Word-of-mouth advertising is possibly the most effective way of marketing a brand. The most reliable source for any human being is their best friend, or their mother, or their girlfriend, their peers; people just like them. The power of word-of-mouth advertising is limitless. It can either promote the brand or utterly destroy it; so you better make sure that what is being said about your company is good.
Nordstrom has had no trouble relaying the benefits of their brand through this marketing strategy. Nordstrom, like any other luxury brand retailer, has experienced growth within the last several years; however this success is being threatened by differentiation of the American lifestyle. People are now entering the outdoor mini boutique segment due to convenience and community feeling. In order for Nordstrom to compete, they now had to incorporate something different.
To give Nordstrom the competitive edge they were looking for; they came up with their customer service mission. Nordstrom now thrives on providing legendary shopping experiences through this well-known customer service model. The result of their dedication to their customers, is the spread of their good nature; the most powerful word-of-mouth advertising yet.
People believe their peers over any kind of billboard or print ad they see. A first hand source telling you that Nordstrom is the best place to shop is too hard to avoid or forget. Reputation is a huge part of branding. The way people perceive your company is all taking in when people consider shopping there.
I do not think that I have ever had a bad experience shopping at Nordstrom. The employees are always extremely pleasant and helpful when you want them to be. They might actually do anything for you. Returns are always possible even without receipts or three years later. As long as Nordstrom has its five star customer service, they will continue to thrive.