By Tom O’Keefe, 4-Tell
Nordstrom has long been synonymous
with the words ‘Customer Experience.’ Defining what it means to provide the
white glove treatment — and proving that it equates to a fiercely loyal
customer base — businesses have always looked to them for strategies to enhance
the customer experience.
This is why Nordstrom’s recent acquisitions of BevyUp and MessageYes are intriguing. These
investments speak to Nordstrom’s commitment of providing superior service
through the omnichannel and personalization capabilities these technologies
bring to the table. And it’s these capabilities that Nordstrom, and other
industry leading retailers, will continue to double down on to meet consumers’
rising expectations.
Blending Online And Offline
Nordstrom’s acquisitions further support the
importance of omnichannel experiences. While they were one of the pioneers of
omnichannel strategies by providing in-store pickups and returns, their recent
investments are a deliberate move to better blend digital and physical channels
by seamlessly collaborating with consumers over the channels they prefer most —
in this case, via mobile, in-store and online.
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Many online-only retailers have invested in similar
omnichannel strategies, by purchasing physical storefronts to increase the
channels where they’re available to consumers. As many as 43% of retailers
surveyed expect a net increase in the number of brick-and-mortar stores they
operate by the end of 2018 compared with 2017, according
to an NRF study.
While Nordstrom may have set the stage, it seems like
all retailers are moving towards a robust and seamless brand presence across
channels. In fact, 87% of retailers agree omnichannel is critical to their business, yet only 8% have mastered it — ensuring that the adoption of
omnichannel tech and strategies are far from slowing.
Hyper-Personalization
Nordstrom’s acquisitions also prove they’re not shying
away from hyper-personalization initiatives. It’s no secret that Nordstrom has
always provided personalized interactions through their knowledgeable sales
associates, but BevyUp’s platform will add a digital enhancement to in-store
sales teams.
Historically, sales associates have used BevyUp’s
technology to access customer information in-store and send customers product
suggestions via text and email once they’ve left the store — enabling an
end-to-end personalized experience.
Other brands, like Target and Amazon, that have led
the personalization pack by integrating advanced digital technologies and proprietary data for customers are already seeing revenue
increase by 6% to 10%. That’s 2X to 3X faster than those that don’t.
As personalization leaders such as Nordstrom stand to
capture a disproportionate share of category profits, we can guarantee that the
fight to create more personalized experiences through sophisticated
technologies is only going to get fiercer.
Investing In Their People To Drive Loyalty
While technology may seem like the obvious solution
for digitally driven consumers, today’s shoppers are best served by the
benefits of enhanced human collaboration with technology. Up to 87% percent of
consumers are still buying in physical stores, presenting opportunities for retailers to drive greater loyalty
and influence purchases through the emotional component that’s inherent in
sales-to-customer interactions.
Validated by Nordstrom’s investments, providing tools
that give salespeople the insights to understand each customer and personalize
experiences builds loyalty and long-term value for brands, while ultimately increasing
revenue, restoring retail operating margins, supporting merchandising decisions
and decreasing employee turnover.
As Nordstrom has demonstrated in their acquisitions,
data-driven merchandising and an efficient human connection will offer
retailers the best chance to survive the changing market conditions.
Smart retailers understand that the physical and
digital experience go hand in hand, but customer-obsessed retailers will
continue investing in areas like omnichannel, personalization and sales
enablement technology to provide customers with the seamless experiences they
expect and now require.
Tom
O’Keefe brings 20+ years of technology experience to 4-Tell after previously serving as the CEO of
AkeLex (a healthcare analytics company) and the CRO of ShopIgniter, a
venture-backed social commerce provider. Given his years of experience in the
e-Commerce industry, O’Keefe has an acute understanding of retail misgivings
that have led to subsequent market departures, the strategy and tools that are
shaping future market winners and the role fluid and personalized customer experiences
will have in fueling long-term sustainable growth for B2B and B2C companies,
specifically by driving customer loyalty and employee engagement.
