Marketing Case Study Essay example

Submitted By chilechick94
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Pages: 5

1. Q. What steps does Nordstrom take to implement tits strategy of providing outstanding customer service?

A. Like all companies should, Nordstrom has great value in its customers. The fact that customers are at the top of Nordstrom’s organizational chart shows how cherished customers are. What makes customers happy is when employees are happy, and although customers are so apprized, Nordstrom’s employees are actually come first to the company. The company provides its employees with great respect, making the employees actually feel appreciated and want to do better. Even though Nordstrom sell quality merchandise, the real thing it offers customers excellent service.
2. Q. How do these activities enable Nordstrom to reduce the gaps between perceived service and customer expectation, as described in Chapter 18?

A. The focus of Nordstrom is the “Lifetime Value of the Customer.” Nordstrom’s customer service greatly exceeds other retail stores, which makes customers want to come back. Having loyal customers is far more valuable then a one-time customer sale.
3. Q. What are the pros and cons of Nordstrom’s approach to developing a competitive advantage through customer service?

A. Cons of using a competitive advantage through customer service is the possibility of the loss on a specific sale. For example, when that customer tried to return tires, Nordstrom lost money by giving that man a refund; but it was all for the positive image they wanted them to have in the customers mind. When the employee bought pants at another store to please the customer, they definitely lost some money; but they most likely kept that customer. The decrease in the profit margins is a con to putting customers first. The pros of putting customers first are having a repeated, loyal customer. Even though the Nordstrom lost money refunding the guys tires or when they bought pants at a competitor’s store, I am sure they gained respect from those customers. The customers left the store satisfied, making it more likely for them to return. The price of a dedicated, returning customer is greater in the long run.

Article. Nordstrom is a company that excels at customer service. Learn how the store provides customer satisfaction.
Source: https://www.americanexpress.com/us/small-business/openforum/articles/customer-service-lessons-from-nordstrom-1/
Date: February 9, 2011
Author: Glen Stansberry

Pop quiz: What's one of the most talked about aspects of your business?
Answer: Customer service.
Unfortunately, customer service is often where we spend the least of our resources. The Internet is riddled with stories of pitiful customer service. Mistreated customers will often vent their frustrations in blog posts, comments, reviews, tweets, Facebook messages, forums and in-person conversations. In an age where information moves incredibly fast, stopping a deluge of negative feedback can be nearly impossible. Yet, the beauty of excellent customer service is that customers react in a nearly identical way when they're impressed, and they will champion a better-than-average customer service interaction in the same ways listed above. They'll talk about their personal interactions, how the customer service was phenomenal, and how they'll be customers for life because of it (and refer their bridge club too!).

Nordstrom is a company that excels at customer service. Employees are famous for going out of their way to please customers, and Nordstrom spends a lot of resources on developing its employees. Interestingly enough, Nordstrom places the emphasis on employees, not policy.

The Famous Nordstrom Employee Handbook
The Nordstrom employee handbook is a thing of simplistic beauty. The "book" was a single card, with only 75 words on it:

Welcome to Nordstrom
We're glad to have you with our Company. Our number one goal is to provide outstanding customer service. Set both your personal and professional goals high. We have great confidence…