Like a Hamster on a Wheel

Now 10 or 12 years in, just when most brands should be hitting some long strides on the internet and gaining traction and momentum, you are slammed back into the reality that most still don't get it or take it seriously. I was reading Kevin Hillstrom's post on Mine That Data the other day about Nordstrom being down $70MM in sales YoY for September.  

(BTW, when you are looking for the 43 dimensions to carve up your database to re-attract lapsed customers go here.  It's hard damn work.  Now get to it and stop whining about the economy.  Are you really doing everything you can?)

In Kevin's post Marketing Tactics Can't Save Nordstrom Comps, he calls social media, word of mouth, online marketing, catalog and multi-channel marketing to the carpet.  Claims that Nordstrom is doing all of these things, so what's the value of any of them if they are down 14% and drowning.

Back to a hamster on a wheel.  Going really fast and doing lots of stuff does not even approach enough to hold your own and win in this environment. Well, it got me digging into all of this stuff that they are doing to see how good it was or fit together.  What I found online ain't pretty.  Here's an excerpt of my comments -

You mention search. The last click before a purchase and inordinate attribution probably for the sale, but that's another post. Got to do that really well, right. Stinks! I searched "new dress loafers" - no natural listing at all, a single paid listing for Nordstrom (#8) advertising "Dress Sandals" - not connected. Lost sale! Searched "mens dress shoes" - no listing natural or paid. What? Another lost sale! Just searched "women's shoes" (has to be one of the top selling products for them) - not listed in natural or paid search. Another lost sale!!

As discussed before, channels have to connect.  Can't just be, we did a Facebook page or an app or a Ning private social network, or a YouTube channel, or a Second Life island and then sit back.  You need a community director with dedicated resources that are fostering the same level of Nordstrom customer service in all those places, or risk slowly being lost.

Also, a level of priority needs to happen.  As mentioned in my comments above, search stinks for Nordstrom.  Probably trying to do it with the lowest cost vendor with 2 people looking at once in a while.  It is a place to round up and convert active consumers looking to research or buy the things they're selling.  There is no other media, other than in-store, that is that close to a purchase.  That has to be THE priority.  Catalogs are great (expensive and inflexible), and advertising can create some demand, but both are still in the big part of the funnel before a purchase.

Obviously, a shift like this doesn't just happen, but it illustrates the point that even guys like Nordstrom are slow to accept the internet as the significant marketing appliance it is. 

Comments

[Ed]

I think many companies are used to thinking on the "get them in the door" through brand power strategy. But online, the battle is at the product level. If you can't get people directly to products and create a compelling user experience where people can learn about the product, compare, and check out with ease, your brand is worthless.