The American department store topped the Luxury Institute’s 2018 Emotionally Intelligent Brand Index.
The Luxury Institute released its results for the 2018 Emotionally Intelligent Brand Index (EIBI) this month and, according to the affluent consumers surveyed, Nordstrom is the most emotionally intelligent multi-brand in the US.
The key factors that the Seattle-based company outperformed on included empathy, trustworthiness, and generosity.
Amazon in contrast ranked low among affluent consumers, with some rating it the worst in terms of these attributes, even though the brand is easily one of the most well-known multi-brands across the world.
The other brands included in the survey included Barneys New York, Bergdorf Goodman, Bloomingdale’s, Neiman Marcus, Net-A-Porter, Saks Fifth Avenue, Sephora and Ulta.
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According to the Luxury Institute, the EIBI survey is an extension of the “high-performance client relationship system pioneered by Luxury Institute 10 years ago”.
“Delivering great products and quality today are merely a cost of entry, even if you deliver them instantly. Even having great customer service is insufficient to be sustainable today. Many will only see the short-term impact, yet Nordstrom, while having its challenges lately, looks more adaptable and agile for the long-term functional and emotional needs of consumers than Amazon,” explained Milton Pedraza, Luxury Institute CEO.
“This analysis makes it crystal clear that while Amazon is the current product category killer, it has a long way to go to be an admired and beloved brand. Amazon, to many affluents, even those who buy from it frequently for convenience, is a soulless utility.
“While Amazon is the current product category killer, it has a long way to go to be an admired and beloved brand.”
“Jeff Bezos needs to lead this brand to establish emotional connections with the human beings who work for the brand, and purchase products through the brand. Sooner or later, just as with humans, your brand’s deep lack of emotional intelligence will catch up to you, with negative results,” Milton continued.
The Luxury Institute surveyed a nationally representative sample of over 1,200 responders with a minimum of US$150,000 annual household income across several brand categories most consumed by affluent consumers.
Nordstrom has 373 stores in the US, Canada and Puerto Rico, 239 of which are Nordstrom Rack stores. Los Angeles makes up US$1 billion of Nordstrom’s market and provides for more than four million customers.
According to Retail Leader, “Nordstrom executives said 2018 will be a big year for the company, as it continues to adjust to a changing retail landscape.”
Read more: Nordstrom Local, the innovative shop with nothing to sell https://news.theceomagazine.com/news/nordstrom-local-innovative-shop-with-no-merchandise/