Customer Engagement Sky High at Nordstrom

Nordstrom Customer EngagementIf the Market Force study conducted among 4,300 consumers nationwide in December is any indication, then customer engagement is all the rage at Nordstrom as it was deemed consumers’ favorite fashion retailer for the third straight year.

Kohl’s, T.J. Maxx, Macy’s, and Dillard’s, respectively, rounded out the top five.

What’s more, the study found that Foot Locker is consumers’ favorite shoe retailer, followed by Skechers, Nike, DSW, and Famous Footwear.

Market Force asked participants to rate their satisfaction with their most recent fashion retailer experience, and their likelihood to refer that retailer to others. The results were averaged to attain a Composite Loyalty Score.

According to the study, fashion retail brands are highly competitive and difficult to differentiate, so executing well on a number of attributes is critical to winning wallet share. The company identified four key areas that a retailer must execute on to achieve overall customer satisfaction: Merchandising (selection, choice, ease of finding items, value for money spent), Environmental Consciousness (corporate sustainability/green practices, non-synthetic fibers, information on country where merchandise was produced), Just For Me (opportunities to share fashion ideas, style information ability to customize merchandise, access to exclusive merchandise, etc.) and Store Operations (speed of checkout, overall atmosphere of store). When retailers execute well in all four areas, the percent of highly satisfied customers increases five times—from 17% to 86%.

Nordstrom scored highest in two of the four categories: Merchandising and Just For Me. H&M ranked in the top two in three of theNordstrom Customer Engagement categories, including Environmental Consciousness (first), Just For Me (second) and Store Operations (second). Dillard’s, T.J. Maxx, Ross Stores, and Macy’s also landed in the top three in at least one area.

Nearly 30% of study participants indicated they had shopped on their favorite retailer’s website in the past 90 days. Of those, just 46% were delighted with their experience, leaving more than half (54%) of consumers who were less than very satisfied. When broken out by fashion retailer brand, shoppers were the most satisfied at 56%, resulting in a 72% conversion rate. Dillard’s, Old Navy, Kohl’s, and Ross Stores rounded out the top five.

Market Force asked consumers to name the shoe retailers they had visited in the past six months. Payless Shoes rose to the top, followed by DSW, Famous Footwear, Shoe Carnival, and Nike. However, the number of visits does not necessarily translate into satisfaction and favorites. Based on the Composite Loyalty Score, Payless Shoes was the sixth-favorite retailer, preceded by some brands that did not appear in the recent visits rankings.

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