Nordstrom Retailing Management Answers

retail concern Case 31 Customer Service and Relationship Management at Nordstrom 1. What steps does Nordstrom take to implement its strategy of professionalviding outstanding guest improvement? To begin with, Nordstrom employees treat nodes want royalty. Customers argon however at the top of Nordstroms so-called organization chart. All lower levels mesh towards supporting the gross salespeople, who in turn work to serve the customers. Salespeople are given personalized business cards to service of process them build relationships with customers.They are not tied to their respective departments but to the customers, this turns their salesperson a personal shopper of the customers. This opportunity to sell departments enables salespeople to maximize sales and commissions while providing superior customer service. in spite of all the efforts in making sure customer satisfaction is met, it starts from the employees. Nordstrom employees are treated almost like the extended f amily. They are treated like businesspeople and empowered to make independent decisions. Overall, Nordstrom delivers good quality crop with good service. 2.How do these activities enable Nordstrom to reduce the gaps between perceived service and customer expectations, as described in Chapter 18? Nordstroms policies steering on the concept of the Life time Value of the Customer. Their service goes in a higher place and beyond what other retail stores can offer. Even if little capital is made from the first sale, the lifetime value of a customer is calculated, and the cocksure dollar amount of a loyal customer is staggering. A customer can expect equal level of respect from all departments from for each one employee. They will also experience a personal shopper who can help them with which product to purchase. . What are the pros and cons of Nordstroms approach to developing a emulous advantage through customer service? The number one pro is customer loyalty, because of Nords troms above and beyond customer service customers get back for the good quality products and to the experience of good salesperson. Because of customer loyalty, Nordstrom realizes co passageal revenue from repeat customers. And another pro is having a great employee Nordstrom empowers their employees to be individual businesspeople who can make their own decisions within the stores. Because of this, Nordstroms hrinkage or loss due to theft and record-keeping errors is under 1. 5% of salesroughly half the industry average. The only con is the loss bullion from returns or refunds. Nordstroms policy concept of Life-time Value of Customers, sometimes brings them to loss revenue or even negative revenue. Some customers may even abuse the fact of how easy it is to return merchandise even if it was intemperately used. But the weight of a positive dollar amount of loyal customer versus loss revenue is heavier. And therefore there isnt rattling a con to how Nordstrom caters to their cust omers and as well as employees.