 4
Customer Interaction 1 2 3 4
Customer Satisfaction 1 2 3 4
CommunicationSkills 1 2 3 4
Positive Attitude 1 2 3 4
Product Knowledge 1 2 3 4
Enthusiasm 1 2 3 4
DecisionMaking Skills 1 2 3 4
Productivity 1 2 3 4
Team Building Skills 1 2 3 4
Fashion Trend Knowledge 1 2 3 4
35
CUSTOMER RETENTION/SERVICE TRAINING PROGRAM
36
CUSTOMER RETENTION/SERVICE TRAINING PROGRAM
Appendix F (continued)
49 Questionnaire Evaluation Instrument
Customer Retention/Service Training:
Instructions to the trainee: Please indicate your response to the following questions
Employee Name:
Job Title: Date:
1. Did the trainer provided a clear objective of the program? Yes No
2. Did the material cover the goals of the organization? Yes No
3. Are you satisfied with Nordstrom customer service model? Yes No
4. Overall are you satisfied with the training program? Yes No
5. What did you enjoy most about the training program?
6. What is your best customer service quality?
7. What training topic did you find most useful to your present job?
37
CUSTOMER RETENTION/SERVICE TRAINING PROGRAM
8. What would you recommend changing about the training program?

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Training Program_Connelly

  • 1. 1 Running Head: CUSTOMER RETENTION/SERVICE TRAINING PROGRAM The Consumer is Key Paige N. Connelly Tarleton State University HRMT 5303: Managing Human Resource Development Professor: Dr. Linda Dulin
  • 2. 2 CUSTOMER RETENTION/SERVICE TRAINING PROGRAM Table of Contents Page Needs Assessment...........................................................................................................................5 Training Program Need.......................................................................................................5 Brief Description…………………………………………………………………………………6 Strategic/Organizational Analysis ………………………………………………………….……7 Organizational Goal………………………………………………………………………7 Organizational Resources………………………………………………………………7 Organizational Climate…………………………………………………………………..8 Organizational Constraints……………………………………………………………….9 Task Analysis……………………………………………………………………………….……9 Job Description………………………………………………………………………..…9 Task Identification……………………………………………………………………….9 KSAOs…………………………………………………………………………………..10 Training Areas ………………………………………………………………………….11 Prioritized Training Areas……………………………………………………..………..11 Person Analysis…………………………………………………………………………………11 Summary Person Analysis.....................................................................................11 Diagnostic Person Analysis...................................................................................12 Program
  • 3. 3 CUSTOMER RETENTION/SERVICE TRAINING PROGRAM Design…………………………………………………………………………………13 Training Objectives................................................................................................13 Trainer/Vendor.......................................................................................................13 Lesson Plan............................................................................................................14 Program Method.................................................................................................15 Program Materials..............................................................................................16 Program Schedule...............................................................................................16 Program Implementation.................................................................................................. Training Methods and Techniques......................................................................... Physical Environment.......................................................................................... Training Program............................................................................................... Program Evaluation..................................................................................................... Evaluation Criteria.............................................................................................. Reaction............................................................................................... Learning.................................................................................................... Job Behavior.............................................................................................. Results................................................................................................. Evaluation Instrument…………………………………………………………………………… Training Cost Analysis........................................................................................… Estimated Training Cost.................................................................................. Direct Cost.......................................................................................... Indirect Cost....................................................................................
  • 4. 4 CUSTOMER RETENTION/SERVICE TRAINING PROGRAM Developmental Cost........................................................................ Overhead Cost................................................................................ Estimated Return on Investment (ROI)................................................................... Strengths and Limitations.................................................................................... References………………………………………………………………………………………Ap pendix.................................................................................................................................. Lesson Plan.........................................................................................................................A Completed Lesson Plan.......................................................................................................B Program Announcement......................................................................................................C Program Outline..................................................................................................................D Timetable.............................................................................................................................E
  • 5. 5 CUSTOMER RETENTION/SERVICE TRAINING PROGRAM The Consumer is Key Training Program Need Essence of the Need 1 The essence of any retail company focuses on satisfying the customer first, last, and always because they are the focal point of business operations. Customer retention/service training is needed in order for employees to establish and maintain relationships with their customers and resolve issues pertaining to performance problems such as: consumer interactions, convenience, satisfaction, and communication. This type of training is significant in efforts to maintain brand awareness and monitor consumer perceptions and attitudes. According to current employees at the Fashion Valley, California location, Nordstrom has been facing issues with captivating millennial shoppers. Their current customer retention/service training program needs to be reassessed, due to the lack of knowledge needed entice a younger crowd. Management Need Being Examined 2 Management acknowledges the need for this training because they recognize the importance of maintaining consumer relations. Individual employee performance contributes to the discernment of the whole organization, and is directly related to consumer perception. Being in the retail industry, Nordstrom must strive to uphold long- term relationships with their customers, by providing their employees with the necessary knowledge and skills to understand customer needs and deliver exceeded expectations. Management considers customer retention/service training to be a suitable allocation of organizational time, money, and resources.
  • 6. 6 CUSTOMER RETENTION/SERVICE TRAINING PROGRAM Description of the Training Program 3 Nordstrom Inc. needs to take an organization-wide approach to improve customer relationship management. Customer retention/service training is needed in order to create long-term satisfaction, and may be achieved through substantial efforts to convince consumers that Nordstrom’s products are the best option available by delivering the greatest experience. Continuous interpersonal skills training, emphasizing customer service and retention, concentrates on establishing individual relationships with others and should be integrated throughout current and future customer-contact employees. Management will conduct group training sessions, at all store locations, in which employees will learn customer related problems, questions, and attitudes. They will then be asked to engage in a group activity and given different customer dilemmas, in which they will have an allocated time to present their proposed solution. This will enable trainees to discuss the most suitable action. Employees will then have on-the-job training during their first week on the floor, by a supervisor or sales executive, to observe and assist in real customer-contact situations. Organizational Setting and Need 4 Nordstrom, Inc. is a well-established department store that generates business in many areas of the retail sector. Nordstrom promotes a multi-channel retail strategy, offering varieties of clothing, shoes, and accessories for men, women, and children. Nordstrom currently operates 309 stores located in 38 states, 118 full-line stores, 183 Nordstrom Racks, two Jeffrey boutiques, one clearance store, and an online store. 5 Customer service in a retail store can be broken down into three processes: in- store assistance, transaction processing, and resolving complaints. Customer
  • 7. 7 CUSTOMER RETENTION/SERVICE TRAINING PROGRAM retention/service training is needed to improve customer relationship management in all three of those processes. Interpersonal skills, focusing on customer retention and service, promote positive attitudes, effective communication skills, and considerate interactions with consumers in the workplace. Nordstrom holds a high reputation for exceptional customer service, but according to current employees at the Fashion Valley, California location, Nordstrom has been facing issues with captivating millennial shoppers. Their current customer retention/service training program lacks ways to entice a younger crowd and needs to be reassessed. Introducing a new training program could potentially enable employees to posses the knowledge and skills necessary to the enlargement of brand visibility. Strategic/Organizational Analysis Organizational Goals 6 Organizational goals start with identifying and understanding the organization’s mission, which is based on management’s beliefs and assumptions about why the organization conducts business. “At Nordstrom, our mission is to provide outstanding service every day, one customer at a time” (Nordstrom, n.d.). This statement strives emphasizes the importance of obtaining the most captivating shopping experience. The goals of Nordstrom are to deliver unsurpassed customer assistance by providing the customer with the best service, selection, quality, and value and should be emphasized in training objectives. “We believe fashion is a business of optimism, and in that spirit we continue to grow and evolve. Fashion changes. Shopping changes. Our commitment to happy customers doesn't” (Spector & McCarthy, 2012). There are not any Organizational Resources
  • 8. 8 CUSTOMER RETENTION/SERVICE TRAINING PROGRAM 7 Nordstrom has extensive resources available for training practices and relies on their core competency of superior customer service and product quality. Top management has placed $750 million, allocated from sales, back into the business in efforts to capitalize on customer retention opportunities through advancements to online stores and other virtual channels. Improvements to e-commerce platforms were made to enhance the customers’ mobile experience. Customer retention/service training is underway so that employees have the capable skills necessary to maintain and expand virtual relationships. Organizational Culture and Climate 8 “Culture is the most all-encompassing aspect of our social environment. It is defined as a complex of values, ideas, attitudes, and other meaningful symbols created by people, to shape consumer behavior as they are transmitted from one generation to the next” (Schewe & Hiam, 1998, p. 166). In simple terms it is the values and behaviors that contribute to the foundation and environment, which builds organizations beliefs and practices. Consumer behavior is influenced by culture, because it is a major factor in our decision-making and buying actions. The culture and climate within Nordstrom’s organization is enormously influential because it empowers employees, by enabling them to use their own personal good judgment in all situations. They believe in rewarding exceptional work, encouragement from within, and developing long-lasting employee relations. Organizational culture matters to Nordstrom because, it is a major influence on the way management thinks and conducts business. Possessing a customer-centric culture is a valuable and contributing factor in determining how successful organizational training will be. The ability to attract and maintain desirable employees deals directly with the way
  • 9. 9 CUSTOMER RETENTION/SERVICE TRAINING PROGRAM employees think of their relationship with higher management. These relationships are strongly influenced by the way Nordstrom values and influences employee morals. Organizational Constraints 9 Nordstrom strives to exceed legal, social, political, and economic expectations by setting corporate social responsibility goals. They have implemented the Nordstrom Cares program to show support to their many customers and communities they serve, make charitable contributions to nonprofit organizations that empower youth, and respect the environment by diminishing their impact and conserving resources where possible (Nordstrom, n.d.). These factors will contribute to how customer retention/service training is conducted. Nordstrom must also comply with all legal standards pertaining to the privacy of customer information. Task Analysis Job Description 10 The job descriptions for retail sales associates are as follows:  Use their expertise and sense of style to stay up to date with fashion trends.  Provide excellent customer service skills.  Have knowledge about the products and services provided by Nordstrom.  Must possess great communication and team building skills to ensure customer satisfaction.  Have exceptional decision-making skills to represent the organization.  Have the willingness to maintain and present a positive attitude in order to drive sales.  Connect and build relationships with the customers. Task Identification
  • 10. 10 CUSTOMER RETENTION/SERVICE TRAINING PROGRAM 11 The major tasks of a retail associate are to provide fast, friendly service by enthusiastically pursuing customers to assess their needs and provide assistance. Sales associates have prominent department and product knowledge, promote product features, answer questions about merchandising, and provide options specific to the customer’s need. The most important task is to make the customer the highest priority, which requires employees in this position know how to greet, communicate, and make recommendations to every customer in their department, as well as other departments throughout the store. Each associate has a responsibility to ensure a safe shopping environment by upholding all company policies and standards. KSAOs 12 KSAOs are knowledge, skills, ability, and other characteristics that employees must have to accomplish their job effectively. The KSAOs for a retail sales associate are:  Knowledge for providing customer service, needs, and satisfaction.  Knowledge of sales and marketing principles in order to promote products.  Knowledge of organizational goals and objectives.  Skills to effectively communicate with customers.  Skills to understand and determine social perceptions.  Skills to make good judgment in decision-making.  Ability to help the customer find the best suitable option to meet their needs.  Ability to communicate ideas that the customer will understand.  Ability to work well with others.  Stand on the departmental floor for long periods of time.  Maintaining a positive attitude.
  • 11. 11 CUSTOMER RETENTION/SERVICE TRAINING PROGRAM  Work the cash register.  Always being presentable and approachable. Training Areas 13 Training areas that can benefit from a customer retention/service training program are tasks that focus on building and maintain relationships. From the list of KSAOs presented in the section above, the most important to this particular HRD program are:  Knowledge for providing customer service, needs, and satisfaction.  Skills to effectively communicate with customers.  Skills to make good judgment in decision-making.  Ability to help the customer find the best suitable option to meet their needs.  Maintaining a positive attitude.  Always being presentable and approachable. Prioritized Training Areas 14 After determining the job description, tasks, and KSAOs for a sales associate it is clear which could benefit from a customer retention/service training program. From highest to lowest priority they are as followed: (1) Knowledge for providing customer service, needs, and satisfaction; (2) Skills to make good judgment in decision-making; (3) Skills to effectively communicate with customers; (4) Maintaining a positive attitude; (5) Ability to help the customer find the best suitable option to meet their needs; and (6) Always being presentable and approachable. Person Analysis
  • 12. 12 CUSTOMER RETENTION/SERVICE TRAINING PROGRAM Summary Person Analysis 15 A summary person analysis involves determining the overall success of an individual employee performance by conducting a 360-degree performance appraisal (Werner & DeSimone, 2012). The combined information from these assessments relevant to a customer-centered training program are presented in Table 1. The data shows that the sales associate’s performance meets company standards. The employee demonstrates effective communication skills, maintains relationships, and displays product knowledge. Table 1: Performance Appraisal Aggregate Data Performance Appraisal Aggregate Data Position: Sales Associate Tasks Evaluation Score Customer service 1 2 3 4 5 Initiative and assertiveness 1 2 3 4 5 Communication skills 1 2 3 4 5 Promotes product knowledge 1 2 3 4 5 Promote long-term customer satisfaction 1 2 3 4 5 Displays a positive attitude in all situations 1 2 3 4 5
  • 13. 13 CUSTOMER RETENTION/SERVICE TRAINING PROGRAM Diagnostic Person Analysis 16 A diagnostic person analysis aims to discover the reasons for an employee’s performance. The sales associate demonstrates a superior quality of customer service and strives to build and retain long-lasting relationships with customers. This is important because consumer perception is everything. Employee can provide the customer with a good experience by demonstrating superior product knowledge and communication skills. It is vital to Nordstrom’s organizational strategy to exceed expectations and the sales associate did just that. Program Design Training Objectives 17 The intent of the customer retention/service training program are to improve customer relationship management, enlarge brand visibility, and capitalize on enticing a younger crowd. The following are training objectives for customer retention/service training:  Given a customer service complaint, the trainee will identify and provide a proper solution to the problem.  Given all information (including size, style, and occasion), the trainee will present the customer with product options to best suit their needs.  After training is complete the trainee must possess all characteristics necessary to effectively communicate with customers ensuring the greatest about of satisfaction is rendered. Trainer/Vendor
  • 14. 14 CUSTOMER RETENTION/SERVICE TRAINING PROGRAM 18 Nordstrom holds the gold standard in the retail industry for ensuring superior customer service and does not need to purchase a training program from an outside vendor. The program trainer consists of all department managers who promote self- motivated and self-efficient models of behavior in a supportive management structure. There is no need for train-the-trainer programs, or subject matter experts, because Nordstrom’s empowers employees and sales associates have the freedom to make their own decisions to create a satisfied customer. On orientation day new employees are given the employee handbook which states, “Welcome to Nordstrom, we’re glad to have you with our company, our number one goal is to provide outstanding customer service. Set both your personal and professional goals high. We have great faith in your ability to achieve them. Nordstrom Rules: Rule #1: Use your good judgment in all situations. There will be no additional rules. Please feel free to ask your department manager, store manager or division general manager any question at any time” (Spector & McCarthy, 2012). Lesson Plan 19 A lesson plan is needed in order to deliver the trainer with a guide for the delivery of the training program (Werner & DeSimone, 2012). a) Content to be covered: The content that will be covered in the training program will relate to customer service responsiveness, what lines of communication are to be used, how to build strong relationships, and how to attract younger customers. b) Sequencing of activities: Orientation will go over organizational goals. Over a week period trainees will engage in a group activities and given different customer dilemmas, in which they will have an allocated time to present their proposed solution. This will enable trainees to discuss the most suitable action. Employees will then have on-the-job
  • 15. 15 CUSTOMER RETENTION/SERVICE TRAINING PROGRAM training during their first week on the floor, by a supervisor or sales executive, to observe and assist in real customer-contact situations. Training will conclude with an overall evaluation of trainees’ decision-making skills. c) Design of training media: The type of media that will be used is real life scenarios delivered through customer service and departmental video feed. The trainees will be able to watch how departmental managers interact with potential clients, and determine where customer service could have been improved. d) Development of experiential exercises: On-the-job training exercises will be used to observe and evaluate trainees when placed in stressful situations. This allows management to determine which trainees have the skills necessary to excel in the field. e) Timing and planning of activities: Training is covered over the course of a week from 8:00 am -5:00 pm starting with orientation and touring of the store on Monday, video feed on Tuesday, and real-time training on Wednesday, Thursday, and Friday. Trainees will be broken up and rotated trough each department to gain personal experience with each manager’s customer-centric approach. f) Selection of the method: Methods of learning include lecture-led live programs including observation, personal experience, conversation, and managerial supervision. g) Evaluation items: At the end of training program, trainees will be evaluated and assigned to specific departments based on their particular skill sets to product offerings. This will enable each new employee to meet organizational goals and excel as a Nordstrom’s representative. Program Method
  • 16. 16 CUSTOMER RETENTION/SERVICE TRAINING PROGRAM 21 The type of training method used to conduct this training program is an instructor-led live method based on customer service specific and product knowledge content. 1. The objectives of the program are to provide training that equips sales associates with the knowledge, skills, and attitudes that will enhance product knowledge, maximize problem-solving resources, and provide exceptional customer service to Nordstrom. 2. Time and money available. Although there has been a generous amount of funds allocated to bettering customer satisfaction strategies. To adequately provide quality training that maximizes potential for improved employee performance management needs to utilize those funds efficiently, but also remain cost efficient to other organizational necessities. 3. Availability of other resources. There is no need to expand to specialized equipment or facilities for training purposes. Nordstrom has efficient resources for conducting training procedures. 4. Trainee characteristics and preferences are designed to meet the targeted sales associate population. In order to become a trainee, potential candidates must posses certain attributes that make them unique to the organization. Once selected to participate in the training program, trainees will learn through hands on experience from readily available department managers. Program Materials 22 The training program announcement will be distributed via email to the newly hired sales associates and is located in Appendix B. The program outline will also be
  • 17. 17 CUSTOMER RETENTION/SERVICE TRAINING PROGRAM included in the email and is located in Appendix C. The current Nordstrom training manual and employee handbook is given to employees on orientation day. Program Schedule 23 The training program is scheduled Monday through Friday, from 8:00 am to 5:00 pm. Scheduling training during work hours enables trainees to observe and learn from real-time, in-store customer encounters. The training program is mandatory and all trainers and trainees will be contacted via email and phone call to confirm participation. 24 See Appendix D for a timetable pertaining to training activities. Program Implementation Training Methods and Techniques 25 In order for Nordstrom to take an organization-wide approach to improve customer retention, classroom and on-the-job training methods will need to be utilized. The classroom setting enables trainees to participate in lectures, discussions, an audiovisual materials gaining overall knowledge of superior customer service techniques. Trainees will then participate in job instruction training, which allows them to observe and assist in real customer-contact situations. These two training approaches involve active components to ensure that the trainees meet the Nordstrom standard of superior individual employee performance and long-term customer satisfaction. Physical Environment 26 The physical environment pertaining to classroom training is as follows: Seating:  Lectures will be conducted in the conference room  The table will be arranged in a “U” formation.
  • 18. 18 CUSTOMER RETENTION/SERVICE TRAINING PROGRAM  Chairs will be set on each of side in a 3x4x3 formation.  A desk will be placed at the front of the room for the instructor.  A projection screen will be at the front of the room visible to all trainees. Comfort Level:  The room temperature will be set at 72 degrees Fahrenheit.  Conference room chairs are padded.  A variety of beverage options will be provided.  Adequate lighting will be ensured. Physical Distractions:  Training is in a controlled environment therefore noise will be limited. The physical environment pertaining to on-the-job training will be significantly different, because training will take place on the department floor where trainees will benefit from interactions that focus on building and maintain relationships with customers. Training Program 27 The audiovisual component of the training program will include a PowerPoint presentation and is located in Attachment A. Program Evaluation Evaluation Criteria The effectiveness of a customer retention/service program may be evaluated through the Kirkpatrick’s Evaluation Framework Model, which assesses employees at four progressive levels: (1) reaction measures perceptions; (2) learning is a measure of acquired knowledge; (3) transfer is a measure of changes in behavior; and (4) results
  • 19. 19 CUSTOMER RETENTION/SERVICE TRAINING PROGRAM quantify improved performance (Vasile &Teodorescu, 2015). These elements pose as opportunities for corporations to provide training programs that vary in terms of instructional competence. The results of each level are integrated together to develop an overall outcome of employee learning and organizational knowledge and skills. The emphasis of training evaluation is based on delivering results of employee effectiveness pertaining to management development, skills training, customer service, and new product development. Reaction 28 The reaction level serves as a measure of customer satisfaction focusing on the trainee’s perceptions and attitudes relating to program effectiveness. Characteristics of reaction include level of participation, comfort of the experience, perceived practicability, and potential to apply the learning. Feedback is usually gathered by means of forms, surveys, or questionnaires immediately following training program completion. The overall reaction to Nordstrom customer retention/service training created positive feedback as trainees demonstrated qualities to improve customer relationship management, enlarge brand visibility, and capitalize on enticing a younger crowd. Cognitive Learning 29 The cognitive learning level serves as a measure to determine improvements in attitude, knowledge, and skills as a result of attending the training program. Characteristics of learning include the change in intellectual capability, extent of advancement, and the intent of the experience. Feedback is gathered through interviews and observations pertaining to trainee growth over the extent of the program. During the training program, trainees will be observed and evaluated on their ability to retain the knowledge, skills, and
  • 20. 20 CUSTOMER RETENTION/SERVICE TRAINING PROGRAM attitudes necessary to enhance product knowledge, maximize problem-solving resources, and provide exceptional customer service to Nordstrom. Behavior 30 The behavior level serves as a measure behavioral change based on transferring training efforts to on-the-job performance to ensure organizational effectiveness. Characteristics of behavior include noticeable change in performance and providing exceptional judgment in all situations. Feedback is gathered through observation and 360- degree performance appraisals. At Nordstrom behavior is measured through an employees ability to embed customer service in all aspects of their performance. Results 31 The results level serves as a measure of analyzing the final outcome of the training program on the business environment. Characteristics of results include key performance indicators such as sales volume, return on investment, and quantifiable aspects of organizational performance. Nordstrom determines if the HRD effort improved organizational effectiveness by measuring its employees ability to find innovative ways to effectively communicate with customers ensuring the greatest amount of satisfaction is rendered. Evaluation Instrument 32 The evaluation of the customer retention/service training program at Nordstrom is conducted using direct observation and questionnaire methods. Direct observation is a useful data collection method for Nordstrom, because it provides an opportunity for HRD training to be assessed through an unobtrusive reflection of employee activities, behaviors, and physical aspects. Observation is the most appropriate method when evaluating
  • 21. 21 CUSTOMER RETENTION/SERVICE TRAINING PROGRAM customer service training. Questionnaires are also useful for Nordstrom to evaluate the effectiveness of the training program. Both evaluation methods are located in Appendix F. Training Cost Analysis 33 The evaluation of a training cost analysis aims to provide the valuation of the outcomes from implementing an HRD intervention. Werner and DeSimone (2012) suggest that training cost analysis involves two categories of activities: (1) cost-benefit analysis, which entails comparing the monetary costs of training to nonmonetary terms; and (2) cost-effectiveness analysis, which places emphasis on the financial benefits. The projected cost for the customer retention/service training program is $8,500. The specifics of the costs associated to training are as follows: 34 Direct Costs: Outside Instructor $0.00 In-house Instructor - $150 per x 5 days $750.00 Fringe Benefits @ 25% of Salary $187.50 Travel and Per-Diem Expenses $0.00 Materials - $3 per person x 5 days $30.00 Classroom Space and Audiovisual $0.00 Food and Beverages - $12.50 per person x 5 day $625.00 Total Direct Costs (rounded to nearest dollar) $1,593 35 Indirect Costs Training Management $0.00 Clerical/Administrative - $125 per x 5 days $625.00 Fringe Benefits @ 25% of Salary $156.25
  • 22. 22 CUSTOMER RETENTION/SERVICE TRAINING PROGRAM Postage, Shipping, Telephone $0.00 Total Indirect Costs (rounded to nearest dollar) $781 36 Developmental Costs Fee to Purchase Program $0.00 Instructor Training $0.00 Registration Fee $0.00 Travel and Lodging $0.00 HRD Staff Salary - $20 per x 9 hr x 2 days $360.00 Fringe Benefits @ 25% of Salary $90.00 Total Developmental Costs $450.00 37 Overhead Costs General Organizational Support (10% of direct, indirect, and developmental costs) $282.00 Total Overhead Costs $282.00 Compensation for Participants Participants Salary - $12 per x10 person x 9hr x 5 days $5,400.00 Total Compensation $5,400.00 Total Training Costs $8,506.00 Estimated Return on Investment (ROI) 38 The anticipated operational results of the customer retention/service training program are to improve customer relationship management and enlarge brand visibility. These results of these aspects ensure that Nordstrom keeps up with changing consumer expectations in an exemplary fashion. Customer service is measured based on the
  • 23. 23 CUSTOMER RETENTION/SERVICE TRAINING PROGRAM difference between management’s perceptions of exemplary performance and the customer’s viewpoint. 39 The results before the training for customer service were generally good in both categories, but had potential to be outstanding. It is anticipated that a 33.3% improvement in customer relationship management and a 14.9% improvement in brand visibility will occur proceeding program implementation. 40 The success of this program will enhance the Nordstrom organizational philosophy that empowering employees is the best way to provide superlative service to their customers. A more detailed description of the results can be found in Table 2. Table 2: Calculating Training Costs Operational Results How Measured Results Before Training Results After Training Differences (+ or-) Expressed in $ Customer Relationship Management % of customers who return for subsequent visit 4 per month average sale of $150 per shopper 12 per month average sale of $150 per shopper 33.30% $1,200 Brand Visibility departmental sales per month $238,125 $273,125 $273,125 $35,000 Total Savings: $36,200 41 The Return on Investment (ROI) is distinct type of evaluation in that the effects of training on business is quantified in dollar terms, and management has the opportunity to observe training’s contribution to the organization (Keller, 2004). Based on the projected ROI Nordstrom customer retention/service training program was cost effective and successful with an ROI of 4.25 as presented in Table 3.
  • 24. 24 CUSTOMER RETENTION/SERVICE TRAINING PROGRAM Table 3: Return on Investment (ROI) Calculation Training Program Strengths and Limitations 42 Customer service embodies the essence of any retail company focuses on satisfying the customer first, last, and always because they are the focal point of business operations. Nordstrom believes that their employees should go above and beyond the point of the sale. The strengths associated with a training program focusing on customer service are the ability to influence consumer perception, develop and attitude towards the product, and create a certain image. When a company stands for something, one thing, they are in a position to convince potential customers to choose them over other product available on the market. Excellent customer service has empowered Nordstrom to build an industry- wide competitive advantage, and aligning the goals of employees with the goals of the organization will establish organizational effectiveness. The training program works in efforts to succeed at building strong consumer relations. There is a struggle to clarify the image of a brand, and value of it only goes as far as consumers allow. Understanding what a company stands for in the minds of consumers and maximize their experience is what customer service is all about. Instead of selling consumers what a company can make, there is power in communication, “because being first today is no guarantee of being number one tomorrow, a customer-centered approach
  • 25. 25 CUSTOMER RETENTION/SERVICE TRAINING PROGRAM positions the company better” (Murray, 2006, p.55). The consideration of a customer- centric approach enables companies to build lasting relationships, which compliments the Nordstrom brand. 43 Limitations pertaining to a customer retention/service training program is that consumers are not generic when it comes to service. Businesses tend to devote a lot of time to estimate the influence and importance of consumer’s minds, but they need to remember that not all minds think alike. Customer service relies on the employees’ ability to connect directly with customers, individually, rather than blaring at them in groups. The limitation Nordstrom faces with program implementation is the uncertainty that employees with posses the skills and attitude necessary to uphold their’ expected level of professional excellence.
  • 26. 26 CUSTOMER RETENTION/SERVICE TRAINING PROGRAM References Kelly, J. M. (2004). How to estimate the cost-benefit of training: Calculating return on investment. Introduction to cost benefit analysis, 1-12. Retrieved from isd- resource.com Murray, C. (2006). The marketing gurus: lessons from the best marketing books of all time. New York, NY: Penguin Group. Nordstrom, Inc. (n.d.). Our History. Retrieved from. http://shop.nordstrom.com/c/company- history?origin=leftnav Schewe, C., & Hiam, A. (1998). The portable MBA in marketing. New York, NY: John Wiley & Sons. Spector, R., & McCarthy, P. D. (2012). Nordstrom way to customer service excellence. (2nd ed.). Hoboken, NJ: Wiley. Vasile, V., & Teodorescu, I. (2015). Aspects regarding e-Learning in corporate training pro grams. eLearning and Software for Education, 03(2015), 80-83. Retrieved from Central and Eastern European Online Library. Werner, J.M., & DeSimone, R.L. (2012). Human Resource Development, 6th ed. Mason: South- Western Cengage Learning.
  • 27. 27 CUSTOMER RETENTION/SERVICE TRAINING PROGRAM Appendix A 20 General Lesson Plan Program Title: Nordstrom Employee Training Program Objective: Represent exceptional customer service in the workplace Preparation Required: 1. Physical environment Nordstrom - Fashion Valley 6997 Friars Rd San Diego, CA 92108 3rd Floor, Room 310 2. Equipment and materials Training room equipped with table, chairs, projection screen, and video/monitor. 3. Instructor Renee Jennings, Human Resources Manager Antonio Espinosa, Store Manager 4. Trainee(s) 5 Trainees Time: Monday – Friday, 8:00 – 5:00 Topics: Customer service and product knowledge Instructor Activity: Lecture, Discussion, Demonstration, and Evaluation Trainee Activity: Listen, Discussion, Observation, and Presentation Instructional Strategies: Provide a hands-on experience to ensure successful training, product understanding, and customer retention strategies.
  • 28. 28 CUSTOMER RETENTION/SERVICE TRAINING PROGRAM Appendix B (cont.) Completed Lesson Plan Nordstrom Employee Training Program Time Activity Mon 8-9:00 Doors Open, Packet Pick-up, Social hour 9-12 Tour of the store 12:00 LUNCH 1-4:00 Go over product lines 4-5:00 Questions Tues 8-9:30 Lecture relating to customer service responsiveness, what lines of communication are to be used, how to build strong relationships, and how to attract younger customers. 9:30-1:00 Video feed of how departmental managers interact with potential clients, and determine where customer service could have been improved 1:00 LUNCH 2- 5:00 Group activities where trainees are given different customer dilemmas, in which they will have an allocated time to present their proposed solution.
  • 29. 29 CUSTOMER RETENTION/SERVICE TRAINING PROGRAM Wed, Thurs, Fri 8-12:00 On the floor training. Employees will assist departmental managers in real-time customer oriented interactions. 12:00 LUNCH 1:00-5:00 Evaluation. Departmental managers will evaluate trainees on their ability to assist customers in real-time interactions.
  • 30. 30 CUSTOMER RETENTION/SERVICE TRAINING PROGRAM Appendix C Program Announcement Employee Training Program Opportunity Appendix D Welcome to “At Nordstrom, our mission is to provide outstanding service every day, one customer at a time” “We believe fashion is a business of optimism, and in that spirit we continue to grow and evolve. Fashion changes. Shopping changes. Our commitment to happy customers doesn't” Location: Nordstrom - Fashion Valley 6997 Friars Rd San Diego, CA 92108 3rd Floor, Room 310 Dates: Monday October 26 – Friday October 30 8:00 am – 5:00 pm If you have any questions contact Renee Jennings, Human Resources Manager Email: rjennings@nordstrom.com
  • 31. 31 CUSTOMER RETENTION/SERVICE TRAINING PROGRAM Program Outline Goals: The goal of this training program is to teach employees customer service skills necessary to improve customer relationship management and ensure the customer receives the best selection, service, quality, and value. Objectives: - Group training sessions at all store locations. - Customer related problems, questions, and solutions. - Represent exceptional customer service in the workplace - Enhance product knowledge Expectations: - Mandatory employee training program. - Trainees are expected to demonstrate effective communication skills and treat the customer as their highest priority. Requirements: -Maintain a positive attitude
  • 32. 32 CUSTOMER RETENTION/SERVICE TRAINING PROGRAM Appendix E 24 Program Timetable Date Activity Assigned To: October 15-16 Interview applicants HR Manager October 17 Needs Assessment HRD October 19 Strategic/Organizational Analysis HR October 20 Training Budget Meeting Budget Manager/HRD October 21 Task Analysis HR October 22 Develop training objectives HR October 22 Choose a Program HR October 23 Develop a Lesson Plan HR October 23 Program Announcement and Outline Emailed to applicants HR October 26 Orientation and Tour HR and Trainer October 27 Conduct Training Trainer October 28-30 Hands on training Trainer
  • 33. 33 CUSTOMER RETENTION/SERVICE TRAINING PROGRAM October 30 Evaluation Trainer
  • 34. 34 CUSTOMER RETENTION/SERVICE TRAINING PROGRAM Appendix F 49 Observation Evaluation Instrument Customer Service and Communication Skills: Instructions to the observer: Observe employeeon departmental floor Employee Name: Job Title: Location: Reviewer: Date: Key Needs Fair Good Excellent Concepts 1 2 3 4 Customer Interaction 1 2 3 4 Customer Satisfaction 1 2 3 4 CommunicationSkills 1 2 3 4 Positive Attitude 1 2 3 4 Product Knowledge 1 2 3 4 Enthusiasm 1 2 3 4 DecisionMaking Skills 1 2 3 4 Productivity 1 2 3 4 Team Building Skills 1 2 3 4 Fashion Trend Knowledge 1 2 3 4
  • 36. 36 CUSTOMER RETENTION/SERVICE TRAINING PROGRAM Appendix F (continued) 49 Questionnaire Evaluation Instrument Customer Retention/Service Training: Instructions to the trainee: Please indicate your response to the following questions Employee Name: Job Title: Date: 1. Did the trainer provided a clear objective of the program? Yes No 2. Did the material cover the goals of the organization? Yes No 3. Are you satisfied with Nordstrom customer service model? Yes No 4. Overall are you satisfied with the training program? Yes No 5. What did you enjoy most about the training program? 6. What is your best customer service quality? 7. What training topic did you find most useful to your present job?
  • 37. 37 CUSTOMER RETENTION/SERVICE TRAINING PROGRAM 8. What would you recommend changing about the training program?