The Nordstrom Way To Customer Service Excellence
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The document discusses the importance of customer service and retention strategies in light of changing consumer behavior and reduced demand. It highlights the need for organizations to adopt a customer-centric approach, including providing multi-channel support and ensuring a great customer experience, as well as implementing principles from 'The Nordstrom Way' to foster a strong customer service culture. The document emphasizes recognizing employees, teamwork, and commitment to customer service as key components in driving loyalty and revenue growth.
The Nordstrom Way To Customer Service Excellence
- 1. Gary McNeil Vice President of Marketing The Nordstrom Way to Parature Customer Service Robert Spector International Best Selling Excellence Author and Trainer
- 2. THE COLLAPSE OF DEMAND …customers are Although there buying less – may be signs of a demand is recovery… recovering slowly
- 3. THE CUSTOMER HAS NEVER BEEN MORE IMPORTANT • In light of sales teams selling less - organizations are focused on: Customer retention Customer upsell and cross sell opportunities Lifetime value of a customer Overall revenue from the customer base
- 4. THE SHIFTING FOCUS: FROM HUNTERS TO FARMERS Falling Disproportionally on the Customer Support Function The focus has shifted to further monetizing the customer base… …placing new found responsibilities on the support function
- 5. THE CHANGING PREFERENCES OF YOUR CUSTOMER If You Build it They Will Come The challenge isn’t driving customers to leverage self-service… … it’s keeping them there
- 6. THE IMPLICATIONS OF GETTING IT WRONG Costing You Money Now and Later
- 7. SERVICE HAS BECOME A MAJOR DIFFERENTIATOR • Improving the customer experience Multi-channel support • Providing support in the manner by which the customer wants it • Reducing customer effort Delivering on the promise of first contact resolution • The result is reduced frustration • Increasing customer loyalty By reducing customer effort you increase customer loyalty • Increased loyalty is a game changer
- 8. PARATURE Parature is a global leader in on- demand software (SaaS) for customer service and support Parature enables organizations to: • Reduce the cost of supporting their customers • Have a 360 view of customer issues • Retain their customers • Improve customer loyalty • Generate more revenue from their base • Deliver ―great‖ customer service
- 9. PARATURE: AN INTEGRATED SUPPORT SUITE Customer Touch Points Service Desk Delivering Multi-Channel Support For your CSR’s to Manage All Customer Interactions Metrics & Deploy Feedback Reports Surveys Chat Ticket Forums ? Downloads Your Customer Your CSR Mobile E-Mail Knowledge- 360º Customer Intelligent base and FAQ’s Workflow History Phone Service Desk
- 10. 800 CUSTOMERS ACROSS INDUSTRIES & MARKET SEGMENTS Technology Business Services Gaming and Digital Media Education Associations Healthcare
- 11. The Nordstrom Way to Customer Service Excellence
- 12. ASK YOURSELF 3 QUESTIONS: 1. Am I offering a better product or service than my competitors? 2. Am I selling a less expensive product or service than my competitors? 3. Am I offering customer service that is superior to that of my competitors?
- 13. Customer service is not a strategy.
- 14. Customer service is a way of life.
- 15. ―CONSUMERS ARE STATISTICS. CUSTOMERS ARE PEOPLE.‖ -Stanley Marcus
- 16. The Customer Service Department
- 17. Each and Every one of you is in the Customer Service Department.
- 18. The Key: Think like the customer
- 20. “THE NORDSTROM OF…” • Tanning Salons • Hot tubs • Collision repair • Down payment assistance • Tree farms • Plumbers • Dentists • Real estate • Garbage
- 24. ―Eyes may be the windows to the soul, but shoes are the gateway to the psyche.‖ -Linda O’Keefe, Shoes
- 26. PETE, BLAKE AND ERIK NORDSTROM
- 27. NINE MANAGEMENT PRINCIPLES OF CUSTOMER SERVICE
- 28. PART I Romancing Your Customer 1. Create an inviting place- in person, online and on the phone. 2. Provide your customers with choices- of products, services, and service channels. 3. Sell the relationship: Service your customers through the products and services you offer.
- 29. PART II Energizing Your Employees 4. Hire nice, motivated people. 5. Empower employees to take ownership. 6. Sustain the people on the frontlines through a culture of support and mentoring.
- 30. PART III Building Your Customer Service Culture 7. Celebrate company heroes through recognition and praise. 8. Advocate teamwork through internal customer service. 9. Commit 100% to customer service.
- 31. 1. Provide your customers with choices- of products, services, and service channels. 2. Create an inviting place- in person, online and on the phone. 3. Sell the relationship: Service your customers through the products and services you offer. 4. Hire nice, motivated people. 5. Empower employees to take ownership. 6. Sustain the people on the frontlines through a culture of support and mentorship. 7. Celebrate company heroes through recognition and praise. 8. Advocate teamwork through internal customer service. 9. Commit 100% to customer service.
- 32. Part One- Romancing Your Customer
- 33. #1 Provide your customers with choices- of products, services, and service channels.
- 34. #2 Create an inviting place in person, online, and on the phone.
- 36. ―The Nordstrom piano doesn’t take up much room. It’s a small idea, but it’s a genius idea.‖ -Leonard Lauder, Retired Chairman, Estee Lauder Cos.
- 37. “A PLACE TO REST” I followed my wife while she shopped. From store to store she went. I, the great man, was spent. The flesh pulled on my bones like two bags of cement. At last I found a chair. Heaven only could have been more fair. Of all the stores, Nordstrom was best. They gave a husband a place to rest.
- 38. Have you created an inviting place for your customers?
- 39. Have you created an inviting, easy-to-use Web site for your customers?
- 40. THE TELEPHONE
- 42. #3 Sell The Relationship Service your customers through the products and services you offer.
- 44. Nurture your relationship (partnership) with your vendors and suppliers.
- 46. Part II- Energizing Your Employees
- 48. #4 Hire nice, motivated people.
- 49. Hire the smile. Train the skill.
- 50. #5 Empower employees to take ownership.
- 51. ―I like the freedom. It’s like I have my own little business- my own men’s store.‖ -Salesman, Men’s Furnishings
- 54. ―The minute you come up with a rule you give an employee a reason to say no to a customer. That’s the reason we hate rules.‖ -James F. Nordstrom, former co-chairman
- 55. It all starts with the culture.
- 56. ―The same principles that were here before I got here will be in place after I retire…. You can’t teach culture. You have to live it, experience it and show it.‖ -Brent Harris, Vice President and Regional Manager
- 57. The Importance of Values
- 58. ―People always ask me, how do you teach core values? The answer is, you don’t. The goal is not to convince people to share your core values. It’s to hire people who already share your core values.‖ -James Collins, Author, “Built to Last”
- 59. #6 Sustain the people on the frontlines through a culture of support and mentoring.
- 60. MENTORING EMPLOYEES • Show videotaped interviews with top salespeople who offer tips and advice. • Use frequent staff meetings as workshops for salespeople to compare, examine, and discuss sales techniques. • Act out skits in which employees play the roles of salesperson and customer. • Encourage top salespeople to talk to fellow employees about goal-setting, marketing, selling, using the phone, and customer service.
- 61. CUSTOMERS SALES & SUPPORT PEOPLE DEPARTMENT MANAGERS STORE MANAGERS, BUYERS, ETC. BOARD OF DIRECTORS
- 62. Part III- Romancing Your Customer
- 63. #7 Celebrate company heroes through recognition and praise.
- 64. ―Whatever their level of the Inverted Pyramid, employees want to feel needed and valued. Recognition reinforces the areas that we want to focus on all the time, like service.‖ -A Nordstrom Store Manager
- 66. ELEMENTS OF GOOD RECOGNITION MEETINGS Demonstrate sincere, authentic appreciation for the people you are honoring. Emphasize team spirit. Teach people something new. Perpetuate the culture—What makes your company unique?
- 67. #8 Advocate teamwork through internal customer service.
- 68. Teamwork creates a sense of ownership.
- 69. What’s the key to internal customer service and teamwork?
- 70. Communication
- 71. ―My customer service is to my managers and my salespeople because they are talking to the customers. I need their feedback to help shape my buy.‖ -Women’s Sportswear Buyer
- 72. #9 Commit 100% to customer service.
- 73. 1. Provide your customers with choices- of products, services, and service channels. 2. Create an inviting place- in person, online and on the phone. 3. Sell the relationship: Service your customers through the products and services you offer. 4. Hire nice, motivated people. 5. Empower employees to take ownership. 6. Sustain the people on the frontlines through a culture of support and mentorship. 7. Celebrate company heroes through recognition and praise. 8. Advocate teamwork through internal customer service. 9. Commit 100% to customer service.
- 74. Be nice.
- 77. QUESTIONS? Follow Parature on: blog.parature.com www.facebook.com/parature www.twitter.com/parature www.youtube.com/paratureinc www.slidesharenet.net/parature www.parature.com/rss
Editor's Notes
- #3: Although there may be signs of a recoveryCustomer purchasing behaviors have changed – they’re simply buying less…and will be for the foreseeable futureTransition – cs&s is changed
- #5: They represent what’s most importantTop-line revenueRecurring revenueCosts – if not managed correctlyCritical information to better inform sales, mktg, pd, and financeLeading KPI’s (key performance indicators)RRRepeat purchaseX-sell oppty’sUp-sell oppty’sProduct feedbackAdvocacy - positive and negative
- #6: Customer requirements are changing – in addition to becoming more web savvy overall preferences are migrating to web self-service models.While there’s an urgency premium associated with the phone, the reality is the customers marginally prefer the phone over web self-serviceEven in urgent situations, customers appear to trust the information they receive on-line and trust that ultimate resolution will occurCustomer preference for the phone over self service occurs with end users 51+ years in ageWeb self service extends well beyond the X’ers and Millennial generations Net-net the challenge isn\'t getting your customers to the web – it’s keeping them there. Many CS&S functions find themselves in the loose-loose box – customers initially go to self-service channels, yet end up picking up the phone due to poor self-service experience.No tolerance for bad serviceThey’re demanding a better customer experience:24x7 support – (near real time response rates)Native language supportEase of useConsistency / familiarity Multi-channel supportWeb – KBChatE-mailDiscussion groups / forumsMobilitySocial media environments (cloud)