The Nordstrom Way

1. Culture is the cornerstone of Nordstrom's success

"If you don't know the history, you don't know the company."

A legacy of service. Nordstrom's culture of exceptional customer service dates back to its founding in 1901. The company started as a small shoe store in Seattle and grew into a leading fashion retailer by consistently prioritizing customer satisfaction. This customer-first mentality has been passed down through four generations of Nordstrom family leadership.

Values drive behavior. Nordstrom's core values include:

• Creating a customer-first service mentality
• Delivering compelling value
• Treating people with respect
• Rewarding hard work and results
• Choosing to err on the customer's behalf

These values shape every aspect of how Nordstrom operates and serves as guideposts for employee behavior. By clearly articulating and reinforcing these principles, Nordstrom has created a distinct culture that sets it apart from competitors.

2. Hire motivated, nice people and empower them

"We can hire nice people and teach them to sell, but we can't hire salespeople and teach them to be nice."

Hire for attitude. Nordstrom looks for employees who are:

• Naturally nice and service-oriented
• Self-motivated and entrepreneurial
• Willing to work hard
• Comfortable with Nordstrom's commission-based pay structure

The company believes these innate qualities are more important than prior retail experience. Nordstrom can teach the technical aspects of the job, but it can't instill the right attitude and work ethic.

Empower employees. Nordstrom's famous one-rule employee handbook states: "Use good judgment in all situations." This empowers employees to make decisions and take initiative to serve customers without being constrained by rigid policies. Nordstrom trusts its carefully selected employees to do the right thing, fostering a sense of ownership and entrepreneurship among its workforce.

3. Nurture employees through mentorship, recognition, and rewards

"Recognition and praise are the best motivators I know."

Ongoing support. Nordstrom nurtures its employees through:

• Mentorship programs pairing new hires with experienced staff
• Regular feedback and coaching from managers
• Product knowledge training to build expertise

Public recognition. The company frequently recognizes top performers through:

• Monthly recognition meetings highlighting successes
• Awards like Customer Service All-Stars and the John W. Nordstrom Award
• Featuring employee stories in company communications

Rewards and incentives. Nordstrom motivates employees with:

• Commission-based pay structure
• Contests and sales competitions
• Profit-sharing and stock purchase plans
• Opportunities for advancement

This multifaceted approach to employee development creates a motivated workforce dedicated to delivering exceptional service.

4. Empower employees to own the customer experience

"If you are part of our team, the number-one thing you have is your integrity, character, and reputation."

Trust and autonomy. Nordstrom gives employees significant latitude to make decisions and solve customer problems on the spot. This empowerment allows staff to:

• Accept returns without question
• Assist customers across departments
• Go above and beyond to satisfy customer needs

Customer-centric mindset. Employees are encouraged to view every interaction from the customer's perspective and do whatever it takes to create a positive experience. This often leads to memorable "heroics" that generate customer loyalty and positive word-of-mouth.

Entrepreneurial spirit. Nordstrom salespeople are treated as independent business owners within the larger organization. They're responsible for building their own client base and have a vested interest in providing exceptional service to drive repeat business.

5. Compensate based on performance to drive results

"Sales are the truth."

Commission-based structure. Most Nordstrom salespeople earn a base salary plus commission on their sales. This incentivizes employees to:

• Provide attentive customer service
• Build long-term client relationships
• Take initiative to increase sales

Clear performance metrics. Nordstrom closely tracks key metrics like:

• Sales per hour
• Items sold per transaction
• Customer feedback

These metrics are publicly displayed, fostering healthy competition and accountability.

Rewards for top performers. High achievers can earn:

• "Pacesetter" status with additional perks and bonuses
• All-expenses-paid recognition trips
• Opportunities for advancement to management roles

This performance-driven culture attracts motivated self-starters and drives Nordstrom's strong sales results.

6. Foster teamwork and open communication

"We're all in the customer service department."

Collaborative environment. While Nordstrom encourages individual initiative, teamwork is essential. Employees are expected to:

• Support colleagues across departments
• Share product knowledge and selling techniques
• Work together to satisfy customer needs

Open communication. Nordstrom maintains open lines of communication through:

• Regular staff meetings and training sessions
• An open-door policy with management
• Employee feedback channels like suggestion boxes and surveys

Lead by example. Nordstrom executives, including family members, model the importance of communication by:

• Regularly visiting stores and interacting with staff
• Personally responding to customer feedback
• Making themselves accessible to employees at all levels

This emphasis on teamwork and communication ensures consistent service across the organization.

7. Create an inviting shopping environment

"Everything we do is to enhance and romance the merchandise."

Thoughtful store design. Nordstrom stores feature:

• Wide aisles and open sightlines
• Comfortable seating areas
• Spacious fitting rooms
• Live piano music in many locations

Extensive product selection. Nordstrom is known for its vast inventory, particularly in shoes. This increases the likelihood of satisfying customer needs and making sales.

Amenities and services. Additional offerings enhance the shopping experience:

• In-store restaurants and cafes
• Concierge desks
• Free personal shopping services
• Alterations and shoe repair

These elements combine to create an inviting atmosphere that encourages customers to linger and shop.

8. Embrace multichannel customer service

"When a customer shops with us, they don't see a difference between a Nordstrom store or Nordstrom.com. To them, it's just Nordstrom."

Seamless integration. Nordstrom has invested heavily in integrating its:

• Brick-and-mortar stores
• E-commerce website
• Mobile app
• Social media presence

This allows customers to shop however they prefer and receive consistent service across channels.

Inventory visibility. Salespeople have access to real-time inventory data across all Nordstrom locations, enabling them to:

• Locate items for customers
• Facilitate store-to-store transfers
• Fulfill online orders from store stock

Multichannel capabilities. Nordstrom offers conveniences like:

• Buy online, pick up in store
• Reserve items online for in-store try-on
• Easy returns across channels

By embracing technology while maintaining its signature service, Nordstrom has successfully adapted to changing consumer habits.

9. Build long-term customer relationships

"A happy customer will refer me to her friends. She won't do that for someone she feels doesn't have her best interests at heart."

Personal connections. Nordstrom salespeople are encouraged to:

• Remember customer names and preferences
• Keep detailed notes in their "personal book"
• Follow up after purchases
• Notify clients of items they might like

Loyalty programs. Nordstrom incentivizes repeat business through:

• The Nordy Club rewards program
• Nordstrom credit card perks
• Exclusive events for top customers

Above-and-beyond service. Employees are empowered to go the extra mile, like:

• Hand-delivering items to customers' homes
• Assisting with non-Nordstrom purchases
• Accommodating special requests

By focusing on long-term relationships rather than one-time transactions, Nordstrom builds a loyal customer base that drives sustainable growth.

Last updated: August 9, 2024