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Digital Marketing: Nordstrom Targets Millennials Via New Tactics

February 2nd, 2017 by Marilyn Heywood Paige

116 Year Old Brand Embraces New Digital Marketing and Social Media Techniques

Digital Marketing Tactics

For the past 116 years, Nordstrom has been considered to be one of the top luxury department stores in the world and one of the top retail marketers. The company has spent decades refining its customer service model, which has resulted in strategies such as offering top-of-the-line store associates who are willing to go to any length to satisfy customers. Now, Nordstrom has utilized various new digital advertising strategies to try to appeal to millennial buyers. They are hosting themed pop-up shows and Nike concept shops, and also using digital marketing techniques, specifically ramping up its presence on social media marketing through apps like Snapchat.

Earlier last year, according to Consumer Affairs, Nordstrom held a social media-based contest on Snapchat, giving students at five universities the chance to win a campus-wide shoe party, where free shoes were given away to students. Millennials took note, and the number of Nordstrom’s Snapchat followers increased by 60%. This demonstrates how Nordstrom is using digital marketing technology to engage with potential customers. Nordstrom has shifted its focus towards the mobile marketing realm, by giving shoppers the option of purchasing merchandise by texting retail store associates.

The addition of pop-up shops has also been crucial in attracting millennials. Shops alternate every few weeks and feature seasonal collections from up-and-coming designers. Because collections are always changing, customers always have a reason to come back. “It’s a smart and creative way to repackage some of the things they have – and a big testing ground for them,” notes Tiffany Hogan, senior analyst at Kantar Retail. “It’s very successful for them. All of those brands are targeting millennial shoppers, and that’s a big group they need to continue to go after.” Rotating inventory also provides a useful way of collecting customer data about what designers and retail products are most popular. Additionally, Nordstrom is also partnering with popular new brands like Topshop, Bonobos, and Madewell to appeal to the millennial crowd.

By customizing its inventory to preferences of both old and new buyers, Nordstrom has successfully kept its sales figures up, netting $3.5 billion in sales for the third quarter of 2016, a 7.2% increase as compared to the previous year. Creating digital marketing strategies that draw in millennials through social media campaigns is key to Nordstrom’s continued success.

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