Nordstrom Essay
1. How has an understanding of consumer behavior helped Nordstrom grow from a small shoe store to a fashion specialty chain giant? (Provide at least 3 reasons) Nordstrom’s ample understanding of consumer behavior has helped the company grow immensely over time. A main reason is Nordstrom’s philosophy. Nordstrom focuses on empowering the managers and sales force to make decisions that favor the customer, not the company. By focusing on the customer, they were able to retrieve information necessary to expand the business. For example, Nordstrom’s realization of a market for women’s clothing pushed them to expand beyond their small shoe store. They were able to be successful with this due to their marketing research on women and their understanding
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Identify the advantages and disadvantages of using “customer centricity” to create customer loyalty among existing and new Nordstrom customers. a. Advantages- By using customer centricity it can allow Nordstrom to recognize and take advantage of opportunities for growth, such as unfulfilled customer needs. Another potential benefit of a customer-centric business strategy for Nordstrom is that it can increase customer satisfaction. The purpose of customer-centricity is to find out what customers like and don't like, and to tailor products and services to better fulfill those needs and eliminate sources of problems. An example of Nordstrom using customer centricity is with a new service called Textstyle. The service allows Nordstrom customers to directly reach sales associates via text message if that is how they prefer to communicate. A customer using TextStyle, would be contacting his/her own personal Nordstrom salesperson by a private text message with a description or photo of a product. If the customer decides to purchase the product, the customer can make the purchase by replying “buy” and entering a unique code. The consumer will then be able to is complete the transaction using a shopper’s account at nordstrom.com (Wahba 1). This is an idea that using a service that is based around the customer and their own time frame along with the consumers prefer method of communication via text. This new idea could bring along growing profits if the idea takes off, however there is also
Identify the advantages and disadvantages of using “customer centricity” to create customer loyalty among existing and new Nordstrom customers. a. Advantages- By using customer centricity it can allow Nordstrom to recognize and take advantage of opportunities for growth, such as unfulfilled customer needs. Another potential benefit of a customer-centric business strategy for Nordstrom is that it can increase customer satisfaction. The purpose of customer-centricity is to find out what customers like and don't like, and to tailor products and services to better fulfill those needs and eliminate sources of problems. An example of Nordstrom using customer centricity is with a new service called Textstyle. The service allows Nordstrom customers to directly reach sales associates via text message if that is how they prefer to communicate. A customer using TextStyle, would be contacting his/her own personal Nordstrom salesperson by a private text message with a description or photo of a product. If the customer decides to purchase the product, the customer can make the purchase by replying “buy” and entering a unique code. The consumer will then be able to is complete the transaction using a shopper’s account at nordstrom.com (Wahba 1). This is an idea that using a service that is based around the customer and their own time frame along with the consumers prefer method of communication via text. This new idea could bring along growing profits if the idea takes off, however there is also