Nordstrom: 123 Years Later And Still Acting With A Startup Mindset

In 1901, John Nordstrom and Carl Wallin opened the original Wallin and Nordstrom shoe store. Twenty-two years later, a second Nordstrom shoe store opened. Today, according to Nordstrom Company Facts, there are 360 stores in the U.S., including 93 Nordstrom stores, 258 Nordstrom Rack stores, two clearance stores, six Nordstrom local service hubs and online e-commerce websites for Nordstrom and Nordstrom Rack.

In the past 123 years, much has happened and many retailers have come and gone. There have been stock market crashes, wars, economic issues, pandemics and more. Yet Nordstrom has weathered these storms and has continued to own a reputation for incredible customer service and convenience.

Robert Spector is an author and Nordstrom expert, having written five books on Nordstrom, the most recent titled, The Century-Old Startup: The Nordstrom Way of Embracing Change, Challenges, and a Culture of Customer Service. I had the chance to interview him about the book and how Nordstrom has remained a viable brand for more than a century.

Spector’s first answer was short, and as the title of the book implies, the leadership has a startup mentality. Its leadership is quick to make decisions and keep up with changes in the economy and customer expectations. Here are some of the top takeaways from our interview:

• The Nordstrom Handbook: This is a legendary story. Nordstrom has one rule: Use good judgment. The company hires good people, trusts their ability to manage customer interactions and empowers them to make good customer-focused decisions.
• Training: Training includes sharing examples of how other employees have solved problems and taken care of their customers. Legendary customer service stories (such as the story about an employee giving a refund for a used set of tires) showcase how Nordstrom treats its customers, which in turn inspires and motivates employees. These stories emphasize how important it is to find ways to exceed customers’ expectations.
• Supporting Social Causes: Customers prefer brands that support the same social causes they do. More than just giving back to the community, Nordstrom also understands that embracing social responsibility includes respecting diverse values and perspectives and adapting to different cultures for both employees and customers.
• Technology: You can’t continue to do business like you’ve always done. Nordstrom has shown that it can adapt to the new ways of retail. Spector writes that Nordstrom has embraced technology. Its philosophy is to try it. If it works, great. If not, move on. At the same time, the company recognizes that its reputation is tied to its legendary customer service. They have found ways to embrace e-commerce and adapt to the ever-changing needs of customers and how they buy. Spector says, “Balancing technology with personal connections and understanding the importance of human interactions is key to creating a differentiated and exceptional customer experience.”
• Embrace Transformation: Retail continues to evolve, and new iterations of Nordstrom prove that the only constant you can count on is change. Yet one thing that doesn’t change is Nordstrom’s theme of focusing on the customer, regardless of the changes it has made, which includes opening Nordstrom Rack, clearance stores and e-commerce.

The overarching theme to all the ideas that Spector shares about Nordstrom is that, from the company’s very beginning, they have recognized the power of the relationship they have with their customers. Delivering a level of service that sometimes isn’t expected results in a reputation that has kept them relevant for more than a century. Spector sums this up by saying, “Ultimately, it’s about how decisions positively impact the customer, not just the company.”

Shep Hyken is a customer service and customer experience expert, keynote speaker, and New York Times bestselling business author.?Learn more about Shep's virtual?training programs and follow #ShepHyken for more customer service and experience insights.

This article was originally published on Forbes.com.

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