The Nordstrom Way

What’s "The Nordstrom Way" by Robert Spector about?

• Focus on Customer Service Culture: The book explores how Nordstrom built and sustains a legendary customer service culture, making it America’s #1 customer service company.
• Not Just Retail: While using Nordstrom as the case study, the book is about creating a corporate culture that empowers employees to deliver superior customer experiences in any industry.
• Practical Framework: It provides a detailed look at Nordstrom’s history, hiring, training, empowerment, compensation, teamwork, and customer relationship strategies.
• Actionable Applications: The book includes exercises and applications for organizations to adapt the “Nordstrom Way” to their own industries.

Why should I read "The Nordstrom Way" by Robert Spector?

• Learn from a Proven Model: Nordstrom is widely recognized as a gold standard for customer service, and the book reveals the principles behind its success.
• Applicable Across Industries: The strategies and culture-building advice are relevant for any business seeking to improve customer experience and employee engagement.
• Real Stories and Examples: The book is filled with real-life stories, quotes, and case studies that illustrate how Nordstrom’s methods work in practice.
• Step-by-Step Guidance: It offers actionable steps and exercises to help readers implement similar practices in their own organizations.

What are the key takeaways from "The Nordstrom Way"?

• Culture is Everything: A customer-first culture, built and reinforced at every level, is the foundation of Nordstrom’s success.
• Empowerment Drives Service: Employees are empowered to use good judgment and take ownership of the customer experience, leading to exceptional service.
• Hire for Attitude, Train for Skill: Nordstrom prioritizes hiring motivated, nice people and then nurtures them with mentoring, recognition, and opportunities for growth.
• Consistency and Adaptability: The company maintains core values while constantly evolving practices to meet changing customer expectations and technology.
• Long-Term Relationships: Building and sustaining customer and employee relationships is more valuable than short-term sales.

How does "The Nordstrom Way" define and build a customer-centric culture?

• Customer at the Center: Every decision is filtered through the question, “What would the customer want?” making customer experience the top priority.
• Inverted Pyramid Structure: The organizational chart is flipped, with customers and frontline employees at the top, supported by management.
• Empowerment and Trust: Employees are trusted to use their judgment and are supported in making decisions that benefit the customer.
• Storytelling and Recognition: The culture is reinforced through storytelling, recognition meetings, and sharing “heroics” of exceptional service.

What is the "inverted pyramid" concept in "The Nordstrom Way" and why is it important?

• Customers on Top: The inverted pyramid places customers at the very top, followed by salespeople, with managers and executives supporting them from below.
• Frontline Empowerment: Salespeople are empowered to make decisions and are considered the most important people after the customer.
• Management as Support: Leaders see their role as supporting and enabling the success of those who serve customers directly.
• Symbol of Culture: The inverted pyramid is both a literal and symbolic representation of Nordstrom’s customer-first, employee-empowering culture.

How does Nordstrom hire and nurture employees according to "The Nordstrom Way"?

• Hire for Attitude: Nordstrom looks for nice, motivated, entrepreneurial people, often preferring those without prior retail experience to avoid bad habits.
• Promote from Within: Most managers and leaders start on the sales floor, ensuring deep understanding of the culture and customer experience.
• Mentoring and Recognition: New hires are mentored by experienced employees, and ongoing recognition and praise are central to motivation.
• Empowerment and Autonomy: Employees are given freedom to develop their own style and are encouraged to take ownership of their business.

What does "empowerment" mean in "The Nordstrom Way" and how is it practiced?

• Use Good Judgment: The only rule in the Nordstrom employee handbook is “Use good judgment in all situations,” giving employees autonomy.
• Freedom to Act: Employees are empowered to make decisions, solve problems, and go above and beyond for customers without bureaucratic barriers.
• Support for Initiative: Management backs employees’ decisions, even if mistakes are made, fostering a culture of innovation and risk-taking.
• Examples of Empowerment: Stories include employees making extraordinary efforts for customers, such as accepting unusual returns or solving unique problems.

How does Nordstrom compensate and motivate employees, as described in "The Nordstrom Way"?

• Commission-Based Pay: Most salespeople earn commissions, directly linking compensation to performance and customer satisfaction.
• Recognition and Rewards: Regular recognition meetings, awards, and public praise motivate employees and reinforce desired behaviors.
• Goal Setting and Competition: Employees set personal and team goals, and healthy competition is encouraged through contests and performance tracking.
• Profit Sharing and Ownership: Generous 401(k) and profit-sharing plans foster loyalty and a sense of ownership among employees.

What are some legendary customer service stories ("heroics") from "The Nordstrom Way"?

• Going Above and Beyond: Employees have bought items from competitors for customers, tracked down lost items, and even sifted through vacuum bags to find a lost diamond.
• Unconditional Returns: The famous story of accepting a return for tires (which Nordstrom never sold) exemplifies the company’s commitment to customer satisfaction.
• Personal Touches: Salespeople remember customer preferences, send thank-you notes, and provide highly personalized service, creating lifelong loyalty.
• Team Effort: Stories often highlight teamwork, with multiple employees collaborating to solve customer problems or create memorable experiences.

How does "The Nordstrom Way" approach multichannel customer service and technology?

• Seamless Experience: Nordstrom integrates stores, website, and call centers to provide a consistent, convenient experience across all channels.
• Single View of Inventory: Technology enables customers and employees to see and access inventory company-wide, improving fulfillment and satisfaction.
• Social Media and Community: Employees use social media to connect with customers, share recommendations, and build relationships.
• Innovation Lab: Nordstrom invests in technology and innovation, often piloting new tools directly with customers to enhance the shopping experience.

What are the key applications and exercises suggested in "The Nordstrom Way" for other organizations?

• Assess and Share Company History: Understanding and communicating your company’s story helps build a strong culture.
• Hire and Develop for Culture Fit: Use targeted interview questions, mentorship, and promote-from-within policies to nurture talent.
• Empower Employees: Review and eliminate unnecessary rules, encourage initiative, and support employees in making customer-focused decisions.
• Recognize and Reward: Implement regular recognition meetings, contests, and awards to motivate and reinforce desired behaviors.
• Build Teamwork and Communication: Foster open communication, teamwork across departments, and celebrate both individual and team achievements.

What are the best quotes from "The Nordstrom Way" and what do they mean?

• “We don’t determine what good service is; the customer does.” – Emphasizes that customer perception is the only standard that matters.
• “Use good judgment in all situations.” – The core of Nordstrom’s empowerment philosophy, trusting employees to do what’s right.
• “We outservice, not outsmart.” – Success comes from consistently delivering better service, not just clever strategies.
• “The moment you think you’re really good at it is when you’re not really good at it.” – Stresses humility and the need for continuous improvement in customer service.
• “Our commitment is 100 percent to customer service.” – Reinforces that customer service is not just a strategy, but the company’s identity and top priority.