Nordstrom has a strong Social Media presence
They also offer information via blobs and an app. “6,800,000 other sites have linked to Nordstrom as of January 20, 2013… Nordstrom has 1 ,833,435 likes on Faceable.
.. 163,872 people checked In to Nordstrom on Faceable” (Sprawling, 2013). Nordstrom competitor, Bloodiness’s, has only one-third of the number of links, and one-fifth of the number of Faceable likes (Spreading, 2013). Nordstrom has five blobs that are available on Nordstrom website.
They cover beauty, fashion, weddings, men’s needs, and finding the best piece. The articles are short insights into stylists’ viewpoints and what the current trends are (“Nordstrom,” 2013). The Nordstrom app allows users to view put- together looks, product information and availability, customer reviews and upcoming events. It can also be used to create wish lists and make purchases (“Google play,” 2012). Nordstrom internet presence provides a bridge to their personalized services.
Personalized service is an effective component In Nordstrom strategy to maintain and grow brand loyalty.
On Faceable, Nordstrom has provided personalized responses to complaints that Included either solutions or apologies. Additionally, they have used this media to address public relations Issues (Spreading, 2013). Wealth the store, Nordstrom provides personal stylists for wedding, wardrobe, or beauty needs to include makeup, skincare, and fragrances. Each month Nordstrom offers several beauty and fragrance events, lingerie fittings, and offers appointments with certified prosthesis fitters for women who have had mastectomies, lumpectomies, and reconstructive surgery.
They also have a
Nordstrom Cares program that focuses on community support. Although many facets of the program have low visibility such as energy conservation and partnerships with minorities, Nordstrom does events that customers can participate in. The Beat the Bridge to Beat Diabetes is an annual run/walk raise funds and awareness of diabetes. Also, the stores offer CEO-friendly restaurants for their patrons (“Nordstrom,” 2013). Nordstrom has a strong global presence. The Nordstrom website offers shipping to 95 countries.
If a user selects their country, the prices will reflect the local currency.
However, the language remains In English (“Nordstrom,” 2013). Considering that the majority of the organization’s web traffic comes Trot IANAL, tenure Is a great opportunity to Increase International sales Day adding a translator to the website (Sprawling, 2013). On the whole, Nordstrom has made efforts to give excellent customer service in a variety of ways. To increase brand loyalty, they need to ensure that a strong customer relationship management program is in place to bring new customers to their events, website and social media pages.
Nordstrom can create buzz on upcoming events through outside floggers ND reach untapped customers through viral videos on sites such as youth a medium that the company is new to (“Youth,” 2013). Another consideration would be to use detailed surveys as a measurement technique to determine exact drivers of customer satisfaction (Kettle & Keller, 2012). 2. As stated by Kettle and Keller, “not only has Nordstrom emerged over the past 100+ years as a luxury brand known for quality, trust, and service, but its customers stay loyal even in the hard times (2012).
Nevertheless, there is always a risk of customer defection. The average company loses 10 percent of its customers each year (Kettle & Keller, 2012).
Nordstrom must be aware of and prepared for the risks related to the retail industry. Risks include balancing the costs associated with having a customer- focused strategy while maintaining the correct amount of inventory, plus earning a profit; the affect of the economy on consumers’ discretionary spending; and numerous competitors. Historically, Nordstrom has been successful with using a high level of service to maximize its customer-perceived value.
The “no questions asked” return policy, hank you cards, Personal Book tool, and Fashion Rewards Program have all made Nordstrom distinguish itself in the retail industry (Kettle ; Keller, 2012). However, this approach represents a costly investment.
To continue to reap the rewards from said investment, Nordstrom has to ensure the correct levels of inventory are in place. Retail buyers have to determine what will be fashionable seasons in advance and they have to avoid over-purchasing. The longer that a product stays on the sales floor there becomes an increased risk of decreased margins (Mishmashes, 2012).
To reduce the risk, Nordstrom connected its website to its store inventories. This allowed customers to see what was available in both its website warehouse and its stores. This satisfied customers because items that were out of stock online may have been available in a store across the country.
Now the customer could have that item delivered to their local store. This lowered the risks associated with too much inventory on hand because items were now moving out of the stores before going to markdown (Clifford, 2010).
Although an organization may be good at budgeting dollars invested in the needs customers, a weak economy can still disrupt profitability. As a luxury retailer, Nordstrom is dependent upon the buying power of wealthy consumers. When the stock market falls, there is a drop in discretionary spending. This in turn results in excessive inventory thus throwing off the balance that retail buyers attempt to achieve.
“Luxury shoppers, while a small segment of consumers, wield an outsized impact on the broader economy, earning roughly 50% of the total income in the U. S. ND making 48% of total expenditures, according to Citreous estimates” (Byron amp; Taller, 2011). Allotment, a weak economy can puss customers to ten competition. Even ten wealthy will become less loyal, and more cautions spenders that are looking for better deals. Being a retailer, Nordstrom faces a number of competitors.
The top rivals include Bloodiness’s, Asks Fifth Avenue, and J Penny. In regards to price point, Nordstrom is above J Penny and below Bloodiness’s and Asks Fifth Avenue. Nordstrom offers high end quality at more reasonable prices than other luxury retailers.
Knock Consumer Knowledge offers a service on their website to ampere company websites. After comparing Nordstrom against its competitors, it is clear that J Penny is equal in the areas of Social Media, website popularity, website security, and returns. J Penny is the only competition that beats Nordstrom in pricing.
Thus, J Penny represents the greatest threat for consumers that are willing to leave due to price. Bloodiness’s and Asks Fifth Avenue represent the luxury level of competition. Nordstrom is beating both in all areas of the internet and service.