Nordstrom Cuts Direct Mail – Oops!

Nordstrom® cut direct mail in favor of an all-digital marketing strategy. In their IQ 2019 earnings call, we learn what happened.

Erik B. Nordstrom, Co-President at Nordstrom, cut their sales and profit forecast following weaker than expected first quarter results. Why?

Nordstrom has a loyalty program with 12 million active customers contributing more than 60% of sales. Pushing an all-digital program, Nordstrom cancelled direct mail to these customers.

What happened? Nordstrom was surprised to find that their customers relied on receiving the mailing for staying informed and aware. Sales and profits fell.

It’s hard to understand how such a large company would cut such an important promotional channel. Have they missed the direct mail from such digital giants as Microsoft®, Google® and Amazon®?

Will they add direct mail back into their marketing program? We’ll have to wait and see, but I would expect they will.

Learn more about what modern, connected direct mail can do for you.

https://finance.yahoo.com/news/nordstrom-inc-jwn-q1-2019-032315072.html