The Nordstrom Way to Customer Experience Excellence, 3rd Edition

Competition and Compensation

In our system, employees must have a competitive spirit because we start comparing them the day they walk in the door. That's one of the best ways we know how to improve. If we have competitive people, we can accomplish something.

—James F. Nordstrom

Competition means striving to gain or win something by defeating or establishing superiority over others who are trying to do the same.

Like competitive athletes, Nordstrom salespeople are motivated in a variety of ways to give extraordinary service because great service produces extraordinary sales volumes.

Nurturing goes only so far. Monetary compensation must be part of the equation. Nordstrom believes in paying people according to their achievements, to put them in a position to be able to earn as much as their talents and efforts can generate.

The company has survived and thrived since 1901 because of its culture of service that attracts competitive goal‐oriented people and treats them with respect and rewards them for their hard work and results—both as individuals and as members of teams—store, individual departments, product categories, and regions within the company. Nordstrom has always emphasized service because the better the service the better the sales, and the more loyal the customers.

“The single most important reason we try to provide great service is this: It enables us to sell more,” ...