Case Analysis – Nordstrom
For this week’s assignment, read the case study at the end of chapter 6 and address the following questions:
Nordstrom is legendary for providing the best customer experience. What are some of the ways Nordstrom has gathered marketing research from the consumer?
When Nordstrom analyzes the data found in its online sales platforms, what type of marketing research is it using?
In what ways has Nordstrom used data to enhance the customer experience?
Nordstrom realized a connection between online shopping and in-store shopping. It developed methods to capture the online customer and increase in-store sales. In what ways was Nordstrom able to understand customer shopping behaviors?
The requirements below must be met for your paper to be accepted and graded:
Write between 750 – 1000 words (approximately 2 – 4 pages) using Microsoft Word in APA style (download an APA sample paper from the Purdue OWL here).
Use font size 12 and 1” margins.
Include a cover page and reference page.
At least 80% of your paper must be original content/writing.
No more than 20% of your content/information may come from references.
Use an appropriate number of references to support your position, and defend your arguments. The following are examples of primary and secondary sources that may be used, and non-credible and opinion based sources that may not be used.
Primary sources such as, government websites (United States Department of Labor Bureau of Labor Statistics, United States Census Bureau, The World Bank, etc.), peer reviewed and scholarly journals from the online library and Google Scholar.
Secondary and credible sources such as CNN Money, The Wall Street Journal, trade journals, and publications from the online library.
Non-credible and opinion based sources such as, Wikis, Yahoo Answers, eHow, blogs, etc. should not be used.
Cite all reference material (data, dates, graphs, quotes, paraphrased statements, information, etc.) in the paper and list each source on a reference page using APA style.
Below is the Case study:
Nordstrom
One day a customer walked into an upscale fashion retail store in Anchorage, Alaska, to return a set of tires.
The store had a wide selection of shoes, clothes, and accessories, but no tires. However, the store that
previously occupied the space did sell tires. After much discussion, a Nordstrom store manager made the
return and accepted the tires. The story is legendary in customer service circles. It is also true.
A leading fashion retailer based in Seattle, Washington, Nordstrom prides itself on customer service and
innovative methods of serving the customer. Founded in 1901, the company now operates 358 retail stores in
the United States and Canada as well as online retail.30
Nordstrom has long been famous for its customer-centric mindset. The “Nordstrom way” has always been
about serving customers according to their needs and making them feel good about the shopping experience.
Part of the experience is focused on ease, selection, and convenience.
In 2020, Nordstrom saw tremendous growth in online sales. By integrating online and in-store sales, the
company realized that 50 percent of customers who buy in store at Nordstrom have first had a digital
experience with the retailer. Identifying trends between in-store sales and online sales has assisted Nordstrom
in formulating a more customer-centric strategy.
31
To better serve customers and increase sales, Nordstrom sales associates are key. Sales associates develop
connections with the customer. With good questions and involvement in the customer experience, the sales
associates determine consumer needs and wants. Understanding consumer needs and wants leads
Nordstrom to craft an experience unparalleled in retail.32
Through careful study of the customer and the analytics available in online and in-person shopping patterns,
Nordstrom has developed a more robust system that allows for seamless coordination between all Nordstrom
properties. In developing a better customer experience, Nordstrom worked to really understand how
customers live and behave.
From customer interactions, observation, online data, and careful marketing research, Nordstrom Local
emerged. One key piece of information was that 35 percent of customers who place an online order first
visited a store to help guide the purchase decision.33 With Los Angeles and New York as the top markets,
Nordstrom needed methods to connect with and help ease the purchase process for its customers in these
locations.
One significant aspect of the purchase process was to make online ordering easier, allowing for quick in-store
pickups and returns while also including a method of getting alterations when and where it was most
convenient. The creation of Nordstrom Local was the answer. Through a Nordstrom Local, available in the top
markets, the customer could get the Nordstrom experience—closer to home.
Nordstrom realized the more channels a customer could use, the more they would spend with the retailer. In
6 • Marketing Plan Exercise 223
fact, soon after opening Nordstrom Local, the company was able to determine that customers using the new
locations spend 2.5 times the amount of all other customers. So how could the company better serve those
customers and make transactions more profitable?
Part of the Nordstrom plan to connect the customer more fully with the “experience” included the ability to
easily order online and pick up in-store—using Nordstrom Local made that possibility easier to achieve.
Nordstrom Local also included tailors available at pickup, the exclusive Nordstrom Stylist who would travel to
all stores within a local market area, easy returns and exchanges, and finally, Certified Gift-Wrapping
Specialists to make special packages look styled for whatever the occasion.
Consumer insights help Nordstrom to provide curated merchandise for each store. When shopping at
Nordstrom, you will find merchandise specific to the region and store location. Pop-up shops are a regular
feature at Nordstrom. The pop-up allows for a preview of potential merchandise to meet the needs of the local
market. A well-rounded plan to connect at every point of contact has allowed Nordstrom to create an
experience unrivaled in the industry.
Case Questions
1. Nordstrom is legendary for providing the best customer experience. What are some of the ways
Nordstrom has gathered marketing research from the consumer?
2. When Nordstrom analyzes the data found in its online sales platforms, what type of marketing research is
it using?
3. In what ways has Nordstrom used data to enhance the customer experience?
4. Nordstrom realized a connection between online shopping and in-store shopping. It developed methods
to capture the online customer and increase in-store sales. In what ways was Nordstrom able to
understand customer shopping behaviors?