Dive Brief:
- Nordstrom credited CX improvements, including improved e-commerce search and more efficient supply chain operations, as major contributors to its 3.4% net sales growth, executives said on a Q2 2024 earnings call Tuesday.
- More efficient operations enable faster returns and ensure popular items are available when customers need them, according to executives. The effort includes using RFID tags on items at more stores to improve accuracy and speed of service.
- “Our efforts to improve the customer experience are taking hold, as evidenced by the strength of our top line,” Cathy Smith, CFO of Nordstrom, said during the earnings call. “In the second quarter, we grew our customer count, recorded an increase in customer trips and expanded margins.”
Dive Insight:
Speedier backend operations aid Nordstrom’s efforts to deliver solid CX, whether customers shop in-store or online.
A faster supply chain helps ensure customers can always find what they want while reducing costs for the retailer, according to Erik Nordstrom, CEO of Nordstrom. The right inventory serves as a foundation for good experiences.
RFID tags, electronic devices to track individual items, are an important part of this strategy. The technology helps track how quickly popular items are being sold, leading to better in-stock rates. RFID can also help associates quickly locate whatever product a customer wants, speeding up in-store experiences.
The RFID rollout improves warehouse operations as well, leading to faster e-commerce order delivery times in previous quarters.
Nordstrom began to overhaul its data and analytics capabilities in the second quarter, according to Smith. The retailer expects the effort to enhance its ability to use generative AI once the transformation is complete at the end of the year.
Not all of Nordstrom’s CX efforts are focused on the backend. The company’s annual anniversary sale in July and August included 900 in-store events, up about 20% from the previous year, according to Peter Nordstrom, president and chief brand officer at Nordstrom.
“We strive to make our Nordstrom stores not only a compelling place to shop, but an interesting, fun, and engaging environment,” Peter Nordstrom said during the earnings call.
