Advantages Of Nordstrom

The mission of Nordstrom is to provide outstanding service every day, one customer at a time by offering the customer the best possible selection, quality and value. And their vision is to serve their customers better, to always be relevant in their lives and to form lifelong relationships and while serving their customer face-to-face is the foundation of how they’ve historically served them. Today, customers seek their

The most important component of Nordstrom's retail mix is its customer service. The retail environment is completely customer driven and giving the customer satisfaction in every possible manner is very important. The point of view that ‘Service Pays’ is accepted by the retailer today

Consumers are always satisfied with good customer service. When it comes to retail store customer service and satisfaction it is important because department stores are large in size and finding help can be difficult. Colloquy, a company concerned with building customer value, released a survey and asked 3,000 consumers across five geographical areas to rate their personal experiences with retailers. Macy’s was ranked number one in the department store category, with the most loyal customers. To keep up with technology advances Macy’s has invested time and money into developing a more efficient online shopping site, Macys.com and Macysweddingchannel. This investment cost nearly $300 million in 2006-2008 is being used to scale-up these fast-growing businesses through improvements in delivery efficiency, online site functionality and customer service. To enhance the shopping experience at Macy’s 100 stores in 2007 experienced remodeling and began introducing the most advanced POS registers and systems to the sales floors nationwide. Macy’s passion is product and people. There continuing pursuit is to have unique fashionable merchandise ready for customer satisfaction. Macy’s promise is to always carry the best brands and the most-wanted items. They also believe in hiring the right employees. With the right employees, there will be a sense of motivation and helpfulness. The American Customer Satisfaction Index covers 200 companies’ products and

Before analyzing those motivational practices, it is essential to understand the core to the Nordstrom’s business - the customer service, known as the Nordstrom Way. As stated in the case, it is “the customer service like no one else offers, service above and beyond the call of duty.” In order to achieve the Nordstrom Way, the stores request their salespersons to be “upbeat, ambitious but, at the same time, selfless.” They keep personal books listing each of their customers and record every activity and correspondence; they send out thank you letters to customers for purchases regardless of how small the transactions are; they personally deliver purchases outside of work time and even on holidays. The approach has proven to be successful, as it cultivates the loyalty within the customers and generates glowing sales records. On the other hand, because the Nordstrom Way is result orientated, extra works are justifiable as long as they lead to the successful sales. Salespersons have to sacrifice their off duty time as these are often considered “extra” and “non-selling” activity.

In Menswear of Nordstrom, they hold a very strong marketing mix. Within their marketing mix, they have product. Men’s wear in Nordstrom has a very large scale of items from mid-tier to high fashion. It consists of more than hundred brands. Some brands are offered exclusively at Nordstrom only for men’s wear, such as Paul Smith lines. The items for men’s wear is quality oriented and mostly British styled. The selection of items are also vary from suits to casual and even sportswear, too. In service side, Nordstrom provides unmatched customer service for men by customizing products and providing tailored services to their needs. They also have service called Trunk Club, which gives fashion direction to men who don’t have time and who don’t

A well-articulated compensation philosophy drives organizational success by aligning pay and other rewards with business strategy. It provides the foundation for plan design and administration and anchors current and future plans to the company's culture and values (Kaplan, 2006, p.32). Recognizing and rewarding achievement is the cornerstone of the company A’s compensation philosophy. The mission of the company is to attract, select, place and promote all individuals based on their qualifications. The company believes that performance-based compensation helps attract, develop and retain talented professionals. In addition to base pay which based upon local market conditions and targeted to be above market, the company provides the following types of potential compensation to reward performance:

One could say they set the mark for everyone to target in customer service. And they make it the core of their marketing strategy. (Schoultz, 2013)

Nordstrom Inc., started as a small shoe store in Seattle, Washington in 1901. Since that time it has become one of the leading and successful shoe and apparel retailers in operation today. After reviewing different information regarding Nordstrom Inc. espoused values and enacted values, it is apparent that they are in alignment. Espoused values are the core values of the company. The history and organizational beliefs, developed into policy for the company. The goal of the espoused values is to create standard of behavior for the company. The enacted values are norms exhibited by employees (Answers, 2013). If the espoused and enacted values are misaligned problems could occur within the

Nordstrom’s employees and management are the company’s most valuable resource. An article written in the Seattle PI describes exactly why this is true. It states that, “Nordstrom salespeople make decisions as if managing their own business; they are trusted to do what is right. Everyone else in the company is there to help the sales staff make the sale and please the customer” (Mulady, 2009). The way the employees are treated and valued is a perfect portrayal of the company’s mission of providing the best possible customer service and value to the customer.

O’Neil (1998) suggests six minimal criteria for the design of a performance based pay system. The first of these criteria is that the reward system should be self-funding, that is, the performance increases should as a minimum offset the cost of the rewards provided. The second criterion is that the distribution of the rewards must be consistent, fair and justifiable. In addition reward plans must be transparent and clearly communicated. The third criterion

Recognizing and rewarding high-performance is a key recommendation for any approach when managing any merit pay program (HRIS 2012). Merit pay is a compensation system where base pay increases and is determined by an individual’s performance. Using a merit pay plan is a good way for an organization to reward high performance is one benefit when using merit pay programs. The first step in implementing or improving a merit pay program is to have a solid performance management program, and this is another way a merit pay program is beneficial. Merit pay is a way to be successful and effectively implement merit pay with a uplift in salaries, and this is a third way using a merit pay program is beneficial to an organization. There are some drawbacks when using merit pay programs, such as paying some employees more than others. If you pay high-performing workers more than low- performing employees, the high- performers may stay, causing the low- performers to complain or leave the organization. A second drawback in using merit pay program is that employees become less motivated if not paid to their satisfaction. For example, if employees feel they should be making more money for their performance, this causes them to have low self esteem, and want to find employment at other organization. The last drawback associated with

Customer satisfaction and service quality are the two important components that direct anyone’s attention in every concept related to marketing, services, etc. (Spreng and Mackoy, 2006). In today’s competitive era, the success lies in

At the beginning the company was considered leader of its industry due to its capacity to customize a store to its neighborhood,

Benchmarking is a great starting point. However, in some cases the performance comparison do not uncover the real scope of the challenge of practical leadership and effectiveness. It can take to an unproductive analysis in the competitive gap identified. Furthermore, it can lead to the development of capabilities that can help to beat the existed and forthcoming competition (Shamma & Hassan, 2013). Amazon’s excellence depends in the attention the leadership keep on customers and maintain the best practice in all aspects of the business. The company knows that thanks to the customers they had succeed in short of period. The well-known marketing note that the “customer is always the king” means that all company decisions should be conducted based on the customer's desires and wishes. Companies need to understand how products and services are supplied and, know how to identify what the business needs to source to meet customer expectations (Shamma & Hassan, 2013).

Creating and implementing of incentive pay system supports to solve organizational problems to align the preferences of business and employees. In addition, the system serves as an organizing tool to identify and attract the most capable employees since companies need to deliver the product or