Nordstrom Tinkers with Customer Service


By George Anderson
When it comes to delivering excellent customer service in the retailing business, there are few that stack up against Nordstrom. So, why then has the company decided to do away with the customer service department at its store in Spokane’s River Park Square mall? To improve customer service, of course.
According to a report in the Puget Sound Business Journal, Nordstrom is closing the customer service department in favor of letting shoppers make returns at any checkout located within the store.
Deniz Anders, a Nordstrom company spokesperson, said the company was testing the new initiative because, “we’re always looking for a way to enhance service.”
The idea for the test came from regional and store managers. The company will determine the success of the new effort, said Ms. Anders, from customer feedback, which will be communicated by managers to executives at Nordstrom’s corporate headquarters.
Moderator’s Comment: What is your reaction to Nordstrom testing a new approach to handling its customer service functions?–
George Anderson – Moderator
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21 Comments on "Nordstrom Tinkers with Customer Service"
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The mark of a true leader and a great company is not being afraid to try new things to improve and enhance. Nordstrom has become the paragon of customer service and the envy of all, because they don’t accept the status quo. Nordstrom not only talks about customer service, but they actually under-promise and over deliver!
Other retailers should take a lesson from Nordstrom’s playbook. While it is not easy and there are associated costs, in the long run, it is well worth the time, effort and costs.
Today, we heard that retail sales at clothing stores were down 3.3% in February; yet Nordstrom was up 4.9% in February. Anomaly, coincidence or a result of something else? I think we can all figure out that the reason and something to do with their exceptional customer service.
Hmmm, maybe Nordstrom IS doing something right! Wake up, retail!
I won’t buy anything at Best Buy because their customer service is so poor that it makes police interrogation look like friendly banter.
Conversely I’ll buy anything from Nordstrom because I know they’ll courteously refund my money no matter what the problem.
The only issue I have with Nordstom’s change is that their customer service desk was so good to begin with that it’s almost impossible to improve upon it.
As an aging ‘Baby Boomer,’ customer service is one of the single most important criteria I use in determining who I want to do business with-more important even than price.
Any discussion of customer service at Nordstrom must also include the recognition of the people working in their stores. As many of the consultants who have commented on this topic have stated, Nordstrom has legendary customer service, but the reputation for great service is the result of how Nordstrom associates interact with customers every day.
As a long-time Nordstrom customer and a consultant I’ve found that Nordstrom associates are among the best in all of retailing. Closing the customer service department in one of the company’s stores just puts this important activity in the hands of the people who are most qualified and capable of handling this activity.
As Nordstrom’s sterling reputation for great customer service continues to drive the company’s growth I wonder if and when other retailers who compete with them will get the message!
This will create long customer care lines at the check out. All too often I’ve noticed customers leaving their product filled shopping cart or packages on a display next to the checkout register and departing the store. The checkout experience is often faster than return exchange transactions.
I could argue with the naysayers on this one, but I won’t. Its a clear positive move by Nordstrom’s. It hard to second guess the best as if they even could be second guessed. This clearly empowers their staff in all areas to fully satisfy their customers, which is their primary goal. Leaders innovate. This is Nordstrom.
Nordstrom has an A-1 idea on appropriate returns providing they continue to emphasize getting all sales “as right as possible” the first time. This is another thoughtful move by Nordstrom.
I have several concerns about this plan. Ever gone into a big box store and seen the line of unhappy customers standing at the return desk which is right inside the entrance? Makes you want to turn around and leave the store without buying a thing. Making the return effort too visible only blurs the lines between the illusion that everything the store sells is great, and you still stand a chance of being unhappy with a purchase here.
However, in the department store business, returns desks are often planned for the least accessible, hard to find areas, right next to the bathrooms. Making a customer service location more visible from afar, and duplicating them on each store might be a more subtle and customer friendly move. But I do applaud Nordstrom for trying.
It’s a good thing! My local Macy’s takes returns or exchanges at any POS area in the store, and it works very well. Associates are able to do the return or exchange without a manager, which means no waiting for the customer. I have always had a positive experience with any returns at Macy’s and feel that it is a positive step for Nordstrom to do the same, with only great results!
I went with the “failure” option on the this one – though, as always, “not sure” sums up the extent of my certainty: I usually associate customer service desks w/various peripheral functions (gift certificates, general queries, etc.), and I seek them out when I’m not sure who I should be asking…. I think this will only work if customers understand that EVERY counter is supposed to be a customer service counter, and even then, I’m not sure.
I guess I’m not understanding what is so innovative about this approach. As others have mentioned, a number of department stores have been doing this for a long time. It is definitely a plus for customers who are returning an item and also plan to make a purchase, only one line to stand in. There’s also a better chance of turning a return into an exchange or, better yet, a trade up, because the merchandise is right there. This is especially true when you have associates the caliber of Nordstrom…seems like a no-brainer to me.
Speaking as a consumer, I have to say I don’t understand how moving the returns transaction to the regular sales floor improves customer service. As a purchaser, I don’t want to be stuck in line behind someone making a return. It seems like having a separate allocated area for returns benefits everyone. The person making the return or exchange won’t have to wait in the line of people checking out their purchases; they go to a dedicated returns area and most likely receive immediate service.
The beauty of this approach is that it allows the associate handling the return to actually resolve the core problem. Instead of simply processing a refund or return, this allows Nordstrom to assist the customer in the resolution. My guess is this will have a significant impact on refunds, converting a large number of them to alternate purchases. Further, the information about “why” the return is made will be invaluable to Nordstrom in general. Knowing the organization, I am confident that an extremely important aspect of quality — consumer feedback — will now flow more effectively to the buying staff. Nordstrom has always had a completely open channel of communication between the floor and the buying offices.
Imagine: A customer returns an outfit, and the person handling the return actually knows enough about the merchandise to ask good questions, and determine what would really fulfill the customer’s needs…I love this.
It’s likely to be successful if (1) shrink doesn’t rise and (2) cashier lines don’t get longer. Some retailers have such a slow return process that implementing this would anger the customers waiting behind the person making a return. When combined with the excessive staff turnover at many retailers, the need for return process training can make this type of implementation difficult. In other words, if your cashier turnover is 75% a year, and your returns process isn’t intuitively obvious, this won’t be a winner.
Nordstrom, the world’s leading high-end shoe store is again looking to improve it’s world-class customer service. It seems that their goal is to improve the shopping (and returning) experience of their customers, not (necessarily) to reduce costs of operations. Encouraging each sales representative to have a stronger relationship with their customer is what made Nordstrom famous, and it looks like the company is upping the ante on their competitors yet again.
Customer service centers have usually been painted as impersonal, not interested in the customer, and mired in rules and regulations. Nordstrom is trying to change this perception in the minds of their employees, customers and prospective customers.
Hard to quibble with this one. Saving shoppers the trek to the customer service desk (typically located at the rear of the fourth floor behind the rest rooms and the elevator bank) is in itself a service improvement. Certainly floor employees at Nordstrom are capable of assisting with returns, adjustments, credit card applications and similar routine matters. Why not go a step further and install a “concierge” desk inside each store’s main entrance or near the main escalator, where packages may be checked, salespeople paged, and directions obtained?
A little surprised this leading retailer in consumer service is taking a giant step in this endeavor.
Nordstrom has been known to test in increments that lead to a finalization, if you will; like having no customer service department.
Needless to say, this store’s personnel and management are the best in the chain, in terms of handling consumer needs and issues, etc. Hope this retailer researched this proposition with the store’s shoppers. Hmmmmmmmmm