Enhanced use of social media tools like Pinterest, Twitter, and Facebook to enable the customers in dictating the store’s display preferences can give Nordstrom’s social media platform a human voice and touch. For example, each department store could use certain personnel who would handle customer concerns on social media, and yet still be physically available for receiving the customer at the store if the concern necessitates a visit. This, of course, implies that each Nordstrom’s store would have to employ humanized response models that build personal relationships with the customers. Moreover, these social tools and interactions will need real-time monitoring to ensure that any emergent issue is recognized and promptly addressed. Studies have demonstrated that online interactions, especially complaints, are very demanding with about 55% of consumers expecting same day responses.

One great potential for an engaging and personalized social media interaction will be the capturing of the young, still cash strapped young adults and teenagers, who are target customers of Nordstrom’s Rack stores. These shoppers have the potential for migrating into the pricier, full line stores in the future and lively social media interactions will endear them to Nordstrom.

Nordstrom can exploit its lifestyle sections that are in every store to guide their customers’ purchasing choices. The provision of a variety of goods in-store to a customer who has requested for a particular one can enhance the customer’s satisfaction. How can it be made? Availing a variety of brands and types with expert advice from the salesperson that considers variable factors as function, environment, costs, and others that suit the customer’s preferences eventually leaves the customer satisfied. The customers’ satisfaction comes from the feeling that their purchase was a well thought out decision. Therefore, even if the purchase was pricier, the customers know it was the best value for money available from all other options. This strategy is potentially rewarding when complaints from customers are dealt with immediately and in an apologetic and empathic manner, irrespective of the customer’s version of the story. Moreover, the solutions should be framed to factor in the customer’s contributions. Eventually, the company would have appealed to the customer’s emotional needs by making them feel part of, and contributors to the company excellent customer service.

First, inherent risks include misinterpretation of a local market’s preference. Nordstrom’s plan to open 50 new stores hinges on its reputation at providing customer discretionary products. However, depending on the locale where it is expanding into, the concept of luxury brands may backfire because the target market is cost conscious. Alternatively, the competing stores who are longtime residents in the new locales may have conditioned the locales into frequent discount sales and promotions. Therefore, the new target customers may not readily accept the entry of Nordstrom, which offers premium priced goods.

Second, Nordstrom’s “no questions asked” return policy is subject to abuse by dishonest customers. This is especially true in circumstances where customers take the opportunity to “buy” expensive accessory items like handbags and jewelry, but, in the real sense, they are renting those items. The lax return policies of Nordstrom allow the acceptance of these returned items, most of which are returned in significantly depreciated qualities. This eventually affects the company’s cash flow and reputation.

Third, the utilization of Rack stores and social media tools has the potential to alienate its adult, matured and upscale customers. Despite the fact that the Rack stores offer discounts, which are, in fact, great incentives at attracting new customers, studies have proven that the use of discounts does not necessarily improve customer loyalty. This is because discount programs require a continuous provision of the merchandise irrespective of the market and supply conditions, and thereby force a business entity employing it to sacrifice the quality of its products on occasions to meet the growing demand. This validates studies that have proven that high-end customers, who constitute Nordstrom’s core client base, perceive discount products as inferior goods. In fact, the presence of discount-based stores as the Rack stores negate any chances that Nordstrom will capture loyal customers basing on the customers’ shopping experiences because some of these discounts are conditional. For example, some discounts are offered only after a minimum amount of dollars has been spent. The customer, therefore, feels hostage to this condition. Consequently, a customer purchases the products, but is unlikely to return unless a more enticing discount program is available – to Nordstrom’s disadvantage, of course.

About the author

Rico Shenk has been the lead blog writer at https://elitewritings.com/buy-a-letter-of-recommendation.html letter of recommendation service since 2018. His passion for helping people in all aspects of online marketing flows through in the expert industry coverage he provides. In addition to blog writing, Rico is interested in technical writing and copywriting services.