Nordstrom, a longtime leader in customer service in-store, is learning how expensive a merged channel strategy is. But as it fights its way through new costs, it is illustrating the changing nature of retail itself.
What is the cost of high-touch customer service, also known as pampering shoppers? How much do those little extras return in customer loyalty and higher revenue? Does an additional $10,000 worth of extra customer attention mean that the advertising budget can be dropped $20,000 with no loss in revenue?