Employees are loyal when they feel that they are being held accountable, when they are making a meaningful contribution, when their achievements are recognized and rewarded, and when they are afforded opportunities to learn, grow and advance. That’s why Nordstrom views career development as a shared responsibility among managers, employees and the company. It encourages leaders to be the teachers as well as the developers of their people’s growth.
Nordstrom highlights its trust to employees with a single rule: Use good judgment in all situations. Empowerment to do the right thing is the byproduct of trust. Nordstrom gives its people on the sales floor the freedom to make entrepreneurial decisions, and management backs them on those decisions. Everything else flows from that premise.
Customer loyalty is the coin of realm in business. Nordstrom salespeople generate that loyalty by taking ownership of the customer and the customer experience.
Front-line people are empowered to establish relationships with customers and to find ways to take care of them, with a personal touch, as if they were interacting with a trusted friend. A strong connection turns a happy customer into a brand ambassador.
It is axiomatic that people like to do business with people they like. If your product or service is similar to your competitor’s, and the price of your product or service is similar to that of your competitor— Why would you get the business? The answer lies in the relationship you have with your customer and the trust you have built up over time. Once you’ve established and nurtured that relationship, why should your customer go anywhere else?
Trust is embodied in the Nordstrom return policy, which is a virtually unconditional, no-questions-asked money-back guarantee. Empowering the people on the sales floor to accept returned merchandise is the most noticeable illustration of the Nordstrom culture because it is the one that most obviously affects the public.
As counter-intuitive as it may sound, the return policy works to the benefit of the best salespeople, who take back the returns with a smile, knowing that many of those customers will return because they were treated with respect.
Nordstrom is one of only five companies to make Fortune’s “Best Companies to Work For” and the “Most Admired” company every year surveys are conducted.
You can rent employee loyalty, but you can’t buy it. Golden handcuffs are only an effective short-term solution. Many good people will sacrifice a few dollars for a place that values and trusts them.
Each year, all of the new and past winners of the John W. Nordstrom Award (the highest honor for an employee) attend a dinner in Seattle, hosted by the Nordstrom family. The company pays for the travel and lodging for the winners (and their guests)—even for past honorees no longer working for the company. Now that’s loyalty.
Want tips on how to enhance customer experience, develop brand loyalty and increase revenue? Join Robert Spector and Mahesh Ram in a webinar, organized by Solvvy, as they chat about the future of customer service in an omni-channel world while exploring core values that every service culture should consider. Reserve your spot today.