Have you just started a new business and wondering what to do next? Or do you want to know how to grow your business better? If you answered yes to any one of the questions, then you need to learn from successful business organizations.In today’s world, businesses are co-related or interdependent on each other. A failure or success of other business may have an impact on your business too. All businesses go through a rough time. Therefore, businesses should also learn from other businesses that might have faced such similar downfall or learn from their success story. The story of Nordstrom Inc. is one which your business should take note of. It is a top fashion retailer, headquartered in Seattle. It is currently ranked 197th on Fortunes 500 list.
So, what is it that they did to become such a great company? And how they overcame their obstacles? The answers to these questions will help your business to learn some tips. So, here is what your business can learn from Nordstrom.
Recognition as Part of the Culture
At Nordstrom, employees are given due recognition for excellence in their work. Praising employees and colleagues publicly is an important factor to increase the morale and productivity of the employees. It further helps to develop team spirit within the organization. If your organization is not praising the employees enough who provide valuable inputs, then you should start doing so.
Employees want to feel appreciated for their services. Therefore, rewards in both monetary and non-monetary teams should be given. It acts as a positive motivation to perform even better.
Focus on Customer
Most organizations are changing their perspective on how they see their customers. Customers are not seen as the ones to whom your sales are pushed through. It is a customer centric world as organizations go beyond sales and after sales service to maintaining a long customer relationship. At Nordstrom, the company focuses more on customer experience. One such advice given to one of their salesperson was to stop worrying about making sales and concentrate on the customer experience. This is one of the reasons why Nordstrom is known for its customer service in the world. In addition, new employees are presented with a card that states the rule saying “use good judgment in all situations.” Furthermore, there are stories where employees have even raced to the airport to deliver shopping bags to customers before they board their flights. Therefore, get close to your customers by being more personal.
As Nordstrom expands its business to Canada now, the customer service standard will be raised. So, if your business is into retail, make a note on providing excellent customer service to your customers.
Every business should develop products that are so good it sells on its own with minimum marketing efforts. This is one of the many qualities Nordstrom has. Apart from excellent workforce who provides superior customer service, they have quality products. Nordstrom comes up with products which customers want. Therefore, as a business organization, try and come up with a product that consumers prefer and not what is going to suit you. For this purpose, there should be a constant discussion with your team to access better quality products. Conducting consumer research or taking feedback from the customers are valuable sources of information that your business organization can use.
Nordstrom has an entire technology team that is devoted to streamlining the experience of customers with the help of technology. The use of mobile technology to shop for customers is working well for them. Customers do not need to wait in line for the payments anymore. Another example is the use of 3D foot scanning sizer technology. With the help of this technology, it is possible to match you to the perfect shoe without the need for the customer to try on every pair in the store. This also saves time for you and for your customer.
Therefore, make sure that you come up with a technology that provides a cost-effective solution for your business. Technology increases efficiency and also prevents errors.
Decline in Sales
Apart from all the good things, there is one challenge Nordstrom is facing currently. This is decline in sales. The decline is sales has been due to the discount rates that has been offered, online competition and competition from other retailers . The decline is sales has not only affected Nordstrom but other companies in the industry as well. Consumers are expecting steep discounts for the merchandise. This is due to the discounts that are offered by online retailers. Therefore, Nordstrom continued to slash the price of merchandises. They have now started with the expansion of Rack stores which has already outnumbered Nordstrom units. This discounting has forced Nordstrom to sell lower than its full price. So at present, things are going difficult for Nordstrom.
What can you learn from this? Well, Nordstrom has been able to increase the sales marginally, thanks to the aggressive marketing campaigns. In order to prevent such a situation for your business, you must conduct research on the changing consumer behavior. Understand the changing trends and act accordingly. Moreover, if possible diversify your business in the long run. This means that if a particular industry is not doing well, then you can still earn profits from the other industry.
These are some of the points which your business can choose to learn from Nordstrom. As mentioned earlier, all businesses may have ups and downs. Sometimes, it could be due to problems in the industry or an economic recession. Therefore, as a professional, you should try and plan ahead. Be prepared with a contingency plan in case things don’t happen as planned. Such plans will limit the extent of the damage. Taking opinions of other businessman and reading about their success stories will also help you to use some methods or techniques in your business operations as well. Try and conduct a SWOT analysis which gives you a thorough understanding of your company strengths and weakness. Similarly, it also helps you in identifying future opportunities and threats from the particular industry.
To know more on how you can learn and grow your business, get in touch with a resource center in Canada.