Nordstrom Case Study

1355 Words Jul 14th, 2013 6 Pages
Marketing Excellence Case Study: Nordstrom
Tameka Flowers
Columbia Southern University
MBA 5501-12J-4, Advanced Marketing

1. Nordstrom’s “no questions asked’ return policy, Fashion Reward loyalty program, and their customer preferences tool, Personal Book, are all systems that help the retailer set standards in customer service and loyalty (Kotler & Keller, 2012). Nordstrom can continue to be known as an exceptional customer service provider by being a retail front-runner with internet and Social Media usage, personalized services, and increased attention on international shoppers.
According to Amy Spradling, Nordstrom has a strong Social Media presence. The company has accounts on Twitter, Pinterest, Instagram, and
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Nevertheless, there is always a risk of customer defection. “The average company loses 10 percent of its customers each year (Kotler & 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, thank you cards, Personal Book tool, and Fashion Rewards Program have all made Nordstrom distinguish itself in the retail industry (Kotler & 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 (Maheshwari, 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
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