Friday, April 6, 2018

Lessons From Nordstrom in Earning Customer Trust

Nordstrom is known for its exceptional customer service and does not deny publicly that it once took back a set of tires from a customer who was dissatisfied with the purchase even though Nordstrom does not sell tires.  The story is not true of course, but that's not the point - it speaks to the Nordstrom brand.  Similar to other brick-and-mortar department stores, Nordstrom is challenged by ecommerce competitors and a paradigm shift in the way consumers shop.  In response, Nordstrom is constantly tweaking its business model to maintain its relevancy to its customer base and to create more compelling customer experiences.
 
The company appointed Olivia Kim as Vice President of Creative Projects, whose role is to recruit new customers and make the brick-and-mortar store a destination for fashion inspirations and merchandise that is not easily found elsewhere, according to a recent Glossy podcast.  Kim explained the strategies that she is using to appeal to customers interested in fashion, art, culture and style and thereby turning Nordstrom into a go-to destination for that type of inspiration.  Experimenting with eight different Nordstrom stores, Kim establish theme-related temporary pop-ups within the stores, including digitally native brands such as Everlane and Warby Parker, and obtaining exclusive merchandise from existing partners such as Nike and Alexander Wang. 
 
Kim wanted to emulate Fashion Week's Opening Ceremony that promotes obscure brands or re-imagines existing brands in new ways.  A number of retailers are experimenting with collaborations, but for those efforts to be successful they need to be able to interest and inspire consumers.  They need to say to customers, 'come here because we are on the cutting edge, we have something new and different.'  Kim explained, consumers "Need to look to you as a point of inspiration when they go to make their next purchase.  Earning trust is how you gain wallet share."
 
Kim also recognizes that today's consumer wants a shopping experience that is easy.  There's more to it than how quickly someone can acquire a product - it's more about preference.  While Kim recognizes that Amazon needs to always be on her radar screen, she does not view Amazon as a competitor.  She is focused on bringing experience, product and cool ideas to her customers and matching her customers to new brands.
 
Lessons for decorative plumbing and hardware showrooms: Consider emulating Opening Ceremony in your showroom for your builder, designer and homeowner customers and show how you can re-imagine new baths in different ways.  These may include some of the new technologies for tubs, shower systems, mirrors, integrated in-cabinet and drawer lighting, really cool new storage solutions, advancements in countertop materials, smart water closets, etc. The opportunities are almost endless.  There are also opportunities to pioneer brands that most of your repeat customer base have never heard of.  What prevents you from creating a pop-up in your showroom featuring different products that are customizable?  Other possible pop-up ideas including re-imagining a display area dedicated to "a return to nature", "in-home spa", wellness center or "the high-tech bathroom".
 
When you match your customers to new ideas and brands, you are most definitely making a distinction between your showroom and online etailers whose most distinctive competency is the quickest route from wanting to getting.

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