With internet giants such as Amazon running the ecommerce world, it can seem nearly impossible for other companies to make nearly as many gains online as their successful counterparts. However, brick and mortar giant Nordstrom has not shied away from the ecommerce fight. Nordstorm is one of America’s largest and most profitable upscale fashion retailers. With 225 stores and nearly $10 million in annual sales, there’s no doubt Nordstrom is a retail powerhouse. But how are they changing the way the operate by utilizing technology and data?
Well, they are definitely not just using the same data we all think of when someone says data. No, companies like Nordstrom are employing a subject known as Big Data to help determine the wants, needs, and shopping habits of their customers. So what is Big Data, anyways? Well, Big Data is basically just a metric ton of data. Big Data analytics is the process of sifting and sorting through all of that data in order to identify patterns, trends, and correlations. Understanding this, retailers like Nordstrom can determine the best ways to market to their consumers, improved customers service, etc.
Using Big Data In-Store and Online
One of the reasons Norstrom is such a powerhouse in the world of retail? The ability to blend shopping experiences using Big Data really gives Nordstrom a competitive edge. For example, Nordstrom used WiFi to keep tabs on its customers while they were shopping in stores. Nordstrom tracked variables such as who comes into their stores, which parts of the stores they visit, how long they hang around and more. While this experiment caused some controversy, Nordstrom was able to gain important and unique insights into customer shopping trends. Another major innovation that Nordstrom is delving into is a completely seamless in-store and online inventory so customers know when and where they can buy an item and, more importantly, choose how they want to buy it.
Social Media Game Changer
Besides being innovative in-store, Nordstrom is also a heavy hitter when it comes to the world of social media as well. Nordstrom has a massive social media following. With 3 million Facebook fans, 4.4 million Pinterest followers, and 584,000 followers on Twitter, Nordstrom it is no wonder that Nordstrom utilizes Big Data to gain insights into their customers. But how exactly do they use that social media reach?
Nordstrom’s social media strategy is actually pretty straightforward. Let’s talk about Facebook, first. Nordstrom’s approach, as mentioned, is straightforward yet simple. They often feature a post with an eye catching image, a simple line of text, and a hyperlink to the ecommerce site. And that is pretty much it. Despite their almost unrelenting sales tactics, most posts receive upwards of 100 comments and several thousand ‘likes.’ Nordstrom also makes it a point to respond to questions and comments in a timely manner, making customer service stand out as a priority to their social team and the entire Nordstrom company.
Where Nordstrom really seems to shine, however is on Pinterest. With 4.4 Million followers, Nordstom is one of the most popular brands on the site. What really makes Nordstrom stand out, however, is not the number of followers they have, but the clever way they utilize Pinterest. Sure, if you look at Nordstrom’s Pinterest boards they have everything you’d expect. From “Well Said” to “Beauty Spot” Nordstrom curates content they think their followers will enjoy. What is interesting, however, is their “Top Pins” board. This board is a collection of the most popular customer-driven pins from Nordstrom.com. Because most of their pins link directly back to their ecommerce site, it is probably pretty safe to bet that Pinterest is a huge factor in driving traffic to the Nordstrom website.
Innovative Techniques
Perhaps one of the most interesting things about the way Nordstrom is utilizing Big Data and analytics is the innovative techniques they are using to really enhance the ways in which they interact with customers, create marketing strategies, and sell products. Nordstrom created the Innovation Lab where they analyzed big data and creative technology to enhance the shopping experience of their custoemrs. From the ashes of the Innovation Lab came the Nordstrom Technology People Lab, which, according to its website, is “focused on bringing a data-driven, human-centered, creative lens to our People, Culture, and Leadership practices and programs.” The People Lab focuses on building the company from the inside while the Customer Experience Center, a replica of a typical Nordstrom store, offers essentially a playground for Nordstrom to test their new and unique customer experiences.
Even Nordstrom’s credit card program helps them to gather data on their customers. Nordstrom really pushes for customers to sign up for their credit or debit card by having a rewards program attached to it. The Nordstrom Fashion Rewards Program offers a lot of benefits to customers and allows Nordstrom to gain additional insight into the shopping and spending habits of their customers.
So how can you take a page from Nordstrom’s analytical playbook? The main take away you should get from Nordstrom is their ability to innovate and not being afraid to fail. Nordstrom knows that not every tactic they employ is going to succeed. Jamie Nordstrom, president of Nordstrom Direct, said in a 2012 summit, “Some strategies and ideas will work. Others won’t. If you don’t test new things, you’ll never innovate. Don’t panic if something doesn’t work -- celebrate it!”