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Management tip: Learning from a US department store about customer service

I was fortunate to hear Jamie Nordstrom, of the great Nordstrom department store group ($10B in annual sales) speak at the shop.org conference earlier this week. He was there to talk about their highly successful engagement across a range of platforms and formats, to share insights into tech strategies they are using in their omni-channel model.

But it was not the tech stuff that engaged Nordstrom the most. He was his most passionate when talking about customer service, something Nordstrom has been known for for decades.

For the most part, Nordstrom does not have unique products . The Nordstrom point of difference is customer service. It’s embedded in their DNA.

  • The have pushed decisions to be as close as possible to their customers.
  • They talk with their customers across multiple platforms.
  • Their use of Facebook, Twitter and Pinterest is authentic, smart and customer-focussed.
  • The invest considerably in employee training.
  • They believe that great customer service makes price less of an issue.

We don’t have unique products in our businesses, only unique customer service.  Nordstrom attributes its exceptional growth to their focus on customer service.  Each experience have had shopping there was memorable.

The question I ask myself and all newsagents should ask themselves is: what can I do to improve our customer service?

Nothing earth shattering, nothing new here. However, the extraordinary same store growth at Nordstrom suggests they are getting this customer service thing right.

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Customer Service

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  1. Perry

    Great comment from Katie Page today. Australian shoppers expect top service, but to hire , train and retain staff capable of delivering it adds a cost factor to the price build up that customers aren’t prepared to pay. Gerry might be a bit of a dork but Katie’s on the money.

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  2. Mark Fletcher

    That’s a very old school approach from Katie. For her and her husband it’s a challenge because they built their businesses on price as their USP.

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  3. Derek

    Excellent customer service does offset some variations in price. Feeling good about purchasing a product is important to customers.

    Amongst many things the Owner or Manager must set the example for customer service, even some basic in house training can be advantages. Reward employees.

    In my business the single biggest profit maker is our customer service.

    Tues went to a shop hoping to buy a not the run of the mill USB stick, Owner did not greet, asked if he stocked varieties of USB sticks, pointed at cabinet, unfourtunately did not have what I needed, on the way out I said thanks see ya mate, he grunted. Guess what business it was? We are our own worst enimies sometimes.

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