Nordstrom Project Afterthoughts

1.                  The act of gathering and evaluating insights was something that was of particular interest to me, both from class discussion as well as applying what we learned to the project.  Going through the process of designing the research, gathering the insights, and then attempting to evaluate the information was extremely challenging.  While we talked about the process in class, it is difficult to get a true understanding of the complexity of the process without actually doing it.  I found that it is essential to have the research design thoroughly thought out – you must REALLY know beforehand what it is you are trying to understand from participants. The amount of time and effort involved in actually finding participants and administering the “tests” makes poorly constructed research tools very costly to the process.  As we got into the research phase, we realized that some of our tools were valuable, whereas others were not and if we had the time, should have done differently.  These are issues that you need to be aware of before you start interviewing.  I think this is something that you learn and get better at over time, but the research process was a particularly good learning experience for me and will keep in mind the challenges going forward.  Additionally, really understanding the research and what it means on a deeper level to get to the “insight” was challenging.  In retrospect, I wish we had spent more time asking why they want what they want rather than just what they want.

2.                  Having to generate the below business model for Nordstrom was a valuable exercise in understanding how all of the important elements, that ultimately drive profit, interact.  As Professor Wells has stated numerous times, unless you are planning to sell your business to Facebook for $1billion, businesses must make money.  As MBA’s we must understand how and have a strategic, well thought-out plan to do so.  Often times it is difficult to quantify the monetary benefits of implementing the type of project we worked on for Nordstrom.  Additional resources such as personnel and infrastructure would be necessary to make our suggestions work, however, how do we REALLY quantify the additional sales this new feature and customer service options would drive?  Would people actually make additional product purchases or just shift the channel in which they are shopping in?  Stepping back and being forced to look at the value proposition, key resources, key activities, and key partnership helped us to understand where the weaknesses were within the business model and to start thinking about ways that we could address these weaknesses.

3.                  I am not sure how much I gained from the prototyping exercises unrelated to our project.  I think it would have been more valuable to spend time thinking about prototyping our own project as opposed to something unrelated.  This feeling was also amplified by the fact that I felt the end of our project was slightly rushed.  It would have been really helpful to have a working session going over the research results and digging into what they really meant and how that translates into solutions for the customer.  There is probably value in doing the prototyping outside of the Nordstrom project, but considering the time constraints, I thought the time would have been better spent thinking about it in the context of our problem. 

4.         My emotional reactions throughout this project ranged from great excitement, confusion, frustration, ambivalence, and accomplishment.  I was REALLY excited after hearing what our project would be about, who we would be working with, and the extent to which Nordstrom was going to be involved. During the project, there were times when I felt frustrated by the lack of clarity, but I think this is very realistic of how projects will be in the real world. 

The opportunity to think about retail in a digital, ecommerce space is not only a personal interest of mine, but also one that is particularly relevant today.  With so many brands trying to understand how to connect with customers through the digital channel, this project will be something that I can talk about in interviews and apply to my internship and fulltime job. 

In terms of working with a group, a thought it was a very valuable experience.  We all had different ideas and it was a great opportunity to learn from each other and build on each of our personal ideas to make them better.  Throughout the group, each person had strengths and weaknesses.  I thought we did a good job of balancing each other out and setting and meeting goals.  Because this type of work is fairly ambiguous, it was nice to have a group to bounce things off of and flesh out ideas with.

Creativity to me

While probably not completely true, I feel as though my experience with creativity is somewhere between completely lacking and non-existent.  When I think of the word “creative,” I immediately think about it in terms of artistic ability.  I have never considered myself a creative person. As I become more self-aware, I realize both the importance of creativity and the breadth of creativity.  Creativity is thinking outside of the box and solving problems – whether it is analyzing financial statements, creating product design, or taking photographs.  I wish to develop a better understanding of where I stand in terms of my natural ability (strengths and weaknesses) and how I can improve my ability to think creatively.  That all being said - I have no idea where to start. 

The WSJ article claims creativity is a skill that can be acquired. As we discussed in class, I have always felt creativity was something you either had or you did not have.  I think to a certain extent that is still true, especially if creative thinking was not cultivated, experimented with and embraced from a young age.  I also think fear of failure plays a big role in my willingness to take risks and think outside the norms. 

Creativity in the Organization

Since graduating college, I have worked at small companies within the financial services industry.  Small companies tend to be much more entrepreneurial in spirit.  On the flipside, because resources are often spread more thinly, they must be careful about taking risks.  This can limit creativity.  At the time, I did not recognize that coming up with new operating procedures, policies, etc. was actually a creative process.  In retrospect, a lot of what we were doing was creative – creating something out of nothing. 

Company culture plays a big role in an employee’s willingness to take risks and be creative.  Culture is influenced by everything from the type of people hired to how a company socializes employees once they are on-boarded.  Levels of openness and risk-taking as well as how companies deal with mistakes all influence an employee’s willingness to share creative ideas.  If employees know they can step outside their comfort zones without being judged or punished, they are more likely to take creative risks.   It is essential for leaders to set the tone and cultivate creativity within an organization.

Creativity: Alone or together

I personally think I am more creative in a group setting.  I prefer to have different opinions, ideas, and suggestions and work together to come up with something more evolved than the first idea.  Group work alleviates the fear of failure that is so personal when it is your idea alone. 

It is also important to think about the drawbacks that group work can create.  As discussed in this article, http://www.nytimes.com/2012/01/15/opinion/sunday/the-rise-of-the-new-groupthink.html?pagewanted=all, there are merits to working and processing things alone.  It reduces peer pressure and mimicking that often occurs in group settings.  “Research strongly suggests that people are more creative when they enjoy privacy and freedom from interruption. And the most spectacularly creative people in many fields are often introverted, according to studies by the psychologists Mihaly Csikszentmihalyi and Gregory Feist. They’re extroverted enough to exchange and advance ideas, but see themselves as independent and individualistic. They’re not joiners by nature.”  I find this extremely interesting considering the emphasis placed on group work in academia and the professional world, as well as my personal preference for working in groups.  With a continued emphasis on group work, it will be interesting to see if and how opinion changes over the next decade. 

Creativity: Nature vs. Nurture

In the article How To Be Creative  Jonah Lehrer discusses the need to think about creativity differently, leverage diverse experiences, take risks, and understand the need to use different creative tools depending on the circumstances. The discussion about epiphanies versus sweat and failure was very interesting.  I agree that different types of problems require different creative approaches.  As mentioned in the article, the ability to identify when to use which type and more complicated, whether we actually have the right resources to solve the problem is a big issue.  How long do you work through problems before changing directions, acquiring more and different resources, or giving up?  One key is being passionate about your work.  To struggle and persevere, passion must be in the equation. 

 Dealer-Chic: Has the consumers perceptions and expectations on “deals” changed and where is this trend going?

Everyone loves a good deal yet some people are more willing to seek them out than others.  While I am not opposed to sales in general, I personally hate sales racks and very rarely seek out coupons. I dislike the search.  I automatically assume there is a reason it is on sale – ugly, out of season, damaged, and/or really ugly.

Am I an anomaly? Do most people enjoy the thrill of finding something great hidden under a disorganized chaotic mess of clothes?  The success of retailers like TJ Maxx, Ross’s, Nordstrom Rack, and outlet shopping malls seem to point to yes.  I am an anomaly. 

Either way, my preferences for “deals” are changing and I am fascinated by the reasons behind this change.  Social norms have changed.  It is “cool” to find deals and use them.  We share them with friends, family, and strangers via the web.  Why is getting a deal all the rage?  What need did this fill and how did this need come to exist?  How did technology, the financial crisis, and social media, among others, play a role?  Is it a need due to cost or a fundamental change in how we perceive the consumption experience to be?  How do expectations, options, and information play a role? For this paper, I want to understand the reasons behind this trend and understand how companies can leverage it in the future while maintaining brand reputation and profitability. 

While I am still trying to focus my exact topic, some questions I would like to research further include:

History:

Transition over last 10 years

How technology has played a role?

How did customer insights influence the transition?

            Demographics of users

            Technology being used

Reason behind the shift

Future State:

How will brands manage expectations and meet needs while staying competitive?

What type of role does social media play in influencing seeking and using deals?

How does a company create brand loyalty with these deals?

Are these sought out deals or reactionary/last minute decisions? Compulsive?

A few articles I’ve read discuss the use of flash sales – ''Selling a product at a discount everyday is not good for brands. If everything's 20% off everyday, then the right price is 20% off,'' said Hurley. ''Because it's limited time, because sometimes it sells out, it has the perception of scarcity.''

http://money.cnn.com/2011/05/26/smallbusiness/flash_sales_ideeli_hautelook_gilt/index.htm. 

A report from trendwatching.com discusses in detail the reasons why “dealer-chic” will grow substantially over the next few years.  These reasons include people wanting more for less, the medium and ease of accessing these deals, and access to information allowing consumers to know and want the best.

http://trendwatching.com/trends/dealerchic/

Research to continue....

This blog entry will discuss how a company could gain insights from potential customers through the customer’s use of social media.  To focus this discussion, I will look at a specific type of user, and, by understanding how this specific user interacts with social media, try to extrapolate how a company could tap in to important customer insights.

Get to know the social media user:

Ashley is a 30 year old female who spends extensive time on different social media sites.  The main reason she is at these sites is to consume information.  Ashley very rarely shares information.  Depending on the type of information she is CRAVING, she will visit either Facebook, Pinterest, LinkedIn, Foursquare, or Spotify. 

If Ash is looking to see what her friends and acquaintances did over the weekend, she will browse the Facebook newsfeed.  This is where most of her “social media” time is spent. If interested in a particular post or picture, she might click in to the person’s profile to get more information.  She rarely uses Facebook to consume branded content – it’s mostly about seeing what her friends are up to.  That being said, if a friend posts an article or likes a brand, she is probably more apt to click in and explore.  Ashley uses Facebook multiple times every day on all of her devices: iPhone, iPad, and laptop.

She LOVES Pinterest to pass the time and get fun ideas for recipes, outfits, and decorating.  She also gets to see what her friends like and what is trending on the overall post.  The “pins” provide inspiration and influence some of her clothing and decoration style.  Mostly, this is a place she can ASPIRE to make amazing food, buy adorable outfits, and plan the perfect wedding.  She browses Pinterest once a day usually from work or on her iPhone if bored.

LinkedIn is for making connections on the professional side.  Ashley uses it to stay connected with old co-workers and new business contacts.  She only really uses LinkedIn when she is looking for a job or thinking about making a career change.  It could be months in between logins.  She only uses LinkedIn on her laptop.

A new user of Foursquare, she really likes the idea of getting deals when she “checks in”, but doesn’t really like sharing her location with people, so keeps this option private.  She often forgets to use the application on her phone but is really trying to remember to take advantage of the deals.  When she sees her friends doing it, she is more likely to follow suit.  She only uses Foursquare on her iPhone.

Finally, Spotify, which is integrated into Facebook allows her to see what her friends are listening to and share playlists.  She loves to use this as a source for finding new music, using people with similar tastes in music as a resource. She only uses Spotify on her laptop a few times a week.

Gather insights from behavior?

This type of user is particularly hard to gather insights from because she is such a passive user (ie. doesn’t post, comment, like etc. with frequency).  Since she spends the majority of her social media time consuming information on Facebook, I would want to understand the demographics of her friends, and (provided she updates her profile) where she is from, what type of interests she has listed, music she enjoys (Spotify), her education and work experience, and her relationship status.  In relation to these items, it would be nice to track how these change over times.  Did she get married? Have a baby?  Get divorced? Move?  Buy a new house?  Get a promotion?  A company could use Pinterest to see what specific items she likes to understand what is important to her.  Is she only interested in clothes or does she post pictures of wedding dresses, houses, and cute babies?  Does she like motivational posts about losing weight or exercise?  LinkedIn could be used to understand what motivates a person professionally or to estimate income levels.  From this information, insights about her life, motivation, drive, among others, could be gathered.  One thing to be mindful of is who she portrays on social media versus who she really is. 

Key Words: Professional, family, risk averse, methodical, purposeful, proud

Persona
Gary, a 66 year old recent retiree, was born and raised in Montana, residing there nearly his entire life.  Between being a ski bum in Sun Valley, getting an MBA, and building his own financial services company, Gary has developed a wide range of interests.  A love for the outdoors combined with his desire to be his own boss, he settled in North West Montana in 1975– trading big city money for quality of life.

Think and Feel?
Gary is transitioning from working 60+hours a week for the last 40 years to less than 15 hours a week managing his personal investments.  In addition to being worried if he will have enough money to last through retirement, he is worried about how he will keep himself occupied and entertained without work.  After selling his business a year ago, he was supposed to fully retire however he continues to go into the office each day to "wrap up the loose ends." Besides his two daughters, work has been his life.  He plans to travel, ski, hunt, and read more.  He also plans to visit his daughters every chance he gets.  He has always lived a very conservative lifestyle, never caring about what type of car he drove or what brand of clothes he wore.  He values time with his family and experiences over material items.  He also worries greatly about his daughter’s happiness and success in life.  When his daughters are happy, he is happy.  When his daughters are stressed out or upset, he is stressed out and upset. 

See?
Gary sees a world quickly changing before his eyes.  While fascinated with all of the change, Gary has a hard time with it and thus has struggled keeping up with new technologies – computers, email, cell phones, iPods, digital camera etc.   He enjoys using his digital camera and iPod, but the pictures never seem to make it on to the computer and his iPod hasn't been updated in years. He has always been the last to adopt, just getting his first cell phone a few years ago.  He still struggles with checking his voice mail and has no idea how to text.  Frustrated and confused by it all, he feels much more comfortable doing most things the “old way” - ie. using a phone book rather than "googling" a phone number. The volatile economic environment he sees also makes him nervous, unsure what the future will hold and how it will affect his life.  Day to day, Gary lives a very regular life.  He gets up each morning, makes the coffee for his wife and himself, enjoys a piece of toast and goes in to the office.  He goes to the same place for lunch he's been going to for the last 20+ years.  Here, he sees old friends and business partners - although none of these relationships are particularly close. 

Say and Do?
Gary is very professional and conservative – one could describe him as an introvert.  He prefers eating in with his wife, enjoying a gin and tonic, salad, and steak, to going out to eat at a restaurant. He runs a three to four times a week and gets regular health evaluations.  Overall, a very healthy person – he does not smoke or drink in excess.  He is a very caring and loving father, checking in with his two daughters on a regular basis.  He has always expected a lot out of himself and has pushed his daughters to be the best they can be.  He has worked hard for what he has today and thinks people should do the same.  He prefers to let his wife pick out his clothing and shop for groceries, not out of laziness but apathy.  He dresses professionally for work and casual at home.  He prefers quality over quanity. 

Hear?
Gary reads the Wall Street Journal and the Economist and watches Fox News and MSNBC.  He takes all of this information with a grain of salt, preferring to do his own analysis.  While he listens to his friends and family, he prefers to make decisions only after a significant amount of personal research has been done.   

Pain Points?
Pain points for Gary revolve around finances and family.  While he has always lived a conservative life and has substantial savings, the economic environment still makes him nervous.  Seeing his clients nest eggs vanish over the last few years has increased his fears of something similar happening to him.  Always a planner, he has a number of back up plans and could downgrade his house if need be.  As for his family, he has always been concerned with his two daughters’ happiness and safety.  He would do anything for them, but as they grow up, he realizes that most things are out of his control, and all he can do is wish for the best.