The Nordstrom Way

1. The Nordstrom Way

2. The Nordstrom Way • What can we learn from a department store? • Customer Service 101! 1. HUMBLE – You need to be humble to do service 2. Everything begins with the customer! 3. Think like the customer!

3. The Golden Rule • Always think: • How will it affect my customer? If I was in the customer’s, how would I feel? • Do what’s right for the customer – and you have done what’s right for the organization.

4. The Nordstrom Way to Customer Service Excellence • The book is divided into three parts: • Part I: What Senior Managers Can Do in an organization to Create an identifiable and sustainable culture the way Nordstrom has done it. • Part II: What Frontline Managers Can Do to provide in an atmosphere where staff are giving great customer service. • Part III: What Employees Can Do explores what the role of those individuals in giving great customer service

5. The History of Nordstrom • John Nordstrom was born in Alvik Neder Lulea, Sweden, in 1871 • Partnering with Carl F. Wallin, the original small shoe store opened in 1901 on the corner of Fourth and Pike in Seattle • First named Wallin & Nordstrom, then Nordstrom’s, and lastly, Nordstrom. • “offer the customer the best possible service, selection, quality and value. “

6. Part I: What Senior Managers Can Do • Managers create, maintain, and support the corporate service culture. They consciously spread the culture of service throughout the organization and among new hires

7. Part I: What Senior Managers Can Do -Tools to Value Your Employees • Heroics – Employees who witness a colleague giving excellent customer service are encouraged to write up a description of what they saw and submit it to their manager. • Purpose – to give Nordstrom people a standard to aspire to and to surpass. • Outstanding acts of customer service are rewarded.

8. Part I: What Senior Managers Can Do – Keys to Success • Make customers feel comfortable by paying attention to every detail of the experience – bricks and mortar or virtual. You must create an inviting place to do business • Make your public voice or face a pleasant one • Create an atmosphere of helpfulness • Create an atmosphere of professionalism • Educate your customer to make sound choices

9. Part II: What Supervisors Can Do to Create Nordstrom Style Service – Keys to Success • Nordstrom believes it is frontline supervisors that must create the atmosphere and the customer culture service to support senior managers. How? • Hiring the right people • Empowering staff • Mentoring employees • Praising and rewarding employee successes or services

10. Part II: What Supervisors Can Do to Create Nordstrom Style Service – Keys to Success • Hire The Smile – Train The Skill • (Is This A Problem For Librarians, Why? Perception) • Hire The Personality And The Confidence

12. Part II: What Supervisors Can Do to Create Nordstrom Style Customer Service – Keys to Success • Leo Kuntz – VP Washington/Alaska stores says people work at Nordstrom because: • Opportunity for growth • Freedom (There are almost no barriers to doing your job) • Feeling that you are apart of something meaningful • Feeling valued

13. Part II: What Supervisors Can Do to Create Nordstrom Style Customer Service – Keys to Success • The Nordstrom Way includes hiring good people and keep working with them, nurturing them, and giving them the tools to succeed • Empower employees – Nordstrom gives its people on the sales floor the freedom to make entrepreneurial decisions and management backs them on those decisions. (store of Van Mensah and the shirts washed in hot water)

14. Nordstrom Inverted Pyramid • The Inverted Pyramid represents the company’s philosophy and structure, placing customers at the top. Next are those who directly serve customers

15. Part II: What Supervisors Can Do to Create Nordstrom Style Customer Service – Keys to Success • Hire people who are looking to assume responsibility and ownership of their work • Trust the people you hire, trust their judgment • Give them freedom to make decisions • Push decision-making responsibility and authority down to the lowest level possible • Encourage employees every step of the way.

16. Part II: What Supervisors Can Do to Create Nordstrom Style Customer Service • The Nordstrom way includes hiring good people and keep working with them, nurturing them, and giving them the tools to succeed • Mentoring – Nordstrom encourages employees to find a successful salesperson to watch how he or she does business. (You can observe a lot just by watching) • The atmosphere of mentorship starts with the store manager, who understands the culture. Managers lead by positive example. • Employees are also encouraged to find their own style, niche, their own way of taking care of business.

17. Part II: What Supervisors Can Do to Create Nordstrom Style Customer Service – Keys to Success • Find ways to motivate employees • Treat employees with dignity and respect • Utilize as training tools people who have grown up in a culture • Provide a culture where people encourage each other. • Recognition – reinforces the areas that should be continue – Recognition meetings

18. Part II: What Supervisors Can Do to Create Nordstrom Style Customer Service – Keys to Success • Recognition – reinforces the areas that should be continue – Recognition meetings • Praise employees for great acts of customer service • Reward those great acts • They encompass four key aspects (Kunz): • Demonstrating sincere, authentic appreciation • Emphasize the team spirit • Teach people something new • Perpetuate the culture

19. Part III: What Employees Can Do to Create Nordstrom Style Customer Service – Keys to Success • Staff must understand that they are on the frontlines in making an organization a customer-service culture. • Frontline people must have a thorough knowledge of the products and services an organization offers because it is through those products and services that relationships are created, nurtured, and maintained. • Building and maintaining relationships with customers are essential elements to a good customer service philosophy.

20. Part III: What Employees Can Do to Create Nordstrom Style Customer Service – Keys to Success • Relationships are the essence of customer service. • Service = Sell Relationships • People like to do business with people they like! How? • Know the product • Know your resources

21. Relationship Building Principles Give clients more than they expect Leave clients something to remember you by Think the project (problem through) Ask yourself: “If I were the client would I pay for this” Don’t give reasons why it can’t be done – Tell how it can be done and the consequences. Part III: What Employees Can Do to Create Nordstrom Style Customer Service – Keys to Success

22. Relationship Building Principles Don’t wait to do it if it can be done now Service the client not the project You don’t know if you don’t ask Start a conversation with one new person every day Write ideas being discussed in front of clients Part III: What Employees Can Do to Create Nordstrom Style Customer Service – Keys to Success

23. Part III: What Employees Can Do to Create Nordstrom Style Customer Service – Keys to Success • Listen to the customer • Understand customer’s needs • Emphasize knowledge of your products and services • Be honest and sincere • Track your sphere of influence • Service the client not the project • Become a source for new ideas • Take responsibility

24. The Nordstrom Way Combines • Customer Service • Sales (results-oriented company) • Teamwork Nordstrom believes that teamwork brings individuals closer together

25. Gee’s Seven Keys to Delivering Great Service • The Right Attitude • Maintain a positive frame of mind • Prepare yourself • Think about why you are there • Pay attention

26. Seven Keys to Delivering Great Service • Understand the Customer’s Needs • Prepare for a customer interaction • Listen with an open-mind • Understand what a need is • Verify and clarify needs • Be honest

27. Seven Keys to Delivering Great Service • Communicate Clearly • Be clear • Stick to the point • Be honest • Avoid the following phrases when giving information • “I’ll be honest with you” • “I can’t” • “I’ll let you know.” – Tell When

28. Seven Keys to Delivering Great Service • Communicate Clearly cont… • How to give unwelcome information • Accept responsibility • Be direct • Good news Bad news approach • Don’t tell them do you want to hear the good news or the bad news first • Encourage the customer to participate in finding the right solution • Acknowledge the customers feelings

29. Seven Keys to Delivering Great Service 4. Reach Agreement • Working with diversity, not against it • Looking for the win-win solution • Company policy • Whether the customer needs training on product use • The cost involved

30. Seven Keys to Delivering Great Service Reach Agreement cont. • Build on the customer’s proposal • Explain to the customer why you offered the solution and how it will help the situation • Ask questions to gain a better understanding of the situation • Check you understanding by explaining the problem in your own words • Incorporate the customer’s ideas into your solution • Build and communicate on the joint ideas • Be creative • Promises

31. Seven Keys to Delivering Great Service 5. Check Understanding • Steps: • Make sure the customer understand the solution you’ve offered them • Be prepared for customer input • Verify the facts • Check for agreement plan • Accept responsibility • End on a positive note – don’t brush off customer • Manage customer expectations

32. Seven Keys to Delivering Great Service • 6. Take Action • Turning negatives into positives • Right thought comes before right action • Behavior is what customers remember • When the company is used as an excuse for bad action

33. Seven Keys to Delivering Great Service • 7. Build on Satisfaction • Be helpful • On the front line