Deep Dive Into the Retail Personalization Index: Nordstrom

Nordstrom wrote the book on customer service. Literally. After retiring from the company as its all-time top seller, Patrick McCarthy teamed up with business writer Robert Spector to publish The Nordstrom Way to Customer Service Excellence.

Though luxury retailers have historically struggled with bringing their white glove service online, their customers have forced them to catch up. However, Nordstrom didn’t need the boost. A mainstay of our Retail Personalization Index‘s top 10, the Seattle-based department store is this year’s silver medalist.

Nordstrom’s digital experience includes a highly-personalized onboarding that filters data across channels, even taking acquisition source and other sign-up data into consideration. The brand’s email marketing remains highly personalized throughout the entire customer lifecycle, all with product recommendations that are personalized and relevant. For example, Nordstrom understands that a return confirmation email is a great place to promote comparable items, since the original purchase wasn’t quite right.

The website has strong personalization, with a mix of attribute-based and collaborative filtering product recommendations, which are great ways to convert new customers. For repeat shoppers, Nordstrom offers “more looks for you,” stylist-picked outfits based on their shopping history. The mobile app is also solid, thanks in part to an integrated loyalty program. Rewards members account for more than half the brand’s sales and in March, Nordstrom updated The Nordy Club, which boasts perks such as access to beauty and style workshops for some IRL personalization.

But it’s omnichannel where Nordstrom truly shines. In stores, the brands deploys personalization with beacons alerting customers when items from their carts are back in stock nearby. Additionally, sales associates have access to their browsing data in order to make better recommendations. That’s only going to get stronger. Last spring, the retailer acquired a personalization-focused conversational commerce platform and a digital selling tool called BevyUp. The latter is made for mobile clienteling and incorporates a special app for salespeople that will launch later this year.

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